Carter's (CRI) 10-Q 28 Jul 23 2023 Q2 Quarterly report Financial data

COVER PAGE

COVER PAGE - shares	6 Months Ended
	Jul. 01, 2023	Jul. 21, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 01, 2023
Document Transition Report	false
Entity File Number	001-31829
Entity Registrant Name	CARTER’S, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3912933
Entity Address, Address Line One	Phipps Tower
Entity Address, Address Line Two	3438 Peachtree Road NE
Entity Address, Address Line Three	Suite 1800
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30326
City Area Code	678
Local Phone Number	791-1000
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	CRI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		37,258,307
Entity Central Index Key	0001060822
Current Fiscal Year End Date	--12-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Jul. 01, 2023	Dec. 31, 2022	Jul. 02, 2022
Current assets:
Cash and cash equivalents		$ 174,503	$ 211,748	$ 231,339
Accounts receivable, net		132,679	198,587	183,920
Finished goods inventories, net of inventory reserves		681,573	744,573	858,258
Prepaid expenses and other current assets	[1]	56,616	33,812	68,245
Total current assets		1,045,371	1,188,720	1,341,762
Property, plant, and equipment, net of accumulated depreciation		178,100	189,822	186,778
Operating lease assets		499,689	492,335	449,350
Tradenames, net		298,274	298,393	307,518
Goodwill		210,517	209,333	211,247
Customer relationships, net		28,995	30,564	32,248
Other assets		27,525	30,548	31,747
Total assets		2,288,471	2,439,715	2,560,650
Current liabilities:
Accounts payable		281,333	264,078	408,006
Current operating lease liabilities	[1]	137,473	142,432	129,744
Other current liabilities		98,730	122,439	96,102
Total current liabilities		517,536	528,949	633,852
Long-term debt, net		496,984	616,624	616,275
Deferred income taxes		45,436	41,235	45,730
Long-term operating lease liabilities		420,805	421,741	400,046
Other long-term liabilities		32,701	34,757	43,881
Total liabilities		1,513,462	1,643,306	1,739,784
Commitments and contingencies - Note 12
Stockholders’ equity:
Preferred stock; par value $0.01 per share; 100,000 shares authorized; none issued or outstanding		0	0	0
Common stock, voting; par value $0.01 per share; 150,000,000 shares authorized; 37,354,464, 37,692,132, and 39,315,094 shares issued and outstanding, respectively		374	377	393
Additional paid-in capital		0	0	0
Accumulated other comprehensive loss		(24,963)	(34,338)	(32,203)
Retained earnings		799,598	830,370	852,676
Total stockholders’ equity		775,009	796,409	820,866
Total liabilities and stockholders’ equity		$ 2,288,471	$ 2,439,715	$ 2,560,650
[1]Prepaid expenses and other current assets and Current operating lease liabilities as of July 2, 2022 were revised to reflect the presentation for payments of rent before payment due date of $13.2 million.

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022	Jul. 02, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 3,849	$ 7,189	$ 5,758
Finished goods inventories, inventory reserves	17,847	19,268	18,057
Property, plant, and equipment, accumulated depreciation	$ 592,310	$ 569,528	$ 548,013
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 (in shares)	0	0	0
Preferred stock; shares outstanding (in shares)	0	0	0
Common stock, voting; par value (in USD per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, voting; shares authorized (in shares)	150,000,000	150,000,000	150,000,000
Common stock voting; shares issued (in shares)	37,354,464	37,692,132	39,315,094
Common stock voting; shares outstanding (in shares)	37,354,464	37,692,132	39,315,094
Payments of rent before payment due date			$ 13,200

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Income Statement [Abstract]
Net sales	$ 600,199	$ 700,695	$ 1,296,079	$ 1,481,980
Cost of goods sold	308,303	369,456	694,716	795,699
Gross profit	291,896	331,239	601,363	686,281
Royalty income, net	4,341	5,602	10,860	13,076
Selling, general, and administrative expenses	258,676	261,423	518,308	521,315
Operating income	37,561	75,418	93,915	178,042
Interest expense	8,083	8,652	17,727	23,784
Interest income	(1,005)	(272)	(1,705)	(610)
Other (income) expense, net	(767)	17	(1,025)	(494)
Loss on extinguishment of debt	0	19,940	0	19,940
Income before income taxes	31,250	47,081	78,918	135,422
Income tax provision	7,383	10,111	19,055	30,519
Net income	$ 23,867	$ 36,970	$ 59,863	$ 104,903
Basic net income per common share (in USD per share)	$ 0.64	$ 0.93	$ 1.59	$ 2.60
Diluted net income per common share (in USD per share)	0.64	0.93	1.59	2.59
Dividend declared and paid per common share (in USD per share)	$ 0.75	$ 0.75	$ 1.50	$ 1.50

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 23,867	$ 36,970	$ 59,863	$ 104,903
Other comprehensive income (loss):
Foreign currency translation adjustments	5,449	(6,088)	9,375	(3,306)
Comprehensive income	$ 29,316	$ 30,882	$ 69,238	$ 101,597

