COVER PAGE
COVER PAGE - shares | 9 Months Ended | |
Oct. 02, 2021 | Oct. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 2, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-31829 | |
Entity Registrant Name | CARTER’S, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3912933 | |
Entity Address, Address Line One | Phipps Tower | |
Entity Address, Address Line Two | 3438 Peachtree Road NE | |
Entity Address, Address Line Three | Suite 1800 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30326 | |
City Area Code | 678 | |
Local Phone Number | 791-1000 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | CRI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,265,791 | |
Entity Central Index Key | 0001060822 | |
Current Fiscal Year End Date | --01-01 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 02, 2021 | Jan. 02, 2021 | Sep. 26, 2020 |
Current assets: | |||
Cash and cash equivalents | $ 943,025 | $ 1,102,323 | $ 831,175 |
Accounts receivable, net | 261,182 | 186,512 | 263,231 |
Inventory, net | 722,396 | 599,262 | 646,608 |
Prepaid expenses and other current assets | 56,182 | 57,927 | 56,493 |
Total current assets | 1,982,785 | 1,946,024 | 1,797,507 |
Property, plant and equipment, net | 218,828 | 262,345 | 274,574 |
Operating lease assets | 510,051 | 593,008 | 619,057 |
Tradenames, net | 307,705 | 307,893 | 307,955 |
Goodwill | 212,016 | 211,776 | 209,507 |
Customer relationships, net | 34,843 | 37,510 | 38,147 |
Other assets | 28,028 | 34,024 | 34,874 |
Total assets | 3,294,256 | 3,392,580 | 3,281,621 |
Current liabilities: | |||
Accounts payable | 388,726 | 472,140 | 473,473 |
Current operating lease liabilities | 153,339 | 185,152 | 172,364 |
Other current liabilities | 132,400 | 135,240 | 115,069 |
Total current liabilities | 674,465 | 792,532 | 760,906 |
Long-term debt, net | 990,900 | 989,530 | 989,086 |
Deferred income taxes | 52,967 | 52,770 | 60,160 |
Long-term operating lease liabilities | 464,660 | 554,497 | 587,099 |
Other long-term liabilities | 56,390 | 65,218 | 62,489 |
Total liabilities | 2,239,382 | 2,454,547 | 2,459,740 |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Preferred stock; par value $0.01 per share; 100,000 shares authorized; none issued or outstanding at October 2, 2021, January 2, 2021, and September 26, 2020 | 0 | 0 | 0 |
Common stock, voting; par value $0.01 per share; 150,000,000 shares authorized; 42,946,790, 43,780,075, and 43,648,671 shares issued and outstanding at October 2, 2021, January 2, 2021, and September 26, 2020, respectively | 429 | 438 | 436 |
Additional paid-in capital | 0 | 17,752 | 9,258 |
Accumulated other comprehensive loss | (32,689) | (32,760) | (41,402) |
Retained earnings | 1,087,134 | 952,603 | 853,589 |
Total stockholders’ equity | 1,054,874 | 938,033 | 821,881 |
Total liabilities and stockholders’ equity | $ 3,294,256 | $ 3,392,580 | $ 3,281,621 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Oct. 02, 2021 | Jan. 02, 2021 | Sep. 26, 2020 |
Statement of Financial Position [Abstract] | |||
Allowance for credit loss | $ 8,678 | $ 5,940 | $ 7,675 |
Inventory Valuation Reserves | 23,698 | 14,206 | 30,053 |
Accumulated depreciation of property, plant, and equipment | $ 557,164 | $ 583,980 | $ 576,123 |
Preferred stock; par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock; shares authorized (in shares) | 100,000 | 100,000 | 100,000 |
Preferred stock shares issued and outstanding (in shares) | 0 | 0 | 0 |
Common stock, voting; par value (in USD per share) | $ 0.01 | $ 0.01 | |
Common stock, voting; shares authorized (in shares) | 150,000,000 | 150,000,000 | |
Common stock voting; shares outstanding (in shares) | 42,946,790 | 43,780,075 | 43,648,671 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 890,586 | $ 865,080 | $ 2,424,347 | $ 2,034,437 |
Cost of goods sold | 481,298 | 483,333 | 1,262,822 | 1,170,778 |
Adverse purchase commitments (inventory and raw materials), net | 507 | (1,968) | (7,923) | 16,166 |
Gross profit | 408,781 | 383,715 | 1,169,448 | 847,493 |
Royalty income, net | 8,442 | 9,063 | 22,550 | 19,989 |
Selling, general, and administrative expenses | 293,192 | 279,251 | 832,889 | 767,237 |
Goodwill impairment | 0 | 0 | 0 | 17,742 |
Intangible asset impairment | 0 | 0 | 0 | 26,500 |
Operating income | 124,031 | 113,527 | 359,109 | 56,003 |
Interest expense | 15,196 | 16,347 | 45,839 | 40,523 |
Interest income | (335) | (330) | (761) | (1,217) |
Other expense (income), net | 844 | (2,758) | (796) | 2,647 |
Income before income taxes | 108,326 | 100,268 | 314,827 | 14,050 |
Income tax provision | 23,350 | 19,027 | 72,052 | 3,347 |
Net income | $ 84,976 | $ 81,241 | $ 242,775 | $ 10,703 |
Basic net income per common share (in USD per share) | $ 1.94 | $ 1.86 | $ 5.53 | $ 0.25 |
Diluted net income per common share (in USD per share) | 1.93 | 1.85 | 5.51 | 0.24 |
Dividend declared and paid per common share (in USD per share) | $ 0.40 | $ 0 | $ 0.80 | $ 0.60 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 84,976 | $ 81,241 | $ 242,775 | $ 10,703 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (5,426) | 3,643 | 71 | (5,768) |
Comprehensive income | $ 79,550 | $ 84,884 | $ 242,846 | $ 4,935 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Accumulated other comprehensive loss | Retained earnings |
Balance at beginning of period (in shares) at Dec. 28, 2019 | 43,963,103 | ||||
Balance at beginning of period at Dec. 28, 2019 | $ 880,130 | $ 440 | $ 0 | $ (35,634) | $ 915,324 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 33,158 | ||||
Exercise of stock options | 1,840 | $ 0 | 1,840 | 0 | 0 |
Withholdings from vesting of restricted stock (in shares) | (43,611) | ||||
Withholdings from vesting of restricted stock | (4,712) | $ 0 | (4,712) | 0 | 0 |
Restricted stock activity (in shares) | 132,759 | ||||
Restricted stock activity | 0 | $ 1 | (1) | 0 | 0 |
Stock-based compensation expense | 1,945 | $ 0 | 1,945 | 0 | 0 |
Repurchase of common stock (in shares) | (474,684) | ||||
Repurchase of common stock | (45,255) | $ (5) | 928 | 0 | (46,178) |
Cash dividends declared and paid | (26,260) | 0 | 0 | 0 | (26,260) |
Comprehensive income (loss) | (91,686) | 0 | 0 | (12,992) | (78,694) |
Balance at end of period at Mar. 28, 2020 | 716,002 | $ 436 | 0 | (48,626) | 764,192 |
Balance at end of period (in shares) at Mar. 28, 2020 | 43,610,725 | ||||
Balance at beginning of period (in shares) at Dec. 28, 2019 | 43,963,103 | ||||
Balance at beginning of period at Dec. 28, 2019 | 880,130 | $ 440 | 0 | (35,634) | 915,324 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 4,935 | ||||
Balance at end of period at Sep. 26, 2020 | 821,881 | $ 436 | 9,258 | (41,402) | 853,589 |
Balance at end of period (in shares) at Sep. 26, 2020 | 43,648,671 | ||||
Balance at beginning of period (in shares) at Mar. 28, 2020 | 43,610,725 | ||||
Balance at beginning of period at Mar. 28, 2020 | 716,002 | $ 436 | 0 | (48,626) | 764,192 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 14,180 | ||||
Exercise of stock options | 1,076 | $ 0 | 1,076 | 0 | 0 |
Withholdings from vesting of restricted stock (in shares) | (1,016) | ||||
Withholdings from vesting of restricted stock | (77) | $ 0 | (77) | 0 | 0 |
Restricted stock activity (in shares) | 12,287 | ||||
Restricted stock activity | 0 | $ 0 | 0 | 0 | 0 |
Stock-based compensation expense | 4,540 | 0 | 4,540 | 0 | 0 |
Comprehensive income (loss) | 11,737 | 0 | 0 | 3,581 | 8,156 |
Balance at end of period at Jun. 27, 2020 | 733,278 | $ 436 | 5,539 | (45,045) | 772,348 |
Balance at end of period (in shares) at Jun. 27, 2020 | 43,636,176 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 12,811 | ||||
Exercise of stock options | 812 | $ 0 | 812 | 0 | 0 |
Withholdings from vesting of restricted stock (in shares) | (1,744) | ||||
Withholdings from vesting of restricted stock | (139) | $ 0 | (139) | 0 | 0 |
Restricted stock activity (in shares) | 1,428 | ||||
Restricted stock activity | 0 | $ 0 | 0 | 0 | 0 |
Stock-based compensation expense | 3,046 | 0 | 3,046 | 0 | 0 |
Comprehensive income (loss) | 84,884 | 0 | 0 | 3,643 | 81,241 |
Balance at end of period at Sep. 26, 2020 | 821,881 | $ 436 | 9,258 | (41,402) | 853,589 |
Balance at end of period (in shares) at Sep. 26, 2020 | 43,648,671 | ||||
Balance at beginning of period (in shares) at Jan. 02, 2021 | 43,780,075 | ||||
Balance at beginning of period at Jan. 02, 2021 | 938,033 | $ 438 | 17,752 | (32,760) | 952,603 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 12,065 | ||||
Exercise of stock options | 811 | $ 0 | 811 | 0 | 0 |
Withholdings from vesting of restricted stock (in shares) | (37,444) | ||||
Withholdings from vesting of restricted stock | (3,588) | $ 0 | (3,588) | 0 | 0 |
Restricted stock activity (in shares) | 192,963 | ||||
Restricted stock activity | 0 | $ 2 | (2) | 0 | 0 |
Stock-based compensation expense | 6,931 | 0 | 6,931 | 0 | 0 |
Comprehensive income (loss) | 87,422 | 0 | 0 | 1,226 | 86,196 |
Balance at end of period at Apr. 03, 2021 | 1,029,609 | $ 440 | 21,904 | (31,534) | 1,038,799 |
Balance at end of period (in shares) at Apr. 03, 2021 | 43,947,659 | ||||
Balance at beginning of period (in shares) at Jan. 02, 2021 | 43,780,075 | ||||
Balance at beginning of period at Jan. 02, 2021 | 938,033 | $ 438 | 17,752 | (32,760) | 952,603 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 242,846 | ||||
Balance at end of period at Oct. 02, 2021 | 1,054,874 | $ 429 | 0 | (32,689) | 1,087,134 |
Balance at end of period (in shares) at Oct. 02, 2021 | 42,946,790 | ||||
Balance at beginning of period (in shares) at Apr. 03, 2021 | 43,947,659 | ||||
Balance at beginning of period at Apr. 03, 2021 | 1,029,609 | $ 440 | 21,904 | (31,534) | 1,038,799 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 57,274 | ||||
Exercise of stock options | 4,336 | $ 0 | 4,336 | 0 | 0 |
Withholdings from vesting of restricted stock (in shares) | (1,057) | ||||
Withholdings from vesting of restricted stock | (110) | $ 0 | (110) | 0 | 0 |
Restricted stock activity (in shares) | 7,204 | ||||
Restricted stock activity | 0 | $ 0 | 0 | 0 | 0 |
Stock-based compensation expense | 5,391 | 0 | 5,391 | 0 | 0 |
Cash dividends declared and paid | (17,596) | 0 | 0 | 0 | (17,596) |
Comprehensive income (loss) | 75,874 | 0 | 0 | 4,271 | 71,603 |
Balance at end of period at Jul. 03, 2021 | 1,097,504 | $ 440 | 31,521 | (27,263) | 1,092,806 |
