About Carter's, Inc.

Carter's has built a big business catering to little ones. Operating through William Carter Company, Carter's is the largest maker in the US of branded apparel exclusively for babies and young children. Primary products include newborn layette clothing, sleepwear, and playwear. It markets its items under the Carter's and OshKosh B'Gosh brands, as well as private labels Child of Mine, Just One You, Genuine Kids, and Precious Firsts. While Carter's sells products online and as a wholesaler via some 18,000 department and specialty stores, it also operates nearly 800 Carter's and OshKosh stores in the US and over 160 stores in Canada.

Operations

The company operates its business through five segments: Carter's Wholesale, Carter's Retail, OshKosh Retail, OshKosh Wholesale, and International.

The combined retail segments, Carter's and OshKosh, bring in about half of total revenue and sell through retail stores and online. Under its Carter's brand, the larger of the two at some 40%, it designs, sources, and markets a broad array of products, primarily for sizes newborn to eight. The company focuses essential clothing products to negate fluctuations in fashion trends and economic cycles, such as bodysuits, pajamas, bibs, shoes, and swimwear. Carter's Retail operates nearly 500 retail sites in the US.

The company's OshKosh brand, accounting for over 10% of revenue, differs from its Carter's label in that it serves a slightly older demographic (sizes newborn to 14) at a higher price point. It produces denim, overall, t-shirts, fleeces, and other playclothes. OshKosh retail runs some 140 retail units in the US.

In addition, Carter's operates 140 side-by-side retail units where both brands are sold.

Carter's and OshKosh Wholesale distribute products to department stores, national chain stores, specialty stores, and discount retailers. The two wholesale segments account for over 35% of total company revenue, of which the vast majority is provided by the Carter's brand.

Its International segment, accounting for over 10% of revenue, includes company-operated retail, wholesale, and online operations in addition to royalty income from its international licensees.

By product category, baby and playclothes account for the largest chunks of sales at about 40% each.

Geographic Reach

Carter's is based in Atlanta, Georgia. The company racks up the vast majority of its sales in the US, at nearly 90%. Of the remaining revenue, two thirds is from Canada. Carter's maintains three distribution centers in US and other international distribution centers in Canada and Asia to support its direct-to-consumer retail operations. It has a sourcing office in Hong Kong.

Sales and Marketing

Carter's markets its products through the department stores, national chains, outlet, specialty stores, off-price sales channels. The company sells its products through the wholesale channel, through company-owned retail stores in the US and Canada, and online. It partners with 34 licensees to sell the Carter's and OshKosh brands in 40 countries. Its Carter's brand wholesale customers include major retailers, such as, Costco, JCPenney, Kohl's, Macy's, and Toys "R" Us.

The company's brands compete in the $20.5 billion children's apparel market for children newborn to age 7. Carter's enjoys the #1 branded position and a 14% market share; OshKosh has a 2% market share. Because the company uses a variety of distribution channels, it's able to market its products to a more diverse range of consumers and geographic regions. Wal-Mart sells its Child of Mine line, while Target offers the Just One You and Precious Firsts brands.

Sales to its biggest six wholesale customers accounted for approximately 25% of total revenue.

The company introduced a points-based reward scheme in 2016.

Financial Performance

Net revenues have increased over the last five years. In fiscal 2016 (ended December), revenue rose 6% amid sales growth in all segments except OshKosh Wholesale. Carter's Retail accounted for over half the growth: unit sales were up 4% to 355 million units due to store openings and an increase in e-commerce sales. OshKosh Retail, up 11% for the year, also benefited from store openings and increased e-commerce activity.

Carter's Wholesale was able to increase average price per unit by 2.3%, although volumes fell by 0.3%. OshKosh Wholesale fell sharply, with a 24% fall in revenue reflecting a steep decline in units shipped at lower prices. International increased 12%.

Net income was up 9% to $258.1 million due to higher revenue and improved margins. Consequently, operating cash flows increased by 19% to $369.2 million.

