CRINYSEApparel & Other Finishd Prods of Fabrics & Similar MatlUS GAAP · USD

Carter's, Inc

Carter’s Inc. is a U.S.-based apparel company focused exclusively on babies and young children, with a portfolio built around Carter’s, OshKosh B’gosh, Skip Hop, Little Planet, and Otter Avenue. The company sells children’s clothing, accessories, sleepwear, and baby essentials through a multichannel model that combines retail stores, eCommerce, and wholesale distribution. Its brands are positioned around trusted quality, value, and age-specific merchandising for newborns through size 14. Carter’s also supplies exclusive product lines for major mass-market retailers such as Walmart, Target, and Amazon, which broadens its reach beyond its owned brands.

Revenue2,898m USD
+1.9 %y/y
Operating profit (EBIT)144m USD
−43.5 %y/y
EBIT margin5.0%
−4.0 ppy/y
Net income91.8m USD
−50.5 %y/y
Free cash flow68.6m USD
−71.7 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

01,0002,0003,0004,000m USD2020: 3,024 m USD2020: EBIT 190 m USD20202021: 3,486 m USD2021: EBIT 497 m USD20212022: 3,213 m USD2022: EBIT 379 m USD20222023: 2,946 m USD2023: EBIT 323 m USD20232024: 2,844 m USD2024: EBIT 255 m USD20242025: 2,898 m USD2025: EBIT 144 m USD20252,898144
RevenueOperating profit (EBIT)

Business

Share of revenue
Branded apparel70 %

Core clothing lines for babies and children, including Carter’s, OshKosh B’gosh, Little Planet, and Otter Avenue.

Baby essentials and accessories15 %

Skip Hop and related products such as gear, toys, tubs, sleepwear, and accessories for infants and toddlers.

Wholesale and exclusive retail programs10 %

Private-label or exclusive assortments sold through large retailers such as Walmart, Target, and Amazon.

Direct-to-consumer retail5 %

Sales through company-operated stores and eCommerce platforms, including omnichannel fulfillment.

Products

Reported · share of revenue
43.5%31.6%12.8%12.1%FY2026100 %
  • Baby43.5 %
  • Playclothes31.6 %
  • Other Products12.8 %
  • Sleepwear12.1 %

Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Carter’s serves parents, caregivers, and gift buyers shopping for infants, toddlers, and young children, with demand driven by everyday apparel needs and baby essentials. Its core customer values trusted brands, practical quality, and accessible price points, especially for repeat purchases tied to growth stages and seasonal wardrobe refreshes. The company also sells through wholesale partners and mass retailers, which means a meaningful portion of demand comes from retailers that want proven children’s brands and exclusive assortments. In Canada and the United States, omnichannel capabilities support customers who buy across stores, online, and fulfillment channels. The business is also exposed to fashion and consumer preference shifts, which matter because children’s apparel is discretionary and highly seasonal.

Parents and caregivers

Buy apparel, sleepwear, and accessories for newborns through age 14 because the brands are trusted, practical, and value-oriented.

Wholesale retail partners

Buy branded and exclusive children’s assortments for resale because Carter’s offers recognized labels and dependable product breadth.

Mass-market retailers

Buy exclusive Carter’s brand programs for Walmart, Target, and Amazon to attract family shoppers with differentiated children’s merchandise.

Online shoppers

Buy through eCommerce for convenience, assortment access, and fulfillment flexibility across the company’s brands.

Gift purchasers

Buy baby apparel and essentials for showers, birthdays, and seasonal gifting, especially from Carter’s and Skip Hop.

Strategy

Carter’s strategy centers on defending its core children’s apparel franchise while improving profitability through operating model changes and restructuring. The company is trying to align resources to critical priorities, rebalance its cost base, and improve future margins in a more volatile trade and consumer environment. It is also investing in multichannel execution, including retail stores, eCommerce, wholesale, and omnichannel capabilities in the U.S. and Canada. Brand diversification is part of the strategy as well, with newer labels such as Little Planet and Otter Avenue broadening the assortment and appealing to different customer preferences. At the same time, the company is working to mitigate tariff exposure and supply chain risk by adjusting sourcing and inventory management.

