CARTERS INC
For the period ended Sep 27, 2025. Filed Oct 27, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 27, 2025 · Filed Oct 27, 2025
CRI$34.29-1.2%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. Financial Statements
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share data)
| September 27, 2025 | December 28, 2024 | September 28, 2024 | |
|---|---|---|---|
| ASSETS | |||
| Current assets: | |||
| Cash and cash equivalents | $184,190 | $412,926 | $175,536 |
| Accounts receivable, net of allowance for credit losses of $12,026, $5,663, and $8,303, respectively | 237,866 | 194,834 | 247,013 |
| Finished goods inventories, net of inventory reserves of $12,347, $8,257, and $17,135, respectively | 656,149 | 502,332 | 607,384 |
| Prepaid expenses and other current assets | 55,576 | 32,580 | 41,577 |
| Total current assets | 1,133,781 | 1,142,672 | 1,071,510 |
| Property, plant, and equipment, net of accumulated depreciation of $599,467, $602,670, and $642,420, respectively | 189,012 | 180,956 | 182,292 |
| Operating lease assets | 611,569 | 577,133 | 560,246 |
| Tradenames, net | 268,718 | 268,008 | 298,053 |
| Goodwill | 208,351 | 206,875 | 209,384 |
| Customer relationships, net | 20,993 | 23,543 | 24,440 |
| Other assets | 37,015 | 33,980 | 32,460 |
| Total assets | $2,469,439 | $2,433,167 | $2,378,385 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
| Current liabilities: | |||
| Accounts payable | $240,235 | $248,200 | $273,909 |
| Current operating lease liabilities | 150,548 | 130,564 | 130,140 |
| Other current liabilities | 110,907 | 130,052 | 80,059 |
| Total current liabilities | 501,690 | 508,816 | 484,108 |
| Long-term debt, net | 498,738 | 498,127 | 497,930 |
| Deferred income taxes | 41,200 | 38,210 | 48,890 |
| Long-term operating lease liabilities | 529,139 | 501,503 | 485,613 |
| Other long-term liabilities | 34,030 | 31,949 | 32,504 |
| Total liabilities | $1,604,797 | $1,578,605 | $1,549,045 |
| Shareholders’ equity: | |||
| Preferred stock; par value $0.01 per share; 100,000 shares authorized; none issued or outstanding | $— | $— | $— |
| Common stock, voting; par value $0.01 per share; 150,000,000 shares authorized; 36,518,637, 36,041,995, and 36,038,814 shares issued and outstanding, respectively | 365 | 360 | 360 |
| Additional paid-in capital | 18,029 | 3,856 | — |
| Accumulated other comprehensive loss | (28,107) | (43,678) | (32,361) |
| Retained earnings | 874,355 | 894,024 | 861,341 |
| Total shareholders’ equity | 864,642 | 854,562 | 829,340 |
| Total liabilities and shareholders’ equity | $2,469,439 | $2,433,167 | $2,378,385 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
| Fiscal quarter ended | Three fiscal quarters ended | |||
|---|---|---|---|---|
| September 27, 2025 | September 28, 2024 | September 27, 2025 | September 28, 2024 | |
| Net sales | $757,836 | $758,464 | $1,972,975 | $1,984,390 |
| Cost of goods sold | 416,208 | 402,450 | 1,058,497 | 1,030,249 |
| Gross profit | 341,628 | 356,014 | 914,478 | 954,141 |
| Royalty income, net | 5,428 | 5,740 | 14,008 | 14,959 |
| Selling, general, and administrative expenses | 317,963 | 284,714 | 869,246 | 797,572 |
| Operating income | 29,093 | 77,040 | 59,240 | 171,528 |
| Interest expense | 7,173 | 7,381 | 22,849 | 23,156 |
| Interest income | (2,573) | (2,370) | (10,007) | (8,644) |
| Other expense (income), net(*) | 882 | 350 | (265) | 1,028 |
| Pension plan settlement(*) | 8,777 | 949 | 8,777 | 949 |
| Income before income taxes | 14,834 | 70,730 | 37,886 | 155,039 |
| Income tax provision | 3,241 | 12,410 | 10,308 | 31,047 |
| Net income | $11,593 | $58,320 | $27,578 | $123,992 |
| Basic net income per common share | $0.32 | $1.62 | $0.75 | $3.41 |
