cri-20250628

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________to __________

Commission file number: 001-31829

CARTER’S, INC.

(Exact name of registrant as specified in its charter)


Delaware						13-3912933
(State or other jurisdiction of						(I.R.S. Employer Identification No.)
incorporation or organization)

Phipps Tower,

3438 Peachtree Road NE, Suite 1800

Atlanta, Georgia 30326

(Address of principal executive offices, including zip code)

(678) 791-1000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, par value $0.01 per share	CRI	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No x

As of July 18, 2025, there were 36,432,176 shares of the registrant’s common stock outstanding.

CARTER’S, INC.

INDEX



Part I. Financial Information			Page

	Item 1	Financial Statements
		Unaudited Condensed Consolidated Balance Sheets as of June 28, 2025, December 28, 2024 and June 29, 2024	1
		Unaudited Condensed Consolidated Statements of Operations for the fiscal quarter and two fiscal quarters ended June 28, 2025 and June 29, 2024	2
		Unaudited Condensed Consolidated Statements of Comprehensive Income for the fiscal quarter and two fiscal quarters ended June 28, 2025 and June 29, 2024	3
		Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity for the fiscal quarters ended June 28, 2025, March 29, 2025, June 29, 2024, and March 30, 2024	4
		Unaudited Condensed Consolidated Statements of Cash Flows for the two fiscal quarters ended June 28, 2025 and June 29, 2024	5
		Notes to the Unaudited Condensed Consolidated Financial Statements	6
	Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
	Item 3	Quantitative and Qualitative Disclosures about Market Risk	33
	Item 4	Controls and Procedures	33

Part II. Other Information

	Item 1	Legal Proceedings	35
	Item 1A	Risk Factors	35
	Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	36
	Item 3	Defaults upon Senior Securities	36
	Item 4	Mine Safety Disclosures	36
	Item 5	Other Information	36
	Item 6	Exhibits	37

Signatures			38

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CARTER’S, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except per share data)

(unaudited)


	June 28, 2025		December 28, 2024		June 29, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	338,183	$	412,926	$	316,646
Accounts receivable, net of allowance for credit losses of $6,340, $5,663, and $4,895, respectively	140,352		194,834		132,360
Finished goods inventories, net of inventory reserves of $10,284, $8,257, and $13,844, respectively	619,074		502,332		599,295
Prepaid expenses and other current assets	60,612		32,580		54,085
Total current assets	1,158,221		1,142,672		1,102,386
Property, plant, and equipment, net of accumulated depreciation of $598,575, $602,670, and $640,751, respectively	188,177		180,956		181,659
Operating lease assets	571,303		577,133		509,168
Tradenames, net	268,777		268,008		298,097
Goodwill	209,016		206,875		209,086
Customer relationships, net	21,854		23,543		25,386
Other assets	38,204		33,980		29,735
Total assets	$	2,455,552	$	2,433,167	$	2,355,517

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	306,399	$	248,200	$	313,796
Current operating lease liabilities	124,002		130,564		128,952
Other current liabilities	95,270		130,052		84,895
Total current liabilities	525,671		508,816		527,643
Long-term debt, net	498,531		498,127		497,735
Deferred income taxes	42,290		38,210		48,910
Long-term operating lease liabilities	501,804		501,503		436,575
Other long-term liabilities	33,354		31,949		32,904
Total liabilities	$	1,601,650	$	1,578,605	$	1,543,767

Commitments and contingencies - Note 14

SEC Form 10-Q filed by Carter's Inc.