$CRI

CARTERS INC

CIK:0001060822|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025	Jul. 04, 2026	Jun. 28, 2025
Income Statement [Abstract]
Net sales	$ 615,490	$ 585,313	$ 1,296,603	$ 1,215,139
Cost of goods sold	202,891	303,553	590,131	642,289
Gross profit	412,599	281,760	706,472	572,850
Royalty income, net	3,362	3,249	7,981	8,580
Selling, general, and administrative expenses	276,135	280,965	546,184	551,284
Operating income	139,826	4,044	168,269	30,146
Interest expense	11,312	7,857	23,069	15,676
Interest income	(8,483)	(4,292)	(11,739)	(7,434)
Other expense (income), net	352	(1,224)	438	(1,148)
Income before income taxes	136,645	1,703	156,501	23,052
Income tax provision	31,687	1,257	37,207	7,067
Net income	$ 104,958	$ 446	$ 119,294	$ 15,985
Basic net income per common share (in USD per share)	$ 2.87	$ 0.01	$ 3.26	$ 0.43
Diluted net income per common share (in USD per share)	2.87	0.01	3.26	0.43
Dividend declared and paid per common share (in USD per share)	$ 0.25	$ 0.25	$ 0.50	$ 1.05

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025
Cash flows from operating activities:
Net income	$ 119,294	$ 15,985
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation of property, plant, and equipment	24,765	24,967
Amortization of intangible assets	1,883	1,846
Provision for excess and obsolete inventory, net	2,730	1,853
Amortization of debt issuance costs	1,142	832
Stock-based compensation expense	7,373	14,941
Unrealized foreign currency exchange loss (gain), net	159	(799)
Provision for doubtful accounts receivable from customers	318	1,182
Unrealized gain on investments	(1,223)	(474)
Deferred income taxes expense	3,813	3,549
Other operating items, net	(530)	(4)
Effect of changes in operating assets and liabilities:
Accounts receivable	10,533	54,068
Finished goods inventories	(37,313)	(114,014)
Prepaid expenses and other assets	(12,057)	(30,218)
Accounts payable and other liabilities	81,408	17,948
Net cash provided by (used in) operating activities	202,295	(8,338)
Cash flows from investing activities:
Capital expenditures	(12,795)	(26,546)
Net cash used in investing activities	(12,795)	(26,546)
Cash flows from financing activities:
Dividends paid	(18,345)	(38,115)
Withholdings from vesting of restricted stock	(3,079)	(4,332)
Other	0	(370)
Net cash used in financing activities	(21,424)	(42,817)
Net effect of exchange rate changes on cash and cash equivalents	(1,580)	2,958
Net increase (decrease) in cash and cash equivalents	166,496	(74,743)
Cash and cash equivalents, beginning of period	487,075	412,926
Cash and cash equivalents, end of period	$ 653,571	$ 338,183

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 04, 2026	Jan. 03, 2026	Jun. 28, 2025
Current assets:
Cash and cash equivalents	$ 653,571	$ 487,075	$ 338,183
Accounts receivable, net	167,852	178,566	140,352
Finished goods inventories, net of inventory reserves	577,737	544,624	619,074
Prepaid expenses and other current assets	73,357	60,508	60,612
Total current assets	1,472,517	1,270,773	1,158,221
Property, plant, and equipment, net of accumulated depreciation	178,651	186,307	188,177
Operating lease assets	568,288	591,806	571,303
Tradenames, net	268,541	268,659	268,777
Goodwill	207,795	208,994	209,016
Customer relationships, net	18,377	20,128	21,854
Other assets	18,191	18,803	38,204
Total assets	2,732,360	2,565,470	2,455,552
Current liabilities:
Accounts payable	323,644	235,700	306,399
Current operating lease liabilities	132,717	136,488	124,002
Other current liabilities	139,862	133,809	95,270
Total current liabilities	596,223	505,997	525,671
Long-term debt, net	567,808	567,173	498,531
Deferred income taxes	42,620	39,380	42,290
Long-term operating lease liabilities	484,235	508,461	501,804
Other long-term liabilities	14,151	19,411	33,354
Total liabilities	1,705,037	1,640,422	1,601,650
Commitments and contingencies - Note $15
Shareholders’ 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; 36,711,901, 36,425,877, and 36,467,071 shares issued and outstanding, respectively	367	364	365
Additional paid-in capital	23,910	19,584	14,460
Accumulated other comprehensive loss	(27,349)	(24,361)	(32,817)
Retained earnings	1,030,395	929,461	871,894
Total shareholders’ equity	1,027,323	925,048	853,902
Total liabilities and shareholders’ equity	$ 2,732,360	$ 2,565,470	$ 2,455,552