0001060822-23-000102 | 10-Q | XBRL Viewer

DOCUMENT AND ENTITY INFORMATION - shares	3 Months Ended
DOCUMENT AND ENTITY INFORMATION - shares	Apr. 01, 2023	Apr. 21, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 01, 2023
Document Transition Report	false
Entity File Number	001-31829
Entity Registrant Name	CARTER’S, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3912933
Entity Address, Address Line One	Phipps Tower
Entity Address, Address Line Two	3438 Peachtree Road NE
Entity Address, Address Line Three	Suite 1800
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30326
City Area Code	678
Local Phone Number	791-1000
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	CRI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		37,688,407
Entity Central Index Key	0001060822
Current Fiscal Year End Date	--12-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Apr. 01, 2023

Dec. 31, 2022

Apr. 02, 2022

Current assets:

Cash and cash equivalents, end of period

$ 157,685

$ 211,748

$ 702,266

Accounts receivable, net

223,939

198,587

265,694

Finished goods inventories, net

613,921

744,573

679,729

Prepaid expenses and other current assets

^[1]

47,173

33,812

51,186

Total current assets

1,042,718

1,188,720

1,698,875

Property, plant and equipment, net

180,383

189,822

197,515

Operating lease assets

494,969

492,335

469,354

Tradenames, net

298,331

298,393

307,581

Goodwill

209,601

209,333

212,518

Customer relationships, net

29,801

30,564

33,151

Other assets

27,524

30,548

29,084

Total assets

2,283,327

2,439,715

2,948,078

Current liabilities:

Accounts payable

180,181

264,078

284,034

Current portion of long-term debt, net

495,743

Current operating lease liabilities

^[1]

139,350

142,432

133,620

Other current liabilities

91,104

122,439

111,078

Total current liabilities

410,635

528,949

1,024,475

Long-term debt, net

576,803

616,624

496,104

Deferred income taxes

46,090

41,235

48,450

Long-term operating lease liabilities

417,012

421,741

419,493

Other long-term liabilities

34,894

34,757

44,266

Total liabilities

1,485,434

1,643,306

2,032,788

Commitments and contingencies - Note 12

Preferred Stock, Shares Issued

Shareholders’ equity:

Preferred stock; par value $0.01 per share;100,000 shares authorized; none issued or outstanding at April 1, 2023, December 31, 2022, and April 2, 2022

$ 0

Common stock, voting; par value $0.01 per share; 150,000,000 shares authorized; 37,799,251, 37,692,132, and 40,555,922 shares issued and outstanding at April 1, 2023, December 31, 2022, and April 2, 2022, respectively

378

377

406

Additional paid-in capital

Accumulated other comprehensive loss

(30,412)

(34,338)

(26,115)

Retained earnings

827,927

830,370

940,999

Total shareholders’ equity

797,893

796,409

915,290

Total liabilities and shareholders’ equity

$ 2,283,327

$ 2,439,715

$ 2,948,078

[1]	Prepaid expense and other current assets and Current operating lease liabilities as of April 2, 2022 were revised to reflect the presentation for payments of rent before payment due date of $13.2 million.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022	Apr. 02, 2022
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 7,425	$ 7,189	$ 5,766
Inventory valuation reserves	18,076	19,268	11,307
Accumulated depreciation of property, plant, and equipment	$ 577,183	$ 569,528	$ 536,580
Preferred stock par value (in USD per share)	$ 0.01	$ 0.01	$ 0.01
Preferred stock shares authorized (in shares)	100,000	100,000	100,000
Preferred stock shares outstanding (in shares)	0	0	0
Common stock par value (in USD per share)	$ 0.01	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	150,000,000	150,000,000	150,000,000
Common stock shares issued (in shares)	37,799,251	37,692,132	40,555,922
Common stock shares outstanding (in shares)	37,799,251	37,692,132	40,555,922
Payments of rent before payment due date			$ 13,200

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Income Statement [Abstract]
Net sales	$ 695,880	$ 781,284
Cost of goods sold	386,413	426,242
Gross profit	309,467	355,042
Royalty income, net	6,519	7,474
Selling, general, and administrative expenses	259,632	259,893
Operating income	56,354	102,623
Interest expense	9,644	15,132
Interest income	(700)	(338)
Other income, net	(258)	(512)
Income before income taxes	47,668	88,341
Income tax provision	11,672	20,408
Net income	$ 35,996	$ 67,933
Basic net income per common share (in USD per share)	$ 0.95	$ 1.66
Diluted net income per common share (in USD per share)	0.95	1.66
Dividend declared and paid per common share (in USD per share)	$ 0.75	$ 0.75

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 35,996	$ 67,933
Other comprehensive income:
Foreign currency translation adjustments	3,926	2,782
Comprehensive income	$ 39,922	$ 70,715

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional paid-in capital	Accumulated other comprehensive loss	Retained earnings
Balance at beginning of period (in shares) at Jan. 01, 2022		41,148,870
Balance at beginning of period at Jan. 01, 2022	$ 950,186	$ 411	$ 0	$ (28,897)	$ 978,672
Exercise of stock options (in shares)		5,100
Exercise of stock options	222	$ 0	222	0	0
Withholdings from vesting of restricted stock (in shares)		(70,452)
Withholdings from vesting of restricted stock	(6,623)	$ 0	(6,623)	0	0
Restricted stock activity (in shares)		265,412
Restricted stock activity	0	$ 3	(3)	0	0
Stock-based compensation expense	5,859	$ 0	5,859	0	0
Repurchase of common stock (in shares)		(793,008)
Repurchase of common stock	(74,496)	$ (8)	545	0	(75,033)
Cash dividends declared and paid	(30,573)	0	0	0	(30,573)
Comprehensive income	70,715	$ 0	0	2,782
Net income	$ 67,933				67,933
Balance at end of period (in shares) at Apr. 02, 2022	40,555,922	40,555,922
Balance at end of period at Apr. 02, 2022	$ 915,290	$ 406	0	(26,115)	940,999
Balance at beginning of period (in shares) at Dec. 31, 2022	37,692,132	37,692,132
Balance at beginning of period at Dec. 31, 2022	$ 796,409	$ 377	0	(34,338)	830,370
Exercise of stock options (in shares)		1,400
Exercise of stock options	83	$ 0	83	0	0
Withholdings from vesting of restricted stock (in shares)		(61,423)
Withholdings from vesting of restricted stock	(4,776)	$ (1)	(4,404)	0	(371)
Restricted stock activity (in shares)		303,015
Restricted stock activity	0	$ 3	(3)	0	0
Stock-based compensation expense	4,343	$ 0	4,343	0	0
Repurchase of common stock (in shares)		(135,873)
Repurchase of common stock	(9,586)	$ (1)	0	0	(9,585)
Cash dividends declared and paid	(28,483)	0	0	0	(28,483)
Comprehensive income	39,922	0	0	3,926
Net income	35,996				35,996
Other	$ (19)	$ 0	(19)	0	0
Balance at end of period (in shares) at Apr. 01, 2023	37,799,251	37,799,251
Balance at end of period at Apr. 01, 2023	$ 797,893	$ 378	$ 0	$ (30,412)	$ 827,927

