Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 29, 2019 | Jul. 19, 2019 | |
Document Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3912933 | |
Trading Symbol | CRI | |
Entity Registrant Name | CARTERS INC | |
Entity Address, Address Line One | Phipps Tower | |
Entity Address, Address Line Two | 3438 Peachtree Road NE, Suite 1800 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30326 | |
City Area Code | 678 | |
Local Phone Number | 791-1000 | |
Entity Current Reporting Status | Yes | |
Entity Central Index Key | 0001060822 | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Jun. 29, 2019 | |
Entity File Number | 001-31829 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 44,739,223 | |
Entity Interactive Data Current | Yes | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | Jun. 30, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 118,458 | $ 170,077 | $ 183,202 |
Accounts receivable, net | 168,176 | 258,259 | 152,517 |
Finished goods inventories, net | 697,559 | 574,226 | 663,263 |
Prepaid expenses and other current assets | 56,813 | 40,396 | 51,955 |
Total current assets | 1,041,006 | 1,042,958 | 1,050,937 |
Property, plant, and equipment, net of accumulated depreciation of $486,319, $448,898, and $430,834, respectively | 333,600 | 350,437 | 364,223 |
Operating lease assets | 705,631 | 0 | 0 |
Tradenames, net | 365,567 | 365,692 | 365,817 |
Goodwill | 228,860 | 227,101 | 228,555 |
Customer relationships, net | 42,825 | 44,511 | 46,222 |
Other assets | 29,671 | 28,159 | 27,775 |
Total assets | 2,747,160 | 2,058,858 | 2,083,529 |
Current liabilities: | |||
Accounts payable | 232,869 | 199,076 | 216,931 |
Current operating lease liabilities | 154,719 | 0 | 0 |
Other current liabilities | 85,483 | 128,345 | 95,685 |
Total current liabilities | 473,071 | 327,421 | 312,616 |
Long-term debt | 604,377 | 593,264 | 682,778 |
Deferred Income Taxes | 91,190 | 87,347 | 85,755 |
Long-term operating lease liabilities | 688,650 | 0 | 0 |
Other long-term liabilities | 61,975 | 181,393 | 192,051 |
Total liabilities | 1,919,263 | 1,189,425 | 1,273,200 |
Commitments and contingencies - Note 14 | |||
Stockholders' equity: | |||
Preferred stock; par value $.01 per share; 100,000 shares authorized; none issued or outstanding at June 29, 2019, December 29, 2018, and June 30, 2018 | 0 | 0 | 0 |
Common stock, voting; par value $.01 per share; 150,000,000 shares authorized; 44,868,563, 45,629,014 and 46,565,443 shares issued and outstanding at June 29, 2019, December 29, 2018 and June 30, 2018, respectively | 449 | 456 | 466 |
Accumulated other comprehensive loss | (36,561) | (40,839) | (35,532) |
Retained earnings | 864,009 | 909,816 | 845,395 |
Total stockholders' equity | 827,897 | 869,433 | 810,329 |
Total liabilities and stockholders' equity | $ 2,747,160 | $ 2,058,858 | $ 2,083,529 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | |||
Accumulated depreciation | $ 486,319 | $ 448,898 | $ 430,834 |
Preferred stock; par value (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock; shares authorized | 100,000 | 100,000 | 100,000 |
Preferred stock; issued | 0 | 0 | 0 |
Preferred stock; outstanding | 0 | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, voting; shares authorized | 150,000,000 | 150,000,000 | 150,000,000 |
Common stock voting; shares issued | 44,868,563 | 45,629,014 | 46,565,443 |
Common stock voting; shares outstanding | 44,868,563 | 45,629,014 | 46,565,443 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Net sales | $ 734,384 | $ 696,197 | $ 1,475,442 | $ 1,451,983 |
Cost of goods sold | 411,388 | 386,239 | 836,579 | 809,548 |
Gross profit | 322,996 | 309,958 | 638,863 | 642,435 |
Selling, general, and administrative expenses | 268,155 | 263,343 | 531,807 | 543,505 |
Operating income | 64,476 | 56,970 | 125,235 | 117,279 |
Interest expense | 9,072 | 7,937 | 18,701 | 15,922 |
Interest income | (509) | (225) | (737) | (391) |
Other expense (income), net | 202 | 975 | (9) | 593 |
Loss on extinguishment of debt | 0 | 0 | 7,823 | 0 |
Income before income taxes | 55,711 | 48,283 | 99,457 | 101,155 |
Provision for income taxes | 11,774 | 11,015 | 21,054 | 21,418 |
Net income | $ 43,937 | $ 37,268 | $ 78,403 | $ 79,737 |
Basic net income per common share (USD per share) | $ 0.97 | $ 0.80 | $ 1.73 | $ 1.70 |
Diluted net income per common share (USD per share) | 0.97 | 0.79 | 1.72 | 1.68 |
Dividend declared per common share (USD per share) | $ 0.50 | $ 0.45 | $ 1 | $ 0.90 |
Royalty [Member] | ||||
Net sales | $ 9,635 | $ 10,355 | $ 18,179 | $ 18,349 |
Royalty income, net | $ 9,635 | $ 10,355 | $ 18,179 | $ 18,349 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 43,937 | $ 37,268 | $ 78,403 | $ 79,737 | ||
Other comprehensive income: | ||||||
Foreign currency translation adjustments | 2,867 | (4,677) | 5,778 | (6,439) | ||
Comprehensive income | $ 46,804 | $ 37,377 | $ 32,591 | $ 40,707 | $ 84,181 | $ 73,298 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] | |
Balance at Dec. 30, 2017 | $ 857,416 | $ 472 | $ 0 | $ (29,093) | $ 886,037 | |
Balance (in shares) at Dec. 30, 2017 | 47,178,346 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options | 4,769 | $ 1 | 4,768 | 0 | 0 | |
Exercise of stock options (in shares) | 95,006 | |||||
Withholdings from vesting of restricted stock | (6,583) | $ (1) | (6,582) | 0 | 0 | |
Withholdings from vesting of restricted stock (in shares) | (55,164) | |||||
Restricted stock activity | 0 | $ 1 | (1) | 0 | 0 | |
Restricted stock activity (in shares) | 116,701 | |||||
Stock-based compensation expense | 4,944 | $ 0 | 4,944 | 0 | 0 | |
Repurchase of common stock | (25,195) | $ (2) | (3,129) | 0 | (22,064) | |
Repurchase of common stock (in shares) | (221,313) | |||||
Cash dividends declared and paid | (21,244) | $ 0 | 0 | 0 | (21,244) | |
Comprehensive income | 40,707 | 0 | 0 | (1,762) | 42,469 | |
Balance at Mar. 31, 2018 | 854,814 | $ 471 | 0 | (30,855) | 885,198 | |
Balance (in shares) at Mar. 31, 2018 | 47,113,576 | |||||
Balance at Dec. 30, 2017 | 857,416 | $ 472 | 0 | (29,093) | 886,037 | |
Balance (in shares) at Dec. 30, 2017 | 47,178,346 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | 73,298 | |||||
Balance at Jun. 30, 2018 | $ 810,329 | $ 466 | 0 | (35,532) | 845,395 | |
Balance (in shares) at Jun. 30, 2018 | 46,565,443 | 46,565,443 | ||||
Balance at Mar. 31, 2018 | $ 854,814 | $ 471 | 0 | (30,855) | 885,198 | |
Balance (in shares) at Mar. 31, 2018 | 47,113,576 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options | 2,607 | $ 1 | 2,606 | 0 | 0 | |
Exercise of stock options (in shares) | 47,081 | |||||
Withholdings from vesting of restricted stock | (84) | $ 0 | (84) | 0 | 0 | |
Withholdings from vesting of restricted stock (in shares) | (769) | |||||
Restricted stock activity | 0 | $ 0 | 0 | 0 | 0 | |
Restricted stock activity (in shares) | 4,869 | |||||
Stock-based compensation expense | 5,322 | $ 0 | 5,322 | 0 | 0 | |
Repurchase of common stock | (63,898) | $ (6) | (7,844) | 0 | (56,048) | |
Repurchase of common stock (in shares) | (599,314) | |||||
Cash dividends declared and paid | (21,023) | $ 0 | 0 | 0 | (21,023) | |
Comprehensive income | 32,591 | 0 | 0 | (4,677) | 37,268 | |
Balance at Jun. 30, 2018 | $ 810,329 | $ 466 | 0 | (35,532) | 845,395 | |
Balance (in shares) at Jun. 30, 2018 | 46,565,443 | 46,565,443 | ||||
Balance at Dec. 29, 2018 | $ 869,433 | $ 456 | 0 | (40,839) | 909,816 | |
Balance (in shares) at Dec. 29, 2018 | 45,629,014 | 45,629,014 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options | $ 4,780 | $ 1 | 4,779 | 0 | 0 | |
Exercise of stock options (in shares) | 72,192 | |||||
Withholdings from vesting of restricted stock | (4,077) | $ 0 | (4,077) | 0 | 0 | |
Withholdings from vesting of restricted stock (in shares) | (43,844) | |||||
Restricted stock activity | 0 | $ 2 | (2) | 0 | 0 | |
Restricted stock activity (in shares) | 182,722 | |||||
Stock-based compensation expense | 4,613 | $ 0 | 4,613 | 0 | 0 | |
Repurchase of common stock | (39,966) | $ (5) | (5,313) | 0 | (34,648) | |
Repurchase of common stock (in shares) | (460,257) | |||||
Cash dividends declared and paid | (22,756) | $ 0 | 0 | 0 | (22,756) | |
Comprehensive income | 37,377 | 0 | 0 | 2,911 | 34,466 | |
Reclassification of tax effects | [1] | 0 | (1,500) | 1,500 | ||
Balance at Mar. 30, 2019 | 849,404 | $ 454 | 0 | (39,428) | 888,378 | |
Balance (in shares) at Mar. 30, 2019 | 45,379,827 | |||||
Balance at Dec. 29, 2018 | $ 869,433 | $ 456 | 0 | (40,839) | 909,816 | |
Balance (in shares) at Dec. 29, 2018 | 45,629,014 | 45,629,014 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | $ 84,181 | |||||
Balance at Jun. 29, 2019 | $ 827,897 | $ 449 | 0 | (36,561) | 864,009 | |
Balance (in shares) at Jun. 29, 2019 | 44,868,563 | 44,868,563 | ||||
Balance at Mar. 30, 2019 | $ 849,404 | $ 454 | 0 | (39,428) | 888,378 | |
Balance (in shares) at Mar. 30, 2019 | 45,379,827 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options | 1,566 | $ 0 | 1,566 | 0 | 0 | |
Exercise of stock options (in shares) | 26,264 | |||||
Withholdings from vesting of restricted stock | (49) | $ 0 | (49) | 0 | 0 | |
Withholdings from vesting of restricted stock (in shares) | (505) | |||||
Restricted stock activity | 0 | $ 0 | 0 | 0 | 0 | |
Restricted stock activity (in shares) | 8,597 | |||||
Stock-based compensation expense | 5,194 | $ 0 | 5,194 | 0 | 0 | |
Repurchase of common stock | (52,477) | $ (5) | (6,711) | 0 | (45,761) | |
Repurchase of common stock (in shares) | (545,620) | |||||
Cash dividends declared and paid | (22,545) | $ 0 | 0 | 0 | (22,545) | |