| Diluted net income per common share | $0.32 | $1.62 | $0.75 | $3.41 |
| Dividend declared and paid per common share | $0.25 | $0.80 | $1.30 | $2.40 |
(*)Pension plan settlement charges for the fiscal quarter and three fiscal quarters ended September 28, 2024 have been reclassified to the Pension plan settlement line item. These charges were previously included in Other expense (income), net.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(dollars in thousands)
| Fiscal quarter ended | Three fiscal quarters ended | |||
|---|---|---|---|---|
| September 27, 2025 | September 28, 2024 | September 27, 2025 | September 28, 2024 | |
| Net income | $11,593 | $58,320 | $27,578 | $123,992 |
| Other comprehensive income (loss): | ||||
| Reclassification related to pension plan settlement, net of tax of $1,279 and $224 for the third quarter and first three quarters of fiscal 2025 and fiscal 2024, respectively | 4,117 | 725 | 4,117 | 725 |
| Gain on OshKosh B’Gosh defined benefit plan, net of tax of $281 and $476 for the third quarter and first three quarters of fiscal 2025 and fiscal 2024, respectively | 905 | 1,539 | 905 | 1,539 |
| Foreign currency translation adjustments | (312) | (1,811) | 10,549 | (10,710) |
| Total other comprehensive income (loss) | 4,710 | 453 | 15,571 | (8,446) |
| Comprehensive income | $16,303 | $58,773 | $43,149 | $115,546 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(amounts in thousands, except share amounts)
| Common stock - shares | Commonstock - $ | Additionalpaid-incapital | Accumulated other comprehensiveloss | Retainedearnings | Totalshareholders’equity | |
|---|---|---|---|---|---|---|
| Balance at December 28, 2024 | 36,041,995 | $360 | $3,856 | $(43,678) | $894,024 | $854,562 |
| Withholdings from vesting of restricted stock | (93,538) | (1) | (4,221) | — | — | (4,222) |
| Restricted stock activity | 288,657 | 3 | (3) | — | — | — |
| Stock-based compensation expense | — | — | 9,753 | — | — | 9,753 |
| Cash dividends declared and paid of $0.80 per common share | — | — | — | — | (28,999) | (28,999) |
| Comprehensive income | — | — | — | 612 | 15,539 | 16,151 |
| Balance at March 29, 2025 | 36,237,114 | $362 | $9,385 | $(43,066) | $880,564 | $847,245 |
| Withholdings from vesting of restricted stock | (3,233) | — | (110) | — | — | (110) |
| Restricted stock activity | 233,190 | 3 | (3) | — | — | — |
| Stock-based compensation expense | — | — | 5,188 | — | — | 5,188 |
| Cash dividends declared and paid of $0.25 per common share | — | — | — | — | (9,116) | (9,116) |
| Comprehensive income | — | — | — | 10,249 | 446 | 10,695 |
| Balance at June 28, 2025 | 36,467,071 | $365 | $14,460 | $(32,817) | $871,894 | $853,902 |
| Withholdings from vesting of restricted stock | (6,238) | — | (157) | — | — | (157) |
| Restricted stock activity | 57,804 | — | — | — | — | — |
| Stock-based compensation expense | — | — | 3,726 | — | — | 3,726 |
| Cash dividends declared and paid of $0.25 per common share | — | — | — | — | (9,132) | (9,132) |
| Comprehensive income | — | — | — | 4,710 | 11,593 | 16,303 |
| Balance at September 27, 2025 | 36,518,637 | $365 | $18,029 | $(28,107) | $874,355 | $864,642 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Continued)
(amounts in thousands, except share amounts)
| Common stock - shares | Commonstock - $ | Additionalpaid-incapital | Accumulated other comprehensiveloss | Retainedearnings | Totalshareholders’equity | |
|---|---|---|---|---|---|---|
| Balance at December 30, 2023 | 36,551,221 | $366 | $— | $(23,915) | $868,799 | $845,250 |
| Exercise of stock options | 4,408 | — | 367 | — | — | 367 |
| Withholdings from vesting of restricted stock | (90,922) | (1) | (5,535) | — | (1,842) | (7,378) |
| Restricted stock activity | 243,120 | 2 | (2) | — | — | — |
