REVENUE RECOGNITION (Tables)

3 Months Ended

Mar. 29, 2025

Revenue from Contract with Customer [Abstract]

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. Retail		U.S. Wholesale		International		Total
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. Retail		U.S. Wholesale		International		Total
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

Contract with Customer, Contract Asset, Contract Liability, and Receivable

The components of Accounts receivable, net, were as follows:


(dollars in thousands)	March 29, 2025		December 28, 2024		March 30, 2024
Trade receivables from wholesale customers, net	$	196,109	$	187,715	$	219,842
Royalties receivable, net	4,830		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.

Total contract liabilities consisted of the following amounts:


(dollars in thousands)	March 29, 2025		December 28, 2024		March 30, 2024
Contract liabilities - current:
Unredeemed gift cards(1)	$	24,275	$	25,043	$	24,405
Unredeemed customer loyalty rewards	2,098		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.