Comprehensive income | 46,804 | 0 | 0 | 2,867 | 43,937 | |
Balance at Jun. 29, 2019 | $ 827,897 | $ 449 | $ 0 | $ (36,561) | $ 864,009 | |
Balance (in shares) at Jun. 29, 2019 | 44,868,563 | 44,868,563 | ||||
[1] | The Company reclassified $1.5 million of tax benefits from "Accumulated other comprehensive loss" to "Retained earnings" for the tax effects resulting from the December 22, 2017 enactment of the Tax Cut and Jobs Act in accordance with the adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of fiscal 2019. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 78,403 | $ 79,737 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant, and equipment | 44,991 | 41,989 |
Amortization of intangible assets | 1,874 | 1,845 |
Amortization of debt issuance costs | 737 | 865 |
Stock-based compensation expense | 9,807 | 10,266 |
Unrealized foreign currency exchange (gain) loss, net | (142) | 202 |
Provisions for (recoveries of) doubtful accounts receivable from customers | (2,869) | 11,511 |
Loss on extinguishment of debt | 7,823 | 0 |
Loss on disposal of property, plant, and equipment, net of recoveries | 385 | 478 |
Deferred income taxes | 4,268 | 1,400 |
Effect of changes in operating assets and liabilities: | ||
Accounts receivable | 93,315 | 76,364 |
Finished goods inventories | (120,446) | (117,469) |
Prepaid expenses and other assets | (722,312) | 129 |
Accounts payable and other liabilities | 708,631 | (4,254) |
Net cash provided by operating activities | 104,465 | 103,063 |
Cash flows from investing activities: | ||
Capital expenditures | (24,992) | (31,750) |
Disposals and recoveries from property, plant, and equipment | 749 | 373 |
Net cash used in investing activities | (24,243) | (31,281) |
Cash flows from financing activities: | ||
Proceeds from senior notes due 2027 | 500,000 | 0 |
Payment of senior notes due 2021 | (400,000) | 0 |
Premiums paid to extinguish debt | (5,252) | 0 |
Payment of debt issuance costs | (5,793) | 0 |
Borrowings under secured revolving credit facility | 80,000 | 150,000 |
Payments on secured revolving credit facility | (166,000) | (85,000) |
Repurchases of common stock | (92,443) | (89,093) |
Dividends paid | (45,260) | (42,267) |
Withholdings from vestings of restricted stock | (4,126) | (6,667) |
Proceeds from exercises of stock options | 6,346 | 7,376 |
Net cash used in financing activities | (132,528) | (65,651) |
Effect of exchange rate changes on cash and cash equivalents | 687 | (1,423) |
Net (decrease) / increase in cash and cash equivalents | (51,619) | 4,708 |
Cash and cash equivalents, beginning of period | 170,077 | 178,494 |
Cash and cash equivalents, end of period | 118,458 | 183,202 |
Payments for (Proceeds from) Previous Acquisition | $ 0 | $ (96) |
THE COMPANY
THE COMPANY | 6 Months Ended |
Jun. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY | THE COMPANY Carter's, Inc. and its wholly owned subsidiaries (collectively, the "Company," "its," "us" and "our") design, source, and market branded childrenswear under the Carter's , Child of Mine , Just One You , Precious Firsts , Precious Baby, Simple Joys , OshKosh B'gosh (" OshKosh "), Skip Hop and other brands. The Company's products are sourced through contractual arrangements with manufacturers worldwide for: 1) wholesale distribution to leading department stores, national chains, and specialty retailers domestically and internationally and 2) distribution to the Company's own retail stores and eCommerce sites that market its brand name merchandise and other licensed products manufactured by other companies. As of June 29, 2019 , the Company operated 1,064 retail stores in the United States, Canada, and Mexico. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 29, 2019 | |
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 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 stockholders' 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 June 29, 2019 are not necessarily indicative of the results that may be expected for the current fiscal year ending December 28, 2019 . 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 at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates. The accompanying condensed consolidated balance sheet as of December 29, 2018 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. 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, except as noted below for new accounting pronouncements adopted at the beginning of fiscal 2019 . Leases At the beginning of fiscal 2019, the Company adopted the provisions of ASC No. 842, Leases ("ASC 842"), using a modified retrospective approach as an optional transition method. This approach allows the Company to apply the standard and related disclosures to the financial statements for the period of adoption and to apply the old guidance in the comparative periods. The standard had a material impact on our consolidated balance sheets, but did not have a material impact on our consolidated income statements or statement of cash flows. The most significant impact was the recognition of right of use ("ROU") assets and lease liabilities for operating leases. Finance leases are not material to the Company's consolidated balance sheets, consolidated income statements or statement of cash flows. Financial Presentation The Company determines if an arrangement is a lease at its inception. Operating leases are included in operating lease assets, current operating lease liabilities, and long-term operating lease liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. The operating lease ROU asset also includes initial direct costs and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. Certain of our lease agreements include variable rental payments based on a percentage of retail sales over contractual levels and others include variable rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Policy Elections Practical Expedient Package - The Company has elected the following expedients and applied them consistently to all leases: â—¦ The Company will not revisit whether a contract is, or contains, a lease under the ASC 842 definition of a lease. â—¦ The lease classification determined under prior guidance will not be reevaluated under ASC 842. â—¦ Previously capitalized initial direct costs under prior guidance will be carried forward. Any initial direct costs after the effective date will be included within the ROU asset under ASC 842. Portfolio approach - In general, the Company accounts for the underlying leased asset and applies a discount rate at the lease level. However, there are certain non-real estate leases for which the Company utilizes the portfolio method by aggregating similar leased assets based on the underlying lease term. Non-lease component - The Company has lease agreements with lease and non-lease components. The Company has elected a policy to account for lease and non-lease components as a single component for all asset classes. Short-term lease - Leases with an initial term of 12 months or less are not recorded on the balance sheet. Discount rate - As most of the Company's leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Renewal options - The Company evaluates the inclusion of renewal options on a lease by lease basis. In general, for leased retail real estate, the Company does not include renewal options in the underlying lease term. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02) In the first quarter of fiscal 2019, the Company adopted ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). The adoption of ASU 2018-02 allowed the Company to move "stranded" tax amounts from its accumulated other comprehensive loss to retained earnings. The effect of the adoption of ASU 2018-02 was not material to the Company's financial position and did not have an effect on the Company's consolidated results of operations or cash flows. |
REVENUE RECOGNITION (Notes)
REVENUE RECOGNITION (Notes) | 6 Months Ended |
Jun. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | 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. The Company also earns royalties from its licensees. Disaggregated revenues from these sources for the second quarter and two quarters ended fiscal 2019 and 2018 were as follows: Fiscal quarter ended June 29, 2019 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 229,091 $ 24,742 $ 253,833 Direct-to-consumer 423,128 — 57,423 480,551 $ 423,128 $ 229,091 $ 82,165 $ 734,384 Royalty income $ 4,452 $ 4,162 $ 1,021 $ 9,635 Two fiscal quarters ended June 29, 2019 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 504,458 $ 65,530 $ 569,988 Direct-to-consumer 800,182 — 105,272 905,454 $ 800,182 $ 504,458 $ 170,802 $ 1,475,442 Royalty income $ 6,443 $ 10,012 $ 1,724 $ 18,179 Fiscal quarter ended June 30, 2018 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 209,476 $ 25,169 $ 234,645 Direct-to-consumer 402,021 — 59,531 461,552 $ 402,021 $ 209,476 $ 84,700 $ 696,197 Royalty income $ 4,426 $ 4,957 $ 972 $ 10,355 Two fiscal quarters ended June 30, 2018 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 490,309 $ 62,882 $ 553,191 Direct-to-consumer 785,762 — 113,030 898,792 $ 785,762 $ 490,309 $ 175,912 $ 1,451,983 Royalty income $ 6,011 $ 10,802 $ 1,536 $ 18,349 Accounts Receivable from Customers and Licensees The components of Accounts receivable, net, were as follows: (dollars in thousands) June 29, 2019 December 29, 2018 June 30, 2018 Trade receivables from wholesale customers, net $ 157,808 $ 244,258 $ 138,952 Royalties receivable 8,469 9,279 8,824 Tenant allowances and other receivables 12,273 16,588 12,168 Total gross receivables $ 178,550 $ 270,125 $ 159,944 Less: Wholesale accounts receivable reserves (10,374 ) (11,866 ) (7,427 ) Accounts receivable, net $ 168,176 $ 258,259 $ 152,517 Contract Assets and Liabilities The Company's contract assets are not material. The Company recognizes a contract liability when it has received consideration from the customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts: (dollars in thousands) June 29, 2019 December 29, 2018 June 30, 2018 Contract liabilities - current: Unredeemed gift cards $ 13,804 $ 14,471 $ 11,072 Unredeemed customer loyalty rewards 5,610 7,764 6,164 Private label credit card - signing bonus (1) 714 714 — Total contract liabilities - current (2) $ 20,128 $ 22,949 $ 17,236 (1) Private label credit card - signing bonus - reflects the amount that the Company received as an upfront signing bonus from the third-party financial institution for the private label credit card program. The amount is recognized as revenue on a straight-line basis over the term of the agreement. (2) Included with Other current liabilities on the Company's consolidated balance sheet. The Company's long-term contract liabilities are not material. |