Balance at end of period (in shares) at Jul. 03, 2021 | 44,011,080 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 30,464 | ||||
Exercise of stock options | 2,313 | $ 0 | 2,313 | 0 | 0 |
Withholdings from vesting of restricted stock (in shares) | (1,885) | ||||
Withholdings from vesting of restricted stock | (199) | $ 0 | (199) | 0 | 0 |
Restricted stock activity (in shares) | 3,030 | ||||
Restricted stock activity | 0 | $ 0 | 0 | 0 | 0 |
Stock-based compensation expense | 3,515 | $ 0 | 3,515 | 0 | 0 |
Repurchase of common stock (in shares) | (1,095,899) | ||||
Repurchase of common stock | (110,262) | $ (11) | (37,150) | 0 | (73,101) |
Cash dividends declared and paid | (17,547) | 0 | 0 | 0 | (17,547) |
Comprehensive income (loss) | 79,550 | 0 | 0 | (5,426) | 84,976 |
Balance at end of period at Oct. 02, 2021 | $ 1,054,874 | $ 429 | $ 0 | $ (32,689) | $ 1,087,134 |
Balance at end of period (in shares) at Oct. 02, 2021 | 42,946,790 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | ||
Cash flows from operating activities: | |||
Net income | $ 242,775 | $ 10,703 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property, plant, and equipment | 65,269 | 66,985 | |
Amortization of intangible assets | 2,799 | 2,784 | |
Provisions for excess and obsolete inventory | 9,507 | 20,912 | |
Goodwill impairment | 0 | 17,742 | |
Intangible asset impairments | 0 | 26,500 | |
Other asset impairments and loss on disposal of property, plant and equipment, net of recoveries | 1,988 | 9,395 | |
Amortization of debt issuance costs | 2,271 | 1,641 | |
Stock-based compensation expense | 15,837 | 9,531 | |
Unrealized foreign currency exchange loss, net | 95 | 1,354 | |
Provisions for doubtful accounts receivable from customers | 2,754 | 7,702 | |
Unrealized gain on investments | (1,910) | (628) | |
Deferred income taxes expense (benefit) | 894 | (16,697) | |
Effect of changes in operating assets and liabilities: | |||
Accounts receivable | (77,522) | (21,576) | |
Finished goods inventories | (132,999) | (76,739) | |
Prepaid expenses and other assets | 2,483 | (8,432) | [1] |
Accounts payable and other liabilities | (126,922) | 267,551 | |
Net cash provided by operating activities | 7,319 | 318,728 | |
Cash flows from investing activities: | |||
Capital expenditures | (28,663) | (25,212) | |
Proceeds from sale of investments | 5,000 | 1,400 | [1] |
Net cash used in investing activities | (23,663) | (23,812) | |
Cash flows from financing activities: | |||
Proceeds from senior notes due 2025 | 0 | 500,000 | |
Payment of debt issuance costs | (223) | (7,639) | |
Borrowings under secured revolving credit facility | 0 | 644,000 | |
Payments on secured revolving credit facility | 0 | (744,000) | |
Repurchases of common stock | (110,262) | (45,255) | |
Dividends paid | (35,143) | (26,260) | |
Withholdings from vesting of restricted stock | (3,897) | (4,928) | |
Proceeds from exercises of stock options | 7,460 | 3,728 | |
Net cash (used in) provided by financing activities | (142,065) | 319,646 | |
Net effect of exchange rate changes on cash and cash equivalents | (889) | 2,302 | |
Net (decrease) increase in cash and cash equivalents | (159,298) | 616,864 | |
Cash and cash equivalents, beginning of period | 1,102,323 | 214,311 | |
Cash and cash equivalents, end of period | $ 943,025 | $ 831,175 | |
[1] | Cash flows for the three fiscal quarters ended September 26, 2020 were revised to reflect the reclassification of $1.4 million proceeds from sale of investments from cash flows from operating activities to cash flows from investing activities. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 26, 2020USD ($) | |
Statement of Cash Flows [Abstract] | |
Reclassification of proceeds from sale of investments | $ 1.4 |
THE COMPANY
THE COMPANY | 9 Months Ended |
Oct. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY | THE COMPANY Carter’s, Inc. and its wholly owned subsidiaries (collectively, the “Company”) design, source, and market branded childrenswear under the Carter’s , OshKosh , Skip Hop , Child of Mine , Just One You , Simple Joys , My First Love , little planet , 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. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Oct. 02, 2021 | |
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 October 2, 2021 are not necessarily indicative of the results that may be expected for the current fiscal year ending January 1, 2022. 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 January 2, 2021 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. COVID-19 The Company is closely monitoring the effects of the ongoing coronavirus (“COVID-19”) pandemic and its impact on our business. Additionally, the Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of October 2, 2021 and through the date of this report filing. The accounting matters assessed included, but were not limited to, our allowance for credit losses, inventory reserves, adverse fabric purchase commitments, stock-based compensation, and the carrying value of our goodwill, indefinite-lived intangible assets, and other long-lived assets. Based on these assessments, in the first three quarters of fiscal 2021, the Company released adverse purchase commitment reserves of $8.4 million related to better than expected sales of inventory and utilization of fabric that was reserved for in the first quarter of fiscal 2020 due to COVID-19 related disruptions. As of October 2, 2021, there is no outstanding reserve for adverse fabric purchase commitments related to COVID-19 disruptions in fiscal 2020. Additional COVID-19 related charges were $0.3 million and $3.5 million in the third quarter of fiscal 2021 and the first three quarters of fiscal 2021, respectively. These charges were primarily related to the costs associated with additional personal protective equipment and cleaning supplies. 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. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Oct. 02, 2021 | |
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 certain of its licensees. Disaggregated revenues from these sources for the third quarter and first three quarters of fiscal 2021 and 2020 were as follows: Fiscal quarter ended October 2, 2021 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 294,180 $ 48,935 $ 343,115 Direct-to-consumer 465,711 — 81,760 547,471 $ 465,711 $ 294,180 $ 130,695 $ 890,586 Royalty income $ 2,500 $ 5,226 $ 716 $ 8,442 Three fiscal quarters ended October 2, 2021 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 809,186 $ 125,337 $ 934,523 Direct-to-consumer 1,296,405 — 193,419 1,489,824 $ 1,296,405 $ 809,186 $ 318,756 $ 2,424,347 Royalty income $ 7,930 $ 11,877 $ 2,743 $ 22,550 Fiscal quarter ended September 26, 2020 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 302,135 $ 37,838 $ 339,973 Direct-to-consumer 449,150 — 75,957 525,107 $ 449,150 $ 302,135 $ 113,795 $ 865,080 Royalty income $ 3,902 $ 3,986 $ 1,175 $ 9,063 Three fiscal quarters ended September 26, 2020 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 706,009 $ 92,110 $ 798,119 Direct-to-consumer 1,085,883 — 150,435 1,236,318 $ 1,085,883 $ 706,009 $ 242,545 $ 2,034,437 Royalty income $ 7,648 $ 9,576 $ 2,765 $ 19,989 Accounts Receivable from Customers and Licensees The components of Accounts receivable, net, were as follows: (dollars in thousands) October 2, 2021 January 2, 2021 September 26, 2020 Trade receivables from wholesale customers, net $ 262,770 $ 180,830 $ 255,214 Royalties receivable 7,932 5,733 8,596 Tenant allowances and other receivables 9,336 12,315 12,064 Total receivables $ 280,038 $ 198,878 $ 275,874 Less: Wholesale accounts receivable reserves (*) (18,856) (12,366) (12,643) Accounts receivable, net $ 261,182 $ 186,512 $ 263,231 (*) Includes allowance for credit losses of $8.7 million, $5.9 million, and $7.7 million for the periods ended October 2, 2021, January 2, 2021, and September 26, 2020, respectively. Contract Assets and Liabilities The Company’s contract assets are not material. Contract Liabilities The Company recognizes a contract liability when it has received consideration from a customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts: (dollars in thousands) October 2, 2021 January 2, 2021 September 26, 2020 Contract liabilities - current: Unredeemed gift cards $ 18,948 $ 18,300 $ 15,977 Unredeemed customer loyalty rewards 6,677 5,241 5,510 Carter’s credit card - upfront bonus (1) 714 714 714 Total contract liabilities - current (2) $ 26,339 $ 24,255 $ 22,201 Contract liabilities - non-current (3) $ 2,321 $ 2,857 $ 3,036 Total contract liabilities $ 28,660 $ 27,112 $ 25,237 (1) The Company received an upfront signing bonus from a third-party financial institution, which will be recognized as revenue on a straight-line basis over the term of the agreement. This amount reflects the current portion of this bonus to be recognized as revenue over the next twelve months. (2) Included with Other current liabilities on the Company’s consolidated balance sheets. |
LEASES
LEASES | 9 Months Ended |
Oct. 02, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company has operating leases for retail stores, distribution centers, corporate offices, data centers, and certain equipment. The Company’s leases generally have initial terms ranging from 1 year to 10 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 the periods presented, the Company’s finance leases were not material to the consolidated balance sheets, consolidated statements of operations, or statements 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 third quarter and first three quarters of fiscal 2021 and 2020: Fiscal quarter ended Three fiscal quarters ended (dollars in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Operating lease cost $ 40,917 $ 44,230 $ 125,715 $ 136,180 Variable lease cost (*) 15,444 19,635 48,118 55,139 Net lease cost $ 56,361 $ 63,865 $ 173,833 $ 191,319 (*) Includes short-term leases, which are not material, and operating lease asset impairment charges. As of October 2, 2021, the weighted average remaining operating lease term was 5.1 years, and the weighted average discount rate for operating leases was 3.28%. Cash paid for amounts included in the measurement of operating lease liabilities in the third quarter and first three quarters of fiscal 2021 were $47.6 million and $162.3 million, respectively. Operating lease assets obtained in exchange for operating lease liabilities in the third quarter and first three quarters of fiscal 2021 were $18.6 million and $26.2 million, respectively. As of October 2, 2021, the maturities of lease liabilities were as follows: (dollars in thousands) Operating leases Remainder of 2021 $ 46,341 2022 162,896 2023 137,967 2024 109,661 2025 77,907 2026 55,589 After 2026 82,009 Total lease payments $ 672,370 Less: Interest (54,371) Present value of lease liabilities (*) $ 617,999 (*) 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. As of October 2, 2021, the minimum rental commitments for additional operating lease contracts, primarily for retail stores, that have not yet commenced are $2.2 million. These operating leases will commence between the fourth quarter of fiscal 2021 and fiscal year 2022 with lease terms of 3 years to 10 years. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Oct. 02, 2021 | |