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Statement of Stockholders' Equity [Abstract]
Dividend declared and paid per common share (in USD per share)	$ 0.75	$ 0.75

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

3 Months Ended

Apr. 01, 2023

Apr. 02, 2022

Statement of Cash Flows [Abstract]

Net income

$ 35,996

$ 67,933

Adjustments to reconcile net income to net cash provided by ( used in) operating activities:

Depreciation of property, plant, and equipment

14,799

13,282

Amortization of intangible assets

939

932

Recoveries of excess and obsolete inventory, net

(1,256)

(3,109)

Gain on partial termination of corporate lease

(4,366)

Other asset impairments and loss on disposal of property, plant and equipment, net of recoveries

2,632

190

Amortization of debt issuance costs

393

787

Stock-based compensation expense

4,343

5,859

Unrealized foreign currency exchange gain, net

(240)

(189)

Provisions for (recoveries of) doubtful accounts receivable from customers

235

(1,513)

Unrealized (gain) loss on investments

(433)

935

Deferred income taxes

5,031

7,759

Effect of changes in operating assets and liabilities:

Accounts receivable

(24,944)

(32,484)

Finished goods inventories

134,147

(27,720)

Prepaid expenses and other assets

^[1],[2]

(12,678)

(42)

Accounts payable and other liabilities

^[1],[2]

(112,401)

(196,427)

Net cash provided by (used in) operating activities

42,197

(163,807)

Cash flows from investing activities:

Capital expenditures

(13,827)

(7,652)

Net cash used in investing activities

(13,827)

(7,652)

Cash flows from financing activities:

Payment of debt issuance costs

(3)

Payments on secured revolving credit facility

(40,000)

Repurchases of common stock

(9,586)

(74,496)

Dividends paid

(28,483)

(30,573)

Withholdings from vesting of restricted stock

(4,776)

(6,623)

Proceeds from exercises of stock options

222

Net cash used in financing activities

(82,762)

(111,473)

Net effect of exchange rate changes on cash and cash equivalents

329

904

Net decrease in cash and cash equivalents

(54,063)

(282,028)

Cash and cash equivalents, beginning of period

211,748

984,294

Cash and cash equivalents, end of period

$ 157,685

$ 702,266

[1]	Cash flows for the fiscal quarter April 2, 2022 were revised to reflect the presentation for payments of rent before payment due date of $13.2 million.
[2]	Operating lease assets obtained in exchange for operating lease liabilities were $38.7 million and $16.3 million for the fiscal quarter ended April 1, 2023 and the fiscal quarter ended April 2, 2022, respectively.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Statement of Cash Flows [Abstract]
Payments of rent before payment due date		$ 13,200
Operating lease assets obtained in exchange for operating lease liabilities	$ 38,700	$ 16,300

THE COMPANY	3 Months Ended
THE COMPANY	Apr. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
THE COMPANY	THE COMPANY Carter’s, Inc. and its wholly owned subsidiaries (collectively, the “Company”) design, source, and market branded childrenswear under the Carter’s, OshKosh B’gosh (or “OshKosh”), Skip Hop, Child of Mine, Just One You, Simple Joys, Little Planet, and other brands. The Company’s products are sourced through contractual arrangements with manufacturers worldwide for wholesale distribution to leading department stores, national chains, and specialty retailers domestically and internationally and for distribution to the Company’s retail stores and eCommerce sites that market its brand name merchandise and other licensed products manufactured by other companies. Our trademarks that are referred to in this Quarterly Report on Form 10-Q, including Carter’s, OshKosh B’gosh, OshKosh, Child of Mine, Just One You, Simple Joys, Little Planet, and other brands, many of which are registered in the United States and in over 100 other countries and territories, are each the property of one or more subsidiaries of Carter’s, Inc.

BASIS OF PRESENTATION	3 Months Ended
BASIS OF PRESENTATION	Apr. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to state fairly the consolidated financial condition, results of operations, comprehensive income, statement of shareholders’ equity, and cash flows of the Company for the interim periods presented. Except as otherwise disclosed, all such adjustments consist only of those of a normal recurring nature. Operating results for the fiscal quarter ended April 1, 2023 are not necessarily indicative of the results that may be expected for the current fiscal year ending December 30, 2023. The preparation of these unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The accompanying condensed consolidated balance sheet as of December 31, 2022 was derived from the Company’s audited consolidated financial statements included in its most recently filed Annual Report on Form 10-K. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC and the instructions to Form 10-Q. We have recast the consolidated statement of operations for the fiscal quarter ended April 2, 2022 to conform to our current presentation of combining Adverse purchase commitments within Cost of goods sold. Inventories Our inventories, which consist primarily of finished goods, are stated at the lower of cost (first-in, first-out basis for wholesale inventory and average cost for retail inventories) or net realizable value. Inventories at April 1, 2023 were $613.9 million compared to $679.7 million at April 2, 2022 and $744.6 million at December 31, 2022. The decrease of $65.8 million, or 9.7%, at April 1, 2023 compared to April 2, 2022 is primarily due to decreased in-transit inventory, partially offset by longer holding periods for inventory to be sold in future periods and increased product costs. Due to the seasonal nature of our operations, the inventories balance at April 1, 2023 is not comparable to the inventories balance at December 31, 2022. Adjustments to bring inventory to net realizable value as a result of obsolete, damaged, and excess inventory at April 1, 2023 increased 59.9% compared to April 2, 2022. These adjustments as a percentage of inventory have remained relatively stable due to the overall quality and planned use of the inventory. The liability for adverse inventory and fabric purchase commitments increased from $0.5 million as of April 2, 2022 to $5.0 million as of April 1, 2023, primarily due to lower estimated customer demand. Supply Chain Financing Program We facilitate a voluntary supply chain finance (“SCF”) program through participating financial institutions. This SCF program enables our suppliers to sell their receivables due from the Company to participating financial institutions at their discretion. As of April 1, 2023, the SCF program has a $70.0 million revolving capacity. We are not a party to the agreements between the participating financial institutions and the suppliers in connection with the SCF program. The range of payment terms we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the SCF program. No guarantees are provided by the Company or any of our subsidiaries under the SCF program. The amounts payable to the participating financial institution for suppliers who voluntarily participate in the SCF program are included in Accounts payable on our consolidated statement balance sheets. Amounts under the SCF program included in Account payable were $7.8 million, $16.5 million, and $20.7 million as of April 1, 2023, December 31, 2022, and April 2, 2022, respectively. Payments made under the SCF program, like payments of other accounts payable, are a reduction to our operating cash flow. Accounting Policies The accounting policies the Company follows are set forth in its most recently filed Annual Report on Form 10-K. There have been no material changes to these accounting policies. New accounting pronouncements adopted at the beginning of fiscal 2023 are noted below. Recent Accounting Pronouncements Supplier Finance Programs (ASU 2022-04) In September 2022, the FASB issued Accounting Standards Update No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations (“ASU 2022-04”). This new guidance is designed to enhance transparency around supplier finance programs by requiring new disclosures that would allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. ASU 2022-04 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the disclosure of the rollforward of annual activity, which is effective for fiscal years beginning after December 15, 2023. The effect of the adoption of ASU 2022-04 was not material to the Company’s consolidated financial statements.

