Carter’s, Inc.

Sector: Apparel and footwear Countries of operation: Operates stores in Canada, Mexico and the US and sells to over 80 countries Key product categories: Accessories, apparel and footwear for babies and young children Annual Metrics [caption id="attachment_148676" align="aligncenter" width="700"] Fiscal year ends on December 31
*Trailing 12 months ended on April 2, 2022[/caption]   Summary Founded in 1865 and headquartered in Atlanta, Georgia, Carter’s designs and sells apparel for babies and young children. The company owns two of the most recognized brand names in the children’s apparel industry, Carter’s and OshKosh B’gosh, alongside baby and young child lifestyle brand, Skip Hop. As of December 31, 2021, the company has a total of 751 stores in the US, 186 stores in Canada and 43 stores in Mexico. Company Analysis Coresight Research insight: Based on Carter’s financial performance in the first quarter of fiscal year 2022, we believe the company is having organic growth in the wholesale and international segment but is having challenges in the retail segment. The toughest retail comps were in the Midwest and Northeast, according to the company, where weather has not yet prompted consumers to shop for warmer weather apparel. The company saw the best traffic to its indoor mall stores and saw lowest traffic to its outlet stores as gas prices rose. Therefore, the company is adjusting its store closing and opening strategy (the company’s store-opening focus will be on high-traffic open air centers that provide convenience for online shoppers, including curbside pickup), which we believe will bring the retail segment more revenue in the following quarters. On the supply chain side, the company is now routing over 60% of its imports through the East Coast with good results. To mitigate the risk of further delays, the company has placed factory orders three to six weeks earlier in 2022, which we believe could enable the company’s product offerings to arrive earlier.

Tailwinds	Headwinds
Babies and children need to regularly update their wardrobes as they grow The recovery of the US birth rate	A challenging overall environment as the pandemic continues to disrupt operations and manufacturing velocity Pressure from competitors such as Culp, Gymboree and Old Navy Inflationary pressure that drives freight costs higher

  Strategy In its fiscal year 2022, Carter’s will continue to leverage its long-term growth strategy, which mainly focuses on the following three areas: 1. Provide the best value and experience in apparel and related products for young children

• Provide high-quality, essential products and accessories.
• Continue to expand product ranges.

2. Extend the reach of its brands

• Improve the convenience of shopping for its products and expand its omnichannel capabilities.
• Expand the company’s international operations.

3. Improve profitability

• Strengthen distribution and direct-sourcing capabilities, as well as pricing and inventory management discipline.
• Invest in new sources of growth.

Revenue Breakdown (FY21) [caption id="attachment_148677" align="aligncenter" width="700"] Source: Company reports[/caption]   Company Developments

Date	Development
May 18, 2022	Carter’s appoints Hilary Duff as Chief Mom Officer, who will work with Carter’s as a parent consultant and creative director, designing two limited-time-only collections.
April 20, 2022	Carter’s announces its Raise the Future™ ESG strategy, rooted in its purpose to inspire generations raising the future.
September 10, 2021	OshKosh B’gosh and Kith join forces to launch an exclusive capsule collection.
July 30, 2021	Carter’s issues inaugural Corporate Social Responsibility Report, detailing its strategic environmental, social and governance priorities and initiatives
April 13, 2021	Carter’s launches first children’s clothing recycling program with TerraCycle.

Management Team

• Michael D. Casey—Chairman and Chief Executive Officer
• Brian J. Lynch—President
• Richard F. Westenberger—Executive Vice President and Chief Financial Officer

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Source: Company reports