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) October 2, 2021 January 2, 2021 September 26, 2020 Cumulative foreign currency translation adjustments $ (21,236) $ (21,307) $ (32,290) Pension and post-retirement obligations (*) (11,453) (11,453) (9,112) Total accumulated other comprehensive loss $ (32,689) $ (32,760) $ (41,402) (*) Net of income taxes of $3.5 million, $3.5 million, and $2.8 million for the period ended October 2, 2021, January 2, 2021, and September 26, 2020, respectively. During the first three quarters of both fiscal 2021 and fiscal 2020, no amounts were reclassified from Accumulated other comprehensive loss to the statement of operations. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The balances and changes in the carrying amount of Goodwill attributable to each segment were as follows: (dollars in thousands) U.S. Retail U.S. Wholesale International Total Balance at December 28, 2019 $ 83,934 $ 74,454 $ 70,638 $ 229,026 Goodwill impairment (1) — — (17,742) (17,742) Foreign currency impact — — (1,777) (1,777) Balance at September 26, 2020 $ 83,934 $ 74,454 $ 51,119 $ 209,507 Balance at January 2, 2021 (2) $ 83,934 $ 74,454 $ 53,388 $ 211,776 Foreign currency impact — — 240 240 Balance at October 2, 2021 (2) $ 83,934 $ 74,454 $ 53,628 $ 212,016 (1) In the first quarter of fiscal 2020, a charge of $17.7 million was recorded to reflect the impairment of the value ascribed to the goodwill in the Other International reporting unit in the International segment. (2) Goodwill for the International reporting unit is net of accumulated impairment losses of $17.7 million. A summary of the carrying value of the Company’s intangible assets were as follows: October 2, 2021 January 2, 2021 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Carter’s tradename Indefinite $ 220,233 $ — $ 220,233 $ 220,233 $ — $ 220,233 OshKosh tradename Indefinite 70,000 — 70,000 70,000 — 70,000 Skip Hop tradename Indefinite 15,000 — 15,000 15,000 — 15,000 Finite-life tradenames 5-20 years 3,911 1,439 2,472 3,911 1,251 2,660 Total tradenames $ 309,144 $ 1,439 $ 307,705 $ 309,144 $ 1,251 $ 307,893 Skip Hop customer relationships 15 years $ 47,300 $ 14,216 $ 33,084 $ 47,300 $ 11,834 $ 35,466 Carter’s Mexico customer relationships 10 years 3,053 1,294 1,759 3,108 1,064 2,044 Total customer relationships $ 50,353 $ 15,510 $ 34,843 $ 50,408 $ 12,898 $ 37,510 September 26, 2020 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Carter’s tradename Indefinite $ 220,233 $ — $ 220,233 OshKosh tradename (1) Indefinite 70,000 — 70,000 Skip Hop tradename (2) Indefinite 15,000 — 15,000 Finite-life tradenames 5-20 years 3,911 1,189 2,722 Total tradenames $ 309,144 $ 1,189 $ 307,955 Skip Hop customer relationships 15 years $ 47,300 $ 11,039 $ 36,261 Carter’s Mexico customer relationships 10 years 2,875 989 1,886 Total customer relationships $ 50,175 $ 12,028 $ 38,147 (1) In the first quarter of fiscal 2020, a charge of $13.6 million, $1.6 million, and $0.3 million was recorded on our indefinite-lived OshKosh tradename asset in the U.S. Retail, U.S. Wholesale, and International segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived OshKosh tradename asset. (2) In the first quarter of fiscal 2020, a charge of $6.8 million, $3.7 million, and $0.5 million was recorded on our indefinite-lived Skip Hop tradename asset in the U.S. Wholesale, International, and U.S. Retail segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived Skip Hop tradename asset. Amortization expense for intangible assets subject to amortization was approximately $0.9 million for quarters ended October 2, 2021 and September 26, 2020. Amortization expense was approximately $2.8 million for both the first three quarters of fiscal 2021 and for the first three quarters of fiscal 2020. The estimated amortization expense for the next five fiscal years is as follows: (dollars in thousands) Amortization expense Remainder of 2021 $ 932 2022 $ 3,728 2023 $ 3,686 2024 $ 3,656 2025 $ 3,656 2026 $ 3,656 |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Oct. 02, 2021 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | COMMON STOCK Open Market Share Repurchases The Company repurchased and retired shares in open market transactions in the following amounts for the fiscal periods indicated: Fiscal quarter ended Three fiscal quarters ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Number of shares repurchased 1,095,899 — 1,095,899 474,684 Aggregate cost of shares repurchased (dollars in thousands) $ 110,262 $ — $ 110,262 $ 45,255 Average price per share $ 100.61 $ — $ 100.61 $ 95.34 The total aggregate remaining capacity under outstanding repurchase authorizations as of October 2, 2021 was approximately $540.2 million. The authorizations have no expiration date. In the third quarter of fiscal 2021, the Company reinstated its common stock share repurchase program. The Company had previously announced the suspension of its common stock share repurchase program, in connection with the COVID-19 pandemic, at the end of the first quarter in fiscal 2020. Future repurchases may occur from time to time in the open market, in privately negotiated transactions, or otherwise. The timing and amount of any repurchases will be at the discretion of the Company subject to restrictions under the Company’s revolving credit facility, market conditions, stock price, other investment priorities, and other factors. Dividends On May 1, 2020, in connection with the COVID-19 pandemic, the Company suspended its quarterly cash dividend. As a result, the Company did not declare or pay cash dividends through April 27, 2021. In each of the second and third quarters of fiscal 2021, the Board of Directors declared and the Company paid quarterly cash dividends of $0.40 per common share. In the first quarter of fiscal 2020, the Board of Directors declared and the Company paid cash dividends of $0.60 per common share. The Company did not declare or pay cash dividends in the second or third quarters of fiscal 2020. The Board of Directors will evaluate future dividend declarations based on a number of factors, including restrictions under the Company’s secured revolving credit facility, business conditions, the Company’s financial performance, and other considerations. Provisions in the Company’s secured revolving credit facility could have the effect of restricting the Company’s ability to pay cash dividends on, or make future repurchases of, its common stock, as further described in Note 8, Long-Term Debt to the consolidated financial statements . |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Oct. 02, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following: (dollars in thousands) October 2, 2021 January 2, 2021 September 26, 2020 $500 million 5.500% Senior Notes due May 15, 2025 $ 500,000 $ 500,000 $ 500,000 $500 million 5.625% Senior Notes due March 15, 2027 500,000 500,000 500,000 Total senior notes $ 1,000,000 $ 1,000,000 $ 1,000,000 Less unamortized issuance-related costs for senior notes (9,100) (10,470) (10,914) Senior notes, net $ 990,900 $ 989,530 $ 989,086 Secured revolving credit facility — — — Total long-term debt, net $ 990,900 $ 989,530 $ 989,086 Secured Revolving Credit Facility As of October 2, 2021, the Company had no outstanding borrowings under its secured revolving credit facility, exclusive of $4.4 million of outstanding letters of credit. As of October 2, 2021, approximately $745.6 million remained available for future borrowing. Any outstanding borrowings under the Company’s secured revolving credit facility are classified as non-current liabilities on the Company’s consolidated balance sheets because of the contractual repayment terms under the credit facility. On April 21, 2021, the Company, through its wholly owned subsidiary, The William Carter Company (“TWCC”), entered into Amendment No. 3 to its fourth amended and restated credit agreement (“Amendment No. 3”). Among other things, Amendment No. 3 provides that through the remainder of the Restricted Period, which ends on the date the Company delivers its financial statements and associated certificates relating to the third fiscal quarter of 2021: • the Company must maintain a minimum liquidity (defined as cash-on-hand plus availability under the secured revolving credit facility) on the last day of each fiscal month of at least $950 million (the “Revised Liquidity Requirement”), which was increased by $250 million from $700 million; and • the Company may make additional restricted payments, including to pay cash dividends and repurchase common stock, in an amount not to exceed $250 million, provided that (a) no default or event of default will have occurred and be continuing or would result from the payment and (b) after giving effect to the payment, the Company would have been in compliance with Revised Liquidity Requirement as of the last day of the most recent month. Approximately $0.2 million, including both bank fees and other third party expenses, has been capitalized in connection with Amendment No. 3 and is being amortized over the remaining term of the secured revolving credit facility. As of October 2, 2021, the interest rate margins applicable to the secured revolving credit facility were 1.125% for LIBOR (London Interbank Offered Rate) rate loans and 0.125% for base rate loans. As of October 2, 2021, the Company was in compliance with its financial and other covenants under the secured revolving credit facility. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Oct. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company recorded stock-based compensation expense as follows: Fiscal quarter ended Three fiscal quarters ended (dollars in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Stock options $ 290 $ 597 $ 1,064 $ 2,065 Restricted stock: Time-based awards 3,665 2,449 11,070 7,798 Performance-based awards (440) — 2,463 (1,927) Stock awards — — 1,240 1,595 Total $ 3,515 $ 3,046 $ 15,837 $ 9,531 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES As of October 2, 2021, the Company had gross unrecognized income tax benefits of approximately $10.8 million, of which $9.1 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 October 2, 2021 is approximately $2.3 million of reserves for which the statute of limitations is expected to expire within the next 12 months. If these tax benefits are ultimately recognized, such recognition, net of federal income taxes, may affect the annual effective income tax rate for fiscal 2021 or fiscal 2022 along with the effective income tax rate in the quarter in which the benefits are recognized. The Company recognizes interest related to unrecognized tax benefits as a component of interest expense and recognizes penalties related to unrecognized income tax benefits as a component of income tax expense. Interest expense recorded on uncertain tax positions was not material for the third fiscal quarter ended October 2, 2021 and September 26, 2020. Interest expense recorded on uncertain tax positions was $0.4 million and $0.6 million for the first three quarters of fiscal 2021 and fiscal 2020, respectively. The Company had approximately $2.3 million, $2.7 million, and $2.9 million of interest accrued on uncertain tax positions as of October 2, 2021, January 2, 2021, and September 26, 2020, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Oct. 02, 2021 | |
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 $17.1 million, $20.2 million, and $18.9 million at October 2, 2021, January 2, 2021, and September 26, 2020, respectively. These investments are classified as Level 1 within the fair value hierarchy. The change in the aggregate fair values of marketable securities is due to the net activity of gains and losses and any contributions and distributions during the period. Gains on the investments in marketable securities were $0.6 million and $1.9 million for the third fiscal quarter and three fiscal quarters ended October 2, 2021, respectively. Gains on the investments in marketable securities were $2.5 million and $0.6 million for the third fiscal quarter and first three fiscal quarters ended September 26, 2020. These amounts are included in Other expense (income), net on the Company’s consolidated statement of operations. Borrowings As of October 2, 2021, the Company had no outstanding borrowings under its secured revolving credit facility. The fair value of the Company’s senior notes at October 2, 2021 was approximately $1.05 billion. The fair value of these senior notes with a notional value and carrying value (gross of debt issuance costs) of $1.00 billion 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 | 9 Months Ended |
Oct. 02, 2021 | |
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 Three fiscal quarters ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Weighted-average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 43,260,471 43,193,752 43,358,998 43,237,319 Dilutive effect of equity awards 155,575 156,878 153,252 174,351 Diluted number of common and common equivalent shares outstanding 43,416,046 43,350,630 43,512,250 43,411,670 Earnings per share: (dollars in thousands, except per share data) Basic net income per common share: Net income $ 84,976 $ 81,241 $ 242,775 $ 10,703 Income allocated to participating securities (1,024) (837) (2,919) (88) Net income available to common shareholders $ 83,952 $ 80,404 $ 239,856 $ 10,615 Basic net income per common share $ 1.94 $ 1.86 $ 5.53 $ 0.25 Diluted net income per common share: Net income $ 84,976 $ 81,241 $ 242,775 $ 10,703 Income allocated to participating securities (1,021) (834) (2,910) (89) Net income available to common shareholders $ 83,955 $ 80,407 $ 239,865 $ 10,614 Diluted net income per common share $ 1.93 $ 1.85 $ 5.51 $ 0.24 Anti-dilutive awards excluded from diluted earnings per share computation (1) 164,080 729,476 187,245 744,499 (1) The volume of anti-dilutive awards is, in part, due to the related unamortized compensation costs. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 9 Months Ended |
Oct. 02, 2021 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities at the end of any comparable period, were as follows: (dollars in thousands) October 2, 2021 January 2, 2021 September 26, 2020 Accrued bonuses and incentive compensation $ 28,159 $ 8,873 $ 990 Accrued employee benefits 21,035 22,876 9,337 Unredeemed gift cards 18,948 18,300 15,977 Accrued taxes 13,985 10,900 15,453 Accrued interest 11,827 12,092 11,556 Accrued salaries and wages 5,683 10,650 11,351 Income taxes payable 3,710 21,164 18,744 Accrued other 29,053 30,385 31,661 Other current liabilities $ 132,400 $ 135,240 $ 115,069 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Oct. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESThe Company is subject to various claims and pending or threatened lawsuits in the normal course of business. The Company is not currently a party to any legal proceedings that it believes would have a material adverse impact on its financial position, results of operations, or cash flows. The Company’s contractual obligations and commitments include obligations associated with leases, the secured revolving credit agreement, senior notes, employee benefit plans, and facility consolidations/closures as disclosed in Note 16, Organizational Restructuring and Office Consolidation , to the consolidated financial statements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The tables below presents certain information for our reportable segments and unallocated corporate expenses for the periods indicated: Fiscal quarter ended Three fiscal quarters ended (dollars in thousands) October 2, 2021 % of September 26, 2020 % of October 2, % of September 26, 2020 % of Net sales : U.S. Retail $ 465,711 52.3 % $ 449,150 51.9 % $ 1,296,405 53.5 % $ 1,085,883 53.4 % U.S. Wholesale 294,180 33.0 % 302,135 34.9 % 809,186 33.4 % 706,009 34.7 % International 130,695 14.7 % 113,795 13.2 % 318,756 13.1 % 242,545 11.9 % Consolidated net sales $ 890,586 100.0 % $ 865,080 100.0 % $ 2,424,347 100.0 % $ 2,034,437 100.0 % Operating income (loss) : % of % of segment net sales % of % of U.S. Retail $ 87,151 18.7 % $ 47,559 10.6 % $ 250,751 19.3 % $ 38,902 3.6 % U.S. Wholesale 40,074 13.6 % 65,718 21.8 % 150,724 18.6 % 89,141 12.6 % International 22,754 17.4 % 17,400 15.3 % 41,495 13.0 % (15,819) (6.5) % Corporate expenses (*) (25,948) n/a (17,150) n/a (83,861) n/a (56,221) n/a Consolidated operating income $ 124,031 13.9 % $ 113,527 13.1 % $ 359,109 14.8 % $ 56,003 2.8 % (*) Corporate expenses include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, office occupancy, information technology, certain legal fees, consulting fees, and audit fees. (dollars in millions) Fiscal quarter ended October 2, 2021 Three fiscal quarters ended October 2, 2021 Charges: U.S. Retail U.S. Wholesale International U.S. Retail U.S. Wholesale International Incremental costs associated with COVID-19 pandemic $ 0.2 $ 0.1 $ — $ 1.7 $ 1.5 $ 0.3 Organizational restructuring (1) (0.1) — — (0.6) 0.1 2.3 Gain on modification of retail store leases (2) (0.3) — — (2.2) — — Total charges (3) $ (0.2) $ 0.1 $ — $ (1.1) $ 1.6 $ 2.6 (1) First three fiscal quarters ended October 2, 2021 include $2.3 million of costs associated with the early exit of the Canada corporate office lease. Fiscal quarter and first three fiscal quarters ended October 2, 2021 also includes a corporate benefit related to organizational restructuring of $0.1 million and corporate charges related to organizational restructuring of $0.8 million, respectively. (2) Related to gains on the modification of previously impaired retail store leases. (3) Total charges for the first three fiscal quarters ended October 2, 2021 exclude a customer bankruptcy recovery of $38,000. (dollars in millions) Fiscal quarter ended September 26, 2020 Three fiscal quarters ended September 26, 2020 Charges: U.S. Retail U.S. Wholesale International U.S. Retail U.S. Wholesale International Organizational restructuring (1) $ 0.3 $ 0.2 $ 0.3 $ 3.4 $ 1.5 $ 1.9 Goodwill impairment — — — — — 17.7 Skip Hop tradename impairment charge — — — 0.5 6.8 3.7 OshKosh tradename impairment charge — — — 13.6 1.6 0.3 Incremental costs associated with COVID-19 pandemic 1.6 1.4 0.3 8.3 8.5 2.0 Retail store operating leases and other long-lived asset impairments (2) 1.5 — — 6.3 — 0.2 Total charges $ 3.4 $ 1.6 $ 0.6 $ 32.1 $ 18.4 $ 25.8 (1) The third fiscal quarter ended September 26, 2020 and the first three fiscal quarters ended September 26, 2020 also include corporate charges related to organizational restructuring of $0.4 million and $2.0 million, respectively. |
ORGANIZATIONAL RESTRUCTURING AN
ORGANIZATIONAL RESTRUCTURING AND OFFICE CONSOLIDATION | 9 Months Ended |
Oct. 02, 2021 | |
Restructuring and Related Activities [Abstract] | |