REVENUE RECOGNITION

3 Months Ended

Apr. 01, 2023

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

The Company’s revenues are earned from contracts or arrangements with retail and wholesale customers and licensees. Contracts include written agreements, as well as arrangements that are implied by customary practices or law.

Disaggregation of Revenue

The Company sells its products directly to consumers (“direct-to-consumer”) and to other retail companies and partners that subsequently sell the products directly to their own retail customers (“wholesale channel”). The Company also earns royalties from certain of its licensees. Disaggregated revenues from these sources for the fiscal periods indicated were as follows:


	Fiscal quarter ended April 1, 2023
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	279,990	$	38,496	$	318,486
Direct-to-consumer	323,721		—		53,673		377,394

	$	323,721	$	279,990	$	92,169	$	695,880

Royalty income, net	$	2,078	$	3,558	$	883	$	6,519


	Fiscal quarter ended April 2, 2022
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	307,301	$	50,432	$	357,733
Direct-to-consumer	366,358		—		57,193		423,551

	$	366,358	$	307,301	$	107,625	$	781,284

Royalty income, net	$	3,240	$	3,430	$	804	$	7,474

Accounts Receivable from Customers and Licensees

The components of Accounts receivable, net, were as follows:


(dollars in thousands)	April 1, 2023		December 31, 2022		April 2, 2022
Trade receivables from wholesale customers, net	$	222,069	$	195,078	$	266,970
Royalties receivable	6,396		5,386		6,923
Other receivables(1)	13,351		14,571		9,282
Total receivables	$	241,816	$	215,035	$	283,175
Less: Wholesale accounts receivable reserves(2)(3)	(17,877)		(16,448)		(17,481)
Accounts receivable, net	$	223,939	$	198,587	$	265,694

(1)Includes tenant allowances, tax, payroll, gift card and other receivables.

(2)Includes allowance for chargebacks of $10.5 million, $9.3 million, and $11.7 million for the periods ended April 1, 2023, December 31, 2022, and April 2, 2022, respectively.

(3)Includes allowance for credit losses of $7.4 million, $7.2 million, and $5.8 million for the periods ended April 1, 2023, December 31, 2022, and April 2, 2022, respectively.

Contract Assets and Liabilities

The Company’s contract assets are not material.

Contract Liabilities

The Company recognizes a contract liability when it has received consideration from a customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts:


(dollars in thousands)	April 1, 2023		December 31, 2022		April 2, 2022
Contract liabilities - current:
Unredeemed gift cards	$	22,601	$	23,303	$	21,026
Unredeemed customer loyalty rewards	5,070		5,276		5,804
Carter’s credit card - upfront bonus(1)	714		714		714
Total contract liabilities - current(2)	$	28,385	$	29,293	$	27,544

Contract liabilities - non-current(3)	$	1,250	$	1,429	$	1,964
Total contract liabilities	$	29,635	$	30,722	$	29,508

(1)The Company received an upfront signing bonus from a third-party financial institution, which will be recognized as revenue on a straight-line basis over the term of the agreement. This amount reflects the current portion of this bonus to be recognized as revenue over the next twelve months.

(2)Included with Other current liabilities on the Company’s consolidated balance sheets.

(3)This amount reflects the non-current portion of the Carter’s credit card upfront bonus and is included within Other long-term liabilities on the Company’s consolidated balance sheets.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

ACUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Apr. 01, 2023

AOCI Attributable to Parent [Abstract]

ACUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of Accumulated other comprehensive loss consisted of the following:


(dollars in thousands)	April 1, 2023		December 31, 2022		April 2, 2022
Cumulative foreign currency translation adjustments	$	(24,900)	$	(28,826)	$	(18,520)
Pension and post-retirement obligations(*)	(5,512)		(5,512)		(7,595)
Total accumulated other comprehensive loss	$	(30,412)	$	(34,338)	$	(26,115)

(*)Net of income taxes of $1.7 million, $1.7 million, and $2.4 million, for the period ended April 1, 2023, December 31, 2022, and April 2, 2022, respectively.

During the first quarter of both fiscal 2023 and fiscal 2022, no amounts were reclassified from Accumulated other comprehensive loss to the statement of operations.

COMMON STOCK

3 Months Ended

Apr. 01, 2023

Equity [Abstract]

COMMON STOCK

Open Market Share Repurchases

The Company repurchased and retired shares in open market transactions in the following amounts for the fiscal periods indicated:


	Fiscal quarter ended
	April 1, 2023		April 2, 2022
Number of shares repurchased	135,873		793,008
Aggregate cost of shares repurchased (dollars in thousands)(*)`	$	9,586	$	74,496
Average price per share(*)	$	70.55	$	93.94

(*) The aggregate cost of share repurchases and average price paid per share excludes excise tax on share repurchases.

The total aggregate remaining capacity under outstanding repurchase authorizations as of April 1, 2023, was approximately $739.9 million, based on settled repurchase transactions. The share repurchase authorizations have no expiration date.