LEASES
LEASES | 6 Months Ended |
Jun. 29, 2019 | |
Leases [Abstract] | |
Leases | LEASES We have operating leases for retail stores, distribution centers, corporate offices, data centers, and certain equipment. Our leases have remaining lease terms of 1 year to 20 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to early terminate the lease. As of June 29, 2019 , the Company's finance leases were not material to the consolidated balance sheets, consolidated statements of operations or statement of cash flows. The following components of lease expense are included in Selling, general and administrative expenses on the Company's consolidated statements of operations for the second quarter and two quarters of fiscal 2019 : Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) June 29, 2019 June 29, 2019 Operating lease cost $ 44,688 $ 87,907 Variable lease cost (*) 14,753 31,201 Net lease cost $ 59,441 $ 119,108 (*) Includes short-term leases, which are immaterial. As of June 29, 2019 , the weighted-average remaining operating lease term was 6.2 years and the weighted-average discount rate for operating leases was 4.45% . Cash paid for amounts included in the measurement of operating lease liabilities in the second quarter and two quarters of fiscal 2019 was $47.9 million and $95.2 million , respectively. As of June 29, 2019 , the maturities of lease liabilities were as follows: (dollars in thousands) Operating leases Remainder of 2019 $ 95,860 2020 182,166 2021 164,884 2022 142,413 2023 117,871 After 2023 268,026 Total lease payments $ 971,220 Less: Interest (127,851 ) Present value of lease liabilities(*) $ 843,369 (*) As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. We used the incremental borrowing rate on December 30, 2018, for operating leases that commenced prior to that date. As of June 29, 2019 , the minimum rental commitments for additional operating lease contracts that have not yet commenced, primarily for retail stores, is $33.9 million . These operating leases will commence between fiscal year 2019 and fiscal year 2023 with lease terms of 5 years to 10 years. As of December 29, 2018 , the minimum annual rental commitments under current non-cancellable operating leases were as follows: (dollars in thousands) Operating leases 2019 $ 163,963 2020 150,010 2021 134,203 2022 116,773 2023 102,487 Thereafter 235,731 Total $ 903,167 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 29, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss consisted of the following: (dollars in thousands) June 29, 2019 December 29, 2018 June 30, 2018 Cumulative foreign currency translation adjustments $ (27,186 ) $ (32,964 ) $ (27,724 ) Pension and post-retirement obligations(*) (9,375 ) (7,875 ) (7,808 ) Total accumulated other comprehensive loss $ (36,561 ) $ (40,839 ) $ (35,532 ) (*) Net of income taxes of $2.9 million , $4.4 million , and $4.4 million , respectively. During the first two quarters of both fiscal 2019 and fiscal 2018 , no |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jun. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company's goodwill and intangible assets were as follows: June 29, 2019 December 29, 2018 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Carter's goodwill Indefinite $ 136,570 $ — $ 136,570 $ 136,570 $ — $ 136,570 Canada goodwill Indefinite 40,496 — 40,496 38,869 — 38,869 Skip Hop goodwill Indefinite 45,960 — 45,960 45,960 — 45,960 Carter's Mexico goodwill Indefinite 5,834 — 5,834 5,702 — 5,702 Total goodwill $ 228,860 $ — $ 228,860 $ 227,101 $ — $ 227,101 Carter's tradename Indefinite $ 220,233 $ — $ 220,233 $ 220,233 $ — $ 220,233 OshKosh tradename Indefinite 85,500 — 85,500 85,500 — 85,500 Skip Hop tradename Indefinite 56,800 — 56,800 56,800 — 56,800 Finite-life tradenames 5-20 years 3,911 $ 877 3,034 3,911 $ 752 3,159 Total tradenames, net $ 366,444 $ 877 $ 365,567 $ 366,444 $ 752 $ 365,692 Skip Hop customer relationships 15 years $ 47,300 $ 7,068 $ 40,232 $ 47,300 $ 5,480 $ 41,820 Carter's Mexico customer relationships 10 years 3,209 616 2,593 3,146 455 2,691 Total customer relationships, net $ 50,509 $ 7,684 $ 42,825 $ 50,446 $ 5,935 $ 44,511 June 30, 2018 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Carter's goodwill Indefinite $ 136,570 $ — $ 136,570 Canada goodwill Indefinite 40,367 — 40,367 Skip Hop goodwill Indefinite 45,984 — 45,984 Carter's Mexico goodwill Indefinite 5,634 — 5,634 Total goodwill $ 228,555 $ — $ 228,555 Carter's tradename Indefinite $ 220,233 $ — $ 220,233 OshKosh tradename Indefinite 85,500 — 85,500 Skip Hop tradename Indefinite 56,800 — 56,800 Finite-life tradenames 5-20 years 3,911 $ 627 3,284 Total tradenames, net $ 366,444 $ 627 $ 365,817 Skip Hop customer relationships 15 years $ 47,300 $ 3,892 $ 43,408 Carter's Mexico customer relationships 10 years 3,031 217 2,814 Total customer relationships, net $ 50,331 $ 4,109 $ 46,222 Amortization expense for intangible assets subject to amortization was approximately $0.9 million and $0.8 million for the second fiscal quarter ended June 29, 2019 and second fiscal quarter ended June 30, 2018 , respectively. For the first two quarters of fiscal 2019 and fiscal 2018 , amortization expense was approximately $1.9 million and $1.8 million , respectively. The estimated amortization expense for the next five fiscal years is as follows: (dollars in thousands) Amortization 2020 $ 3,747 2021 $ 3,747 2022 $ 3,747 2023 $ 3,705 2024 $ 3,675 |
COMMON STOCK
COMMON STOCK | 6 Months Ended |
Jun. 29, 2019 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | COMMON STOCK Open Market Share Repurchases The total aggregate remaining capacity under outstanding repurchase authorizations as of June 29, 2019 was approximately $300.2 million , based on settled repurchase transactions. The authorizations have no expiration date. The Company repurchased and retired shares in open market transactions in the following amounts for the fiscal periods indicated: Fiscal quarter ended Two fiscal quarters ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Number of shares repurchased 545,620 599,314 1,005,877 820,627 Aggregate cost of shares repurchased (dollars in thousands) $ 52,477 $ 63,899 $ 92,443 $ 89,093 Average price per share $ 96.18 $ 106.62 $ 91.90 $ 108.57 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 determined by the Company's management, based on its evaluation of market conditions, share price, other investment priorities, and other factors. Dividends In the second fiscal and two fiscal quarters ended June 29, 2019 , the Company declared and paid cash dividends per share of $0.50 and $1.00 , respectively. In the second fiscal and two fiscal quarters ended June 30, 2018 , the Company declared and paid cash dividends per share of $0.45 and $0.90 , respectively. Future declarations of dividends and the establishment of future record and payment dates are at the discretion of the Company's Board of Directors and are based on a number of factors, including the Company's future financial performance and other investment priorities. Provisions in the Company's secured revolving credit facility could have the effect of restricting the Company's ability to pay future cash dividends on, or make future repurchases of, its common stock, as described in the Company's Annual Report on Form 10-K for the 2018 fiscal year ended December 29, 2018 |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 29, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following: (dollars in thousands) June 29, 2019 December 29, 2018 June 30, 2018 Senior notes at amounts repayable $ 500,000 $ 400,000 $ 400,000 Less unamortized issuance-related costs for senior notes (5,623 ) (2,736 ) (3,222 ) Senior notes, net $ 494,377 $ 397,264 $ 396,778 Secured revolving credit facility 110,000 196,000 286,000 Total long-term debt, net $ 604,377 $ 593,264 $ 682,778 Secured Revolving Credit Facility As of June 29, 2019 , the Company had $110.0 million in outstanding borrowings under its secured revolving credit facility, exclusive of $5.0 million of outstanding letters of credit. As of June 29, 2019 , approximately $635.0 million remained 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 sheet because of the contractual repayment terms under the credit facility. As of June 29, 2019 , the interest rate margins applicable to the secured revolving credit facility were 1.375% for LIBOR (London