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 Jan. 01, 2022		41,148,870
Balance at beginning of period at Jan. 01, 2022	$ 950,186	$ 411	$ 0	$ (28,897)	$ 978,672
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		5,100
Exercise of stock options	222	$ 0	222	0	0
Withholdings from vesting of restricted stock (in shares)		(70,452)
Withholdings from vesting of restricted stock	(6,623)	$ 0	(6,623)	0	0
Restricted stock activity (in shares)		265,412
Restricted stock activity	0	$ 3	(3)	0	0
Stock-based compensation expense	5,859	$ 0	5,859	0	0
Repurchase of common stock (in shares)		(793,008)
Repurchase of common stock	(74,496)	$ (8)	(545)	0	(75,033)
Cash dividends declared and paid	(30,573)	0	0	0	(30,573)
Comprehensive income	70,715	$ 0	0	2,782	67,933
Balance at end of period (in shares) at Apr. 02, 2022		40,555,922
Balance at end of period at Apr. 02, 2022	915,290	$ 406	0	(26,115)	940,999
Balance at beginning of period (in shares) at Jan. 01, 2022		41,148,870
Balance at beginning of period at Jan. 01, 2022	950,186	$ 411	0	(28,897)	978,672
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	$ 101,597
Balance at end of period (in shares) at Jul. 02, 2022	39,315,094	39,315,094
Balance at end of period at Jul. 02, 2022	$ 820,866	$ 393	0	(32,203)	852,676
Balance at beginning of period (in shares) at Apr. 02, 2022		40,555,922
Balance at beginning of period at Apr. 02, 2022	915,290	$ 406	0	(26,115)	940,999
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		1,500
Exercise of stock options	89	$ 0	89	0	0
Withholdings from vesting of restricted stock (in shares)		(705)
Withholdings from vesting of restricted stock	(58)	$ 0	(58)	0	0
Restricted stock activity (in shares)		30,731
Restricted stock activity	0	$ 0	0	0	0
Stock-based compensation expense	6,359	$ 0	6,359	0	0
Repurchase of common stock (in shares)		(1,272,354)
Repurchase of common stock	(101,810)	$ (13)	6,390	0	(95,407)
Cash dividends declared and paid	(29,886)	0	0	0	(29,886)
Comprehensive income	$ 30,882	$ 0	0	(6,088)	36,970
Balance at end of period (in shares) at Jul. 02, 2022	39,315,094	39,315,094
Balance at end of period at Jul. 02, 2022	$ 820,866	$ 393	0	(32,203)	852,676
Balance at beginning of period (in shares) at Dec. 31, 2022	37,692,132	37,692,132
Balance at beginning of period at Dec. 31, 2022	$ 796,409	$ 377	0	(34,338)	830,370
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		1,400
Exercise of stock options	83	$ 0	83	0	0
Withholdings from vesting of restricted stock (in shares)		(61,423)
Withholdings from vesting of restricted stock	(4,776)	$ (1)	(4,404)	0	(371)
Restricted stock activity (in shares)		303,015
Restricted stock activity	0	$ 3	(3)	0	0
Stock-based compensation expense	4,343	$ 0	4,343	0	0
Repurchase of common stock (in shares)		(135,873)
Repurchase of common stock	(9,586)	$ (1)	0	0	(9,585)
Cash dividends declared and paid	(28,483)	0	0	0	(28,483)
Comprehensive income	39,922	0	0	3,926	35,996
Other	(19)	$ 0	(19)	0	0
Balance at end of period (in shares) at Apr. 01, 2023		37,799,251
Balance at end of period at Apr. 01, 2023	$ 797,893	$ 378	0	(30,412)	827,927
Balance at beginning of period (in shares) at Dec. 31, 2022	37,692,132	37,692,132
Balance at beginning of period at Dec. 31, 2022	$ 796,409	$ 377	0	(34,338)	830,370
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	$ 69,238
Balance at end of period (in shares) at Jul. 01, 2023	37,354,464	37,354,464
Balance at end of period at Jul. 01, 2023	$ 775,009	$ 374	0	(24,963)	799,598
Balance at beginning of period (in shares) at Apr. 01, 2023		37,799,251
Balance at beginning of period at Apr. 01, 2023	797,893	$ 378	0	(30,412)	827,927
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Withholdings from vesting of restricted stock (in shares)		(932)
Withholdings from vesting of restricted stock	(61)	$ 0	(61)	0	0
Restricted stock activity (in shares)		5,626
Restricted stock activity	0	$ 0	0	0	0
Stock-based compensation expense	6,641	$ 0	6,641	0	0
Repurchase of common stock (in shares)		(449,481)
Repurchase of common stock	(30,336)	$ (4)	6,294	0	(24,038)
Cash dividends declared and paid	(28,158)	0	0	0	(28,158)
Comprehensive income	29,316	0	0	5,449	23,867
Other	$ (286)	$ 0	(286)	0	0
Balance at end of period (in shares) at Jul. 01, 2023	37,354,464	37,354,464
Balance at end of period at Jul. 01, 2023	$ 775,009	$ 374	$ 0	$ (24,963)	$ 799,598

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended				6 Months Ended
	Jul. 01, 2023	Apr. 01, 2023	Jul. 02, 2022	Apr. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Statement of Stockholders' Equity [Abstract]
Dividend declared and paid per common share (in USD per share)	$ 0.75	$ 0.75	$ 0.75	$ 0.75	$ 1.50	$ 1.50

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		6 Months Ended
		Jul. 01, 2023	Jul. 02, 2022
Cash flows from operating activities:
Net income		$ 59,863	$ 104,903
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation of property, plant, and equipment		30,655	29,838
Amortization of intangible assets		1,877	1,865
(Recoveries of) provisions for excess and obsolete inventory, net		(1,581)	3,709
Gain on partial termination of corporate lease		(4,366)	0
Other asset impairments and loss on disposal of property, plant and equipment, net of recoveries		2,751	246
Amortization of debt issuance costs		788	1,173
Stock-based compensation expense		10,984	12,218
Unrealized foreign currency exchange gain, net		(429)	(32)
Recoveries of doubtful accounts receivable from customers		(491)	(1,520)
Unrealized (gain) loss on investments		(633)	1,867
Loss on extinguishment of debt		0	19,940
Deferred income taxes expense		4,274	4,762
Other		0	1,019
Effect of changes in operating assets and liabilities:
Accounts receivable		67,425	48,973
Finished goods inventories		70,017	(215,519)
Prepaid expenses and other assets	[1],[2]	(21,643)	(19,071)
Accounts payable and other liabilities	[1],[2]	(10,249)	(87,966)
Net cash provided by (used in) operating activities		209,242	(93,595)
Cash flows from investing activities:
Capital expenditures		(26,356)	(16,313)
Net cash used in investing activities		(26,356)	(16,313)
Cash flows from financing activities:
Payment of senior notes due 2025		0	(500,000)
Premiums paid to extinguish debt		0	(15,678)
Payment of debt issuance costs		0	(2,420)
Borrowings under secured revolving credit facility		0	120,000
Payments on secured revolving credit facility		(120,000)	0
Repurchases of common stock		(39,922)	(176,306)
Dividends paid		(56,641)	(60,460)
Withholdings from vesting of restricted stock		(4,837)	(6,681)
Proceeds from exercises of stock options		83	311
Other		0	(321)
Net cash used in financing activities		(221,317)	(641,555)
Net effect of exchange rate changes on cash and cash equivalents		1,186	(1,492)
Net decrease in cash and cash equivalents		(37,245)	(752,955)
Cash and cash equivalents, beginning of period		211,748	984,294
Cash and cash equivalents, end of period		$ 174,503	$ 231,339
[1]Cash flows for the two fiscal quarters ended July 2, 2022 were revised to reflect the presentation for payments of rent before payment due date of $13.2 million.[2]Operating lease assets obtained in exchange for operating lease liabilities were $80.0 million and $30.8 million for the two fiscal quarters ended July 1, 2023 and two fiscal quarters ended July 2, 2022, respectively.

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Statement of Cash Flows [Abstract]
Payments of rent before payment due date		$ 13.2
Operating lease assets obtained in exchange for operating lease liabilities	$ 80	$ 30.8

