Here are 1-3 brief analogies for Carter's:

• Essentially, it's like the Gap Inc. of children's clothing.
• Think of it as the Nike of baby and young children's apparel.

• Infant and Toddler Apparel: Designs and markets a wide range of clothing for babies and young children, including bodysuits, dresses, sleepwear, and layette essentials.
• Children's Playclothes: Offers durable and stylish clothing for older children, featuring denim apparel, overalls, and coordinating outfits.
• Juvenile Lifestyle Products: Provides non-apparel items for children's playtime, travel, mealtime, and home, such as bags, gear, and bath accessories.
• Accessories and Other Children's Goods: Includes a variety of supplementary items like footwear, outerwear, bedding, cribs, toys, and gift sets.

Carter's (CRI) sells primarily to other companies, particularly large retailers, through its U.S. Wholesale and International segments, which operate across 18,800 wholesale locations.

Its major customers include:

• Walmart Inc. (WMT) - Carter's produces the "Child of Mine" brand exclusively for Walmart.
• Target Corporation (TGT) - Carter's produces the "Just One You" brand exclusively for Target.

In addition to these, Carter's products are sold through a wide network of other department stores, national chain stores, and specialty stores.

Douglas C. Palladini, Chief Executive Officer & President

Douglas C. Palladini joined Carter's as Chief Executive Officer & President and a member of the Board on April 3, 2025. Prior to joining Carter's, Mr. Palladini was the founder and owner of Kickstand, LLC, a consulting and advisory business focused on brand and consumer strategy, from April 2022 until March 2025. From June 2004 to March 2022, he served in various roles of increasing responsibility at Vans, a subsidiary of V.F. Corporation, ultimately serving as Global Brand President of Vans from July 2016 through March 2022. During his tenure as Global Brand President, he reportedly more than doubled global revenue to over $4.2 billion in less than six years, while also growing profitability and brand equity. He also served as General Manager of the Americas region at Vans from July 2013 to July 2016, where he reportedly led Vans to 20 consecutive quarters of double-digit growth. Earlier in his career, Mr. Palladini held entrepreneurial, marketing, and publishing roles, including founder and director of Cynic (a DGWB division), Chief Operating Officer of Swell, and group publisher of EMAP Peterson, where he accelerated revenue and improved profitability. He currently serves on the Board of Directors of Skull Candy, Inc. and Stance.

Richard F. Westenberger, Senior Executive Vice President, Chief Financial Officer & Chief Operating Officer

Richard F. Westenberger serves as the Senior Executive Vice President, Chief Financial Officer & Chief Operating Officer of Carter's, Inc. He joined Carter's in 2009 as Executive Vice President & Chief Financial Officer. Effective March 1, 2024, Mr. Westenberger was promoted to Senior Executive Vice President, Chief Financial Officer & Chief Operating Officer, taking on added responsibility for the Company's supply chain operations. He oversees the Company's finance, information technology, real estate, and enterprise risk management organizations. Mr. Westenberger also served as Interim CEO from January to April 2025.

Sarah J. Crockett, Chief Marketing Officer

Sarah J. Crockett joined Carter's as Chief Marketing Officer in July 2025.

Julie A. D'Emilio, Chief Sales Officer

Julie A. D'Emilio serves as the Executive Vice President, Sales of Carter's, Inc. She was listed as Executive Vice President, Sales in the Company's 2020 Annual Report.

Allison Peterson, Chief Retail & Digital Officer

Allison Peterson joined Carter's in 2024 as Executive Vice President, Chief Retail & Digital Officer and was named Chief Retail & Digital Officer in 2025. From 2004 to 2023, Ms. Peterson was with Best Buy Co., Inc., where she most recently served as Executive Vice President, Chief Customer Officer, with responsibilities for strategy, customer experience and insights, marketing, and loyalty. Her prior management positions at Best Buy included Senior Vice President, Chief Customer & Marketing Officer, President, E-Commerce, and Vice President, Category Marketing, Brand Strategy & Planning.