Future repurchases may occur from time to time in the open market, in privately negotiated transactions, or otherwise. The timing and amount of any repurchases will be at the discretion of the Company subject to restrictions under the Company’s revolving credit facility, market conditions, stock price, other investment priorities, and other factors.

Dividends

In the first quarter of both fiscal 2023 and fiscal 2022, the Board of Directors declared, and the Company paid cash dividends of $0.75 per common share. The Board of Directors will evaluate future dividend declarations based on a number of factors, including restrictions under the Company’s revolving credit facility, business conditions, the Company’s financial performance, and other considerations.

Provisions in the Company’s secured revolving credit facility could have the effect of restricting the Company’s ability to pay cash dividends on, or make future repurchases of, its common stock, as further described in Note 6, Long-term Debt, to the consolidated financial statements.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

LONG-TERM DEBT

3 Months Ended

Apr. 01, 2023

Debt Disclosure [Abstract]

LONG-TERM DEBT

Long-term debt consisted of the following:


(dollars in thousands)	April 1, 2023		December 31, 2022		April 2, 2022
$500 million 5.625% senior notes due March 15, 2027	$	500,000	$	500,000	$	500,000
Less unamortized issuance-related costs for senior notes	(3,197)		(3,376)		(3,896)
Senior notes, net	$	496,803	$	496,624	$	496,104
Secured revolving credit facility	80,000		120,000		—
Total long-term debt, net	$	576,803	$	616,624	$	496,104

Secured Revolving Credit Facility

As of April 1, 2023, the Company had $80.0 million outstanding borrowings under its secured revolving credit facility, exclusive of $4.4 million of outstanding letters of credit. As of April 1, 2023, there was approximately $765.6 million available for future borrowing. All outstanding borrowings under the Company’s secured revolving credit facility are classified as non-current liabilities on the Company’s consolidated balance sheets because of the contractual repayment terms under the credit facility.

The Company’s revolving credit facility provides for an aggregate credit line of $850 million which includes a $750 million U.S. dollar facility and a $100 million multicurrency facility. The credit facility matures in April 2027. The facility contains covenants that restrict the Company’s ability to, among other things: (i) create or incur liens, debt, guarantees or other investments, (ii) engage in mergers and consolidations, (iii) pay dividends or other distributions to, and redemptions and repurchases from, equity holders, (iv) prepay, redeem or repurchase subordinated or junior debt, (v) amend organizational documents, and (vi) engage in certain transactions with affiliates.

As of April 1, 2023, the interest rate margins applicable to the secured revolving credit facility were 1.125% for adjusted term Secured Overnight Financing Rate (“SOFR”) rate loans and 0.125% for base rate loans. As of April 1, 2023, U.S. dollar borrowings outstanding under the secured revolving credit facility accrued interest at an adjusted term SOFR rate plus the applicable margin, which resulted in an overall borrowing rate of 5.92%. There were no foreign currency borrowings outstanding on April 1, 2023. As of April 1, 2023, the Company was in compliance with its financial and other covenants under the secured revolving credit facility.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

STOCK-BASED COMPENSATION

3 Months Ended

Apr. 01, 2023

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

The Company recorded stock-based compensation cost as follows:


	Fiscal quarter ended
(dollars in thousands)	April 1, 2023		April 2, 2022
Stock options	$	—	$	166
Restricted stock:
Time-based awards	4,362		5,159
Performance-based awards	(19)		534

Total	$	4,343	$	5,859

The Company recognizes compensation cost ratably over the applicable performance periods based on the estimated probability of achievement of its performance targets at the end of each period. During the first quarter of fiscal 2023, the achievement of performance target estimates related to certain performance-based grants were revised resulting in a reversal of $0.4 million of previously recognized stock compensation expense.

During the first quarter of fiscal 2023, the Company’s Board of Directors approved the issuance of the following new awards to certain key employees under the Company’s existing stock-based compensation plan, subject to vesting: 254,086 shares of time-based restricted stock awards with an average grant-date fair value of $73.91 and 112,284 shares of performance-based restricted stock awards with an average grant-date fair value of $74.06.

Additionally, a total of 151,564 restricted stock awards (time-based) vested during the first quarter of fiscal 2023. There were no vestings of performance-based restricted stock in the first quarter of fiscal 2023.

INCOME TAXES	3 Months Ended
INCOME TAXES	Apr. 01, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES As of April 1, 2023, the Company had gross unrecognized income tax benefits of approximately $8.8 million, of which $6.3 million, if ultimately recognized, may affect the Company’s effective income tax rate in the periods settled. The Company has recorded tax positions for which the ultimate deductibility is more likely than not, but for which there is uncertainty about the timing of such deductions. Included in the reserves for unrecognized tax benefits at April 1, 2023 is approximately $2.4 million of reserves for which the statute of limitations is expected to expire within the next 12 months. If these tax benefits are ultimately recognized, such recognition, net of federal income taxes, may affect the annual effective income tax rate for fiscal 2023 along with the effective income tax rate in the quarter in which the benefits are recognized. The Company recognizes interest related to unrecognized tax benefits as a component of interest expense and recognizes penalties related to unrecognized income tax benefits as a component of income tax expense. Interest expense recorded on uncertain tax positions was not material for the first fiscal quarters ended April 1, 2023 and April 2, 2022. The Company had approximately $1.6 million, $1.5 million, and $2.0 million of interest accrued on uncertain tax positions as of April 1, 2023, December 31, 2022, and April 2, 2022, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

FAIR VALUE MEASUREMENTS	3 Months Ended
FAIR VALUE MEASUREMENTS	Apr. 01, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Investments The Company invests in marketable securities, principally equity-based mutual funds, to mitigate the risk associated with the investment return on employee deferrals of compensation. All of the marketable securities are included in Other assets on the accompanying condensed consolidated balance sheets, and their aggregate fair values were approximately $15.5 million, $15.1 million, and $16.6 million at April 1, 2023, December 31, 2022, and April 2, 2022, respectively. These investments are classified as Level 1 within the fair value hierarchy. The change in the aggregate fair values of marketable securities is due to the net activity of gains and losses and any contributions and distributions during the period. Gains on the investments in marketable securities were $0.4 million for the first fiscal quarter ended April 1, 2023. Losses on the investments in marketable securities were $0.9 million for the first fiscal quarter ended April 2, 2022. These amounts are included in Other (income) expense, net on the Company’s consolidated statement of operations. Borrowings As of April 1, 2023, the Company had $80.0 million outstanding borrowings under its secured revolving credit facility. The fair value of the Company’s senior notes at April 1, 2023, was approximately $489.0 million. The fair value of these senior notes with a notional value and carrying value (gross of debt issuance costs) of $500.0 million was estimated using a quoted price as provided in the secondary market, which considers the Company’s credit risk and market related conditions, and is therefore within Level 2 of the fair value hierarchy. Goodwill, Intangible, and Long-Lived Tangible Assets Some assets are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances. These assets can include goodwill, indefinite-lived intangible assets, and long-lived tangible assets that have been reduced to fair value when impaired. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. In the fourth quarter of fiscal 2022, impairment charges of $5.6 million, $3.0 million, and $0.4 million were recorded on our indefinite-lived Skip Hop tradename asset in the U.S. Wholesale, International, and U.S. Retail segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived Skip Hop tradename asset. The carrying value of the indefinite-lived Skip Hop tradename asset as of April 1, 2023 was $6.0 million.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