THE COMPANY

THE COMPANY	6 Months Ended
	Jul. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
THE COMPANY	THE COMPANY Carter’s, Inc. and its wholly-owned subsidiaries (collectively, the “Company”) design, source, and market branded childrenswear under the Carter’s, OshKosh B’gosh (or “ OshKosh ”) , Skip Hop, Child of Mine, Just One You, Simple Joys, Little Planet, and other brands. The Company’s products are sourced through contractual arrangements with manufacturers worldwide for wholesale distribution to leading department stores, national chains, and specialty retailers domestically and internationally and for sale in the Company’s retail stores and on its eCommerce sites that market its brand name merchandise and other licensed products manufactured by other companies. Our trademarks that are referred to in this Quarterly Report on Form 10-Q, including Carter’s , OshKosh B’gosh , OshKosh , Child of Mine , Just One You , Simple Joys , Little Planet , and other brands, many of which are registered in the United States and in over 100 other countries and territories, are each the property of one or more subsidiaries of Carter’s, Inc.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jul. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to state fairly the consolidated financial condition, results of operations, comprehensive income, statement of shareholders’ equity, and cash flows of the Company for the interim periods presented. Except as otherwise disclosed, all such adjustments consist only of those of a normal recurring nature. Operating results for the fiscal quarter ended July 1, 2023 are not necessarily indicative of the results that may be expected for the current fiscal year ending December 30, 2023. The preparation of these unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The accompanying condensed consolidated balance sheet as of December 31, 2022 was derived from the Company’s audited consolidated financial statements included in its most recently filed Annual Report on Form 10-K. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC and the instructions to Form 10-Q. We have recast the consolidated statement of operations for the fiscal quarter and two fiscal quarters ended July 2, 2022 to conform to our current presentation of combining Adverse purchase commitments within Cost of goods sold. Inventories Our inventories, which consist primarily of finished goods, are stated at the lower of cost (first-in, first-out basis for wholesale inventory and average cost for retail inventories) or net realizable value. Inventories at July 1, 2023 were $681.6 million compared to $858.3 million at July 2, 2022 and $744.6 million at December 31, 2022. The decrease of $176.7 million, or 20.6%, at July 1, 2023 compared to July 2, 2022 is primarily due to decreased in-transit inventory and lower forecasted net sales for fiscal 2023, partially offset by increased product costs. Due to the seasonal nature of our operations, the inventories balance at July 1, 2023 is not comparable to the inventories balance at December 31, 2022. Adjustments to bring inventory to net realizable value as a result of obsolete, damaged, and excess inventory at July 1, 2023 were consistent to those at July 2, 2022. These adjustments as a percentage of gross inventory have remained relatively stable due to the overall quality and planned use of the inventory. The liability for adverse inventory and fabric purchase commitments decreased from $5.2 million as of July 2, 2022 to $2.9 million as of July 1, 2023, primarily due to the consumption of previously reserved fabric. Supply Chain Financing Program We facilitate a voluntary supply chain finance (“SCF”) program through participating financial institutions. This SCF program enables our suppliers to sell their receivables due from the Company to participating financial institutions at their discretion. As of July 1, 2023, the SCF program has a $70.0 million revolving capacity. We are not a party to the agreements between the participating financial institutions and the suppliers in connection with the SCF program. The range of payment terms we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the SCF program. No guarantees are provided by the Company or any of our subsidiaries under the SCF program. The amounts payable to the participating financial institution for suppliers who voluntarily participate in the SCF program are included in Accounts payable on our condensed consolidated statement balance sheets. Amounts under the SCF program included in Account payable were $23.0 million, $16.5 million, and $23.5 million as of July 1, 2023, December 31, 2022, and July 2, 2022, respectively. Payments made under the SCF program, like payments of other accounts payable, are a reduction to our operating cash flow. Accounting Policies The accounting policies the Company follows are set forth in its most recently filed Annual Report on Form 10-K. There have been no material changes to these accounting policies. New accounting pronouncements adopted at the beginning of fiscal 2023 are noted below. Recent Accounting Pronouncements Supplier Finance Programs (ASU 2022-04) In September 2022, the FASB issued Accounting Standards Update No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations (“ASU 2022-04”) . This new guidance is designed to enhance transparency around supplier finance programs by requiring new disclosures that would allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. ASU 2022-04 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the disclosure of the rollforward of annual activity, which is effective for fiscal years beginning after December 15, 2023. The effect of the adoption of ASU 2022-04 was not material to the Company’s consolidated financial statements.

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Jul. 01, 2023
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 (“wholesale channel”). The Company also earns royalties from certain of its licensees. Disaggregated revenues from these sources for the fiscal periods indicated were as follows: Fiscal quarter ended July 1, 2023 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 186,867 $ 33,209 $ 220,076 Direct-to-consumer 323,466 — 56,657 380,123 $ 323,466 $ 186,867 $ 89,866 $ 600,199 Royalty income, net $ 1,432 $ 1,988 $ 921 $ 4,341 Two fiscal quarters ended July 1, 2023 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 466,856 $ 71,705 $ 538,561 Direct-to-consumer 647,187 — 110,331 757,518 $ 647,187 $ 466,856 $ 182,036 $ 1,296,079 Royalty income, net $ 3,510 $ 5,546 $ 1,804 $ 10,860 Fiscal quarter ended July 2, 2022 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 224,016 $ 37,019 $ 261,035 Direct-to-consumer 379,097 — 60,563 439,660 $ 379,097 $ 224,016 $ 97,582 $ 700,695 Royalty income, net $ 1,317 $ 2,885 $ 1,400 $ 5,602 Two fiscal quarters ended July 2, 2022 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 531,317 $ 87,452 $ 618,769 Direct-to-consumer 745,455 — 117,756 863,211 $ 745,455 $ 531,317 $ 205,208 $ 1,481,980 Royalty income, net $ 4,558 $ 6,315 $ 2,203 $ 13,076 Accounts Receivable from Customers and Licensees The components of Accounts receivable, net, were as follows: (dollars in thousands) July 1, 2023 December 31, 2022 July 2, 2022 Trade receivables from wholesale customers, net $ 128,421 $ 195,078 $ 182,253 Royalties receivable 4,369 5,386 5,203 Other receivables (1) 11,965 14,571 10,671 Total gross receivables $ 144,755 $ 215,035 $ 198,127 Less: Wholesale accounts receivable reserves (2)(3) (12,076) (16,448) (14,207) Accounts receivable, net $ 132,679 $ 198,587 $ 183,920 (1) Includes tax, payroll, gift card and other receivables. (2) Includes allowance for chargebacks of $8.2 million,$9.3 million, and $8.4 million for the periods ended July 1, 2023, December 31, 2022, and July 2, 2022, respectively. (3) Includes allowance for credit losses of $3.8 million, $7.2 million, and $5.8 million for the periods ended July 1, 2023, December 31, 2022, and July 2, 2022, respectively. Contract Assets and Liabilities The Company’s contract assets are not material. Contract Liabilities The Company recognizes a contract liability when it has received consideration from a customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts: (dollars in thousands) July 1, 2023 December 31, 2022 July 2, 2022 Contract liabilities - current: Unredeemed gift cards $ 23,987 $ 23,303 $ 21,251 Unredeemed customer loyalty rewards 3,575 5,276 4,456 Carter’s credit card - upfront bonus (1) 714 714 714 Total contract liabilities - current (2) $ 28,276 $ 29,293 $ 26,421 Contract liabilities - non-current (3) $ 1,071 $ 1,429 $ 1,786 Total contract liabilities $ 29,347 $ 30,722 $ 28,207 (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 condensed consolidated balance sheets. (3) This amount reflects the non-current portion of the Carter’s credit card upfront bonus and is included within Other long-term liabilities on the Company’s condensed consolidated balance sheets.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	6 Months Ended
	Jul. 01, 2023
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) July 1, 2023 December 31, 2022 July 2, 2022 Cumulative foreign currency translation adjustments $ (19,451) $ (28,826) $ (24,608) Pension and post-retirement obligations (*) (5,512) (5,512) (7,595) Total accumulated other comprehensive loss $ (24,963) $ (34,338) $ (32,203) (*) Net of income taxes of $1.7 million, $1.7 million, and $2.4 million for the period ended July 1, 2023, December 31, 2022, and July 2, 2022, respectively. During the first two quarters of both fiscal 2023 and fiscal 2022, no amounts were reclassified from Accumulated other comprehensive loss to the consolidated statement of operations.