ORGANIZATIONAL RESTRUCTURING AND OFFICE CONSOLIDATION | ORGANIZATIONAL RESTRUCTURING AND OFFICE CONSOLIDATION As previously announced, the Company initiated several organizational restructuring initiatives which included a reorganization of staffing models across multiple functions to drive labor savings and increase efficiencies, the consolidation of certain functions into our corporate headquarters in Atlanta, Georgia, and over 100 planned store closures by the end of fiscal 2021. In conjunction with these initiatives, the Company recorded the following charges in selling, general and administrative expenses: Fiscal quarter ended Three fiscal quarters ended (dollars in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Severance and other termination benefits (*) $ (120) $ 181 $ (893) $ 4,423 Lease exit costs 7 780 3,419 2,495 Relocation and recruiting (*) (70) 253 (63) 1,755 Other closure costs 23 — 76 80 Total $ (160) $ 1,214 $ 2,539 $ 8,753 (*) Severance and other termination benefits and relocation and recruiting in the third quarter and three fiscal quarters ended October 2, 2021 reflect revised severance accrual assumptions. The Company paid approximately $0.9 million and $5.4 million in severance and other termination benefits during the third fiscal quarter and first three fiscal quarters ended October 2, 2021, respectively. As of October 2, 2021, there was approximately $1.4 million in reserves related to severance and other termination benefits expected to be paid out through the first quarter of fiscal 2022 included in Other current liabilities in the accompanying unaudited condensed consolidated balance sheets as of October 2, 2021. The Company expects to incur additional restructuring-related severance charges of approximately $0.5 million through fiscal 2021. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 certain of its licensees. Disaggregated revenues from these sources for the third quarter and first three quarters of fiscal 2021 and 2020 were as follows: Fiscal quarter ended October 2, 2021 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 294,180 $ 48,935 $ 343,115 Direct-to-consumer 465,711 — 81,760 547,471 $ 465,711 $ 294,180 $ 130,695 $ 890,586 Royalty income $ 2,500 $ 5,226 $ 716 $ 8,442 Three fiscal quarters ended October 2, 2021 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 809,186 $ 125,337 $ 934,523 Direct-to-consumer 1,296,405 — 193,419 1,489,824 $ 1,296,405 $ 809,186 $ 318,756 $ 2,424,347 Royalty income $ 7,930 $ 11,877 $ 2,743 $ 22,550 Fiscal quarter ended September 26, 2020 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 302,135 $ 37,838 $ 339,973 Direct-to-consumer 449,150 — 75,957 525,107 $ 449,150 $ 302,135 $ 113,795 $ 865,080 Royalty income $ 3,902 $ 3,986 $ 1,175 $ 9,063 Three fiscal quarters ended September 26, 2020 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 706,009 $ 92,110 $ 798,119 Direct-to-consumer 1,085,883 — 150,435 1,236,318 $ 1,085,883 $ 706,009 $ 242,545 $ 2,034,437 Royalty income $ 7,648 $ 9,576 $ 2,765 $ 19,989 Accounts Receivable from Customers and Licensees The components of Accounts receivable, net, were as follows: (dollars in thousands) October 2, 2021 January 2, 2021 September 26, 2020 Trade receivables from wholesale customers, net $ 262,770 $ 180,830 $ 255,214 Royalties receivable 7,932 5,733 8,596 Tenant allowances and other receivables 9,336 12,315 12,064 Total receivables $ 280,038 $ 198,878 $ 275,874 Less: Wholesale accounts receivable reserves (*) (18,856) (12,366) (12,643) Accounts receivable, net $ 261,182 $ 186,512 $ 263,231 (*) Includes allowance for credit losses of $8.7 million, $5.9 million, and $7.7 million for the periods ended October 2, 2021, January 2, 2021, and September 26, 2020, respectively. |
Contract with Customer, Asset and Liability | Contract Assets and Liabilities The Company’s contract assets are not material. Contract Liabilities The Company recognizes a contract liability when it has received consideration from a customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts: (dollars in thousands) October 2, 2021 January 2, 2021 September 26, 2020 Contract liabilities - current: Unredeemed gift cards $ 18,948 $ 18,300 $ 15,977 Unredeemed customer loyalty rewards 6,677 5,241 5,510 Carter’s credit card - upfront bonus (1) 714 714 714 Total contract liabilities - current (2) $ 26,339 $ 24,255 $ 22,201 Contract liabilities - non-current (3) $ 2,321 $ 2,857 $ 3,036 Total contract liabilities $ 28,660 $ 27,112 $ 25,237 (1) The Company received an upfront signing bonus from a third-party financial institution, which will be recognized as revenue on a straight-line basis over the term of the agreement. This amount reflects the current portion of this bonus to be recognized as revenue over the next twelve months. (2) Included with Other current liabilities on the Company’s consolidated balance sheets. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Leases [Abstract] | |
Lease Cost and Supplementary Information | The following components of lease expense are included in Selling, general and administrative expenses on the Company’s consolidated statements of operations for the third quarter and first three quarters of fiscal 2021 and 2020: Fiscal quarter ended Three fiscal quarters ended (dollars in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Operating lease cost $ 40,917 $ 44,230 $ 125,715 $ 136,180 Variable lease cost (*) 15,444 19,635 48,118 55,139 Net lease cost $ 56,361 $ 63,865 $ 173,833 $ 191,319 (*) Includes short-term leases, which are not material, and operating lease asset impairment charges. |
Lessee, Operating Lease, Liability, Maturity | As of October 2, 2021, the maturities of lease liabilities were as follows: (dollars in thousands) Operating leases Remainder of 2021 $ 46,341 2022 162,896 2023 137,967 2024 109,661 2025 77,907 2026 55,589 After 2026 82,009 Total lease payments $ 672,370 Less: Interest (54,371) Present value of lease liabilities (*) $ 617,999 (*) 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. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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) October 2, 2021 January 2, 2021 September 26, 2020 Cumulative foreign currency translation adjustments $ (21,236) $ (21,307) $ (32,290) Pension and post-retirement obligations (*) (11,453) (11,453) (9,112) Total accumulated other comprehensive loss $ (32,689) $ (32,760) $ (41,402) (*) Net of income taxes of $3.5 million, $3.5 million, and $2.8 million for the period ended October 2, 2021, January 2, 2021, and September 26, 2020, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Segment | The balances and changes in the carrying amount of Goodwill attributable to each segment were as follows: (dollars in thousands) U.S. Retail U.S. Wholesale International Total Balance at December 28, 2019 $ 83,934 $ 74,454 $ 70,638 $ 229,026 Goodwill impairment (1) — — (17,742) (17,742) Foreign currency impact — — (1,777) (1,777) Balance at September 26, 2020 $ 83,934 $ 74,454 $ 51,119 $ 209,507 Balance at January 2, 2021 (2) $ 83,934 $ 74,454 $ 53,388 $ 211,776 Foreign currency impact — — 240 240 Balance at October 2, 2021 (2) $ 83,934 $ 74,454 $ 53,628 $ 212,016 (1) In the first quarter of fiscal 2020, a charge of $17.7 million was recorded to reflect the impairment of the value ascribed to the goodwill in the Other International reporting unit in the International segment. |
Schedule of Intangible Assets | A summary of the carrying value of the Company’s intangible assets were as follows: October 2, 2021 January 2, 2021 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Carter’s tradename Indefinite $ 220,233 $ — $ 220,233 $ 220,233 $ — $ 220,233 OshKosh tradename Indefinite 70,000 — 70,000 70,000 — 70,000 Skip Hop tradename Indefinite 15,000 — 15,000 15,000 — 15,000 Finite-life tradenames 5-20 years 3,911 1,439 2,472 3,911 1,251 2,660 Total tradenames $ 309,144 $ 1,439 $ 307,705 $ 309,144 $ 1,251 $ 307,893 Skip Hop customer relationships 15 years $ 47,300 $ 14,216 $ 33,084 $ 47,300 $ 11,834 $ 35,466 Carter’s Mexico customer relationships 10 years 3,053 1,294 1,759 3,108 1,064 2,044 Total customer relationships $ 50,353 $ 15,510 $ 34,843 $ 50,408 $ 12,898 $ 37,510 September 26, 2020 (dollars in thousands) Weighted-average useful life Gross amount Accumulated amortization Net amount Carter’s tradename Indefinite $ 220,233 $ — $ 220,233 OshKosh tradename (1) Indefinite 70,000 — 70,000 Skip Hop tradename (2) Indefinite 15,000 — 15,000 Finite-life tradenames 5-20 years 3,911 1,189 2,722 Total tradenames $ 309,144 $ 1,189 $ 307,955 Skip Hop customer relationships 15 years $ 47,300 $ 11,039 $ 36,261 Carter’s Mexico customer relationships 10 years 2,875 989 1,886 Total customer relationships $ 50,175 $ 12,028 $ 38,147 (1) In the first quarter of fiscal 2020, a charge of $13.6 million, $1.6 million, and $0.3 million was recorded on our indefinite-lived OshKosh tradename asset in the U.S. Retail, U.S. Wholesale, and International segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived OshKosh tradename asset. (2) In the first quarter of fiscal 2020, a charge of $6.8 million, $3.7 million, and $0.5 million was recorded on our indefinite-lived Skip Hop tradename asset in the U.S. Wholesale, International, and U.S. Retail segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived Skip Hop |
Schedule of Future Amortization Expense | The estimated amortization expense for the next five fiscal years is as follows: (dollars in thousands) Amortization expense Remainder of 2021 $ 932 2022 $ 3,728 2023 $ 3,686 2024 $ 3,656 2025 $ 3,656 2026 $ 3,656 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 Three fiscal quarters ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Number of shares repurchased 1,095,899 — 1,095,899 474,684 Aggregate cost of shares repurchased (dollars in thousands) $ 110,262 $ — $ 110,262 $ 45,255 Average price per share $ 100.61 $ — $ 100.61 $ 95.34 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following: (dollars in thousands) October 2, 2021 January 2, 2021 September 26, 2020 $500 million 5.500% Senior Notes due May 15, 2025 $ 500,000 $ 500,000 $ 500,000 $500 million 5.625% Senior Notes due March 15, 2027 500,000 500,000 500,000 Total senior notes $ 1,000,000 $ 1,000,000 $ 1,000,000 Less unamortized issuance-related costs for senior notes (9,100) (10,470) (10,914) Senior notes, net $ 990,900 $ 989,530 $ 989,086 Secured revolving credit facility — — — Total long-term debt, net $ 990,900 $ 989,530 $ 989,086 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of recorded stock-based compensation cost | The Company recorded stock-based compensation expense as follows: Fiscal quarter ended Three fiscal quarters ended (dollars in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Stock options $ 290 $ 597 $ 1,064 $ 2,065 Restricted stock: Time-based awards 3,665 2,449 11,070 7,798 Performance-based awards (440) — 2,463 (1,927) Stock awards — — 1,240 1,595 Total $ 3,515 $ 3,046 $ 15,837 $ 9,531 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 Three fiscal quarters ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Weighted-average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 43,260,471 43,193,752 43,358,998 43,237,319 Dilutive effect of equity awards 