EARNINGS PER SHARE

3 Months Ended

Apr. 01, 2023

Earnings Per Share [Abstract]

EARNINGS PER SHARE

The following is a reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding:


	Fiscal quarter ended
	April 1, 2023		April 2, 2022
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding	37,104,527		40,270,895
Dilutive effect of equity awards	8,063		77,437
Diluted number of common and common equivalent shares outstanding	37,112,590		40,348,332

Earnings per share:
(dollars in thousands, except per share data)
Basic net income per common share:
Net income	$	35,996	$	67,933
Income allocated to participating securities	(576)		(921)
Net income available to common shareholders	$	35,420	$	67,012

Basic net income per common share	$	0.95	$	1.66

Diluted net income per common share:
Net income	$	35,996	$	67,933
Income allocated to participating securities	(576)		(920)
Net income available to common shareholders	$	35,420	$	67,013

Diluted net income per common share	$	0.95	$	1.66

Anti-dilutive awards excluded from diluted earnings per share computation(*)	505,070		172,987

(*)The volume of anti-dilutive awards is, in part, due to the related unamortized compensation costs.

OTHER CURRENT LIABILITIES

3 Months Ended

Apr. 01, 2023

Accrued Liabilities, Current [Abstract]

OTHER CURRENT LIABILITIES

Other current liabilities at the end of any comparable period, were as follows:


(dollars in thousands)	April 1, 2023		December 31, 2022		April 2, 2022
Unredeemed gift cards	$	22,601	$	23,303	$	21,026
Accrued employee benefits	12,604		16,356		11,544
Income taxes payable	12,132		17,484		16,049
Accrued taxes	10,904		10,445		11,962
Accrued salaries and wages	4,163		11,519		4,831
Accrued interest(*)	1,698		8,868		11,782
Other	27,002		34,464		33,884
Other current liabilities	$	91,104	$	122,439	$	111,078

(*)Decrease primarily related to the early extinguishment of our $500 million in aggregate principal amount of 5.500% senior notes due May 2025 in the second quarter of fiscal 2022, as well as the timing of interest payments.

COMMITMENT AND CONTINGENCIES	3 Months Ended
COMMITMENT AND CONTINGENCIES	Apr. 01, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENT AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Company is subject to various claims and pending or threatened lawsuits in the normal course of business. The Company is not currently a party to any legal proceedings that it believes would have a material adverse impact on its financial position, results of operations, or cash flows. The Company’s contractual obligations and commitments include obligations associated with leases, the secured revolving credit agreement, senior notes, and employee benefit plans.

SEGMENT INFORMATION

3 Months Ended

Apr. 01, 2023

Segment Reporting [Abstract]

SEGMENT INFORMATION

The table below presents certain information for our reportable segments and unallocated corporate expenses for the periods indicated:


	Fiscal quarter ended
(dollars in thousands)	April 1, 2023		% of consolidated net sales		April 2, 2022		% of consolidated net sales
Net sales:
U.S. Retail	$	323,721	46.5	%	$	366,358	46.9	%
U.S. Wholesale	279,990		40.3	%	307,301		39.3	%
International	92,169		13.2	%	107,625		13.8	%
Consolidated net sales	$	695,880	100.0	%	$	781,284	100.0	%

Operating income:			% of segment net sales				% of segment net sales
U.S. Retail	$	26,939	8.3	%	$	49,994	13.6	%
U.S. Wholesale	52,092		18.6	%	60,506		19.7	%
International	3,124		3.4	%	10,388		9.7	%
Corporate expenses(*)	(25,801)		n/a		(18,265)		n/a
Consolidated operating income	$	56,354	8.1	%	$	102,623	13.1	%

(*)Corporate expenses include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, office occupancy, information technology, certain legal fees, consulting fees, and audit fees.


(dollars in millions)	Fiscal quarter ended April 1, 2023
Charges:	U.S. Retail		U.S. Wholesale		International
Organizational restructuring(*)	$	(0.8)	$	(0.5)	$	(0.1)

(*)Relates to gains for organizational restructuring and related corporate office lease amendment actions. Additionally, the first fiscal quarter ended April 1, 2023 includes a corporate charge of $2.4 million related to organizational restructuring and related corporate office lease amendment actions.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

BASIS OF PRESENTATION (Policies)	3 Months Ended
BASIS OF PRESENTATION (Policies)	Apr. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Supplier Finance Programs (ASU 2022-04) In September 2022, the FASB issued Accounting Standards Update No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations (“ASU 2022-04”). This new guidance is designed to enhance transparency around supplier finance programs by requiring new disclosures that would allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. ASU 2022-04 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the disclosure of the rollforward of annual activity, which is effective for fiscal years beginning after December 15, 2023. The effect of the adoption of ASU 2022-04 was not material to the Company’s consolidated financial statements.

REVENUE RECOGNITION (Tables)

3 Months Ended

Apr. 01, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue


	Fiscal quarter ended April 1, 2023
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	279,990	$	38,496	$	318,486
Direct-to-consumer	323,721		—		53,673		377,394

	$	323,721	$	279,990	$	92,169	$	695,880

Royalty income, net	$	2,078	$	3,558	$	883	$	6,519


	Fiscal quarter ended April 2, 2022
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	307,301	$	50,432	$	357,733
Direct-to-consumer	366,358		—		57,193		423,551

	$	366,358	$	307,301	$	107,625	$	781,284

Royalty income, net	$	3,240	$	3,430	$	804	$	7,474

Contract with Customer, Contract Asset, Contract Liability, and Receivable

The components of Accounts receivable, net, were as follows:


(dollars in thousands)	April 1, 2023		December 31, 2022		April 2, 2022
Trade receivables from wholesale customers, net	$	222,069	$	195,078	$	266,970
Royalties receivable	6,396		5,386		6,923
Other receivables(1)	13,351		14,571		9,282
Total receivables	$	241,816	$	215,035	$	283,175
Less: Wholesale accounts receivable reserves(2)(3)	(17,877)		(16,448)		(17,481)
Accounts receivable, net	$	223,939	$	198,587	$	265,694

(1)Includes tenant allowances, tax, payroll, gift card and other receivables.