COMMON STOCK

COMMON STOCK	6 Months Ended
	Jul. 01, 2023
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 Two fiscal quarters ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Number of shares repurchased 449,481 1,272,354 585,354 2,065,362 Aggregate cost of shares repurchased (dollars in thousands) (*) $ 30,336 $ 101,810 $ 39,922 $ 176,306 Average price per share (*) $ 67.49 $ 80.02 $ 68.20 $ 85.36 (*) The aggregate cost of share repurchases and average price paid per share excludes excise tax on share repurchases imposed as part of the Inflation Reduction Act of 2022. The total aggregate remaining capacity under outstanding repurchase authorizations as of July 1, 2023 was approximately $709.6 million, based on settled repurchase transactions. The share repurchase authorizations have no expiration date. The Inflation Reduction Act of 2022 imposed a nondeductible 1% excise tax on the net value of certain share repurchases made after December 31, 2022. Beginning in fiscal year 2023, we reflected the applicable excise tax to Additional paid-in capital on our condensed consolidated balance sheets as part of the cost basis of the shares repurchased. The corresponding liability for the excise tax payable is recorded in Other current liabilities on our condensed consolidated balance sheets. 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 secured revolving credit facility, market conditions, stock price, other investment priorities, and other factors. Dividends In each of the first two quarters of fiscal 2023, the Board of Directors declared, and the Company paid, a cash dividend per common share of $0.75 (for an aggregate cash dividend per common share of $1.50 for the first two quarters of fiscal 2023). Additionally, in each of the first two quarters of fiscal 2022, the Board of Directors declared, and the Company paid, a cash dividend per common share of $0.75 (for an aggregate cash dividend per common share of $1.50 for the first two quarters of fiscal 2022). 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 6, Long-term Debt , to the consolidated financial statements .

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jul. 01, 2023
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT Long-term debt consisted of the following: (dollars in thousands) July 1, 2023 December 31, 2022 July 2, 2022 $500 million 5.625% senior notes due March 15, 2027 $ 500,000 $ 500,000 $ 500,000 Less unamortized issuance-related costs for senior notes (3,016) (3,376) (3,725) Senior notes, net $ 496,984 $ 496,624 $ 496,275 Secured revolving credit facility — 120,000 120,000 Total long-term debt, net $ 496,984 $ 616,624 $ 616,275 Secured Revolving Credit Facility As of July 1, 2023, the Company had no outstanding borrowings under its secured revolving credit facility, exclusive of $4.4 million of outstanding letters of credit. As of July 1, 2023, there was approximately $845.6 million available for future borrowing. All outstanding borrowings under the Company’s secured revolving credit facility are classified as non-current liabilities on the Company’s condensed consolidated balance sheets because of the contractual repayment terms under the credit facility. The Company’s secured revolving credit facility provides for an aggregate credit line of $850 million which includes a $750 million U.S. dollar facility and a $100 million multicurrency facility. The credit facility matures in April 2027. The facility contains covenants that restrict the Company’s ability to, among other things: (i) create or incur liens, debt, guarantees or other investments, (ii) engage in mergers and consolidations, (iii) pay dividends or other distributions to, and redemptions and repurchases from, equity holders, (iv) prepay, redeem or repurchase subordinated or junior debt, (v) amend organizational documents, and (vi) engage in certain transactions with affiliates. As of July 1, 2023, the interest rate margins applicable to the secured revolving credit facility were 1.125% for adjusted term Secured Overnight Financing Rate (“SOFR”) loans and 0.125% for base rate loans. As of July 1, 2023, the applicable borrowing rate for the secured revolving credit facility was approximately 6.37%, consisting of an adjusted term SOFR rate plus the applicable margin. As of July 1, 2023, the Company was in compliance with its financial and other covenants under the secured revolving credit facility.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jul. 01, 2023
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION The Company recorded stock-based compensation expense as follows: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Stock options $ — $ 12 $ — $ 178 Restricted stock: Time-based awards 4,183 4,296 8,545 9,455 Performance-based awards 908 345 889 879 Stock awards 1,550 1,706 1,550 1,706 Total $ 6,641 $ 6,359 $ 10,984 $ 12,218 The Company recognizes compensation cost ratably over the applicable performance periods based on the estimated probability of achievement of its performance targets at the end of each period. During the first quarter of fiscal 2023, the achievement of performance target estimates related to certain performance-based grants were revised resulting in a reversal of $0.4 million of previously recognized stock compensation expense.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jul. 01, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES As of July 1, 2023, the Company had gross unrecognized income tax benefits of approximately $8.9 million, of which $6.3 million, if ultimately recognized, may affect the Company’s effective income tax rate in the periods settled. The Company has recorded tax positions for which the ultimate deductibility is more likely than not, but for which there is uncertainty about the timing of such deductions. Included in the reserves for unrecognized tax benefits at July 1, 2023 is approximately $2.4 million of reserves for which the statute of limitations is expected to expire within the next 12 months. If these tax benefits are ultimately recognized, such recognition, net of federal income taxes, may affect the annual effective income tax rate for fiscal 2023 along with the effective income tax rate in the quarter in which the benefits are recognized. The Company recognizes interest related to unrecognized tax benefits as a component of interest expense and recognizes penalties related to unrecognized income tax benefits as a component of income tax expense. Interest expense recorded on uncertain tax positions was not material for the second quarter and first two quarters of fiscal 2023 and fiscal 2022. The Company had approximately $1.6 million, $1.5 million, and $2.1 million of interest accrued on uncertain tax positions as of July 1, 2023, December 31, 2022, and July 2, 2022, respectively.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jul. 01, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Investments The Company invests in marketable securities, principally equity-based mutual funds, to mitigate the risk associated with the investment return on employee deferrals of compensation. All of the marketable securities are included in Other assets on the accompanying condensed consolidated balance sheets, and their aggregate fair values were approximately $15.7 million, $15.1 million, and $15.7 million at July 1, 2023, December 31, 2022, and July 2, 2022, respectively. These investments are classified as Level 1 within the fair value hierarchy. The change in the aggregate fair values of marketable securities is due to the net activity of gains and losses and any contributions and distributions during the period. Gains on the investments in marketable securities were $0.2 million and $0.6 million for the second quarter and the first two quarters of fiscal 2023, respectively. Losses on the investments in marketable securities were $0.9 million and $1.9 million for the second quarter and the first two quarters of fiscal 2022, respectively. These amounts are included in Other (income) expense, net on the Company’s condensed consolidated statement of operations. Borrowings As of July 1, 2023, the Company had no outstanding borrowings under its secured revolving credit facility. The fair value of the Company’s senior notes at July 1, 2023 was approximately $489.8 million. The fair value of these senior notes with a notional value and carrying value (gross of debt issuance costs) of $500.0 million was estimated using a quoted price as provided in the secondary market, which considers the Company’s credit risk and market related conditions, and is therefore within Level 2 of the fair value hierarchy. Goodwill, Intangible, and Long-Lived Tangible Assets Some assets are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances. These assets can include goodwill, indefinite-lived intangible assets, and long-lived tangible assets that have been reduced to fair value when impaired. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. In the fourth quarter of fiscal 2022, impairment charges of $5.6 million, $3.0 million, and $0.4 million were recorded on our indefinite-lived Skip Hop tradename asset in the U.S. Wholesale, International, and U.S. Retail segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived Skip Hop tradename asset. The carrying value of the indefinite-lived Skip Hop tradename asset as of July 1, 2023 was $6.0 million.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jul. 01, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE The following is a reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding: Fiscal quarter ended Two fiscal quarters ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Weighted-average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 36,824,490 39,344,834 36,964,509 39,807,354 Dilutive effect of equity awards 127 29,153 3,850 48,274 Diluted number of common and common equivalent shares outstanding 36,824,617 39,373,987 36,968,359 39,855,628 Earnings per share: (dollars in thousands, except per share data) Basic net income per common share: Net income $ 23,867 $ 36,970 $ 59,863 $ 104,903 Income allocated to participating securities (426) (536) (1,018) (1,480) Net income available to common shareholders $ 23,441 $ 36,434 $ 58,845 $ 103,423 Basic net income per common share $ 0.64 $ 0.93 $ 1.59 $ 2.60 Diluted net income per common share: Net income $ 23,867 $ 36,970 $ 59,863 $ 104,903 Income allocated to participating securities (426) (536) (1,018) (1,479) Net income available to common shareholders $ 23,441 $ 36,434 $ 58,845 $ 103,424 Diluted net income per common share $ 0.64 $ 0.93 $ 1.59 $ 2.59 Anti-dilutive awards excluded from diluted earnings per share computation (*) 565,956 532,432 497,076 288,800 (*) The volume of anti-dilutive awards is, in part, due to the related unamortized compensation costs.

