REVENUE RECOGNITION (Tables)

9 Months Ended

Sep. 27, 2025

Revenue from Contract with Customer [Abstract]

Disaggregated revenues from these sources for the fiscal periods indicated were as follows:


	Fiscal quarter ended September 27, 2025
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Direct-to-consumer	$	362,307	$	—	$	70,209	$	432,516
Wholesale channel	—		283,805		41,515		325,320

	$	362,307	$	283,805	$	111,724	$	757,836

Royalty income, net	$	2,434	$	2,239	$	755	$	5,428


	Three fiscal quarters ended September 27, 2025
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Direct-to-consumer	$	956,288	$	—	$	184,651	$	1,140,939
Wholesale channel	—		726,899		105,137		832,036

	$	956,288	$	726,899	$	289,788	$	1,972,975

Royalty income, net	$	4,359	$	7,680	$	1,969	$	14,008


	Fiscal quarter ended September 28, 2024
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Direct-to-consumer	$	352,987	$	—	$	67,172	$	420,159
Wholesale channel	—		298,980		39,325		338,305

	$	352,987	$	298,980	$	106,497	$	758,464

Royalty income, net	$	2,539	$	2,884	$	317	$	5,740


	Three fiscal quarters ended September 28, 2024
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Direct-to-consumer	$	950,877	$	—	$	176,583	$	1,127,460
Wholesale channel	—		756,022		100,908		856,930

	$	950,877	$	756,022	$	277,491	$	1,984,390

Royalty income, net	$	4,581	$	8,727	$	1,651	$	14,959

The components of Accounts receivable, net were as follows:


(dollars in thousands)	September 27, 2025		December 28, 2024		September 28, 2024
Trade receivables from wholesale customers, net	$	239,417	$	187,715	$	243,085
Royalties receivable	4,960		3,728		5,237
Other receivables(1)	8,957		13,444		12,030
Total gross receivables	$	253,334	$	204,887	$	260,352
Less: Wholesale accounts receivable reserves(2)(3)	(15,468)		(10,053)		(13,339)
Accounts receivable, net	$	237,866	$	194,834	$	247,013

(1)Includes receivables related to tax recoveries, shipping volume rebates, healthcare-related rebates, amounts due from third-party gift card program partners, and recoveries related to provisional anti-dumping duties in Mexico.

(2)Includes allowance for chargebacks of $3.4 million, $4.4 million, and $5.0 million for the periods ended September 27, 2025, December 28, 2024, and September 28, 2024, respectively.

(3)Includes allowance for credit losses of $12.0 million, $5.7 million, and $8.3 million for the periods ended September 27, 2025, December 28, 2024, and September 28, 2024, respectively.

Contract with Customer, Asset and Liability

Total contract liabilities consisted of the following amounts:


(dollars in thousands)	September 27, 2025		December 28, 2024		September 28, 2024
Contract liabilities - current:
Unredeemed gift cards(1)	$	25,318	$	25,043	$	24,638
Unredeemed customer loyalty rewards	2,232		2,552		2,362
Carter’s credit card - upfront bonus(2)	179		714		714
Total contract liabilities - current(3)	$	27,729	$	28,309	$	27,714

Contract liabilities - non-current(4)	$	—	$	—	$	179
Total contract liabilities	$	27,729	$	28,309	$	27,893

(1)During the third quarters of fiscal 2025 and fiscal 2024, the Company recognized revenue of $1.3 million and $1.4 million related to the gift card liability balance that existed at June 28, 2025 and June 29, 2024, respectively. Additionally, during the first three quarters of fiscal 2025 and fiscal 2024, the Company recognized revenue of $6.8 million and $7.1 million related to the gift card liability balance that existed at December 28, 2024 and December 30, 2023, respectively.

(2)The Company received an upfront signing bonus from a third-party financial institution, which will be recognized as revenue on a straight-line basis over the term of the agreement. The amount as of September 27, 2025 reflects the current portion of this bonus and will be recognized as revenue through the end of fiscal 2025. The amounts as of December 28, 2024 and September 28, 2024 reflected the current portion of this bonus and were recognized as revenue over the subsequent twelve months.

(3)Included with Other current liabilities on the Company’s condensed consolidated balance sheets.

(4)This amount reflects the non-current portion of the Carter’s credit card signing bonus and is included within Other long-term liabilities on the Company’s condensed consolidated balance sheets.

CARTERS INC 10-Q