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About The William Carter Company

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, OshKosh B'Gosh, and Skip Hop brands, as well as private labels Child of Mine, Just One You, and Simple Joys. Carter's distributes their products through multiple channel such as retail store, e-commerce, and wholesale sales channels. As of 2019, their channels included nearly 1,500 retail stores, more than 17,000 department and specialty stores and they also operates in more than 850 Carter's and OshKosh stores in the US and approximately 200 stores in Canada.

Operations

Carter's divides its business into three segments: US Retail, US Wholesale, and International.

US Retail generates around 55% of Carter's sales and comprises the direct retail activities of its main brands. This segment operates in single branded (Carter's OshKosh, or Skip Hop), co-branded and side-by-side format. Carter's produces essential baby clothes such as bodysuits, pajamas, bibs, shoes, and swimwear while OshKosh serves a slightly older demographic (newborn to 14) with more on-trend clothes at a higher price point. As of 2019, Carter's have operated in nearly 500 single-branded store, some 160 side-by-side and more than 200 co-branded stores.

The US Wholesale division generates a third of Carter's sales and distributes products to third-party retailers such as department stores, national chains, specialty stores, and discount retailers. This segment distributes in major retailers, such as Costco, JCPenney, Kohl's, Target, Amazon and Macy's.

Carter's International operation comprises the retail, wholesale, and online retailing of its brands in Canada and Mexico and online-only in China, as well as royalty income from its international licensees. The company have approximately 40 international licensees who operated in over 90 countries.

By category, playclothes account for nearly 40% of Carter's sales, baby products around 35%, and sleepwear more than 10%.

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%, while Canada represents most of the rest. Carter's has distribution centers in Braselton and Stockbridge, Georgia, and has outsourced distribution activities in California. Outside the US, Carter's operates directly or outsources its distribution activities to third-party logistics providers in Canada, Mexico, China, and the UK.

The company outsources all its manufacturing to Asia, particularly Cambodia, China, Vietnam, and Bangladesh, supported by 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. Outside the US the company partners with approximately 40 licensees to sell the Carter's and OshKosh brands in over 90 countries. Carter's main wholesale partners are Amazon, Costco, JCPenney, Kohl's, Macy's, Target, and Walmart.

The struggling department store sector comprises a significant portion of Carter's customer base. Bankruptcies and store closures will impact on sales and trigger a costly recovery claims process.

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.

 

Financial Performance

Carter's revenue has been growing steadily but unspectacularly over the last five years. Between 2015 to 2019, their revenue had an increase of 17% while its net income has been on a similarly upward trend.

In 2019 the company's sales grew 2% to $3.5 billion, $57 million higher than the prior year, primarily due to strong growth in its US Retail channel, particularly in the winter months, supported by the revenue contribution from the acquired Skip Hop business. The US Wholesale segment increased due to the increase in average selling price per unit. International sales decreased slightly.

Net income fell 6% in 2019 to $263.8 million primarily due to the recognition of a $30.8 million Skip Hop tradename non-cash impairment charge and a $7.8 million loss on extinguishment of debt recognized as part of the company's senior note, partially offset by sales growth in U.S. Retail and U.S. Wholesale.

Carter's cash position increased slightly in 2019, ending the year with $44.2 million higher at $214.3 million. Its operations generated $387.2 million, an increase on prior year, while its investing activities used $60.7 million in cash and its financing activities used $283.4 million. The company deployed operating cash on paying down debt and stock repurchases and increased its dividend.

Strategy

In 2019, the company launched capabilities to allow their customers to buy on-line and pick-up in store, complementing their existing buy-online, ship-to-store and in-store buy on-line services. This omni-channel approach enables their customer to continously have a seamless shopping experience.

The company also launched a new Carter's credit card program in their U.S. retail stores and eCommerce sites. The Carter's credit card complements and enhances their existing Rewarding Moments loyalty program and provides new benefits for their customers.

To continously drive growth, the company have collaborated with their wholesale customers to provide them services through eCommerce, replenishment, product mix and brand presentation initiatives. They have been frequently meeting with senior management of key accounts to align their strategic growth plans.