Interbank Offered Rate) rate loans (which may be adjusted based on a leverage-based pricing grid ranging from 1.125% to 1.875% ) and 0.375% for base rate loans (which may be adjusted based on a leverage-based pricing grid ranging from 0.125% to 0.875% ). As of June 29, 2019 , U.S. dollar borrowings outstanding under the secured revolving credit facility accrued interest at a LIBOR rate plus the applicable margin, which resulted in a weighted-average borrowing rate of 3.78% . There were no Canadian borrowings outstanding on June 29, 2019 . As of June 29, 2019 , the Company was in compliance with the financial and other covenants under the secured revolving credit facility. Senior Notes On March 14, 2019, the Company's wholly-owned subsidiary, The William Carter Company ("TWCC"), redeemed $400 million principal amount of senior notes, bearing interest at a rate of 5.25% per annum, and maturing on August 15, 2021, pursuant to the optional redemption provisions of the notes, which required that TWCC pay the outstanding principal plus accrued interest and an early redemption premium of 1.31% of the outstanding principal amounts of the senior notes. This debt redemption resulted in a loss on extinguishment of debt of $7.8 million , consisting of $5.2 million of early redemption premiums and $2.6 million of unamortized debt issuance costs. Concurrently, TWCC issued $500 million principal amount of senior notes at par, bearing interest at a rate of 5.625% per annum, and maturing on March 15, 2027, all of which were outstanding as of June 29, 2019 . TWCC received net proceeds from the offering of the senior notes of approximately $494.8 million , after deducting underwriting fees and other expenses, which TWCC used to redeem the senior notes discussed above and repay borrowings outstanding under the Company's secured revolving credit facility. As of June 29, 2019 , approximately $5.8 million |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 29, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company recorded stock-based compensation expense as follows: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Stock options $ 895 $ 1,112 $ 2,242 $ 2,456 Restricted stock: Time-based awards 2,198 1,824 4,746 4,108 Performance-based awards 940 1,183 1,658 2,499 Stock awards 1,161 1,203 1,161 1,203 Total $ 5,194 $ 5,322 $ 9,807 $ 10,266 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 second fiscal quarter of 2019 , the achievement of performance target estimates related to certain performance-based grants were revised resulting in a $0.3 million increase to stock compensation expense. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES As of June 29, 2019 , the Company had gross unrecognized income tax benefits of approximately $14.6 million , of which $12.5 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 June 29, 2019 were approximately $2.5 million of reserves for which the statute of limitations is expected to expire within the next fiscal year. If these tax benefits are ultimately recognized, such recognition, net of federal income taxes, may affect the annual effective income tax rate for fiscal 2019 or fiscal 2020 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. During the second fiscal quarters ended June 29, 2019 and June 30, 2018 , interest expense recorded on uncertain tax positions was not material. During the first two quarters of fiscal 2019 , interest expense recorded on uncertain tax positions was $0.5 million , and during the first two quarters of fiscal 2018 , interest expense recorded on uncertain tax positions was not material. The Company had approximately $2.4 million , $1.8 million , and $1.3 million of interest accrued on uncertain tax positions as of June 29, 2019 , December 29, 2018 , and June 30, 2018 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 29, 2019 | |
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 consolidated balance sheets, and their aggregate fair values were approximately $17.3 million , $15.7 million , and $16.9 million at June 29, 2019 , December 29, 2018 , and June 30, 2018 , respectively. These investments are classified as Level 1 within the fair value hierarchy. Gains on the investments in marketable securities were not material for the second fiscal quarter ended June 29, 2019 and were $0.2 million for the second fiscal quarter ended June 30, 2018 . Gains on the investments in marketable securities were $1.7 million and $0.2 million for the two fiscal quarters ended June 29, 2019 and June 30, 2018 , respectively. These amounts are included in Other expense (income), net on the Company's consolidated statement of operations. Borrowings As of June 29, 2019 , the fair value of the Company's $110.0 million in outstanding borrowings under its secured revolving credit facility approximated the carrying value. The fair value of the Company's senior notes at June 29, 2019 was approximately $524.8 million . The fair value of these senior notes with a notional value and carrying value (gross of debt cost) of $500 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following is a reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding: Fiscal quarter ended Two fiscal quarters ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Weighted-average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 44,706,307 46,437,093 44,888,552 46,604,599 Dilutive effect of equity awards 332,070 509,545 310,479 563,137 Diluted number of common and common equivalent shares outstanding 45,038,377 46,946,638 45,199,031 47,167,736 Basic net income per common share (in thousands, except per share data): Net income $ 43,937 $ 37,268 $ 78,403 $ 79,737 Income allocated to participating securities (396 ) (276 ) (685 ) (600 ) Net income available to common shareholders $ 43,541 $ 36,992 $ 77,718 $ 79,137 Basic net income per common share $ 0.97 $ 0.80 $ 1.73 $ 1.70 Diluted net income per common share (in thousands, except per share data): Net income $ 43,937 $ 37,268 $ 78,403 $ 79,737 Income allocated to participating securities (395 ) (274 ) (683 ) (596 ) Net income available to common shareholders $ 43,542 $ 36,994 $ 77,720 $ 79,141 Diluted net income per common share $ 0.97 $ 0.79 $ 1.72 $ 1.68 Anti-dilutive awards excluded from diluted earnings per share computation 311,300 332,448 513,742 254,417 |
OTHER CURRENT AND LONG-TERM LIA
OTHER CURRENT AND LONG-TERM LIABILITIES | 6 Months Ended |
Jun. 29, 2019 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT AND LONG-TERM LIABILITIES | OTHER CURRENT AND LONG-TERM LIABILITIES Other current liabilities that exceeded five percent of total current liabilities, at the end of any comparable period, were as follows: (dollars in thousands) June 29, 2019 December 29, 2018 June 30, 2018 Income taxes payable 7,600 17,415 4,301 Accrued employee benefits 10,331 16,421 10,663 Accrued and deferred rent 333 19,120 18,702 Other long-term liabilities that exceeded five percent of total liabilities, at the end of any comparable period, were as follows: (dollars in thousands) June 29, 2019 December 29, 2018 June 30, 2018 Deferred lease incentives $ — $ 72,345 $ 75,431 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS 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 also include obligations associated with leases, the secured revolving credit agreement, senior notes, employee benefit plans, and facility consolidations/closures as disclosed elsewhere in the notes to the consolidated financial statements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 29, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The table below presents certain information for our reportable segments and unallocated corporate expenses for the periods indicated. Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) June 29, 2019 % of June 30, 2018 % of June 29, % of June 30, % of Net sales : U.S. Retail $ 423,128 57.6 % $ 402,021 57.7 % $ 800,182 54.2 % $ 785,762 54.1 % U.S. Wholesale 229,091 31.2 % 209,476 30.1 % 504,458 34.2 % 490,309 33.8 % International 82,165 11.2 % 84,700 12.2 % 170,802 11.6 % 175,912 12.1 % Total net sales $ 734,384 100.0 % $ 696,197 100.0 % $ 1,475,442 100.0 % $ 1,451,983 100.0 % Operating income : % of Segment Net Sales % of Segment Net Sales % of % of U.S. Retail (1)(2) $ 51,146 12.1 % $ 45,428 11.3 % $ 75,095 9.4 % $ 74,947 9.5 % U.S. Wholesale (3) 35,335 15.4 % 30,338 14.5 % 90,791 18.0 % 80,610 16.4 % International (4) 4,257 5.2 % 4,312 5.1 % 9,216 5.4 % 8,073 4.6 % Corporate expenses (5)(6) (26,262 ) (23,108 ) (49,867 ) (46,351 ) Total operating income $ 64,476 8.8 % $ 56,970 8.2 % $ 125,235 8.5 % $ 117,279 8.1 % (1) Fiscal quarter and two fiscal quarters ended June 29, 2019 includes a $0.7 million reversal of retail store restructuring costs previously recorded during the third quarter of fiscal 2017. (2) Two fiscal quarters ended June 30, 2018 includes insurance recovery of approximately $0.4 million associated with storm-related store closures. (3) Includes approximately $12.8 million of charges related to a customer bankruptcy for the two fiscal quarters ended June 30, 2018 . (4) Two fiscal quarters ended June 29, 2019 includes a benefit of $2.1 million related to sale of inventory previously reserved in China. (5) Two fiscal quarters ended June 29, 2019 includes $1.6 million in charges related to organizational restructuring. (6) |
PENDING ADOPTION OF RECENT ACCO
PENDING ADOPTION OF RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 29, 2019 | |
Accounting Policies [Abstract] | |