Strategy

Carter's focuses on refreshing its brand presentation in all channels of distribution, geographic expansion, and strengthening its multi-channel business model. Its retail stores and websites focus on improving the customer experience through store and website design, visual enhancements, clear product presentation, and experienced customer service.

As the millennial generation slides into parental age, Carter's is upping its digital programs to increase and retain brand loyalty. As well as a stronger social media strategy, Carter's has opened up multichannel offerings such as click-and-collect. Marketing efforts include a new reward scheme, Rewards Moments; in 2016, the majority of retail sales were made to members of the scheme.

Mergers and Acquisitions

In 2017, Carter's acquired Skip Hop, a New York-based maker of diaper bags, backpacks, travel accessories, and home gear. The business was acquired from private equity firm Fireman Capital Partners for $140 million. Carter's hopes to leverage its reach to make serious inroads for the brand in the US.

Company Background

The company in 2013 acquired worldwide rights to the Carter's Watch the Wear and H.W. Carter & Sons brands (including trademark registrations) for $38 million.

Carter's extended its reach northward into Canada and added an international segment to its business as a result of the company's 2011 $98 million purchase of Bonnie Togs, a Canadian specialty retailer of children's apparel and accessories. Bonnie Togs had been Carter's principal licensee in Canada since 2007.

Carter's was established in 1865 by William Carter.

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Carter's, Inc.

3438 Peachtree Rd Ne #1800
Atlanta, GA 30326-1554
Phone: 1 (678) 791-1000
Fax: 1 (404) 892-0968

Stats

  • Employer Type: Public
  • Stock Symbol: CRI
  • Stock Exchange: NYSE
  • Chairman and CEO: Michael D. Casey
  • President: Brian J. Lynch
  • EVP and CFO: Richard F. Westenberger
  • 2016 Employees: 18,300

