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REVENUE RECOGNITION
 6 Months Ended
Jul. 04, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
The Company generates revenue primarily from the sale of products to retail and wholesale customers and from royalties earned under licensing arrangements. Contracts with customers include written agreements as well as arrangements that are implied by customary business practices or law.
Disaggregation of Revenue
The Company sells its 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 July 4, 2026
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$304,677 $— $63,288 $367,965 
Wholesale channel— 215,552 31,973 247,525 
$304,677 $215,552 $95,261 $615,490 
Royalty income, net$753 $1,793 $816 $3,362 
Two fiscal quarters ended July 4, 2026
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$636,925 $— $127,165 $764,090 
Wholesale channel— 466,959 65,554 532,513 
$636,925 $466,959 $192,719 $1,296,603 
Royalty income, net$2,194 $4,682 $1,105 $7,981 
Fiscal quarter ended June 28, 2025
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$299,549 $— $60,619 $360,168 
Wholesale channel— 192,998 32,147 225,145 
$299,549 $192,998 $92,766 $585,313 
Royalty income, net$407 $2,119 $723 $3,249 
Two fiscal quarters ended June 28, 2025
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$593,980 $— $114,442 $708,422 
Wholesale channel— 443,094 63,623 506,717 
$593,980 $443,094 $178,065 $1,215,139 
Royalty income, net$1,926 $5,441 $1,213 $8,580 
Accounts Receivable from Customers and Licensees
The components of Accounts receivable, net were as follows:
(dollars in thousands)July 4, 2026January 3, 2026June 28, 2025
Trade receivables from wholesale customers, net$167,728 $174,566 $138,164 
Royalties receivable2,918 4,011 3,802 
Other receivables(1)
9,010 11,705 7,479 
Total gross receivables$179,656 $190,282 $149,445 
Less: Wholesale accounts receivable reserves(2)(3)
(11,804)(11,716)(9,093)
Accounts receivable, net$167,852 $178,566 $140,352 
(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 $3.9 million, $4.1 million, and $2.8 million for the periods ended July 4, 2026, January 3, 2026, and June 28, 2025, respectively.
(3)Includes allowance for credit losses of $7.9 million, $7.6 million, and $6.3 million for the periods ended July 4, 2026, January 3, 2026, and June 28, 2025, respectively.
Contract Assets and Liabilities
The Company’s contract assets are not material to the Company’s condensed consolidated financial statements.
The Company recognizes a contract liability when it has received consideration before transferring the related goods to the customer. The Company’s contract liabilities primarily consist of (1) obligations related to unredeemed gift cards, (2) unredeemed customer loyalty rewards, and (3) the unamortized upfront bonus received from a third-party financial institution under the Company’s private label credit card program. Contract liabilities are classified as current and are included in Other current liabilities on the Company’s consolidated balance sheets.
Contract Liabilities
Total contract liabilities were as follows:    
(dollars in thousands)July 4, 2026January 3, 2026June 28, 2025
Contract liabilities - current:
Unredeemed gift cards$25,795 $25,994 $24,998 
Unredeemed customer loyalty rewards1,851 2,372 1,587 
Carter’s credit card - upfront bonus— — 357 
Total contract liabilities - current$27,646 $28,366 $26,942 
Composition of Contract Liabilities
Unredeemed gift cards - represent obligations to transfer goods in the future to customers that have purchased gift cards. Gift card contract liabilities change due to the issuance and redemption of gift cards and the recognition of breakage on balances that are not expected to be redeemed. Although gift cards do not expire, all outstanding gift card balances are classified as current liabilities, as they are redeemable on demand by the cardholder. The majority of gift cards are redeemed within one year of issuance. During the second quarters of fiscal 2026 and fiscal 2025, the Company recognized revenue of $1.8 million and $1.9 million related to the gift card liability balance that existed at April 4, 2026 and March 29, 2025, respectively. Additionally, during the first two quarters of fiscal 2026 and fiscal 2025, the Company recognized revenue of $6.0 million and $5.5 million related to the gift card liability balance that existed at January 3, 2026 and December 28, 2024, respectively.
Unredeemed loyalty rewards - represent obligations under the Company’s loyalty program to transfer goods in the future to customers when the reward certificates are redeemed. Changes in the loyalty program contract liability result from new rewards earned, and reward certificate redemptions and expirations. The earning and redemption cycles are under one year in duration.
Carter’s credit card - upfront bonus - represents the unamortized portion of the upfront signing bonus received from a third-party financial institution under the Company’s private label credit card program. This bonus was recognized as revenue over the term of the agreement.