PENDING ADOPTION OF RECENT ACCOUNTING PRONOUNCEMENTS | PENDING ADOPTION OF RECENT ACCOUNTING PRONOUNCEMENTS Credit Losses (ASU 2016-13) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") . This new guidance will change how entities account for credit impairment for trade and other receivables, as well as for certain financial assets and other instruments. ASU 2016-13 will replace the current "incurred loss" model with an "expected loss" model. Under the "incurred loss" model, a loss (or allowance) is recognized only when an event has occurred (such as a payment delinquency) that causes the entity to believe that a loss is probable (i.e., that it has been "incurred"). Under the "expected loss" model, an entity will recognize a loss (or allowance) upon initial recognition of the asset that reflects all future events that will lead to a loss being realized, regardless of whether it is probable that the future event will occur. The "incurred loss" model considers past events and current conditions, while the "expected loss" model includes expectations for the future which have yet to occur. ASU 2016-13 will be effective for the Company at the beginning of fiscal 2020 with early adoption permitted for fiscal 2019, including interim periods therein. The standard will require entities to record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the impact that ASU 2016-13 may have on the timing of recognizing future provisions for expected losses on the Company's accounts receivable. Goodwill Impairment Testing (ASU 2017-04) In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04") . ASU 2017-04 will eliminate the requirement to calculate the implied fair value of goodwill (step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value (i.e., measure the charge based on the current step 1). Any impairment charge will be limited to the amount of goodwill allocated to an affected reporting unit. ASU 2017-04 will not change the current guidance for completing Step 1 of the goodwill impairment test, and an entity will still be able to perform the current optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. Upon adoption, ASU 2017-04 will be applied prospectively. Adoption for the Company will be effective for annual and interim impairment tests performed beginning in fiscal 2020. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The impact that ASU 2017-04 may have on the Company's financial condition or results of operations will depend on the circumstances of any goodwill impairment event that may occur after adoption. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Lessee, Leases | Leases At the beginning of fiscal 2019, the Company adopted the provisions of ASC No. 842, Leases ("ASC 842"), using a modified retrospective approach as an optional transition method. This approach allows the Company to apply the standard and related disclosures to the financial statements for the period of adoption and to apply the old guidance in the comparative periods. The standard had a material impact on our consolidated balance sheets, but did not have a material impact on our consolidated income statements or statement of cash flows. The most significant impact was the recognition of right of use ("ROU") assets and lease liabilities for operating leases. Finance leases are not material to the Company's consolidated balance sheets, consolidated income statements or statement of cash flows. Financial Presentation The Company determines if an arrangement is a lease at its inception. Operating leases are included in operating lease assets, current operating lease liabilities, and long-term operating lease liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. The operating lease ROU asset also includes initial direct costs and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. Certain of our lease agreements include variable rental payments based on a percentage of retail sales over contractual levels and others include variable rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Policy Elections Practical Expedient Package - The Company has elected the following expedients and applied them consistently to all leases: â—¦ The Company will not revisit whether a contract is, or contains, a lease under the ASC 842 definition of a lease. â—¦ The lease classification determined under prior guidance will not be reevaluated under ASC 842. â—¦ Previously capitalized initial direct costs under prior guidance will be carried forward. Any initial direct costs after the effective date will be included within the ROU asset under ASC 842. Portfolio approach - In general, the Company accounts for the underlying leased asset and applies a discount rate at the lease level. However, there are certain non-real estate leases for which the Company utilizes the portfolio method by aggregating similar leased assets based on the underlying lease term. Non-lease component - The Company has lease agreements with lease and non-lease components. The Company has elected a policy to account for lease and non-lease components as a single component for all asset classes. Short-term lease - Leases with an initial term of 12 months or less are not recorded on the balance sheet. Discount rate - As most of the Company's leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Renewal options - The Company evaluates the inclusion of renewal options on a lease by lease basis. In general, for leased retail real estate, the Company does not include renewal options in the underlying lease term. |
New Accounting Pronouncements, Policy | Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02) In the first quarter of fiscal 2019, the Company adopted ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). The adoption of ASU 2018-02 allowed the Company to move "stranded" tax amounts from its accumulated other comprehensive loss to retained earnings. The effect of the adoption of ASU 2018-02 was not material to the Company's financial position and did not have an effect on the Company's consolidated results of operations or cash flows. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | 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. The Company also earns royalties from its licensees. Disaggregated revenues from these sources for the second quarter and two quarters ended fiscal 2019 and 2018 were as follows: Fiscal quarter ended June 29, 2019 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 229,091 $ 24,742 $ 253,833 Direct-to-consumer 423,128 — 57,423 480,551 $ 423,128 $ 229,091 $ 82,165 $ 734,384 Royalty income $ 4,452 $ 4,162 $ 1,021 $ 9,635 Two fiscal quarters ended June 29, 2019 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 504,458 $ 65,530 $ 569,988 Direct-to-consumer 800,182 — 105,272 905,454 $ 800,182 $ 504,458 $ 170,802 $ 1,475,442 Royalty income $ 6,443 $ 10,012 $ 1,724 $ 18,179 Fiscal quarter ended June 30, 2018 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 209,476 $ 25,169 $ 234,645 Direct-to-consumer 402,021 — 59,531 461,552 $ 402,021 $ 209,476 $ 84,700 $ 696,197 Royalty income $ 4,426 $ 4,957 $ 972 $ 10,355 Two fiscal quarters ended June 30, 2018 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 490,309 $ 62,882 $ 553,191 Direct-to-consumer 785,762 — 113,030 898,792 $ 785,762 $ 490,309 $ 175,912 $ 1,451,983 Royalty income $ 6,011 $ 10,802 $ 1,536 $ 18,349 Accounts Receivable from Customers and Licensees The components of Accounts receivable, net, were as follows: (dollars in thousands) June 29, 2019 December 29, 2018 June 30, 2018 Trade receivables from wholesale customers, net $ 157,808 $ 244,258 $ 138,952 Royalties receivable 8,469 9,279 8,824 Tenant allowances and other receivables 12,273 16,588 12,168 Total gross receivables $ 178,550 $ 270,125 $ 159,944 Less: Wholesale accounts receivable reserves (10,374 ) (11,866 ) (7,427 ) Accounts receivable, net $ 168,176 $ 258,259 $ 152,517 |
Contract with Customer, Asset and Liability | Contract Assets and Liabilities The Company's contract assets are not material. The Company recognizes a contract liability when it has received consideration from the customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts: (dollars in thousands) June 29, 2019 December 29, 2018 June 30, 2018 Contract liabilities - current: Unredeemed gift cards $ 13,804 $ 14,471 $ 11,072 Unredeemed customer loyalty rewards 5,610 7,764 6,164 Private label credit card - signing bonus (1) 714 714 — Total contract liabilities - current (2) $ 20,128 $ 22,949 $ 17,236 (1) Private label credit card - signing bonus - reflects the amount that the Company received as an upfront signing bonus from the third-party financial institution for the private label credit card program. The amount is recognized as revenue on a straight-line basis over the term of the agreement. (2) Included with Other current liabilities on the Company's consolidated balance sheet. The Company's long-term contract liabilities are not material. |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Leases [Abstract] | |
Lease, Cost | The following components of lease expense are included in Selling, general and administrative expenses on the Company's consolidated statements of operations for the second quarter and two quarters of fiscal 2019 : Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) June 29, 2019 June 29, 2019 Operating lease cost $ 44,688 $ 87,907 Variable lease cost (*) 14,753 31,201 Net lease cost $ 59,441 $ 119,108 (*) Includes short-term leases, which are immaterial. |