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	6 Months Ended
	Jul. 01, 2023
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) July 1, 2023 December 31, 2022 July 2, 2022 Unredeemed gift cards $ 23,987 $ 23,303 $ 21,251 Accrued employee benefits 12,900 16,356 12,208 Accrued salaries and wages 11,551 11,519 11,644 Accrued taxes 11,467 10,445 8,782 Income taxes payable 973 17,484 5,904 Accrued other 37,852 43,332 36,313 Other current liabilities $ 98,730 $ 122,439 $ 96,102

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jul. 01, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Company is subject to various claims and pending or threatened lawsuits in the normal course of business. The Company is not currently a party to any legal proceedings that it believes would have a material adverse impact on its financial position, results of operations, or cash flows. The Company’s contractual obligations and commitments include obligations associated with leases, the secured revolving credit agreement, senior notes, and employee benefit plans.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jul. 01, 2023
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The table below presents certain information for the Company’s reportable segments and unallocated corporate expenses for the periods indicated: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 1, 2023 % of July 2, 2022 % of July 1, % of July 2, % of Net sales : U.S. Retail $ 323,466 53.9 % $ 379,097 54.1 % $ 647,187 49.9 % $ 745,455 50.3 % U.S. Wholesale 186,867 31.1 % 224,016 32.0 % 466,856 36.0 % 531,317 35.9 % International 89,866 15.0 % 97,582 13.9 % 182,036 14.1 % 205,208 13.8 % Consolidated net sales $ 600,199 100.0 % $ 700,695 100.0 % $ 1,296,079 100.0 % $ 1,481,980 100.0 % Operating income : % of % of segment net sales % of % of U.S. Retail $ 28,211 8.7 % $ 55,540 14.7 % $ 55,150 8.5 % $ 105,534 14.2 % U.S. Wholesale 29,209 15.6 % 33,593 15.0 % 81,301 17.4 % 94,099 17.7 % International 6,690 7.4 % 12,163 12.5 % 9,814 5.4 % 22,551 11.0 % Corporate expenses (*) (26,549) n/a (25,878) n/a (52,350) n/a (44,142) n/a Consolidated operating income $ 37,561 6.3 % $ 75,418 10.8 % $ 93,915 7.2 % $ 178,042 12.0 % (*) 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 July 1, 2023 Two fiscal quarters ended July 1, 2023 Charges: U.S. Retail U.S. Wholesale International U.S. Retail U.S. Wholesale International Organizational restructuring (*) $ 0.2 $ 0.1 $ — $ (0.6) $ (0.4) $ — (*) Relates to charges (gains) for organizational restructuring and related corporate office lease amendment actions. Additionally, the second fiscal quarter and first two fiscal quarters ended July1, 2023 includes a corporate charge of $0.1 million and $2.5 million, respectively, related to organizational restructuring and related corporate office lease amendment actions.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Pay vs Performance Disclosure
Net income	$ 23,867	$ 36,970	$ 59,863	$ 104,903

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jul. 01, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jul. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Supplier Finance Programs (ASU 2022-04) In September 2022, the FASB issued Accounting Standards Update No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations (“ASU 2022-04”) . This new guidance is designed to enhance transparency around supplier finance programs by requiring new disclosures that would allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. ASU 2022-04 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the disclosure of the rollforward of annual activity, which is effective for fiscal years beginning after December 15, 2023. The effect of the adoption of ASU 2022-04 was not material to the Company’s consolidated financial statements.