155,575 156,878 153,252 174,351 Diluted number of common and common equivalent shares outstanding 43,416,046 43,350,630 43,512,250 43,411,670 Earnings per share: (dollars in thousands, except per share data) Basic net income per common share: Net income $ 84,976 $ 81,241 $ 242,775 $ 10,703 Income allocated to participating securities (1,024) (837) (2,919) (88) Net income available to common shareholders $ 83,952 $ 80,404 $ 239,856 $ 10,615 Basic net income per common share $ 1.94 $ 1.86 $ 5.53 $ 0.25 Diluted net income per common share: Net income $ 84,976 $ 81,241 $ 242,775 $ 10,703 Income allocated to participating securities (1,021) (834) (2,910) (89) Net income available to common shareholders $ 83,955 $ 80,407 $ 239,865 $ 10,614 Diluted net income per common share $ 1.93 $ 1.85 $ 5.51 $ 0.24 Anti-dilutive awards excluded from diluted earnings per share computation (1) 164,080 729,476 187,245 744,499 (1) The volume of anti-dilutive awards is, in part, due to the related unamortized compensation costs. |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities at the end of any comparable period, were as follows: (dollars in thousands) October 2, 2021 January 2, 2021 September 26, 2020 Accrued bonuses and incentive compensation $ 28,159 $ 8,873 $ 990 Accrued employee benefits 21,035 22,876 9,337 Unredeemed gift cards 18,948 18,300 15,977 Accrued taxes 13,985 10,900 15,453 Accrued interest 11,827 12,092 11,556 Accrued salaries and wages 5,683 10,650 11,351 Income taxes payable 3,710 21,164 18,744 Accrued other 29,053 30,385 31,661 Other current liabilities $ 132,400 $ 135,240 $ 115,069 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The tables below presents certain information for our reportable segments and unallocated corporate expenses for the periods indicated: Fiscal quarter ended Three fiscal quarters ended (dollars in thousands) October 2, 2021 % of September 26, 2020 % of October 2, % of September 26, 2020 % of Net sales : U.S. Retail $ 465,711 52.3 % $ 449,150 51.9 % $ 1,296,405 53.5 % $ 1,085,883 53.4 % U.S. Wholesale 294,180 33.0 % 302,135 34.9 % 809,186 33.4 % 706,009 34.7 % International 130,695 14.7 % 113,795 13.2 % 318,756 13.1 % 242,545 11.9 % Consolidated net sales $ 890,586 100.0 % $ 865,080 100.0 % $ 2,424,347 100.0 % $ 2,034,437 100.0 % Operating income (loss) : % of % of segment net sales % of % of U.S. Retail $ 87,151 18.7 % $ 47,559 10.6 % $ 250,751 19.3 % $ 38,902 3.6 % U.S. Wholesale 40,074 13.6 % 65,718 21.8 % 150,724 18.6 % 89,141 12.6 % International 22,754 17.4 % 17,400 15.3 % 41,495 13.0 % (15,819) (6.5) % Corporate expenses (*) (25,948) n/a (17,150) n/a (83,861) n/a (56,221) n/a Consolidated operating income $ 124,031 13.9 % $ 113,527 13.1 % $ 359,109 14.8 % $ 56,003 2.8 % (*) Corporate expenses include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, office occupancy, information technology, certain legal fees, consulting fees, and audit fees. (dollars in millions) Fiscal quarter ended October 2, 2021 Three fiscal quarters ended October 2, 2021 Charges: U.S. Retail U.S. Wholesale International U.S. Retail U.S. Wholesale International Incremental costs associated with COVID-19 pandemic $ 0.2 $ 0.1 $ — $ 1.7 $ 1.5 $ 0.3 Organizational restructuring (1) (0.1) — — (0.6) 0.1 2.3 Gain on modification of retail store leases (2) (0.3) — — (2.2) — — Total charges (3) $ (0.2) $ 0.1 $ — $ (1.1) $ 1.6 $ 2.6 (1) First three fiscal quarters ended October 2, 2021 include $2.3 million of costs associated with the early exit of the Canada corporate office lease. Fiscal quarter and first three fiscal quarters ended October 2, 2021 also includes a corporate benefit related to organizational restructuring of $0.1 million and corporate charges related to organizational restructuring of $0.8 million, respectively. (2) Related to gains on the modification of previously impaired retail store leases. (3) Total charges for the first three fiscal quarters ended October 2, 2021 exclude a customer bankruptcy recovery of $38,000. (dollars in millions) Fiscal quarter ended September 26, 2020 Three fiscal quarters ended September 26, 2020 Charges: U.S. Retail U.S. Wholesale International U.S. Retail U.S. Wholesale International Organizational restructuring (1) $ 0.3 $ 0.2 $ 0.3 $ 3.4 $ 1.5 $ 1.9 Goodwill impairment — — — — — 17.7 Skip Hop tradename impairment charge — — — 0.5 6.8 3.7 OshKosh tradename impairment charge — — — 13.6 1.6 0.3 Incremental costs associated with COVID-19 pandemic 1.6 1.4 0.3 8.3 8.5 2.0 Retail store operating leases and other long-lived asset impairments (2) 1.5 — — 6.3 — 0.2 Total charges $ 3.4 $ 1.6 $ 0.6 $ 32.1 $ 18.4 $ 25.8 (1) The third fiscal quarter ended September 26, 2020 and the first three fiscal quarters ended September 26, 2020 also include corporate charges related to organizational restructuring of $0.4 million and $2.0 million, respectively. |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Restructuring and Related Activities [Abstract] | |
Organizational Restructuring and Office Consolidation Cost | In conjunction with these initiatives, the Company recorded the following charges in selling, general and administrative expenses: Fiscal quarter ended Three fiscal quarters ended (dollars in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Severance and other termination benefits (*) $ (120) $ 181 $ (893) $ 4,423 Lease exit costs 7 780 3,419 2,495 Relocation and recruiting (*) (70) 253 (63) 1,755 Other closure costs 23 — 76 80 Total $ (160) $ 1,214 $ 2,539 $ 8,753 (*) Severance and other termination benefits and relocation and recruiting in the third quarter and three fiscal quarters ended October 2, 2021 reflect revised severance accrual assumptions. |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Oct. 02, 2021 | Oct. 02, 2021 | |
Adverse purchase commitments reserves released | $ 8,400 | |
COVID 19 COST | ||
COVID-19 related charges | $ 300 | $ 3,500 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Jan. 02, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 890,586 | $ 865,080 | $ 2,424,347 | $ 2,034,437 | |
Royalty income, net | 8,442 | 9,063 | 22,550 | 19,989 | |
Total receivables | 280,038 | 275,874 | 280,038 | 275,874 | $ 198,878 |
Less: Wholesale accounts receivable reserves | (8,678) | (7,675) | (8,678) | (7,675) | (5,940) |
Accounts receivable, net | 261,182 | 263,231 | 261,182 | 263,231 | 186,512 |
Wholesale channel | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 343,115 | 339,973 | 934,523 | 798,119 | |
Direct-to-consumer | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 547,471 | 525,107 | 1,489,824 | 1,236,318 | |
Royalty income | |||||
Disaggregation of Revenue [Line Items] | |||||
Royalty income, net | 8,442 | 9,063 | 22,550 | 19,989 | |
U.S. Retail | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 465,711 | 449,150 | 1,296,405 | 1,085,883 | |
U.S. Retail | Wholesale channel | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
U.S. Retail | Direct-to-consumer | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 465,711 | 449,150 | 1,296,405 | 1,085,883 | |
U.S. Retail | Royalty income | |||||
Disaggregation of Revenue [Line Items] | |||||
Royalty income, net | 2,500 | 3,902 | 7,930 | 7,648 | |
U.S. Wholesale | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 294,180 | 302,135 | 809,186 | 706,009 | |
U.S. Wholesale | Wholesale channel | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 294,180 | 302,135 | 809,186 | 706,009 | |
U.S. Wholesale | Direct-to-consumer | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
U.S. Wholesale | Royalty income | |||||
Disaggregation of Revenue [Line Items] | |||||
Royalty income, net | 5,226 | 3,986 | 11,877 | 9,576 | |
International | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 130,695 | 113,795 | 318,756 | 242,545 | |
International | Wholesale channel | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 48,935 | 37,838 | 125,337 | 92,110 | |
International | Direct-to-consumer | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 81,760 | 75,957 | 193,419 | 150,435 | |
International | Royalty income | |||||
Disaggregation of Revenue [Line Items] | |||||
Royalty income, net | 716 | 1,175 | 2,743 | 2,765 | |
Trade Accounts Receivable | |||||
Disaggregation of Revenue [Line Items] | |||||
Total receivables | 262,770 | 255,214 | 262,770 | 255,214 | 180,830 |
Royalties receivable | |||||
Disaggregation of Revenue [Line Items] | |||||
Total receivables | 7,932 | 8,596 | 7,932 | 8,596 | 5,733 |
Tenant allowances and other receivables | |||||
Disaggregation of Revenue [Line Items] | |||||
Total receivables | 9,336 | 12,064 | 9,336 | 12,064 | 12,315 |
SEC Schedule, 12-09, Allowance, Credit Loss | |||||
Disaggregation of Revenue [Line Items] | |||||
Less: Wholesale accounts receivable reserves | $ (18,856) | $ (12,643) | $ (18,856) | $ (12,643) | $ (12,366) |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Liabilities (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Jan. 02, 2021 | Sep. 26, 2020 |
Revenue from Contract with Customer [Abstract] | |||
Unredeemed gift cards | $ 18,948 | $ 18,300 | $ 15,977 |
Unredeemed customer loyalty rewards | 6,677 | 5,241 | 5,510 |
Carter's credit card - upfront bonus | 714 | 714 | 714 |
Total contract liabilities-current | 26,339 | 24,255 | 22,201 |
Contract liabilities - non-current | 2,321 | 2,857 | 3,036 |
Total contract liabilities | $ 28,660 | $ 27,112 | $ 25,237 |
LEASES - Operating lease Terms
LEASES - Operating lease Terms of Contract (Details) | 3 Months Ended |
Oct. 02, 2021 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 10 years |
Operating lease term of extension option | 5 years |
LEASES - Cost and Supplementary
LEASES - Cost and Supplementary Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 40,917 | $ 44,230 | $ 125,715 | $ 136,180 |
Variable lease cost | 15,444 | 19,635 | 48,118 | 55,139 |
Net lease cost | $ 56,361 | $ 63,865 | $ 173,833 | $ 191,319 |
Weighted average remaining operating lease term | 5 years 1 month 6 days | 5 years 1 month 6 days | ||
Weighted average discount rate for operating lease | 3.28% | 3.28% | ||
Cash paid for amount included in measurement of operating lease liabilities | $ 47,600 | $ 162,300 | ||
Operating lease assets obtained in exchanged for new operating lease liabilities | 18,600 | 26,200 | ||