Lessee, Operating Lease, Liability, Maturity | As of June 29, 2019 , the maturities of lease liabilities were as follows: (dollars in thousands) Operating leases Remainder of 2019 $ 95,860 2020 182,166 2021 164,884 2022 142,413 2023 117,871 After 2023 268,026 Total lease payments $ 971,220 Less: Interest (127,851 ) Present value of lease liabilities(*) $ 843,369 (*) As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. We used the incremental borrowing rate on December 30, 2018, for operating leases that commenced prior to that date. |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 29, 2018 , the minimum annual rental commitments under current non-cancellable operating leases were as follows: (dollars in thousands) Operating leases 2019 $ 163,963 2020 150,010 2021 134,203 2022 116,773 2023 102,487 Thereafter 235,731 Total $ 903,167 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss consisted of the following: (dollars in thousands) June 29, 2019 December 29, 2018 June 30, 2018 Cumulative foreign currency translation adjustments $ (27,186 ) $ (32,964 ) $ (27,724 ) Pension and post-retirement obligations(*) (9,375 ) (7,875 ) (7,808 ) Total accumulated other comprehensive loss $ (36,561 ) $ (40,839 ) $ (35,532 ) (*) Net of income taxes of $2.9 million , $4.4 million , and $4.4 million , respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets table | The Company's goodwill and intangible assets were as follows: June 29, 2019 December 29, 2018 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Carter's goodwill Indefinite $ 136,570 $ — $ 136,570 $ 136,570 $ — $ 136,570 Canada goodwill Indefinite 40,496 — 40,496 38,869 — 38,869 Skip Hop goodwill Indefinite 45,960 — 45,960 45,960 — 45,960 Carter's Mexico goodwill Indefinite 5,834 — 5,834 5,702 — 5,702 Total goodwill $ 228,860 $ — $ 228,860 $ 227,101 $ — $ 227,101 Carter's tradename Indefinite $ 220,233 $ — $ 220,233 $ 220,233 $ — $ 220,233 OshKosh tradename Indefinite 85,500 — 85,500 85,500 — 85,500 Skip Hop tradename Indefinite 56,800 — 56,800 56,800 — 56,800 Finite-life tradenames 5-20 years 3,911 $ 877 3,034 3,911 $ 752 3,159 Total tradenames, net $ 366,444 $ 877 $ 365,567 $ 366,444 $ 752 $ 365,692 Skip Hop customer relationships 15 years $ 47,300 $ 7,068 $ 40,232 $ 47,300 $ 5,480 $ 41,820 Carter's Mexico customer relationships 10 years 3,209 616 2,593 3,146 455 2,691 Total customer relationships, net $ 50,509 $ 7,684 $ 42,825 $ 50,446 $ 5,935 $ 44,511 June 30, 2018 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Carter's goodwill Indefinite $ 136,570 $ — $ 136,570 Canada goodwill Indefinite 40,367 — 40,367 Skip Hop goodwill Indefinite 45,984 — 45,984 Carter's Mexico goodwill Indefinite 5,634 — 5,634 Total goodwill $ 228,555 $ — $ 228,555 Carter's tradename Indefinite $ 220,233 $ — $ 220,233 OshKosh tradename Indefinite 85,500 — 85,500 Skip Hop tradename Indefinite 56,800 — 56,800 Finite-life tradenames 5-20 years 3,911 $ 627 3,284 Total tradenames, net $ 366,444 $ 627 $ 365,817 Skip Hop customer relationships 15 years $ 47,300 $ 3,892 $ 43,408 Carter's Mexico customer relationships 10 years 3,031 217 2,814 Total customer relationships, net $ 50,331 $ 4,109 $ 46,222 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated amortization expense for the next five fiscal years is as follows: (dollars in thousands) Amortization 2020 $ 3,747 2021 $ 3,747 2022 $ 3,747 2023 $ 3,705 2024 $ 3,675 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Shares Repurchased and Retired | The Company repurchased and retired shares in open market transactions in the following amounts for the fiscal periods indicated: Fiscal quarter ended Two fiscal quarters ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Number of shares repurchased 545,620 599,314 1,005,877 820,627 Aggregate cost of shares repurchased (dollars in thousands) $ 52,477 $ 63,899 $ 92,443 $ 89,093 Average price per share $ 96.18 $ 106.62 $ 91.90 $ 108.57 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following: (dollars in thousands) June 29, 2019 December 29, 2018 June 30, 2018 Senior notes at amounts repayable $ 500,000 $ 400,000 $ 400,000 Less unamortized issuance-related costs for senior notes (5,623 ) (2,736 ) (3,222 ) Senior notes, net $ 494,377 $ 397,264 $ 396,778 Secured revolving credit facility 110,000 196,000 286,000 Total long-term debt, net $ 604,377 $ 593,264 $ 682,778 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of recorded stock-based compensation cost | The Company recorded stock-based compensation expense as follows: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Stock options $ 895 $ 1,112 $ 2,242 $ 2,456 Restricted stock: Time-based awards 2,198 1,824 4,746 4,108 Performance-based awards 940 1,183 1,658 2,499 Stock awards 1,161 1,203 1,161 1,203 Total $ 5,194 $ 5,322 $ 9,807 $ 10,266 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding | The following is a reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding: Fiscal quarter ended Two fiscal quarters ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Weighted-average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 44,706,307 46,437,093 44,888,552 46,604,599 Dilutive effect of equity awards 332,070 509,545 310,479 563,137 Diluted number of common and common equivalent shares outstanding 45,038,377 46,946,638 45,199,031 47,167,736 Basic net income per common share (in thousands, except per share data): Net income $ 43,937 $ 37,268 $ 78,403 $ 79,737 Income allocated to participating securities (396 ) (276 ) (685 ) (600 ) Net income available to common shareholders $ 43,541 $ 36,992 $ 77,718 $ 79,137 Basic net income per common share $ 0.97 $ 0.80 $ 1.73 $ 1.70 Diluted net income per common share (in thousands, except per share data): Net income $ 43,937 $ 37,268 $ 78,403 $ 79,737 Income allocated to participating securities (395 ) (274 ) (683 ) (596 ) Net income available to common shareholders $ 43,542 $ 36,994 $ 77,720 $ 79,141 Diluted net income per common share $ 0.97 $ 0.79 $ 1.72 $ 1.68 Anti-dilutive awards excluded from diluted earnings per share computation 311,300 332,448 513,742 254,417 |
OTHER CURRENT AND LONG-TERM L_2
OTHER CURRENT AND LONG-TERM LIABILITIES (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities that exceeded five percent of total current liabilities, at the end of any comparable period, were as follows: (dollars in thousands) June 29, 2019 December 29, 2018 June 30, 2018 Income taxes payable 7,600 17,415 4,301 Accrued employee benefits 10,331 16,421 10,663 Accrued and deferred rent 333 19,120 18,702 |
Schedule of other long-term liabilities | Other long-term liabilities that exceeded five percent of total liabilities, at the end of any comparable period, were as follows: (dollars in thousands) June 29, 2019 December 29, 2018 June 30, 2018 Deferred lease incentives $ — $ 72,345 $ 75,431 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The table below presents certain information for our reportable segments and unallocated corporate expenses for the periods indicated. Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) June 29, 2019 % of June 30, 2018 % of June 29, % of June 30, % of Net sales : U.S. Retail $ 423,128 57.6 % $ 402,021 57.7 % $ 800,182 54.2 % $ 785,762 54.1 % U.S. Wholesale 229,091 31.2 % 209,476 30.1 % 504,458 34.2 % 490,309 33.8 % International 82,165 11.2 % 84,700 12.2 % 170,802 11.6 % 175,912 12.1 % Total net sales $ 734,384 100.0 % $ 696,197 100.0 % $ 1,475,442 100.0 % $ 1,451,983 100.0 % Operating income : % of Segment Net Sales % of Segment Net Sales % of % of U.S. Retail (1)(2) $ 51,146 12.1 % $ 45,428 11.3 % $ 75,095 9.4 % $ 74,947 9.5 % U.S. Wholesale (3) 35,335 15.4 % 30,338 14.5 % 90,791 18.0 % 80,610 16.4 % International (4) 4,257 5.2 % 4,312 5.1 % 9,216 5.4 % 8,073 4.6 % Corporate expenses (5)(6) (26,262 ) (23,108 ) (49,867 ) (46,351 ) Total operating income $ 64,476 8.8 % $ 56,970 8.2 % $ 125,235 8.5 % $ 117,279 8.1 % (1) Fiscal quarter and two fiscal quarters ended June 29, 2019 includes a $0.7 million reversal of retail store restructuring costs previously recorded during the third quarter of fiscal 2017. (2) Two fiscal quarters ended June 30, 2018 includes insurance recovery of approximately $0.4 million associated with storm-related store closures. (3) Includes approximately $12.8 million of charges related to a customer bankruptcy for the two fiscal quarters ended June 30, 2018 . (4) Two fiscal quarters ended June 29, 2019 includes a benefit of $2.1 million related to sale of inventory previously reserved in China. (5) Two fiscal quarters ended June 29, 2019 includes $1.6 million in charges related to organizational restructuring. (6) |
THE COMPANY (Details)
THE COMPANY (Details) | Jun. 29, 2019store |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of stores | 1,064 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 29, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 734,384 | $ 696,197 | $ 1,475,442 | $ 1,451,983 | |
Accounts Receivable, Gross, Current | 178,550 | 159,944 | 178,550 | 159,944 | $ 270,125 |
Accounts receivable, net | 168,176 | 152,517 | 168,176 | 152,517 | 258,259 |
Wholesale, Apparel, Piece Goods and Notions [Member] [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 253,833 | 234,645 | 569,988 | 553,191 | |
Retail, Apparel and Accessory Stores [Member] [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 480,551 | 461,552 | 905,454 | 898,792 | |
Royalty [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 9,635 | 10,355 | 18,179 | 18,349 | |
Retail | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 423,128 | 402,021 | 800,182 | 785,762 | |