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Jul. 01, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Disaggregated revenues from these sources for the fiscal periods indicated were as follows: Fiscal quarter ended July 1, 2023 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 186,867 $ 33,209 $ 220,076 Direct-to-consumer 323,466 — 56,657 380,123 $ 323,466 $ 186,867 $ 89,866 $ 600,199 Royalty income, net $ 1,432 $ 1,988 $ 921 $ 4,341 Two fiscal quarters ended July 1, 2023 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 466,856 $ 71,705 $ 538,561 Direct-to-consumer 647,187 — 110,331 757,518 $ 647,187 $ 466,856 $ 182,036 $ 1,296,079 Royalty income, net $ 3,510 $ 5,546 $ 1,804 $ 10,860 Fiscal quarter ended July 2, 2022 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 224,016 $ 37,019 $ 261,035 Direct-to-consumer 379,097 — 60,563 439,660 $ 379,097 $ 224,016 $ 97,582 $ 700,695 Royalty income, net $ 1,317 $ 2,885 $ 1,400 $ 5,602 Two fiscal quarters ended July 2, 2022 (dollars in thousands) U.S. Retail U.S. Wholesale International Total Wholesale channel $ — $ 531,317 $ 87,452 $ 618,769 Direct-to-consumer 745,455 — 117,756 863,211 $ 745,455 $ 531,317 $ 205,208 $ 1,481,980 Royalty income, net $ 4,558 $ 6,315 $ 2,203 $ 13,076 Accounts Receivable from Customers and Licensees The components of Accounts receivable, net, were as follows: (dollars in thousands) July 1, 2023 December 31, 2022 July 2, 2022 Trade receivables from wholesale customers, net $ 128,421 $ 195,078 $ 182,253 Royalties receivable 4,369 5,386 5,203 Other receivables (1) 11,965 14,571 10,671 Total gross receivables $ 144,755 $ 215,035 $ 198,127 Less: Wholesale accounts receivable reserves (2)(3) (12,076) (16,448) (14,207) Accounts receivable, net $ 132,679 $ 198,587 $ 183,920 (1) Includes tax, payroll, gift card and other receivables. (2) Includes allowance for chargebacks of $8.2 million,$9.3 million, and $8.4 million for the periods ended July 1, 2023, December 31, 2022, and July 2, 2022, respectively. (3) Includes allowance for credit losses of $3.8 million, $7.2 million, and $5.8 million for the periods ended July 1, 2023, December 31, 2022, and July 2, 2022, respectively.
Contract with Customer, Asset and Liability	Total contract liabilities consisted of the following amounts: (dollars in thousands) July 1, 2023 December 31, 2022 July 2, 2022 Contract liabilities - current: Unredeemed gift cards $ 23,987 $ 23,303 $ 21,251 Unredeemed customer loyalty rewards 3,575 5,276 4,456 Carter’s credit card - upfront bonus (1) 714 714 714 Total contract liabilities - current (2) $ 28,276 $ 29,293 $ 26,421 Contract liabilities - non-current (3) $ 1,071 $ 1,429 $ 1,786 Total contract liabilities $ 29,347 $ 30,722 $ 28,207 (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 condensed consolidated balance sheets. (3) This amount reflects the non-current portion of the Carter’s credit card upfront bonus and is included within Other long-term liabilities on the Company’s condensed consolidated balance sheets.

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	6 Months Ended
	Jul. 01, 2023
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) July 1, 2023 December 31, 2022 July 2, 2022 Cumulative foreign currency translation adjustments $ (19,451) $ (28,826) $ (24,608) Pension and post-retirement obligations (*) (5,512) (5,512) (7,595) Total accumulated other comprehensive loss $ (24,963) $ (34,338) $ (32,203) (*) Net of income taxes of $1.7 million, $1.7 million, and $2.4 million for the period ended July 1, 2023, December 31, 2022, and July 2, 2022, respectively.

COMMON STOCK (Tables)

COMMON STOCK (Tables)	6 Months Ended
	Jul. 01, 2023
Stockholders' Equity Note [Abstract]
Schedule of Shares Repurchased and Retired	The Company repurchased and retired shares in open market transactions in the following amounts for the fiscal periods indicated: Fiscal quarter ended Two fiscal quarters ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Number of shares repurchased 449,481 1,272,354 585,354 2,065,362 Aggregate cost of shares repurchased (dollars in thousands) (*) $ 30,336 $ 101,810 $ 39,922 $ 176,306 Average price per share (*) $ 67.49 $ 80.02 $ 68.20 $ 85.36 (*) The aggregate cost of share repurchases and average price paid per share excludes excise tax on share repurchases imposed as part of the Inflation Reduction Act of 2022.

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Jul. 01, 2023
Debt Disclosure [Abstract]
Schedule of long-term debt	Long-term debt consisted of the following: (dollars in thousands) July 1, 2023 December 31, 2022 July 2, 2022 $500 million 5.625% senior notes due March 15, 2027 $ 500,000 $ 500,000 $ 500,000 Less unamortized issuance-related costs for senior notes (3,016) (3,376) (3,725) Senior notes, net $ 496,984 $ 496,624 $ 496,275 Secured revolving credit facility — 120,000 120,000 Total long-term debt, net $ 496,984 $ 616,624 $ 616,275

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jul. 01, 2023
Share-Based Payment Arrangement [Abstract]
Summary of recorded stock-based compensation cost	The Company recorded stock-based compensation expense as follows: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Stock options $ — $ 12 $ — $ 178 Restricted stock: Time-based awards 4,183 4,296 8,545 9,455 Performance-based awards 908 345 889 879 Stock awards 1,550 1,706 1,550 1,706 Total $ 6,641 $ 6,359 $ 10,984 $ 12,218

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jul. 01, 2023
Earnings Per Share [Abstract]
Reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding	The following is a reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding: Fiscal quarter ended Two fiscal quarters ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Weighted-average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 36,824,490 39,344,834 36,964,509 39,807,354 Dilutive effect of equity awards 127 29,153 3,850 48,274 Diluted number of common and common equivalent shares outstanding 36,824,617 39,373,987 36,968,359 39,855,628 Earnings per share: (dollars in thousands, except per share data) Basic net income per common share: Net income $ 23,867 $ 36,970 $ 59,863 $ 104,903 Income allocated to participating securities (426) (536) (1,018) (1,480) Net income available to common shareholders $ 23,441 $ 36,434 $ 58,845 $ 103,423 Basic net income per common share $ 0.64 $ 0.93 $ 1.59 $ 2.60 Diluted net income per common share: Net income $ 23,867 $ 36,970 $ 59,863 $ 104,903 Income allocated to participating securities (426) (536) (1,018) (1,479) Net income available to common shareholders $ 23,441 $ 36,434 $ 58,845 $ 103,424 Diluted net income per common share $ 0.64 $ 0.93 $ 1.59 $ 2.59 Anti-dilutive awards excluded from diluted earnings per share computation (*) 565,956 532,432 497,076 288,800 (*) The volume of anti-dilutive awards is, in part, due to the related unamortized compensation costs.

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Jul. 01, 2023
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) July 1, 2023 December 31, 2022 July 2, 2022 Unredeemed gift cards $ 23,987 $ 23,303 $ 21,251 Accrued employee benefits 12,900 16,356 12,208 Accrued salaries and wages 11,551 11,519 11,644 Accrued taxes 11,467 10,445 8,782 Income taxes payable 973 17,484 5,904 Accrued other 37,852 43,332 36,313 Other current liabilities $ 98,730 $ 122,439 $ 96,102

