REVENUE RECOGNITION (Tables)

3 Months Ended

Apr. 04, 2026

Revenue from Contract with Customer [Abstract]

The Company sells products directly to consumers (“direct-to-consumer”) through its retail stores, eCommerce websites, and mobile app, and to other retailers and partners that in turn sell the products to their own customers (“wholesale channel”). The Company also earns royalties from certain of its licensees that sell products under the Company’s brands.

Disaggregated revenues from these sources were as follows:


	Fiscal quarter ended April 4, 2026
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Direct-to-consumer	$	332,248	$	—	$	63,877	$	396,125
Wholesale channel	—		251,406		33,582		284,988

	$	332,248	$	251,406	$	97,459	$	681,113

Royalty income, net	$	1,441	$	2,890	$	288	$	4,619


	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

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

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


(dollars in thousands)	April 4, 2026		January 3, 2026		March 29, 2025
Trade receivables from wholesale customers, net	$	192,394	$	174,566	$	196,109
Royalties receivable, net	4,488		4,011		4,830
Other receivables(1)	9,713		11,705		11,241
Total receivables	$	206,595	$	190,282	$	212,180
Less: Wholesale accounts receivable reserves(2)(3)	(9,999)		(11,716)		(8,307)
Accounts receivable, net	$	196,596	$	178,566	$	203,873

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

(2)Includes allowance for chargebacks of $4.0 million, $4.1 million, and $3.1 million for the periods ended April 4, 2026, January 3, 2026, and March 29, 2025, respectively.

(3)Includes allowance for credit losses of $6.0 million, $7.6 million, and $5.2 million for the periods ended April 4, 2026, January 3, 2026, and March 29, 2025, respectively.

Total contract liabilities were as follows:


(dollars in thousands)	April 4, 2026		January 3, 2026		March 29, 2025
Contract liabilities - current:
Unredeemed gift cards	$	25,337	$	25,994	$	24,275
Unredeemed customer loyalty rewards	2,609		2,372		2,098
Carter’s credit card - upfront bonus	—		—		536
Total contract liabilities - current	$	27,946	$	28,366	$	26,909