Retail | Wholesale, Apparel, Piece Goods and Notions [Member] [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Retail | Retail, Apparel and Accessory Stores [Member] [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 423,128 | 402,021 | 800,182 | 785,762 | |
Retail | Royalty [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 4,452 | 4,426 | 6,443 | 6,011 | |
Wholesale | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 229,091 | 209,476 | 504,458 | 490,309 | |
Wholesale | Wholesale, Apparel, Piece Goods and Notions [Member] [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 229,091 | 209,476 | 504,458 | 490,309 | |
Wholesale | Retail, Apparel and Accessory Stores [Member] [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Wholesale | Royalty [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 4,162 | 4,957 | 10,012 | 10,802 | |
International | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 82,165 | 84,700 | 170,802 | 175,912 | |
International | Wholesale, Apparel, Piece Goods and Notions [Member] [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 24,742 | 25,169 | 65,530 | 62,882 | |
International | Retail, Apparel and Accessory Stores [Member] [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 57,423 | 59,531 | 105,272 | 113,030 | |
International | Royalty [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 1,021 | 972 | 1,724 | 1,536 | |
Trade Accounts Receivable [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Accounts Receivable, Gross, Current | 157,808 | 138,952 | 157,808 | 138,952 | 244,258 |
Royalties receivable [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Accounts Receivable, Gross, Current | 8,469 | 8,824 | 8,469 | 8,824 | 9,279 |
Tenant allowances and other receivables [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Accounts Receivable, Gross, Current | 12,273 | 12,168 | 12,273 | 12,168 | 16,588 |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Allowance for Doubtful Accounts Receivable, Current | $ (10,374) | $ (7,427) | $ (10,374) | $ (7,427) | $ (11,866) |
REVENUE RECOGNITION Contract Li
REVENUE RECOGNITION Contract Liabilities (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | Jun. 30, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Unredeemed gift cards | $ 13,804 | $ 14,471 | $ 11,072 |
Unredeemed customer loyalty rewards | 5,610 | 7,764 | 6,164 |
Contract with Customer Private label credit card | 714 | 714 | 0 |
Total contract liabilities-current | $ 20,128 | $ 22,949 | $ 17,236 |
LEASES Additional Information (
LEASES Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 29, 2019USD ($) | Jun. 29, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 2 months 12 days | 6 years 2 months 12 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.45% | 4.45% |
Lessee, Operating Lease, Lease Not yet Commenced, Liability Incurred | $ 33.9 | $ 33.9 |
Operating cash flows from operating leases | $ 47.9 | $ 95.2 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee Operating Remaining Lease Term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee Operating Remaining Lease Term | 20 years | |
Lessee, Operating Lease, Option to Extend | 5 years |
LEASES Lease Cost (Details)
LEASES Lease Cost (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 29, 2019USD ($) | Jun. 29, 2019USD ($) | |
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 2 months 12 days | 6 years 2 months 12 days |
Operating lease cost | $ 44,688 | $ 87,907 |
Variable lease cost | 14,753 | 31,201 |
Net lease cost | $ 59,441 | $ 119,108 |
Operating Lease, Weighted Average Discount Rate, Percent | 4.45% | 4.45% |
Operating cash flows from operating leases | $ 47,900 | $ 95,200 |
LEASES Lease Maturity (Details)
LEASES Lease Maturity (Details) $ in Thousands | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
2019 | $ 95,860 |
2020 | 182,166 |
2021 | 164,884 |
2022 | 142,413 |
2023 | 117,871 |
After 2023 | 268,026 |
Total lease payments | 971,220 |
Less: Interest | (127,851) |
Present value of lease liabilities | $ 843,369 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee Operating Remaining Lease Term | 20 years |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee Operating Remaining Lease Term | 1 year |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 5 years |
LEASES Lease Commitments (Detai
LEASES Lease Commitments (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 163,963 |
2020 | 150,010 |
2021 | 134,203 |
2022 | 116,773 |
2023 | 102,487 |
Thereafter | 235,731 |
Total | $ 903,167 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total accumulated other comprehensive loss | $ (36,561) | $ (35,532) | $ (36,561) | $ (35,532) | $ (40,839) |
Foreign currency translation adjustments | 2,867 | (4,677) | 5,778 | (6,439) | |
Cumulative Foreign Currency Translation Adjustments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total accumulated other comprehensive loss | (27,186) | (27,724) | (27,186) | (27,724) | (32,964) |
Pension and Post-retirement Liability Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total accumulated other comprehensive loss | $ (9,375) | $ (7,808) | (9,375) | (7,808) | (7,875) |
Tax impact | $ 2,900 | $ 4,400 | $ 4,400 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 29, 2018 | |
Goodwill and Other Intangible Assets [Line Items] | |||||
Goodwill, Gross amount | $ 228,860 | $ 228,555 | $ 228,860 | $ 228,555 | $ 227,101 |
Goodwill, Net amount | 228,860 | 228,555 | 228,860 | 228,555 | 227,101 |
Finite intangible assets, Gross amount | 50,331 | 50,331 | |||
Finite intangible assets, Accumulated amortization | 4,109 | 4,109 | |||
Finite-Lived Intangible Assets, Net | 46,222 | 46,222 | |||
Amortization costs | 900 | 800 | 1,900 | 1,800 | |
Carter's Goodwill [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Goodwill, Gross amount | 136,570 | 136,570 | 136,570 | 136,570 | 136,570 |
Goodwill, Net amount | 136,570 | 136,570 | 136,570 | 136,570 | 136,570 |
Canada Acquisition Goodwill [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Goodwill, Gross amount | 40,496 | 40,367 | 40,496 | 40,367 | 38,869 |
Goodwill, Net amount | 40,496 | 40,367 | 40,496 | 40,367 | 38,869 |
Skip Hop Goodwill [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Goodwill, Gross amount | 45,960 | 45,984 | 45,960 | 45,984 | 45,960 |
Goodwill, Net amount | 45,960 | 45,984 | 45,960 | 45,984 | 45,960 |
Carters Mexico [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Goodwill, Gross amount | 5,834 | 5,634 | 5,834 | 5,634 | 5,702 |
Goodwill, Net amount | 5,834 | 5,634 | 5,834 | 5,634 | 5,702 |
Carter's Tradename [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Indefinite intangible assets | 220,233 | 220,233 | 220,233 | 220,233 | 220,233 |
Oshkosh Trade Name [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Indefinite intangible assets | 85,500 | 85,500 | 85,500 | 85,500 | 85,500 |
Skip Hop Trade Name [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Indefinite intangible assets | 56,800 | 56,800 | 56,800 | 56,800 | 56,800 |
Tradenames [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Finite intangible assets, Accumulated amortization | 877 | 627 | 877 | 627 | 752 |
Intangible assets, Gross amount | 366,444 | 366,444 | 366,444 | 366,444 | 366,444 |
Indefinite-lived trademarks | 365,567 | 365,817 | 365,567 | 365,817 | 365,692 |
Other Tradenames [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Finite intangible assets, Gross amount | 3,911 | 3,911 | 3,911 | 3,911 | 3,911 |
Finite intangible assets, Accumulated amortization | 877 | 627 | 877 | 627 | 752 |
Finite-Lived Intangible Assets, Net | 3,034 | 3,284 | 3,034 | 3,284 | 3,159 |
Customer Relationships [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Finite intangible assets, Gross amount | 50,509 | 50,509 | 50,446 | ||
Finite intangible assets, Accumulated amortization | 7,684 | 7,684 | 5,935 | ||
Finite-Lived Intangible Assets, Net | $ 42,825 | 42,825 | 44,511 | ||
Skip Hop Customer Relationships [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Weighted-average useful life | 15 years | ||||
Finite intangible assets, Gross amount | $ 47,300 | 47,300 | 47,300 | 47,300 | 47,300 |
Finite intangible assets, Accumulated amortization | 7,068 | 3,892 | 7,068 | 3,892 | 5,480 |
Finite-Lived Intangible Assets, Net | $ 40,232 | 43,408 | 40,232 | 43,408 | 41,820 |
Carters Mexico Customer Relationships [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Weighted-average useful life | 10 years | ||||
Finite intangible assets, Gross amount | $ 3,209 | 3,031 | 3,209 | 3,031 | 3,146 |
Finite intangible assets, Accumulated amortization | 616 | 217 | 616 | 217 | 455 |
Finite-Lived Intangible Assets, Net | $ 2,593 | $ 2,814 | $ 2,593 | $ 2,814 | $ 2,691 |
Minimum | Other Tradenames [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Weighted-average useful life | 5 years | ||||
Maximum | Other Tradenames [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Weighted-average useful life | 20 years |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS Amortization Expense (Details) $ in Thousands | Jun. 29, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 3,747 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,747 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 3,747 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 3,705 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 3,675 |
COMMON STOCK (Share Repurchases
COMMON STOCK (Share Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | ||||
Remaining capacity under authorization | $ 300,200 | $ 300,200 | ||
Number of shares repurchased (shares) | 545,620 | 599,314 | 1,005,877 | 820,627 |