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jul. 01, 2023
Segment Reporting [Abstract]
Schedule of segment information	The table below presents certain information for the Company’s reportable segments and unallocated corporate expenses for the periods indicated: Fiscal quarter ended Two fiscal quarters ended (dollars in thousands) July 1, 2023 % of July 2, 2022 % of July 1, % of July 2, % of Net sales : U.S. Retail $ 323,466 53.9 % $ 379,097 54.1 % $ 647,187 49.9 % $ 745,455 50.3 % U.S. Wholesale 186,867 31.1 % 224,016 32.0 % 466,856 36.0 % 531,317 35.9 % International 89,866 15.0 % 97,582 13.9 % 182,036 14.1 % 205,208 13.8 % Consolidated net sales $ 600,199 100.0 % $ 700,695 100.0 % $ 1,296,079 100.0 % $ 1,481,980 100.0 % Operating income : % of % of segment net sales % of % of U.S. Retail $ 28,211 8.7 % $ 55,540 14.7 % $ 55,150 8.5 % $ 105,534 14.2 % U.S. Wholesale 29,209 15.6 % 33,593 15.0 % 81,301 17.4 % 94,099 17.7 % International 6,690 7.4 % 12,163 12.5 % 9,814 5.4 % 22,551 11.0 % Corporate expenses (*) (26,549) n/a (25,878) n/a (52,350) n/a (44,142) n/a Consolidated operating income $ 37,561 6.3 % $ 75,418 10.8 % $ 93,915 7.2 % $ 178,042 12.0 % (*) 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 July 1, 2023 Two fiscal quarters ended July 1, 2023 Charges: U.S. Retail U.S. Wholesale International U.S. Retail U.S. Wholesale International Organizational restructuring (*) $ 0.2 $ 0.1 $ — $ (0.6) $ (0.4) $ — (*) Relates to charges (gains) for organizational restructuring and related corporate office lease amendment actions. Additionally, the second fiscal quarter and first two fiscal quarters ended July1, 2023 includes a corporate charge of $0.1 million and $2.5 million, respectively, related to organizational restructuring and related corporate office lease amendment actions.

THE COMPANY (Details)

THE COMPANY (Details)	Jul. 01, 2023 countryAndTerritory
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of countries and territories registered with company trademarks	100

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022	Jul. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Finished goods inventories, net	$ 681,573	$ 744,573	$ 858,258
Change in inventory	$ (176,700)
Percent change in inventory	(20.60%)
Liability for adverse inventory and fabric purchase commitments	$ 2,900		5,200
SCF revolving capacity	70,000
Accounts payable	281,333	264,078	408,006
SCF
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Accounts payable	$ 23,000	$ 16,500	$ 23,500

REVENUE RECOGNITION - Disaggreg

REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 600,199	$ 700,695	$ 1,296,079	$ 1,481,980
Total gross receivables	144,755	198,127	144,755	198,127	$ 215,035
Less: Wholesale accounts receivable reserves	(3,849)	(5,758)	(3,849)	(5,758)	(7,189)
Accounts receivable, net	132,679	183,920	132,679	183,920	198,587
Allowance for chargebacks	8,200	8,400	8,200	8,400	9,300
Trade receivables from wholesale customers, net
Disaggregation of Revenue [Line Items]
Total gross receivables	128,421	182,253	128,421	182,253	195,078
Royalties receivable
Disaggregation of Revenue [Line Items]
Total gross receivables	4,369	5,203	4,369	5,203	5,386
Other receivables
Disaggregation of Revenue [Line Items]
Total gross receivables	11,965	10,671	11,965	10,671	14,571
Allowance, Credit Loss
Disaggregation of Revenue [Line Items]
Less: Wholesale accounts receivable reserves	(12,076)	(14,207)	(12,076)	(14,207)	$ (16,448)
Wholesale channel
Disaggregation of Revenue [Line Items]
Net sales	220,076	261,035	538,561	618,769
Direct-to-consumer
Disaggregation of Revenue [Line Items]
Net sales	380,123	439,660	757,518	863,211
Royalty income, net
Disaggregation of Revenue [Line Items]
Net sales	4,341	5,602	10,860	13,076
U.S. Retail
Disaggregation of Revenue [Line Items]
Net sales	323,466	379,097	647,187	745,455
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	323,466	379,097	647,187	745,455
U.S. Retail | Royalty income, net
Disaggregation of Revenue [Line Items]
Net sales	1,432	1,317	3,510	4,558
U.S. Wholesale
Disaggregation of Revenue [Line Items]
Net sales	186,867	224,016	466,856	531,317
U.S. Wholesale | Wholesale channel
Disaggregation of Revenue [Line Items]
Net sales	186,867	224,016	466,856	531,317
U.S. Wholesale | Direct-to-consumer
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
U.S. Wholesale | Royalty income, net
Disaggregation of Revenue [Line Items]
Net sales	1,988	2,885	5,546	6,315
International
Disaggregation of Revenue [Line Items]
Net sales	89,866	97,582	182,036	205,208
International | Wholesale channel
Disaggregation of Revenue [Line Items]
Net sales	33,209	37,019	71,705	87,452
International | Direct-to-consumer
Disaggregation of Revenue [Line Items]
Net sales	56,657	60,563	110,331	117,756
International | Royalty income, net
Disaggregation of Revenue [Line Items]
Net sales	$ 921	$ 1,400	$ 1,804	$ 2,203

REVENUE RECOGNITION - Contract

REVENUE RECOGNITION - Contract Liabilities (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022	Jul. 02, 2022
Revenue from Contract with Customer [Abstract]
Unredeemed gift cards	$ 23,987	$ 23,303	$ 21,251
Unredeemed customer loyalty rewards	3,575	5,276	4,456
Carter's credit card - upfront bonus	714	714	714
Total contract liabilities-current	28,276	29,293	26,421
Contract liabilities - non-current	1,071	1,429	1,786
Total contract liabilities	$ 29,347	$ 30,722	$ 28,207

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive loss	$ (24,963)	$ (32,203)	$ (34,338)
Cumulative foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive loss	(19,451)	(24,608)	(28,826)
Pension and post-retirement obligations
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive loss	(5,512)	(7,595)	(5,512)
Tax impact on accumulated other comprehensive loss	$ 1,700	$ 2,400	$ 1,700

COMMON STOCK (Details)

COMMON STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 01, 2023	Apr. 01, 2023	Jul. 02, 2022	Apr. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Stockholders' Equity Note [Abstract]
Number of shares repurchased (in shares)	449,481		1,272,354		585,354	2,065,362
Aggregate cost of shares repurchased	$ 30,336		$ 101,810		$ 39,922	$ 176,306
Average price per share (in USD per share)	$ 67.49		$ 80.02		$ 68.20	$ 85.36
Remaining capacity under repurchase authorization	$ 709,600				$ 709,600
Dividend declared and paid per common share (in USD per share)	$ 0.75	$ 0.75	$ 0.75	$ 0.75	$ 1.50	$ 1.50

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($)	Jul. 01, 2023	Dec. 31, 2022	Jul. 02, 2022
Debt Instrument [Line Items]
Less unamortized issuance-related costs for senior notes	$ (3,016,000)	$ (3,376,000)	$ (3,725,000)
Total long-term debt, net	496,984,000	616,624,000	616,275,000
Outstanding letters of credit	$ 4,400,000
Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Interest rate	1.125%
U.S Dollar Credit Facility - Amendment No.4 | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Borrowing rate (as a percentage)	6.37%
Total Senior Notes
Debt Instrument [Line Items]
Senior notes, net	$ 496,984,000	496,624,000	496,275,000
Secured revolving credit facility
Debt Instrument [Line Items]
Secured revolving credit facility	0	120,000,000	120,000,000
Remaining borrowing capacity	$ 845,600,000
Secured revolving credit facility | Base Rate
Debt Instrument [Line Items]
Interest rate	0.125%
Secured revolving credit facility | Amendment No. 4
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 850,000,000
Secured revolving credit facility | U.S Dollar Credit Facility - Amendment No.4
Debt Instrument [Line Items]
Maximum borrowing capacity	750,000,000
Secured revolving credit facility | Multicurrency Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 100,000,000
5.625% Senior Notes due 2027 | Senior Notes
Debt Instrument [Line Items]
Interest rate	5.625%
Senior notes, gross	$ 500,000,000	$ 500,000,000	$ 500,000,000