Major Office Locations

  • Atlanta, GA

Other Locations

  • Bessemer, AL
  • Foley, AL
  • Huntsville, AL
  • Leeds, AL
  • Mobile, AL
  • Fayetteville, AR
  • Fort Smith, AR
  • Little Rock, AR
  • Anthem, AZ
  • Chandler, AZ
  • Glendale, AZ
  • Phoenix, AZ
  • Tempe, AZ
  • Tucson, AZ
  • Yuma, AZ
  • Alameda, CA
  • Alpine, CA
  • Anaheim, CA
  • Antioch, CA
  • Apple Valley, CA
  • Brea, CA
  • Cabazon, CA
  • Camarillo, CA
  • Canoga Park, CA
  • Carlsbad, CA
  • Chino, CA
  • Chula Vista, CA
  • Colma, CA
  • Commerce, CA
  • Compton, CA
  • Culver City, CA
  • Elk Grove, CA
  • Escondido, CA
  • Folsom, CA
  • Fresno, CA
  • Gilroy, CA
  • Granada Hills, CA
  • Irvine, CA
  • La Habra, CA
  • Lake Elsinore, CA
  • Long Beach, CA
  • Milpitas, CA
  • Mira Loma, CA
  • Mountain View, CA
  • Ontario, CA
  • Orange, CA
  • Pasadena, CA
  • Petaluma, CA
  • Pismo Beach, CA
  • Pleasant Hill, CA
  • Redwood City, CA
  • Riverside, CA
  • Sacramento, CA
  • San Diego, CA
  • San Jose, CA
  • San Pedro, CA
  • San Ysidro, CA
  • South Gate, CA
  • Sun Valley, CA
  • Torrance, CA
  • Tracy, CA
  • Tulare, CA
  • Vacaville, CA
  • West Covina, CA
  • Castle Rock, CO
  • Colorado Springs, CO
  • Highlands Ranch, CO
  • Lakewood, CO
  • Loveland, CO
  • Danbury, CT
  • Milford, CT
  • Norwalk, CT
  • South Windsor, CT
  • Stamford, CT
  • Westbrook, CT
  • Rehoboth Beach, DE
  • Wilmington, DE
  • Davie, FL
  • Destin, FL
  • Ellenton, FL
  • Estero, FL
  • Fort Lauderdale, FL
  • Fort Myers, FL
  • Hollywood, FL
  • Homestead, FL
  • Miami, FL
  • Orlando, FL
  • Pembroke Pines, FL
  • Saint Augustine, FL
  • Sunrise, FL
  • Vero Beach, FL
  • West Palm Beach, FL
  • Athens, GA
  • Braselton, GA
  • Buford, GA
  • Calhoun, GA
  • Columbus, GA
  • Commerce, GA
  • Dalton, GA
  • Dawsonville, GA
  • Fayetteville, GA
  • Griffin, GA
  • Lake Park, GA
  • Lawrenceville, GA
  • Locust Grove, GA
  • Marietta, GA
  • Savannah, GA
  • Snellville, GA
  • Stockbridge, GA
  • Lahaina, HI
  • Waipahu, HI
  • Cedar Rapids, IA
  • Williamsburg, IA
  • Ammon, ID
  • Boise, ID
  • Algonquin, IL
  • Aurora, IL
  • Bloomingdale, IL
  • Bloomington, IL
  • Bolingbrook, IL
  • Chicago, IL
  • Deerfield, IL
  • East Peoria, IL
  • Geneva, IL
  • Gurnee, IL
  • Melrose Park, IL
  • Mount Prospect, IL
  • North Riverside, IL
  • Orland Park, IL
  • Oswego, IL
  • Tuscola, IL
  • Wheaton, IL
  • Woodridge, IL
  • Edinburgh, IN
  • Fishers, IN
  • Fremont, IN
  • Indianapolis, IN
  • Michigan City, IN
  • Mishawaka, IN
  • Rensselaer, IN
  • Schererville, IN
  • Kansas City, KS
  • Newton, KS
  • Lexington, KY
  • Bossier City, LA
  • Gonzales, LA
  • New Orleans, LA
  • Braintree, MA
  • Chelmsford, MA
  • Danvers, MA
  • Dedham, MA
  • Lee, MA
  • Medford, MA
  • Millbury, MA
  • Saugus, MA
  • Watertown, MA
  • Wrentham, MA
  • Annapolis, MD
  • Gambrills, MD
  • Hagerstown, MD
  • Hanover, MD
  • Nottingham, MD
  • Ocean City, MD
  • Queenstown, MD
  • Freeport, ME
  • Kittery, ME
  • Auburn Hills, MI
  • Birch Run, MI
  • Farmington Hills, MI
  • Grand Rapids, MI
  • Grandville, MI
  • Holland, MI
  • Howell, MI
  • Novi, MI
  • Portage, MI
  • Troy, MI
  • West Branch, MI
  • Albertville, MN
  • Minneapolis, MN
  • Saint Paul, MN
  • Branson, MO
  • Hazelwood, MO
  • Independence, MO
  • Joplin, MO
  • Manchester, MO
  • Osage Beach, MO
  • Saint Louis, MO