(2)Includes allowance for chargebacks of $10.5 million, $9.3 million, and $11.7 million for the periods ended April 1, 2023, December 31, 2022, and April 2, 2022, respectively.

(3)Includes allowance for credit losses of $7.4 million, $7.2 million, and $5.8 million for the periods ended April 1, 2023, December 31, 2022, and April 2, 2022, respectively.

Total contract liabilities consisted of the following amounts:


(dollars in thousands)	April 1, 2023		December 31, 2022		April 2, 2022
Contract liabilities - current:
Unredeemed gift cards	$	22,601	$	23,303	$	21,026
Unredeemed customer loyalty rewards	5,070		5,276		5,804
Carter’s credit card - upfront bonus(1)	714		714		714
Total contract liabilities - current(2)	$	28,385	$	29,293	$	27,544

Contract liabilities - non-current(3)	$	1,250	$	1,429	$	1,964
Total contract liabilities	$	29,635	$	30,722	$	29,508

(2)Included with Other current liabilities on the Company’s consolidated balance sheets.

(3)This amount reflects the non-current portion of the Carter’s credit card upfront bonus and is included within Other long-term liabilities on the Company’s consolidated balance sheets.

ACUMULATED OTHER COMPREHENSIVE LOSS (Tables)

3 Months Ended

Apr. 01, 2023

AOCI Attributable to Parent [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The components of Accumulated other comprehensive loss consisted of the following:


(dollars in thousands)	April 1, 2023		December 31, 2022		April 2, 2022
Cumulative foreign currency translation adjustments	$	(24,900)	$	(28,826)	$	(18,520)
Pension and post-retirement obligations(*)	(5,512)		(5,512)		(7,595)
Total accumulated other comprehensive loss	$	(30,412)	$	(34,338)	$	(26,115)

(*)Net of income taxes of $1.7 million, $1.7 million, and $2.4 million, for the period ended April 1, 2023, December 31, 2022, and April 2, 2022, respectively.

COMMON STOCK (Tables)

3 Months Ended

Apr. 01, 2023

Equity [Abstract]

Open Market Repurchases

The Company repurchased and retired shares in open market transactions in the following amounts for the fiscal periods indicated:


	Fiscal quarter ended
	April 1, 2023		April 2, 2022
Number of shares repurchased	135,873		793,008
Aggregate cost of shares repurchased (dollars in thousands)(*)`	$	9,586	$	74,496
Average price per share(*)	$	70.55	$	93.94

(*) The aggregate cost of share repurchases and average price paid per share excludes excise tax on share repurchases.

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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+ Details

LONG-TERM DEBT (Tables)

3 Months Ended

Apr. 01, 2023

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt consisted of the following:


(dollars in thousands)	April 1, 2023		December 31, 2022		April 2, 2022
$500 million 5.625% senior notes due March 15, 2027	$	500,000	$	500,000	$	500,000
Less unamortized issuance-related costs for senior notes	(3,197)		(3,376)		(3,896)
Senior notes, net	$	496,803	$	496,624	$	496,104
Secured revolving credit facility	80,000		120,000		—
Total long-term debt, net	$	576,803	$	616,624	$	496,104

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Apr. 01, 2023

Share-based Payment Arrangement [Abstract]

Summary of Recorded Stock-based Compensation Cost

The Company recorded stock-based compensation cost as follows:


	Fiscal quarter ended
(dollars in thousands)	April 1, 2023		April 2, 2022
Stock options	$	—	$	166
Restricted stock:
Time-based awards	4,362		5,159
Performance-based awards	(19)		534

Total	$	4,343	$	5,859

EARNINGS PER SHARE (Tables)

3 Months Ended

Apr. 01, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding:


	Fiscal quarter ended
	April 1, 2023		April 2, 2022
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding	37,104,527		40,270,895
Dilutive effect of equity awards	8,063		77,437
Diluted number of common and common equivalent shares outstanding	37,112,590		40,348,332

Earnings per share:
(dollars in thousands, except per share data)
Basic net income per common share:
Net income	$	35,996	$	67,933
Income allocated to participating securities	(576)		(921)
Net income available to common shareholders	$	35,420	$	67,012

Basic net income per common share	$	0.95	$	1.66

Diluted net income per common share:
Net income	$	35,996	$	67,933
Income allocated to participating securities	(576)		(920)
Net income available to common shareholders	$	35,420	$	67,013

Diluted net income per common share	$	0.95	$	1.66

Anti-dilutive awards excluded from diluted earnings per share computation(*)	505,070		172,987

(*)The volume of anti-dilutive awards is, in part, due to the related unamortized compensation costs.

OTHER CURRENT LIABILITIES (Tables)

3 Months Ended

Apr. 01, 2023

Accrued Liabilities, Current [Abstract]

Schedule of Other Current Liabilities

Other current liabilities at the end of any comparable period, were as follows:


(dollars in thousands)	April 1, 2023		December 31, 2022		April 2, 2022
Unredeemed gift cards	$	22,601	$	23,303	$	21,026
Accrued employee benefits	12,604		16,356		11,544
Income taxes payable	12,132		17,484		16,049
Accrued taxes	10,904		10,445		11,962
Accrued salaries and wages	4,163		11,519		4,831
Accrued interest(*)	1,698		8,868		11,782
Other	27,002		34,464		33,884
Other current liabilities	$	91,104	$	122,439	$	111,078

SEGMENT INFORMATION (Tables)

3 Months Ended

Apr. 01, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The table below presents certain information for our reportable segments and unallocated corporate expenses for the periods indicated:


	Fiscal quarter ended
(dollars in thousands)	April 1, 2023		% of consolidated net sales		April 2, 2022		% of consolidated net sales
Net sales:
U.S. Retail	$	323,721	46.5	%	$	366,358	46.9	%
U.S. Wholesale	279,990		40.3	%	307,301		39.3	%
International	92,169		13.2	%	107,625		13.8	%
Consolidated net sales	$	695,880	100.0	%	$	781,284	100.0	%