Key Risks to Carter's (CRI) Business

1. Macroeconomic Factors and Consumer Spending: Carter's business is highly sensitive to overall levels of consumer spending, confidence, and sentiment, particularly within the young children's apparel market. Economic downturns, inflationary pressures on costs, and a general slowdown in consumer discretionary spending can significantly impact sales, profitability, and margins.
2. Supply Chain and Sourcing Risks: The company relies heavily on foreign suppliers, predominantly in Asia. This exposes Carter's to various operational risks, including political instability, natural disasters, changes in trade regulations, labor disruptions, increased transportation and freight costs, and the impact of tariffs, all of which can disrupt the supply chain and increase product costs.
3. Highly Competitive Market and Brand / Product Appeal: Carter's operates in a highly competitive market for young children's apparel, facing significant competition from national brands, private labels, and specialty retailers. The company's continued success depends on its ability to maintain and enhance its strong brand identity, innovate new products, differentiate its offerings, and effectively manage its multichannel global business model, adapting to evolving consumer tastes and fashion trends. Failure to do so, or issues like negative publicity or inability to protect intellectual property, could diminish brand value and market share.

The aggressive expansion of ultra-low-cost, digitally native fast fashion retailers into the childrenswear market poses a clear emerging threat. These companies leverage highly efficient supply chains, rapid production cycles, and direct-to-consumer online sales to offer significantly lower prices and frequent new product introductions, directly challenging traditional apparel brands like Carter's, which relies on a mix of retail stores, wholesale accounts, and its own eCommerce platforms.

The addressable markets for Carter's (CRI) main products and services encompass the global and U.S. children's wear and broader baby products markets.

Global Addressable Markets

• The global children's wear market size reached approximately USD 314.8 billion in 2025 and is projected to reach USD 453.8 billion by 2034, growing at a compound annual growth rate (CAGR) of 4.02% during 2026-2034.
• The global baby products market size was estimated at USD 355.94 billion in 2025 and is projected to reach USD 579.52 billion by 2033, demonstrating a CAGR of 6.4% from 2026 to 2033.

U.S. Addressable Markets

• The U.S. kids' apparel market is projected to grow from USD 49.01 billion in 2025 to USD 69.76 billion by 2035, exhibiting a CAGR of 3.63%.
• The U.S. baby products market is projected to reach USD 87.2 billion in 2024, with a compound annual growth rate of 5.7% over its forecast period.

Here are 3-5 expected drivers of future revenue growth for Carter's (CRI) over the next 2-3 years:

1. Growth in Direct-to-Consumer (DTC) Channels: Carter's anticipates continued revenue growth through its direct-to-consumer channels, specifically strong performance in e-commerce and enhanced omnichannel capabilities. The company is investing in initiatives that connect physical stores with its e-commerce platform to create a seamless shopping experience for customers.
2. International Market Expansion: The company expects to drive revenue growth through its international businesses, particularly in Canada and Mexico. Strong performance in these regions, including new store contributions and double-digit comparable sales growth in Mexico, highlights the potential for further global market expansion.
3. Pricing Power and Reduced Promotional Activity: Carter's has demonstrated an ability to maintain higher average unit retail prices (AURs) and reduce promotional activity, which is expected to contribute to revenue growth. This strategy helps offset higher product costs and tariffs.
4. Attracting New Consumer Segments and Product Innovation: Carter's is focusing on attracting new consumers, particularly Gen Z and Millennial families, by strengthening its brand appeal and offering higher-priced product assortments. The company is also driving growth through product innovation, including new brands like Little Planet and Otter Avenue, and continued strength in its core baby category.
5. Strategic Investments in Demand Creation and Productivity Initiatives: The company plans to invest in demand creation (marketing) and productivity initiatives to drive store and e-commerce traffic, enhance consumer loyalty, and improve operational efficiency. These investments, alongside actions such as optimizing its store fleet, are expected to support revenue growth.

Capital Allocation Decisions (Last 3-5 Years)

Share Repurchases

• Carter's reinstated its share repurchase program on August 19, 2021, with approximately $650.4 million remaining under outstanding authorizations at that time.
• A new share repurchase plan was announced on February 25, 2022, under which the company completed repurchases of 1,418,693 shares for $97.57 million.
• No shares were repurchased in fiscal year 2025.

Capital Expenditures

• Capital expenditures were $37.44 million in fiscal year 2021, $40.36 million in fiscal year 2022, and $59.86 million in fiscal year 2023.
• For fiscal year 2025, capital expenditures were reported at $55 million.
• The company projects capital expenditures of approximately $55 million for fiscal year 2026, with a focus on investments in new and remodeled stores, technology initiatives, and demand creation.