  • Sikeston, MO
  • Gulfport, MS
  • Pearl, MS
  • Southaven, MS
  • Vicksburg, MS
  • Billings, MT
  • Missoula, MT
  • Blowing Rock, NC
  • Concord, NC
  • Gastonia, NC
  • Greensboro, NC
  • Greenville, NC
  • Mebane, NC
  • Raleigh, NC
  • Smithfield, NC
  • Wilmington, NC
  • Winston Salem, NC
  • Gretna, NE
  • Merrimack, NH
  • North Conway, NH
  • Tilton, NH
  • Atlantic City, NJ
  • Edgewater, NJ
  • Elizabeth, NJ
  • Flemington, NJ
  • Jackson, NJ
  • Matawan, NJ
  • Moorestown, NJ
  • Paramus, NJ
  • Raritan, NJ
  • Sicklerville, NJ
  • Succasunna, NJ
  • Tinton Falls, NJ
  • Watchung, NJ
  • Albuquerque, NM
  • Jean, NV
  • Las Vegas, NV
  • Laughlin, NV
  • Amherst, NY
  • Bayside, NY
  • Bellport, NY
  • Bronx, NY
  • Brooklyn, NY
  • Carle Place, NY
  • Central Valley, NY
  • Clifton Park, NY
  • Fayetteville, NY
  • Flushing, NY
  • Fresh Meadows, NY
  • Hicksville, NY
  • Huntington Station, NY
  • Islandia, NY
  • New Hartford, NY
  • New York, NY
  • Niagara Falls, NY
  • Riverhead, NY
  • Rochester, NY
  • Schenectady, NY
  • Staten Island, NY
  • Waterloo, NY
  • West Babylon, NY
  • White Plains, NY
  • Aurora, OH
  • Beavercreek, OH
  • Burbank, OH
  • Canton, OH
  • Cleveland, OH
  • Columbus, OH
  • Holland, OH
  • Jeffersonville, OH
  • Mentor, OH
  • Monroe, OH
  • West Chester, OH
  • Oklahoma City, OK
  • Tulsa, OK
  • Bend, OR
  • Lincoln City, OR
  • Portland, OR
  • Seaside, OR
  • Troutdale, OR
  • Tualatin, OR
  • Woodburn, OR
  • Bala Cynwyd, PA
  • Gettysburg, PA
  • Grove City, PA
  • Hershey, PA
  • Homestead, PA
  • Lancaster, PA
  • Levittown, PA
  • Moosic, PA
  • Philadelphia, PA
  • Pottstown, PA
  • Reading, PA
  • Springfield, PA
  • Tannersville, PA
  • Washington, PA
  • Wayne, PA
  • Cranston, RI
  • Smithfield, RI
  • Bluffton, SC
  • Charleston, SC
  • Columbia, SC
  • Gaffney, SC
  • Myrtle Beach, SC
  • North Charleston, SC
  • Brentwood, TN
  • Celina, TN
  • Lebanon, TN
  • Murfreesboro, TN
  • Nashville, TN
  • Pigeon Forge, TN
  • Sevierville, TN
  • Abilene, TX
  • Allen, TX
  • Amarillo, TX
  • Austin, TX
  • Canutillo, TX
  • Conroe, TX
  • Cypress, TX
  • Dallas, TX
  • El Paso, TX
  • Fort Worth, TX
  • Frisco, TX
  • Garland, TX
  • Grapevine, TX
  • Hillsboro, TX
  • Houston, TX
  • Humble, TX
  • Hurst, TX
  • Katy, TX
  • Lewisville, TX
  • Lubbock, TX
  • Mercedes, TX
  • Mesquite, TX
  • Midland, TX
  • Pearland, TX
  • Rockwall, TX
  • Round Rock, TX
  • San Antonio, TX
  • San Marcos, TX
  • Shenandoah, TX
  • Southlake, TX
  • Spring, TX
  • Stafford, TX
  • Sugar Land, TX
  • Sunset Valley, TX
  • Terrell, TX
  • Texas City, TX
  • Tyler, TX
  • Waco, TX
  • Webster, TX
  • Wichita Falls, TX
  • Draper, UT
  • Lehi, UT
  • Park City, UT
  • Salt Lake City, UT
  • Sandy, UT
  • West Jordan, UT
  • Alexandria, VA
  • Falls Church, VA
  • Leesburg, VA
  • Sterling, VA
  • Williamsburg, VA
  • Winchester, VA
  • Woodbridge, VA
  • Brattleboro, VT
  • Essex Junction, VT
  • Manchester Center, VT
  • Auburn, WA
  • Bellingham, WA
  • Burlington, WA
  • Centralia, WA
  • North Bend, WA
  • Quil Ceda Village, WA
  • Spokane, WA
  • Tacoma, WA
  • Tukwila, WA
  • Union Gap, WA
  • Woodinville, WA
  • Appleton, WI
  • Baraboo, WI
  • Johnson Creek, WI
  • Oshkosh, WI
  • Pleasant Prairie, WI
  • Charleston, WV
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