Operating income:			% of segment net sales				% of segment net sales
U.S. Retail	$	26,939	8.3	%	$	49,994	13.6	%
U.S. Wholesale	52,092		18.6	%	60,506		19.7	%
International	3,124		3.4	%	10,388		9.7	%
Corporate expenses(*)	(25,801)		n/a		(18,265)		n/a
Consolidated operating income	$	56,354	8.1	%	$	102,623	13.1	%


(dollars in millions)	Fiscal quarter ended April 1, 2023
Charges:	U.S. Retail		U.S. Wholesale		International
Organizational restructuring(*)	$	(0.8)	$	(0.5)	$	(0.1)

THE COMPANY (Details)	Apr. 01, 2023 Countries_and_Territories
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Trademarks countries and territories	100

BASIS OF PRESENTATION - Inventories (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022	Apr. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods inventories, net	$ 613,921	$ 744,573	$ 679,729
Amount of change in Inventory	$ (65,800)
Percentage change in Inventory	(9.70%)
Percentage Change In Inventory Reserves	59.90%
Liability for adverse inventory and fabric purchase commitments	$ 5,000		$ 500

BASIS OF PRESENTATION - Supply Chain Financing Program (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022	Apr. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Supply chain finance revolving capacity	$ 70,000
Accounts payable	180,181	$ 264,078	$ 284,034
SCF Member [Member]
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Accounts payable	$ 7,800	$ 16,500	$ 20,700

REVENUE RECOGNITION - Schedule of Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 695,880	$ 781,284
Royalty income, net	6,519	7,474
Total receivables	241,816	283,175	$ 215,035
Less: Wholesale accounts receivable reserves	(7,425)	(5,766)	(7,189)
Accounts receivable, net	223,939	265,694	198,587
Trade receivables from wholesale customers, net
Disaggregation of Revenue [Line Items]
Total receivables	222,069	266,970	195,078
Royalties receivable
Disaggregation of Revenue [Line Items]
Total receivables	6,396	6,923	5,386
Other receivables
Disaggregation of Revenue [Line Items]
Total receivables	13,351	9,282	14,571
SEC Schedule, 12-09, Allowance, Credit Loss
Disaggregation of Revenue [Line Items]
Less: Wholesale accounts receivable reserves	(17,877)	(17,481)	$ (16,448)
U.S. Retail
Disaggregation of Revenue [Line Items]
Net sales	323,721	366,358
U.S. Wholesale
Disaggregation of Revenue [Line Items]
Net sales	279,990	307,301
International
Disaggregation of Revenue [Line Items]
Net sales	92,169	107,625
Wholesale channel
Disaggregation of Revenue [Line Items]
Net sales	318,486	357,733
Wholesale channel \| U.S. Retail
Disaggregation of Revenue [Line Items]
Net sales	0	0
Wholesale channel \| U.S. Wholesale
Disaggregation of Revenue [Line Items]
Net sales	279,990	307,301
Wholesale channel \| International
Disaggregation of Revenue [Line Items]
Net sales	38,496	50,432
Direct-to-consumer
Disaggregation of Revenue [Line Items]
Net sales	377,394	423,551
Direct-to-consumer \| U.S. Retail
Disaggregation of Revenue [Line Items]
Net sales	323,721	366,358
Direct-to-consumer \| U.S. Wholesale
Disaggregation of Revenue [Line Items]
Net sales	0	0
Direct-to-consumer \| International
Disaggregation of Revenue [Line Items]
Net sales	53,673	57,193
Licensing Agreements
Disaggregation of Revenue [Line Items]
Royalty income, net	6,519	7,474
Licensing Agreements \| U.S. Retail
Disaggregation of Revenue [Line Items]
Royalty income, net	2,078	3,240
Licensing Agreements \| U.S. Wholesale
Disaggregation of Revenue [Line Items]
Royalty income, net	3,558	3,430
Licensing Agreements \| International
Disaggregation of Revenue [Line Items]
Royalty income, net	$ 883	$ 804

REVENUE RECOGNITION - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022	Apr. 02, 2022
Revenue from Contract with Customer [Abstract]
Unredeemed gift cards	$ 22,601	$ 23,303	$ 21,026
Unredeemed customer loyalty rewards	5,070	5,276	5,804
Carter's credit card - upfront bonus	714	714	714
Total contract liabilities - current	28,385	29,293	27,544
Contract liabilities - non-current	1,250	1,429	1,964
Total contract liabilities	29,635	30,722	29,508
Allowance For Chargebacks	10,500	9,300	11,700
Allowance for credit losses	$ 7,425	$ 7,189	$ 5,766

ACUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 01, 2023	Apr. 02, 2022	Dec. 31, 2022
AOCI Attributable to Parent [Abstract]
Cumulative foreign currency translation adjustments	$ (24,900)	$ (18,520)	$ (28,826)
Pension and post-retirement obligations	(5,512)	(7,595)	(5,512)
Accumulated other comprehensive loss	(30,412)	(26,115)	(34,338)
Net income taxes attributable to pension plan	$ 1,700	$ 2,400	$ 1,700

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

COMMON STOCK - Schedule of Shares (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Equity [Abstract]
Number of share repurchased (in shares)	135,873	793,008
Aggregate cost of shares repurchased	$ 9,586	$ 74,496
Average price per share (in USD per share)	$ 70.55	$ 93.94
Aggregate remaining capacity under repurchase authorization	$ 739,900

COMMON STOCK - Dividends (Details) - $ / shares	3 Months Ended
COMMON STOCK - Dividends (Details) - $ / shares	Apr. 01, 2023	Apr. 02, 2022
Equity [Abstract]
Dividend declared and paid per common share (in USD per share)	$ 0.75	$ 0.75

LONG-TERM DEBT - Schedule of Long-term Debt (Details) - USD ($)	Apr. 01, 2023	Dec. 31, 2022	Apr. 02, 2022
Debt Instrument [Line Items]
Less unamortized issuance-related costs for senior notes	$ (3,197,000)	$ (3,376,000)	$ (3,896,000)
Long-term debt, net	576,803,000	616,624,000	496,104,000
Total Senior Notes
Debt Instrument [Line Items]
Notional and carrying value of senior notes	500,000,000
Senior notes, net	496,803,000	496,624,000	496,104,000
Revolving Credit Facility
Debt Instrument [Line Items]
Secured revolving credit facility	80,000,000	120,000,000	0
5.625% senior notes due 2027 \| Senior Notes
Debt Instrument [Line Items]
Notional and carrying value of senior notes	$ 500,000,000	$ 500,000,000	$ 500,000,000
Interest rate	5.625%