Minimum rental commitments for additional operating lease contracts not yet commenced | $ 2,200 | $ 2,200 | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease term for contracts not yet commenced | 10 years | 10 years | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease term for contracts not yet commenced | 3 years | 3 years |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) $ in Thousands | Oct. 02, 2021USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 46,341 |
2022 | 162,896 |
2023 | 137,967 |
2024 | 109,661 |
2025 | 77,907 |
2026 | 55,589 |
After 2026 | 82,009 |
Total lease payments | 672,370 |
Less: Interest | (54,371) |
Present value of lease liabilities | $ 617,999 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2021 | Oct. 02, 2021 | Sep. 26, 2020 | Jan. 02, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | $ (32,689) | $ (41,402) | $ (32,760) | |
Cumulative foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | (21,236) | (32,290) | (21,307) | |
Pension and post-retirement obligations | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | (11,453) | (9,112) | $ (11,453) | |
Tax impact | $ 3,500 | $ 3,500 | $ 2,800 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Oct. 02, 2021 | Sep. 26, 2020 | Mar. 28, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Jan. 02, 2021 | Sep. 28, 2019 | |
Goodwill [Roll Forward] | |||||||
Goodwill, gross | $ 211,776 | $ 229,026 | |||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ (17,742) | |||
Foreign currency impact | 240 | (1,777) | |||||
Goodwill | 212,016 | 209,507 | 212,016 | 209,507 | 211,776 | ||
U.S. Retail | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, gross | 83,934 | 83,934 | |||||
Goodwill impairment | 0 | ||||||
Foreign currency impact | 0 | 0 | |||||
Goodwill | 83,934 | 83,934 | 83,934 | 83,934 | |||
U.S. Wholesale | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, gross | 74,454 | 74,454 | |||||
Goodwill impairment | 0 | ||||||
Foreign currency impact | 0 | 0 | |||||
Goodwill | 74,454 | 74,454 | 74,454 | 74,454 | |||
International | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, gross | $ 53,388 | $ 70,638 | |||||
Foreign currency impact | 240 | (1,777) | |||||
Goodwill | 53,628 | 51,119 | 53,628 | $ 51,119 | |||
Goodwill accumulated impairment losses | $ 17,700 | $ 17,700 | |||||
Other International Reporting Unit Member | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill impairment | $ 17,742 | $ (17,700) |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 02, 2021 | Sep. 26, 2020 | Mar. 28, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Jan. 02, 2021 | |
Goodwill and Other Intangible Assets [Line Items] | ||||||
Gross amount | $ 50,175 | $ 50,175 | ||||
Accumulated amortization | 12,028 | 12,028 | ||||
Finite-lived intangible assets, net | 38,147 | 38,147 | ||||
Intangible asset impairment | $ 0 | 0 | $ 0 | 26,500 | ||
Amortization of intangible assets | 900 | 900 | 2,799 | 2,784 | ||
Carter’s tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets | 220,233 | 220,233 | 220,233 | 220,233 | $ 220,233 | |
OshKosh tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets | 70,000 | 70,000 | 70,000 | 70,000 | 70,000 | |
Skip Hop tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | |
Other Tradenames | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Gross amount | 3,911 | 3,911 | 3,911 | 3,911 | 3,911 | |
Accumulated amortization | 1,439 | 1,189 | 1,439 | 1,189 | 1,251 | |
Finite-lived intangible assets, net | 2,472 | 2,722 | $ 2,472 | $ 2,722 | 2,660 | |
Other Tradenames | Minimum | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Weighted-average useful life | 5 years | 5 years | ||||
Other Tradenames | Maximum | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Weighted-average useful life | 20 years | 20 years | ||||
Trade Names | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Indefinite and finite lived intangible assets, gross | 309,144 | 309,144 | $ 309,144 | $ 309,144 | 309,144 | |
Accumulated amortization | 1,439 | 1,189 | 1,439 | 1,189 | 1,251 | |
Indefinite-lived trademarks | $ 307,705 | $ 307,955 | 307,705 | 307,955 | 307,893 | |
Skip Hop customer relationships | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Weighted-average useful life | 15 years | 15 years | ||||
Gross amount | $ 47,300 | $ 47,300 | 47,300 | 47,300 | 47,300 | |
Accumulated amortization | 14,216 | 11,039 | 14,216 | 11,039 | 11,834 | |
Finite-lived intangible assets, net | $ 33,084 | $ 36,261 | 33,084 | 36,261 | 35,466 | |
Carter’s Mexico customer relationships | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Weighted-average useful life | 10 years | 10 years | ||||
Gross amount | $ 3,053 | $ 2,875 | 3,053 | 2,875 | 3,108 | |
Accumulated amortization | 1,294 | 989 | 1,294 | 989 | 1,064 | |
Finite-lived intangible assets, net | 1,759 | $ 1,886 | 1,759 | $ 1,886 | 2,044 | |
Customer Relationships | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Gross amount | 50,353 | 50,353 | 50,408 | |||
Accumulated amortization | 15,510 | 15,510 | 12,898 | |||
Finite-lived intangible assets, net | $ 34,843 | $ 34,843 | $ 37,510 | |||
U.S. Retail | OshKosh tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Intangible asset impairment | $ 13,600 | |||||
U.S. Retail | Skip Hop tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Intangible asset impairment | 500 | |||||
U.S. Wholesale | OshKosh tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Intangible asset impairment | 1,600 | |||||
U.S. Wholesale | Skip Hop tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Intangible asset impairment | 6,800 | |||||
International | OshKosh tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Intangible asset impairment | 300 | |||||
International | Skip Hop tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Intangible asset impairment | $ 3,700 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 02, 2021 | Sep. 26, 2020 | Mar. 28, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Jan. 02, 2021 | |
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 17,742 | ||
Intangible asset impairment | 0 | 0 | 0 | 26,500 | ||
Amortization of intangible assets | 900 | 900 | 2,799 | 2,784 | ||
Skip Hop tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets | 15,000 | 15,000 | 15,000 | 15,000 | $ 15,000 | |
OshKosh tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets | $ 70,000 | $ 70,000 | $ 70,000 | 70,000 | $ 70,000 | |
U.S. Wholesale | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill impairment | 0 | |||||
U.S. Wholesale | Skip Hop tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Intangible asset impairment | $ 6,800 | |||||
U.S. Wholesale | OshKosh tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Intangible asset impairment | 1,600 | |||||
International | Skip Hop tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Intangible asset impairment | 3,700 | |||||
International | OshKosh tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Intangible asset impairment | 300 | |||||
U.S. Retail | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 0 | |||||
U.S. Retail | Skip Hop tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Intangible asset impairment | 500 | |||||
U.S. Retail | OshKosh tradename | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Intangible asset impairment | $ 13,600 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Estimated Amortization Expense (Details) $ in Thousands | Oct. 02, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2021 | $ 932 |
2022 | 3,728 |
2023 | 3,686 |
2024 | 3,656 |
2025 | 3,656 |
2026 | $ 3,656 |
COMMON STOCK - Share Repurchase
COMMON STOCK - Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2021 | Jul. 03, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Stockholders' Equity Note [Abstract] | |||||
Number of shares repurchased (in shares) | 1,095,899 | 0 | 1,095,899 | 474,684 | |
Aggregate cost of shares repurchased | $ 110,262 | $ 0 | $ 110,262 | $ 45,255 | |
Average price per share (in USD per share) | $ 100.61 | $ 0 | $ 100.61 | $ 95.34 | |
Remaining capacity under authorization | $ 540,200 | $ 540,200 | |||
Dividends paid (in USD per share) | $ 0.40 | $ 0.40 | $ 0 | $ 0.80 | $ 0.60 |
LONG-TERM DEBT-Schedule (Detail
LONG-TERM DEBT-Schedule (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 21, 2021 | Jan. 02, 2021 | Sep. 26, 2020 |
Debt Instrument [Line Items] | ||||
Total long-term debt, net | $ 990,900 | $ 989,530 | $ 989,086 | |
Outstanding letters of credit | 4,400 | |||
Amendment No. 2 | ||||
Debt Instrument [Line Items] | ||||
Minimum liquidity | $ 700,000 | |||
Amendment No. 3 | ||||
Debt Instrument [Line Items] | ||||
Minimum liquidity | 950,000 | |||
Increase in minimum liquidity | 250,000 | |||
Debt issuance costs | $ 200 | |||
Amendment No. 3 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Additional restricted payments | $ 250,000 | |||
LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.125% | |||
Base Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.125% | |||
Total Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,000,000 | 1,000,000 | 1,000,000 | |
Debt issuance costs, net | (9,100) | (10,470) | (10,914) | |
Senior notes, net | 990,900 | 989,530 | 989,086 | |
Secured Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Secured revolving credit facility | 0 | 0 | 0 | |
Remaining borrowing capacity | $ 745,600 | |||
5.500% Senior Notes due 2025 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.50% | |||
Long-term debt, gross | $ 500,000 | 500,000 | 500,000 | |
5.625% Senior Notes due 2027 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.625% | |||
Long-term debt, gross | $ 500,000 | $ 500,000 | $ 500,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2021 | Apr. 03, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 3,515 | $ 3,046 | $ 15,837 | $ 9,531 | |
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 290 | 597 | 1,064 | 2,065 | |
Time-based awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 3,665 | 2,449 | 11,070 | 7,798 | |
Performance-based awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | (440) | 0 | 2,463 | (1,927) | |
Previously recognized stock-based compensation expense | 700 | $ 2,600 | |||
Stock awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 0 | $ 0 | $ 1,240 | $ 1,595 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |||
Gross unrecognized tax benefits | $ 10.8 | ||