Aggregate cost of shares repurchased | $ 52,477 | $ 63,899 | $ 92,443 | $ 89,093 |
Average price per share (USD per share) | $ 96.18 | $ 106.62 | $ 91.90 | $ 108.57 |
Dividend declared per common share (USD per share) | $ 0.50 | $ 0.45 | $ 1 | $ 0.90 |
LONG-TERM DEBT (Schedule of Lon
LONG-TERM DEBT (Schedule of Long Term Debt) (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | Jun. 30, 2018 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 604,377 | $ 593,264 | $ 682,778 |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 500,000 | 400,000 | 400,000 |
Less unamortized issuance-related costs for senior notes | (5,623) | (2,736) | (3,222) |
Senior notes, net | 494,377 | 397,264 | 396,778 |
Secured revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 110,000 | $ 196,000 | $ 286,000 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | Mar. 14, 2019 | Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 29, 2018 |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 604,377,000 | $ 682,778,000 | $ 604,377,000 | $ 682,778,000 | $ 593,264,000 | |
Outstanding letters of credit | 5,000,000 | 5,000,000 | ||||
Debt Instrument, Redemption Price, Percentage | 1.31% | |||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 5,200,000 | 5,252,000 | 0 | |||
Loss on extinguishment of debt | (7,800,000) | 0 | 0 | 7,823,000 | 0 | |
Proceeds from senior notes due 2027 | 494,800,000 | 500,000,000 | 0 | |||
Debt Issuance Costs, Gross | $ 5,800,000 | $ 5,800,000 | ||||
LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (as a percentage) | 1.375% | 1.375% | ||||
LIBOR [Member] | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.125% | |||||
LIBOR [Member] | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.875% | |||||
Base Rate [Member] | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.125% | |||||
Base Rate [Member] | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.875% | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 110,000,000 | 286,000,000 | $ 110,000,000 | 286,000,000 | 196,000,000 | |
Available for future borrowing | $ 635,000,000 | $ 635,000,000 | ||||
Revolving Credit Facility [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | |||||
Revolving Credit Facility [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (as a percentage) | 0.375% | 0.375% | ||||
Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, face amount | $ 500,000,000 | $ 500,000,000 | ||||
Debt issuance costs | 5,623,000 | 3,222,000 | 5,623,000 | 3,222,000 | 2,736,000 | |
Long-term debt | $ 500,000,000 | $ 400,000,000 | $ 500,000,000 | $ 400,000,000 | $ 400,000,000 | |
United States of America, Dollars | Revolving Credit Facility [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate (as a percentage) | 3.78% | 3.78% | ||||
Five Point Two Five Percent Senior Notes due Twenty Twenty One [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 2,600,000 | |||||
Interest rate (as a percentage) | 5.25% | |||||
Five Point Two Five Percent Senior Notes due Twenty Twenty One [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 400,000,000 | |||||
Five Point Six Two Five Percent Senior Notes due Twenty Twenty Seven [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (as a percentage) | 5.625% | |||||
Five Point Six Two Five Percent Senior Notes due Twenty Twenty Seven [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 500,000,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 5,194 | $ 5,322 | $ 9,807 | $ 10,266 |
Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 895 | 1,112 | 2,242 | 2,456 |
Time-based restricted stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2,198 | 1,824 | 4,746 | 4,108 |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 940 | 1,183 | 1,658 | 2,499 |
Increase to share-based compensation expense | 300 | |||
Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,161 | $ 1,203 | $ 1,161 | $ 1,203 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 29, 2019 | Dec. 29, 2018 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Gross unrecognized tax benefits | $ 14.6 | ||
Unrecognized tax benefits that if recognized would impact effective tax rate | 12.5 | ||
Reserves for unrecognized tax benefits | 2.5 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 0.5 | ||
Interest accrued on uncertain tax positions | $ 2.4 | $ 1.8 | $ 1.3 |
FAIR VALUE MEASUREMENTS Fair Va
FAIR VALUE MEASUREMENTS Fair Value measurements (Hierarchy) (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Dec. 29, 2018 | Jun. 30, 2018 |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Investments | $ 17.3 | $ 15.7 | $ 16.9 |
FAIR VALUE MEASUREMENTS FAIR _2
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |||
Gain (Loss) on Investments | $ 0.2 | $ 1.7 | $ 0.2 |
FAIR VALUE MEASUREMENTS FAIR _3
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Borrowings) (Details) - USD ($) | Jun. 29, 2019 | Dec. 29, 2018 | Jun. 30, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 604,377,000 | $ 593,264,000 | $ 682,778,000 |
Secured revolving credit facility [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 110,000,000 | 196,000,000 | 286,000,000 |
Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 500,000,000 | $ 400,000,000 | $ 400,000,000 |
Debt Instrument, face amount | 500,000,000 | ||
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 524,800,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Weighted-average number of common and common equivalent shares outstanding: | ||||
Basic number of common shares outstanding | 44,706,307 | 46,437,093 | 44,888,552 | 46,604,599 |
Dilutive effect of equity awards | 332,070 | 509,545 | 310,479 | 563,137 |
Diluted number of common and common equivalent shares outstanding | 45,038,377 | 46,946,638 | 45,199,031 | 47,167,736 |
Basic net income per common share (in thousands, except per share data): | ||||
Net income | $ 43,937 | $ 37,268 | $ 78,403 | $ 79,737 |
Income allocated to participating securities | (396) | (276) | (685) | (600) |
Net income available to common shareholders | $ 43,541 | $ 36,992 | $ 77,718 | $ 79,137 |
Basic net income per common share (USD per share) | $ 0.97 | $ 0.80 | $ 1.73 | $ 1.70 |
Diluted net income per common share (in thousands, except per share data): | ||||
Net income | $ 43,937 | $ 37,268 | $ 78,403 | $ 79,737 |
Income allocated to participating securities | (395) | (274) | (683) | (596) |
Net income available to common shareholders | $ 43,542 | $ 36,994 | $ 77,720 | $ 79,141 |
Diluted net income per common share (USD per share) | $ 0.97 | $ 0.79 | $ 1.72 | $ 1.68 |
Anti-dilutive awards excluded from diluted earnings per share computation (in shares) | 311,300 | 332,448 | 513,742 | 254,417 |
OTHER CURRENT AND LONG-TERM L_3
OTHER CURRENT AND LONG-TERM LIABILITIES (Other Current Liabilities) (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | Jun. 30, 2018 |
Other Liabilities Disclosure [Abstract] | |||
Income taxes payable | $ 7,600 | $ 17,415 | $ 4,301 |
Accrued employee benefits | 10,331 | 16,421 | 10,663 |
Accrued and deferred rent | $ 333 | $ 19,120 | $ 18,702 |
OTHER CURRENT AND LONG-TERM L_4
OTHER CURRENT AND LONG-TERM LIABILITIES (Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | Jun. 30, 2018 |
Other Liabilities Disclosure [Abstract] | |||
Deferred lease incentives | $ 0 | $ 72,345 | $ 75,431 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 734,384 | $ 696,197 | $ 1,475,442 | $ 1,451,983 |
Operating Income (Loss) | $ 64,476 | $ 56,970 | $ 125,235 | $ 117,279 |
Operating income (loss) as percentage of segment net sales | 8.80% | 8.20% | 8.50% | 8.10% |
Insurance Recoveries | $ 400 | |||
Provisions for (recoveries of) doubtful accounts receivable from customers | $ (2,869) | 11,511 | ||
Severance Costs | 1,600 | |||
Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 229,091 | $ 209,476 | 504,458 | 490,309 |
Provisions for (recoveries of) doubtful accounts receivable from customers | 12,800 | |||
Retail | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 423,128 | 402,021 | 800,182 | 785,762 |
Restructuring Costs | 700 | |||
International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 82,165 | 84,700 | 170,802 | 175,912 |
Operating Income (Loss) | 2,100 | |||
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 734,384 | $ 696,197 | $ 1,475,442 | $ 1,451,983 |
Percentage of total net sales | 100.00% | 100.00% | 100.00% | 100.00% |
Operating Segments [Member] | Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 229,091 | $ 209,476 | $ 800,182 | $ 785,762 |
Percentage of total net sales | 31.20% | 30.10% | 54.20% | 54.10% |
Operating Income (Loss) | $ 51,146 | $ 45,428 | $ 75,095 | $ 74,947 |
Operating income (loss) as percentage of segment net sales | 12.10% | 11.30% | 9.40% | 9.50% |
Operating Segments [Member] | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 423,128 | $ 402,021 | $ 504,458 | $ 490,309 |
Percentage of total net sales | 57.60% | 57.70% | 34.20% | 33.80% |
Operating Income (Loss) | $ 35,335 | $ 30,338 | $ 90,791 | $ 80,610 |
Operating income (loss) as percentage of segment net sales | 15.40% | 14.50% | 18.00% | 16.40% |
Operating Segments [Member] | International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 82,165 | $ 84,700 | $ 170,802 | $ 175,912 |
Percentage of total net sales | 11.20% | 12.20% | 11.60% | 12.10% |
Operating Income (Loss) | $ 4,257 | $ 4,312 | $ 9,216 | $ 8,073 |
Operating income (loss) as percentage of segment net sales | 5.20% | 5.10% | 5.40% | 4.60% |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Corporate expenses | $ (26,262) | $ (23,108) | $ (49,867) | $ (46,351) |