v3.25.1
REVENUE RECOGNITION
 3 Months Ended
Mar. 29, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
The Company’s revenues are earned from contracts or arrangements with retail and wholesale customers and licensees. Contracts include written agreements, as well as arrangements that are implied by customary practices or law.
Disaggregation of Revenue
The Company sells its products directly to consumers (“direct-to-consumer”) and to other retail companies and partners that subsequently sell the products directly to their own retail customers (“wholesale channel”). The Company also earns royalties from certain of its licensees. Disaggregated revenues from these sources for the fiscal periods presented were as follows:
Fiscal quarter ended March 29, 2025
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$294,432 $— $53,823 $348,255 
Wholesale channel— 250,096 31,476 281,572 
$294,432 $250,096 $85,299 $629,827 
Royalty income, net$1,518 $3,322 $492 $5,332 
Fiscal quarter ended March 30, 2024
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$307,642 $— $55,061 $362,703 
Wholesale channel— 264,131 34,658 298,789 
$307,642 $264,131 $89,719 $661,492 
Royalty income, net$1,485 $3,359 $372 $5,216 
Accounts Receivable from Customers and Licensees
The components of Accounts receivable, net, were as follows:
(dollars in thousands)March 29, 2025December 28, 2024March 30, 2024
Trade receivables from wholesale customers, net
$196,109 $187,715 $219,842 
Royalties receivable, net4,830 3,728 5,366 
Other receivables
11,241 13,444 11,266 
Total receivables$212,180 $204,887 $236,474 
Less: Wholesale accounts receivable reserves(1)(2)
(8,307)(10,053)(12,399)
Accounts receivable, net$203,873 $194,834 $224,075 
(1)Includes allowance for chargebacks of $3.1 million, $4.4 million, and $7.2 million for the periods ended March 29, 2025, December 28, 2024, and March 30, 2024, respectively.
(2)Includes allowance for credit losses of $5.2 million, $5.7 million, and $5.2 million for the periods ended March 29, 2025, December 28, 2024, and March 30, 2024, respectively.
Contract Assets and Liabilities
The Company’s contract assets are not material.
Contract Liabilities
The Company recognizes a contract liability when it has received consideration from a customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts:
(dollars in thousands)March 29, 2025December 28, 2024March 30, 2024
Contract liabilities - current:
Unredeemed gift cards(1)
$24,275 $25,043 $24,405 
Unredeemed customer loyalty rewards2,098 2,552 2,994 
Carter’s credit card - upfront bonus(2)
536 714 714 
Total contract liabilities - current(3)
$26,909 $28,309 $28,113 
Contract liabilities - non-current(4)
$— $— $536 
Total contract liabilities$26,909 $28,309 $28,649 
(1)During the first quarters of fiscal 2025 and fiscal 2024, the Company recognized revenue of $3.6 million and $3.7 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. This amount reflects the current portion of this bonus to be recognized as revenue over the next 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 upfront bonus and is included within Other long-term liabilities on the Company’s condensed consolidated balance sheets.