LONG-TERM DEBT - Narrative (Details) - USD ($)	Apr. 01, 2023	Dec. 31, 2022	Apr. 02, 2022
Debt Instrument [Line Items]
Outstanding letters of credit	$ 4,400,000
Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Interest rate	1.125%
Secured Overnight Financing Rate (SOFR) \| United States Dollar Credit Facility - Amendment No.4
Debt Instrument [Line Items]
Borrowing rate	5.92%
Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding borrowings	$ 80,000,000	$ 120,000,000	$ 0
Remaining borrowing capacity	765,600,000
Revolving credit facility borrowing capacity	850,000,000
Revolving Credit Facility \| United States Dollar Credit Facility
Debt Instrument [Line Items]
Revolving credit facility borrowing capacity	750,000,000
Revolving Credit Facility \| Multicurrency Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility borrowing capacity	$ 100,000,000
Revolving Credit Facility \| Base Rate
Debt Instrument [Line Items]
Interest rate	0.125%

STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Performance-based awards
Stock-based compensation expense	$ 4,343	$ 5,859
Stock options
Performance-based awards
Stock-based compensation expense	0	166
Time-based awards
Performance-based awards
Stock-based compensation expense	$ 4,362	5,159
Time-based awards issued (in shares)	254,086
Average grant-date fair value of shares issued (in USD per share)	$ 73.91
Time-based awards vested (in shares)	151,564
Performance-based awards
Performance-based awards
Stock-based compensation expense	$ (19)	$ 534
Reversal of previously recognized stock compensation expense	$ 400
Time-based awards issued (in shares)	112,284
Average grant-date fair value of shares issued (in USD per share)	$ 74.06
Time-based awards vested (in shares)	0

INCOME TAXES (Details) - USD ($) $ in Millions	Apr. 01, 2023	Dec. 31, 2022	Apr. 02, 2022
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 8.8
Unrecognized tax benefits, impact on effective tax rate	6.3
Reserves that statue of limitations is expected to expire	2.4
Interest accrued on uncertain tax positions	$ 1.6	$ 1.5	$ 2.0

FAIR VALUE MEASUREMENTS - Investments (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (losses) on investments	$ 0.4	$ (0.9)
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 15.5	$ 16.6	$ 15.1

FAIR VALUE MEASUREMENTS - Borrowings (Details) - USD ($)	Apr. 01, 2023	Dec. 31, 2022	Apr. 02, 2022
Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding borrowings	$ 80,000,000	$ 120,000,000	$ 0
Total Senior Notes
Debt Instrument [Line Items]
Fair value of senior notes	489,000,000
Notional and carrying value of senior notes	$ 500,000,000

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

FAIR VALUE MEASUREMENTS - Goodwill, Intangible, and Long-Lived Tangible Assets (Details) - Skip Hop Trade Name - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2022	Apr. 01, 2023
Goodwill and Other Intangible Assets [Line Items]
Carrying value of indefinite-lived intangible assets		$ 6.0
U.S. Wholesale
Goodwill and Other Intangible Assets [Line Items]
Intangible asset impairment	$ 5.6
International
Goodwill and Other Intangible Assets [Line Items]
Intangible asset impairment	3.0
U.S. Retail
Goodwill and Other Intangible Assets [Line Items]
Intangible asset impairment	$ 0.4

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding (in shares)	37,104,527	40,270,895
Dilutive effect of equity awards (in shares)	8,063	77,437
Diluted number of common and common equivalent shares outstanding (in shares)	37,112,590	40,348,332
Earnings per share:
Net income	$ 35,996	$ 67,933
Income allocated to participating securities	(576)	(921)
Net income available to common shareholders	$ 35,420	$ 67,012
Basic net income per common share (in USD per share)	$ 0.95	$ 1.66
Diluted net income per common share:
Net income	$ 35,996	$ 67,933
Income allocated to participating securities	(576)	(920)
Net income available to common shareholders	$ 35,420	$ 67,013
Diluted net income per common share (in USD per share)	$ 0.95	$ 1.66
Anti-dilutive awards excluded from dilutive earnings per share computation (in shares)	505,070	172,987

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022	Apr. 04, 2022	Apr. 02, 2022
Debt Instrument [Line Items]
Unredeemed gift cards	$ 22,601	$ 23,303		$ 21,026
Accrued employee benefits	12,604	16,356		11,544
Income taxes payable	12,132	17,484		16,049
Accrued taxes	10,904	10,445		11,962
Accrued salaries and wages	4,163	11,519		4,831
Accrued interest	1,698	8,868		11,782
Other	27,002	34,464		33,884
Other current liabilities	$ 91,104	$ 122,439		$ 111,078
Senior Notes \| 5.500% Senior Notes due 2025
Debt Instrument [Line Items]
Aggregate principal amount of senior notes			$ 500,000
Interest rate			550.00%

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Apr. 02, 2022
Segment Reporting Information [Line Items]
Net sales	$ 695,880	$ 781,284
% of consolidated net sales	100.00%	100.00%
Operating income	$ 56,354	$ 102,623
Corporate expenses	$ (25,801)	$ (18,265)
% of segment net sales	8.10%	13.10%
U.S. Retail
Segment Reporting Information [Line Items]
Net sales	$ 323,721	$ 366,358
U.S. Wholesale
Segment Reporting Information [Line Items]
Net sales	279,990	307,301
Operating Segments
Segment Reporting Information [Line Items]
Organizational restructuring	2,400
Operating Segments \| U.S. Retail
Segment Reporting Information [Line Items]
Net sales	$ 323,721	$ 366,358
% of consolidated net sales	46.50%	46.90%
Operating income	$ 26,939	$ 49,994
% of segment net sales	8.30%	13.60%
Gain on Organizational Restructuring	$ (800)
Operating Segments \| U.S. Wholesale
Segment Reporting Information [Line Items]
Net sales	$ 279,990	$ 307,301
% of consolidated net sales	40.30%	39.30%
Operating income	$ 52,092	$ 60,506
% of segment net sales	18.60%	19.70%
Gain on Organizational Restructuring	$ (500)
Operating Segments \| International
Segment Reporting Information [Line Items]
Net sales	$ 92,169	$ 107,625
% of consolidated net sales	13.20%	13.80%
Operating income	$ 3,124	$ 10,388
% of segment net sales	3.40%	9.70%
Gain on Organizational Restructuring	$ (100)