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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, 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.

Carter's, Inc.

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

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: CRI
Stock Exchange: , NYSE
Chairman and CEO: Michael D. Casey
President: Brian J. Lynch
EVP and CFO: Richard F. Westenberger
Employees (This Location): 277
Employees (All Locations): 20,300

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
Eastvale, 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
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
Newark, DE
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
Atlanta, GA
Braselton, GA
Buford, GA
Calhoun, GA
Columbus, GA
Commerce, GA
Dalton, GA
Dawsonville, GA
Fayetteville, GA
Griffin, GA
Lake Park, GA
Las Vegas, GA
Lawrenceville, GA
Locust Grove, GA
Mansfield, GA
Marietta, GA
Newnan, GA
Savannah, GA
Snellville, GA
Stockbridge, GA
Lahaina, HI
Waipahu, HI
Williamsburg, IA
Ammon, ID
Boise, ID
Algonquin, IL
Aurora, IL
Bloomingdale, IL
Bloomington, IL
Bolingbrook, IL
Chicago, IL
Deerfield, IL
East Peoria, IL
Edwardsville, IL
Geneva, IL
Gurnee, IL
Melrose Park, IL
Mount Prospect, IL
North Riverside, IL
Orland Park, 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
Wichita, 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
Saint Peters, MO
Sikeston, MO
Gulfport, MS
Pearl, MS
Southaven, MS
Tupelo, 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
Bismarck, ND
Gretna, NE
Merrimack, NH
North Conway, NH
Tilton, NH
Atlantic City, NJ
Edgewater, NJ
Elizabeth, NJ
Flemington, NJ
Jackson, NJ
Kearny, NJ
Matawan, NJ
Mays Landing, NJ
Moorestown, NJ
Paramus, NJ
Raritan, NJ
Sicklerville, NJ
Succasunna, NJ
Tinton Falls, NJ
Watchung, NJ
Wayne, 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
Deer 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
Oceanside, 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
Cincinnati, OH
Cleveland, OH
Columbus, OH
Holland, OH
Jeffersonville, OH
Mentor, OH
Monroe, OH
Stow, OH
West Chester, OH
Oklahoma City, OK
Tulsa, OK
Bend, OR
Lincoln City, OR
Portland, OR
Seaside, OR
Troutdale, OR
Tualatin, OR
Woodburn, OR
Allentown, PA
Bala Cynwyd, PA
Gettysburg, PA
Grove City, PA
Hershey, PA
Homestead, PA
Lancaster, PA
Levittown, PA
Moosic, PA
Philadelphia, PA
Pottstown, 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
Knoxville, TN
Lebanon, TN
Murfreesboro, TN
Nashville, TN
Pigeon Forge, TN
Sevierville, TN
Abilene, TX
Allen, TX
Amarillo, TX
Austin, TX
Beaumont, TX
Brownsville, TX
Burleson, TX
Canutillo, TX
Conroe, TX
Cypress, TX
Dallas, TX
Denton, TX
El Paso, TX
Fort Worth, TX
Frisco, TX
Garland, TX
Grapevine, TX
Hillsboro, TX
Houston, TX
Humble, TX
Hurst, TX
Katy, TX
Laredo, 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
Vienna, 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
Aurora, Canada
Barrie, Canada
Belleville, Canada
Brampton, Canada
Brantford, Canada
Brossard, Canada
Burnaby, Canada
Calgary, Canada
Cambridge, Canada
Chatham, Canada
Cookstown, Canada
Cornwall, Canada
Edmonton, Canada
Etobicoke, Canada
Grande Prairie, Canada
Guelph, Canada
Halifax, Canada
London, Canada
Milton, Canada
Nepean, Canada
Newmarket, Canada
New Westminster, Canada
Niagara Falls, Canada
Oakville, Canada
Orangeville, Canada
Orillia, Canada
Orleans, Canada
Oshawa, Canada
Ottawa, Canada
Pickering, Canada
Prince Albert, Canada
Rocky View County, Canada
Saint-Constant, Canada
Saint-Sauveur, Canada
Sarnia, Canada
Scarborough, Canada
St Catharines, Canada
St Thomas, Canada
Surrey, Canada
Thornhill, Canada
Toronto, Canada
Tsawwassen, Canada
Waterloo, Canada
Winnipeg, Canada
Woodbridge, Canada
Woodstock, Canada