Unrecognized tax benefits that if recognized would impact effective tax rate | 9.1 | ||
Reserves for unrecognized tax benefits | 2.3 | ||
Interest expense recorded on uncertain tax positions | 0.4 | $ 0.6 | |
Interest accrued on uncertain tax positions | $ 2.3 | $ 2.9 | $ 2.7 |
FAIR VALUE MEASUREMENTS - Inves
FAIR VALUE MEASUREMENTS - Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Jan. 02, 2021 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Gain (loss) on investments | $ 600 | $ 2,500 | $ 1,900 | $ 600 | |
Fair Value, Inputs, Level 1 | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Investments | $ 17,100 | $ 18,900 | $ 17,100 | $ 18,900 | $ 20,200 |
FAIR VALUE MEASUREMENTS - Borro
FAIR VALUE MEASUREMENTS - Borrowings (Details) - USD ($) | Oct. 02, 2021 | Jan. 02, 2021 | Sep. 26, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total long-term debt, net | $ 990,900,000 | $ 989,530,000 | $ 989,086,000 |
Secured Revolving Credit Facility | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Secured revolving credit facility | 0 | $ 0 | $ 0 |
Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, face amount | 1,000,000,000 | ||
Fair Value | Fair Value, Inputs, Level 2 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total long-term debt, net | $ 1,050,000,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Weighted-average number of common and common equivalent shares outstanding: | ||||
Basic number of common shares outstanding (in shares) | 43,260,471 | 43,193,752 | 43,358,998 | 43,237,319 |
Dilutive effect of equity awards (in shares) | 155,575 | 156,878 | 153,252 | 174,351 |
Dilutive number of common and common equivalent shares outstanding (in shares) | 43,416,046 | 43,350,630 | 43,512,250 | 43,411,670 |
Basic net income per common share: | ||||
Net income | $ 84,976 | $ 81,241 | $ 242,775 | $ 10,703 |
Income allocated to participating securities | (1,024) | (837) | (2,919) | (88) |
Net income available to common shareholders | $ 83,952 | $ 80,404 | $ 239,856 | $ 10,615 |
Basic net income per common share (in USD per share) | $ 1.94 | $ 1.86 | $ 5.53 | $ 0.25 |
Diluted net income per common share: | ||||
Net income | $ 84,976 | $ 81,241 | $ 242,775 | $ 10,703 |
Income allocated to participating securities | (1,021) | (834) | (2,910) | (89) |
Net income available to common shareholders | $ 83,955 | $ 80,407 | $ 239,865 | $ 10,614 |
Diluted net income per common share (in USD per share) | $ 1.93 | $ 1.85 | $ 5.51 | $ 0.24 |
Anti-dilutive awards excluded from diluted earnings per share computation (in shares) | 164,080 | 729,476 | 187,245 | 744,499 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Jan. 02, 2021 | Sep. 26, 2020 |
Other Liabilities Disclosure [Abstract] | |||
Accrued bonuses and incentive compensation | $ 28,159 | $ 8,873 | $ 990 |
Accrued employee benefits | 21,035 | 22,876 | 9,337 |
Unredeemed gift cards | 18,948 | 18,300 | 15,977 |
Accrued taxes | 13,985 | 10,900 | 15,453 |
Accrued interest | 11,827 | 12,092 | 11,556 |
Accrued salaries and wages | 5,683 | 10,650 | 11,351 |
Income taxes payable | 3,710 | 21,164 | 18,744 |
Accrued other | 29,053 | 30,385 | 31,661 |
Other current liabilities | $ 132,400 | $ 135,240 | $ 115,069 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 890,586 | $ 865,080 | $ 2,424,347 | $ 2,034,437 |
Operating income (loss): | $ 124,031 | $ 113,527 | $ 359,109 | $ 56,003 |
% of segment net sales | 13.90% | 13.10% | 14.80% | 2.80% |
U.S. Retail | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 465,711 | $ 449,150 | $ 1,296,405 | $ 1,085,883 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 130,695 | 113,795 | 318,756 | 242,545 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 890,586 | $ 865,080 | $ 2,424,347 | $ 2,034,437 |
% of consolidated net sales | 100.00% | 100.00% | 100.00% | 100.00% |
Operating Segments | U.S. Retail | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 465,711 | $ 449,150 | $ 1,296,405 | $ 1,085,883 |
% of consolidated net sales | 52.30% | 51.90% | 53.50% | 53.40% |
Operating income (loss): | $ 87,151 | $ 47,559 | $ 250,751 | $ 38,902 |
% of segment net sales | 18.70% | 10.60% | 19.30% | 3.60% |
Operating Segments | U.S. Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 294,180 | $ 302,135 | $ 809,186 | $ 706,009 |
% of consolidated net sales | 33.00% | 34.90% | 33.40% | 34.70% |
Operating income (loss): | $ 40,074 | $ 65,718 | $ 150,724 | $ 89,141 |
% of segment net sales | 13.60% | 21.80% | 18.60% | 12.60% |
Operating Segments | International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 130,695 | $ 113,795 | $ 318,756 | $ 242,545 |
% of consolidated net sales | 14.70% | 13.20% | 13.10% | 11.90% |
Operating income (loss): | $ 22,754 | $ 17,400 | $ 41,495 | $ (15,819) |
% of segment net sales | 17.40% | 15.30% | 13.00% | (6.50%) |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Corporate expenses | $ (25,948) | $ (17,150) | $ (83,861) | $ (56,221) |
SEGMENT INFORMATION SEGMENT CHA
SEGMENT INFORMATION SEGMENT CHARGES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2021 | Sep. 26, 2020 | Mar. 28, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Segment Reporting Information [Line Items] | |||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 17,742,000 | |
Intangible asset impairment | 0 | 0 | 0 | 26,500,000 | |
Early exit cost Canada corporate lease | 2,300,000 | ||||
Provisions for doubtful accounts receivable from customers | 2,754,000 | 7,702,000 | |||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Organizational restructuring | 100,000 | 400,000 | 800,000 | 2,000,000 | |
U.S. Retail | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill impairment | 0 | ||||
U.S. Retail | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Incremental costs associated with COVID-19 pandemic | 200,000 | 1,600,000 | 1,700,000 | 8,300,000 | |
Organizational restructuring | (100,000) | 300,000 | (600,000) | 3,400,000 | |
Gain on modification of retail store leases | (300,000) | (2,200,000) | |||
Goodwill impairment | 0 | 0 | |||
Retail store operating leases and other long-lived asset impairments | 1,500,000 | 6,300,000 | |||
Total charges | 200,000 | 3,400,000 | 1,100,000 | 32,100,000 | |
U.S. Wholesale | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill impairment | 0 | ||||
U.S. Wholesale | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Incremental costs associated with COVID-19 pandemic | 100,000 | 1,400,000 | 1,500,000 | 8,500,000 | |
Organizational restructuring | 0 | 200,000 | 100,000 | 1,500,000 | |
Gain on modification of retail store leases | 0 | 0 | |||
Goodwill impairment | 0 | 0 | |||
Retail store operating leases and other long-lived asset impairments | 0 | 0 | |||
Total charges | 100,000 | 1,600,000 | 1,600,000 | 18,400,000 | |
Provisions for doubtful accounts receivable from customers | 38,000 | ||||
International | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Incremental costs associated with COVID-19 pandemic | 0 | 300,000 | 300,000 | 2,000,000 | |
Organizational restructuring | 0 | 300,000 | 2,300,000 | 1,900,000 | |
Gain on modification of retail store leases | 0 | 0 | |||
Goodwill impairment | 0 | 17,700,000 | |||
Retail store operating leases and other long-lived asset impairments | 0 | 200,000 | |||
Total charges | $ 0 | 600,000 | $ 2,600,000 | 25,800,000 | |
Skip Hop tradename | U.S. Retail | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment | $ 500,000 | ||||
Skip Hop tradename | U.S. Retail | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment | 0 | 500,000 | |||
Skip Hop tradename | U.S. Wholesale | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment | 6,800,000 | ||||
Skip Hop tradename | U.S. Wholesale | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment | 0 | 6,800,000 | |||
Skip Hop tradename | International | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment | 3,700,000 | ||||
Skip Hop tradename | International | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment | 0 | 3,700,000 | |||
OshKosh tradename | U.S. Retail | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment | 13,600,000 | ||||
OshKosh tradename | U.S. Retail | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment | 0 | 13,600,000 | |||
OshKosh tradename | U.S. Wholesale | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment | 1,600,000 | ||||
OshKosh tradename | U.S. Wholesale | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment | 0 | 1,600,000 | |||
OshKosh tradename | International | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment | $ 300,000 | ||||
OshKosh tradename | International | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment | $ 0 | $ 300,000 |
ORGANIZATIONAL RESTRUCTURING _2
ORGANIZATIONAL RESTRUCTURING AND OFFICE CONSOLIDATION (Details) - Selling, General and Administrative Expenses - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Organizational Restructuring and Office Consolidation [Line Items] | ||||
Restructuring charges | $ (160) | $ 1,214 | $ 2,539 | $ 8,753 |
Severance and other termination benefits | ||||
Organizational Restructuring and Office Consolidation [Line Items] | ||||
Restructuring charges | 120 | 181 | 893 | 4,423 |
Lease exit costs | ||||
Organizational Restructuring and Office Consolidation [Line Items] | ||||
Restructuring charges | 7 | 780 | 3,419 | 2,495 |
Relocating and recruiting | ||||
Organizational Restructuring and Office Consolidation [Line Items] | ||||
Restructuring charges | (70) | 253 | (63) | 1,755 |
Other closure costs | ||||
Organizational Restructuring and Office Consolidation [Line Items] | ||||
Restructuring charges | $ 23 | $ 0 | $ 76 | $ 80 |
ORGANIZATIONAL RESTRUCTURING _3
ORGANIZATIONAL RESTRUCTURING AND OFFICE CONSOLIDATION - RESERVE (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 02, 2021USD ($)store | Oct. 02, 2021USD ($)store | |
Organizational Restructuring and Office Consolidation [Line Items] | ||
Number of planned store closures | store | 100 | 100 |
Severance and other termination benefits | ||
Organizational Restructuring and Office Consolidation [Line Items] | ||
Payments in severance and other termination benefits | $ 0.9 | $ 5.4 |
Reserves related to severance and other termination benefits | 1.4 | 1.4 |
Minimum | ||
Organizational Restructuring and Office Consolidation [Line Items] | ||
Additional restructuring-related charges | $ 0.5 | $ 0.5 |