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.

The William Carter Company

3438 Peachtree Rd Ne STE 18
Atlanta, GA 30326-1554
Phone: 1 (678) 791-1000

Firm Stats

Employer Type: Privately Owned
Pres: Joseph Pacifico
Sr V Pres Of Hr: Gill Wilson
Svp Human Resources And Talent Management: Jill Wilson
Employees (This Location): 900
Employees (All Locations): 16,800

Major Office Locations

Atlanta, GA

Other Locations

Anthem, AZ
Chandler, AZ
Tempe, AZ
Tucson, AZ
Apple Valley, CA
Camarillo, CA
Canoga Park, CA
Carlsbad, CA
Chino, CA
Compton, CA
Folsom, CA
Gilroy, CA
Irvine, CA
Long Beach, CA
Milpitas, CA
Mountain View, CA
Petaluma, CA
Pismo Beach, CA
San Diego, CA
San Jose, CA
Torrance, CA
Tracy, CA
Vacaville, CA
Castle Rock, CO
Colorado Springs, CO
Highlands Ranch, CO
Lakewood, CO
Loveland, CO
Danbury, CT
Norwalk, CT
Stamford, CT
Wilmington, DE
Destin, FL
Ellenton, FL
Estero, FL
Fort Lauderdale, FL
Homestead, FL
Miami, FL
Orlando, FL
Saint Augustine, FL
Sunrise, FL
Vero Beach, FL
Atlanta, GA
Columbus, GA
Dawsonville, GA
Fayetteville, GA
Griffin, GA
Savannah, GA
Stockbridge, GA
Waipahu, HI
Williamsburg, IA
Bolingbrook, IL
Deerfield, IL
Geneva, IL
Gurnee, IL
Orland Park, IL
Tuscola, IL
Fremont, IN
Indianapolis, IN
Michigan City, IN
Kansas City, KS
Newton, KS
Bossier City, LA
Gonzales, LA
Saugus, MA
Watertown, MA
Wrentham, MA
Annapolis, MD
Hagerstown, MD
Queenstown, MD
Kittery, ME
Auburn Hills, MI
Birch Run, MI
Farmington Hills, MI
Holland, MI
Troy, MI
West Branch, MI
Saint Paul, MN
Hazelwood, MO
Osage Beach, MO
Sikeston, MO
Gulfport, MS
Vicksburg, MS
Smithfield, NC
Winston Salem, NC
Edgewater, NJ
Flemington, NJ
Matawan, NJ
Moorestown, NJ
Sicklerville, NJ
Succasunna, NJ
Albuquerque, NM
Las Vegas, NV
Bronx, NY
Carle Place, NY
Central Valley, NY
New York, NY
Niagara Falls, NY
Riverhead, NY
Aurora, OH
Burbank, OH
West Chester, OH
Bend, OR
Troutdale, OR
Tualatin, OR
Woodburn, OR
Grove City, PA
Hershey, PA
Lancaster, PA
Moosic, PA
Philadelphia, PA
Tannersville, PA
Charleston, SC
Gaffney, SC
Myrtle Beach, SC
Lebanon, TN
Murfreesboro, TN
Pigeon Forge, TN
Sevierville, TN
Allen, TX
Austin, TX
Conroe, TX
Frisco, TX
Garland, TX
Hillsboro, TX
Houston, TX
Humble, TX
Hurst, TX
Lewisville, TX
Mercedes, TX
Midland, TX
Pearland, TX
Rockwall, TX
Round Rock, TX
San Antonio, TX
San Marcos, TX
Shenandoah, TX
Southlake, TX
Sugar Land, TX
Sunset Valley, TX
Tyler, TX
Waco, TX
Webster, TX
Wichita Falls, TX
Park City, UT
Falls Church, VA
Woodbridge, VA
Brattleboro, VT
Essex Junction, VT
Manchester Center, VT
Auburn, WA
Centralia, WA
North Bend, WA
Baraboo, WI
Johnson Creek, WI
Oshkosh, WI
Pleasant Prairie, WI