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 01, 2023	Apr. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 6,641		$ 6,359	$ 10,984	$ 12,218
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0		12	0	178
Time-based awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	4,183		4,296	8,545	9,455
Performance-based awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	908		345	889	879
Reversal of previously recognized stock compensation expense		$ 400
Stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,550		$ 1,706	$ 1,550	$ 1,706

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022	Jul. 02, 2022
Income Tax Disclosure [Abstract]
Gross unrecognized tax benefits	$ 8.9
Unrecognized tax benefits that if recognized would impact effective tax rate	6.3
Reserves for unrecognized tax benefits	2.4
Interest accrued on uncertain tax positions	$ 1.6	$ 1.5	$ 2.1

FAIR VALUE MEASUREMENTS - Inves

FAIR VALUE MEASUREMENTS - Investments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022	Dec. 31, 2022
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on investments	$ 0.2	$ (0.9)	$ 0.6	$ (1.9)
Fair Value, Inputs, Level 1
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments	$ 15.7	$ 15.7	$ 15.7	$ 15.7	$ 15.1

FAIR VALUE MEASUREMENTS - Borro

FAIR VALUE MEASUREMENTS - Borrowings (Details) - USD ($)	Jul. 01, 2023	Dec. 31, 2022	Jul. 02, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt, net	$ 496,984,000	$ 616,624,000	$ 616,275,000
Secured revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Secured revolving credit facility	0	$ 120,000,000	$ 120,000,000
Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, face amount	500,000,000
Senior Notes | Fair Value | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt, net	$ 489,800,000

FAIR VALUE MEASUREMENTS - Goodw

FAIR VALUE MEASUREMENTS - Goodwill, Intangible, and Long-Lived Tangible Assets (Details) - Skip Hop Trade Name - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2022	Jul. 01, 2023
Goodwill and Other Intangible Assets [Line Items]
Carrying value of indefinite-lived assets		$ 6
U.S. Wholesale
Goodwill and Other Intangible Assets [Line Items]
Intangible asset impairment	$ 5.6
International
Goodwill and Other Intangible Assets [Line Items]
Intangible asset impairment	3
U.S. Retail
Goodwill and Other Intangible Assets [Line Items]
Intangible asset impairment	$ 0.4

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding (in shares)	36,824,490	39,344,834	36,964,509	39,807,354
Dilutive effect of equity awards (in shares)	127	29,153	3,850	48,274
Diluted number of common and common equivalent shares outstanding (in shares)	36,824,617	39,373,987	36,968,359	39,855,628
Basic net income per common share:
Net income	$ 23,867	$ 36,970	$ 59,863	$ 104,903
Income allocated to participating securities	(426)	(536)	(1,018)	(1,480)
Net income available to common shareholders	$ 23,441	$ 36,434	$ 58,845	$ 103,423
Basic net income per common share (in USD per share)	$ 0.64	$ 0.93	$ 1.59	$ 2.60
Diluted net income per common share:
Net income	$ 23,867	$ 36,970	$ 59,863	$ 104,903
Income allocated to participating securities	(426)	(536)	(1,018)	(1,479)
Net income available to common shareholders	$ 23,441	$ 36,434	$ 58,845	$ 103,424
Diluted net income per common share (in USD per share)	$ 0.64	$ 0.93	$ 1.59	$ 2.59
Anti-dilutive awards excluded from diluted earnings per share computation (in shares)	565,956	532,432	497,076	288,800

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022	Jul. 02, 2022
Other Liabilities Disclosure [Abstract]
Unredeemed gift cards	$ 23,987	$ 23,303	$ 21,251
Accrued employee benefits	12,900	16,356	12,208
Accrued salaries and wages	11,551	11,519	11,644
Accrued taxes	11,467	10,445	8,782
Income taxes payable	973	17,484	5,904
Accrued other	37,852	43,332	36,313
Other current liabilities	$ 98,730	$ 122,439	$ 96,102

SEGMENT INFORMATION - Schedule

SEGMENT INFORMATION - Schedule of Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Segment Reporting Information [Line Items]
Consolidated net sales	$ 600,199	$ 700,695	$ 1,296,079	$ 1,481,980
Consolidated operating income	$ 37,561	$ 75,418	$ 93,915	$ 178,042
% of segment net sales	6.30%	10.80%	7.20%	12%
U.S. Retail
Segment Reporting Information [Line Items]
Consolidated net sales	$ 323,466	$ 379,097	$ 647,187	$ 745,455
International
Segment Reporting Information [Line Items]
Consolidated net sales	89,866	97,582	182,036	205,208
Operating Segments
Segment Reporting Information [Line Items]
Consolidated net sales	$ 600,199	$ 700,695	$ 1,296,079	$ 1,481,980
% of consolidated net sales	100%	100%	100%	100%
Operating Segments | U.S. Retail
Segment Reporting Information [Line Items]
Consolidated net sales	$ 323,466	$ 379,097	$ 647,187	$ 745,455
% of consolidated net sales	53.90%	54.10%	49.90%	50.30%
Consolidated operating income	$ 28,211	$ 55,540	$ 55,150	$ 105,534
% of segment net sales	8.70%	14.70%	8.50%	14.20%
Operating Segments | U.S. Wholesale
Segment Reporting Information [Line Items]
Consolidated net sales	$ 186,867	$ 224,016	$ 466,856	$ 531,317
% of consolidated net sales	31.10%	32%	36%	35.90%
Consolidated operating income	$ 29,209	$ 33,593	$ 81,301	$ 94,099
% of segment net sales	15.60%	15%	17.40%	17.70%
Operating Segments | International
Segment Reporting Information [Line Items]
Consolidated net sales	$ 89,866	$ 97,582	$ 182,036	$ 205,208
% of consolidated net sales	15%	13.90%	14.10%	13.80%
Consolidated operating income	$ 6,690	$ 12,163	$ 9,814	$ 22,551
% of segment net sales	7.40%	12.50%	5.40%	11%
Corporate
Segment Reporting Information [Line Items]
Corporate expenses	$ (26,549)	$ (25,878)	$ (52,350)	$ (44,142)

SEGMENT INFORMATION - Schedul_2

SEGMENT INFORMATION - Schedule of Segment Charges (Details) - Operating Segments - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 01, 2023	Jul. 01, 2023
Segment Reporting Information [Line Items]
Organizational restructuring	$ 0.1	$ 2.5
U.S. Retail
Segment Reporting Information [Line Items]
Organizational restructuring	0.2	(0.6)
U.S. Wholesale
Segment Reporting Information [Line Items]
Organizational restructuring	0.1	(0.4)
International
Segment Reporting Information [Line Items]
Organizational restructuring	$ 0	$ 0