| Stock-based compensation expense | — | — | 5,170 | — | — | 5,170 |
| Repurchase of common stock | (107,795) | (1) | — | — | (8,998) | (8,999) |
| Cash dividends declared and paid of $0.80 per common share | — | — | — | — | (29,338) | (29,338) |
| Comprehensive income | — | — | — | (1,752) | 38,033 | 36,281 |
| Balance at March 30, 2024 | 36,600,032 | $366 | $— | $(25,667) | $866,654 | $841,353 |
| Withholdings from vesting of restricted stock | (839) | — | (58) | — | — | (58) |
| Restricted stock activity | 34,956 | 1 | (1) | — | — | — |
| Stock-based compensation expense | — | — | 4,120 | — | — | 4,120 |
| Repurchase of common stock | (354,093) | (4) | (3,854) | — | (20,920) | (24,778) |
| Cash dividends declared and paid of $0.80 per common share | — | — | — | — | (29,172) | (29,172) |
| Comprehensive income | — | — | — | (7,147) | 27,639 | 20,492 |
| Other | — | — | (207) | — | — | (207) |
| Balance at June 29, 2024 | 36,280,056 | $363 | $— | $(32,814) | $844,201 | $811,750 |
| Withholdings from vesting of restricted stock | (2,187) | — | (133) | — | — | (133) |
| Restricted stock activity | 35,480 | — | — | — | — | — |
| Stock-based compensation expense | — | — | 4,686 | — | — | 4,686 |
| Repurchase of common stock | (274,535) | (3) | (4,401) | — | (12,345) | (16,749) |
| Cash dividends declared and paid of $0.80 per common share | — | — | — | — | (28,835) | (28,835) |
| Comprehensive income | — | — | — | 453 | 58,320 | 58,773 |
| Other | — | — | (152) | — | — | (152) |
| Balance at September 28, 2024 | 36,038,814 | $360 | $— | $(32,361) | $861,341 | $829,340 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
| Three fiscal quarters ended | ||
|---|---|---|
| September 27, 2025 | September 28, 2024 | |
| Cash flows from operating activities: | ||
| Net income | $27,578 | $123,992 |
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
| Depreciation of property, plant, and equipment | 37,797 | 40,893 |
| Amortization of intangible assets | 2,781 | 2,778 |
| Provision for excess and obsolete inventory, net | 3,912 | 8,348 |
| Loss on disposal of property, plant and equipment | 21 | 235 |
| Amortization of debt issuance costs | 1,253 | 1,218 |
| Stock-based compensation expense | 18,667 | 13,976 |
| Unrealized foreign currency exchange (gain) loss, net | (393) | 307 |
| Provision for credit losses | 6,864 | 3,689 |
| Unrealized gain on investments | (1,477) | (1,678) |
| Pension plan settlement | 8,777 | 949 |
| Deferred income taxes expense | 879 | 6,416 |
| Effect of changes in operating assets and liabilities: | ||
| Accounts receivable | (48,893) | (68,035) |
| Finished goods inventories | (153,621) | (83,268) |
| Prepaid expenses and other assets | (25,509) | (12,376) |
| Accounts payable and other liabilities | (14,946) | (26,125) |
| Net cash (used in) provided by operating activities | $(136,310) | $11,319 |
| Cash flows from investing activities: | ||
| Capital expenditures | $(42,662) | $(39,637) |
| Net cash used in investing activities | $(42,662) | $(39,637) |
| Cash flows from financing activities: | ||
| Dividends paid | $(47,247) | $(87,345) |
| Repurchases of common stock | — | (50,526) |
| Withholdings from vesting of restricted stock | (4,489) | (7,569) |
| Proceeds from exercises of stock options | — | 367 |
| Other | (370) | — |
| Net cash used in financing activities | $(52,106) | $(145,073) |
| Net effect of exchange rate changes on cash and cash equivalents | 2,342 | (2,286) |
| Net decrease in cash and cash equivalents | $(228,736) | $(175,677) |
| Cash and cash equivalents, beginning of period | 412,926 | 351,213 |
| Cash and cash equivalents, end of period | $184,190 | $175,536 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.