Cost restructuring and operating model improvementShort term

The company wants to protect margins and offset pressure from tariffs, inflation, and changing demand patterns.

Multichannel growth and omnichannel executionMedium term

Stores, eCommerce, and wholesale together broaden reach and help capture family shopping behavior across channels.

Brand portfolio expansionMedium term

Newer brands can diversify the assortment and address sustainability and toddler-focused niches.

Supply chain and tariff mitigationShort term

Sourcing concentration in Asia and tariff changes can materially affect cost, availability, and competitiveness.

Geography

Carter’s is primarily a North American business, with the United States as its core market and Canada as an important extension of its omnichannel platform. The company describes itself as North America’s largest apparel company exclusively for babies and young children, which underscores the concentration of demand in the region. It also sells products outside the United States through a global multichannel model, but international exposure is smaller and more operationally complex because it depends on foreign sourcing and trade conditions. Geography matters materially because the company’s supply chain is heavily Asia-based, with sourcing concentrated in Vietnam, Cambodia, Bangladesh, India, and historically China for fabric inputs. As a result, trade policy, tariffs, freight, and currency movements can affect both product availability and margins.

Risks

Carter’s faces meaningful exposure to trade policy changes because it relies on a global supplier network and sources a large share of product inputs from Asia. The company specifically highlighted tariffs, supply chain disruption, and cost volatility as material risks, which can pressure gross margin and product availability. It also faces execution risk around restructuring and operating model changes, since expected savings may not be fully realized and implementation can distract management. As a children’s apparel company, it is also exposed to fashion and consumer preference shifts, inventory forecasting errors, and seasonal demand swings that can quickly create markdown pressure. More general risks include foreign currency movements, retail competition, eCommerce execution, vendor concentration, IT and data security, and litigation.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Tariffs and international trade policy uncertainty1Supply chain concentration in Asia2Restructuring and operating model execution3Inventory forecasting and markdown risk4IT systems and data security5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Tariffs and international trade policy uncertaintyImpact: HighLikelihood: High

    The company relies on global sourcing and said new tariffs could materially affect business, costs, and results of operations.

    ExposureProduct sourcingGross marginCompetitiveness
  2. Supply chain concentration in AsiaImpact: HighLikelihood: High

    A large share of products is sourced from a limited set of countries and vendors, increasing disruption risk.

    ExposureInventory availabilityFreight costsLead times
  3. Restructuring and operating model executionImpact: MediumLikelihood: Medium

    Expected cost savings may not be fully achieved and implementation can create one-time costs and management distraction.

    ExposureProfitabilityControlsWorkforce retention
  4. Inventory forecasting and markdown riskImpact: MediumLikelihood: Medium

    Children’s apparel demand is seasonal and fashion-sensitive, so forecasting errors can create excess stock and margin pressure.

    ExposureGross marginWorking capital
  5. IT systems and data securityImpact: MediumLikelihood: Medium

    Retail and eCommerce operations depend on reliable systems and customer data protection.

    ExposureOperationsReputationCompliance

Accounting

Judgemental items
Inventory valuation and obsolescence reserves

Seasonal children’s apparel and baby products can require markdowns if demand or fashion trends shift.

Impact: Gross margin and working capital

Revenue recognition across channels

Wholesale, retail, and eCommerce sales may recognize revenue at different points and include returns or allowances.

Impact: Net sales timing and comparability

Lease accounting

The store footprint creates lease liabilities and occupancy expense that affect operating leverage.

Impact: Operating expenses and balance sheet obligations

Impairment of brands and long-lived assets

Weak demand, restructuring, or store closures can trigger impairment testing.

Impact: Non-cash charges and asset values

Non-GAAP adjustments

Leadership transition and operating model improvement costs are excluded from adjusted results and can change perceived profitability.

Impact: Comparability of earnings trends

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026