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REVENUE RECOGNITION
 9 Months Ended
Sep. 28, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
The Company’s revenues are earned from contracts or arrangements with retail and wholesale customers and licensees. Contracts include written agreements, as well as arrangements that are implied by customary practices or law.
Disaggregation of Revenue
The Company sells its products directly to consumers (“direct-to-consumer”) and to other retail companies and partners that subsequently sell the products directly to their own retail customers (“wholesale channel”). The Company also earns royalties from certain of its licensees. Disaggregated revenues from these sources for the fiscal periods indicated were as follows:
Fiscal quarter ended September 28, 2024
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$352,987 $— $67,172 $420,159 
Wholesale channel— 298,980 39,325 338,305 
$352,987 $298,980 $106,497 $758,464 
Royalty income, net$2,539 $2,884 $317 $5,740 
Three fiscal quarters ended September 28, 2024
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$950,877 $— $176,583 $1,127,460 
Wholesale channel— 756,022 100,908 856,930 
$950,877 $756,022 $277,491 $1,984,390 
Royalty income, net$4,581 $8,727 $1,651 $14,959 
Fiscal quarter ended September 30, 2023
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$374,796 $— $70,675 $445,471 
Wholesale channel— 300,338 45,842 346,180 
$374,796 $300,338 $116,517 $791,651 
Royalty income, net$2,236 $3,147 $330 $5,713 
Three fiscal quarters ended September 30, 2023
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$1,021,983 $— $181,006 $1,202,989 
Wholesale channel— 767,194 117,547 884,741 
$1,021,983 $767,194 $298,553 $2,087,730 
Royalty income, net$5,746 $8,694 $2,133 $16,573 
Accounts Receivable from Customers and Licensees
The components of Accounts receivable, net, were as follows:
(dollars in thousands)September 28, 2024December 30, 2023September 30, 2023
Trade receivables from wholesale customers, net$243,085 $172,106 $239,493 
Royalties receivable5,237 4,753 5,825 
Other receivables(1)
12,030 20,032 10,898 
Total gross receivables$260,352 $196,891 $256,216 
Less: Wholesale accounts receivable reserves(2)(3)
(13,339)(13,117)(15,709)
Accounts receivable, net$247,013 $183,774 $240,507 
(1)Includes tenant allowances, tax, payroll, gift card and other receivables. The balance for the fiscal period ended December 30, 2023 includes a receivable for a $6.9 million court approved settlement in December 2023 related to payment card interchange fees. This payment was received in the first quarter of fiscal 2024.
(2)Includes allowance for chargebacks of $5.0 million, $8.4 million, and $9.0 million for the periods ended September 28, 2024, December 30, 2023, and September 30, 2023, respectively.
(3)Includes allowance for credit losses of $8.3 million, $4.8 million, and $6.7 million for the periods ended September 28, 2024, December 30, 2023, and September 30, 2023, respectively.
Contract Assets and Liabilities
The Company’s contract assets are not material.
Contract Liabilities
The Company recognizes a contract liability when it has received consideration from a customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts:
(dollars in thousands)September 28, 2024December 30, 2023September 30, 2023
Contract liabilities - current:
Unredeemed gift cards(1)
$24,638 $25,162 $23,983 
Unredeemed customer loyalty rewards2,362 3,355 4,020 
Carter’s credit card - upfront bonus(2)
714 714 714 
Total contract liabilities - current(3)
$27,714 $29,231 $28,717 
Contract liabilities - non-current(4)
$179 $714 $893 
Total contract liabilities$27,893 $29,945 $29,610 
(1)During the third quarters of fiscal 2024 and fiscal 2023, the Company recognized revenue of $1.4 million and $1.1 million related to the gift card liability balance that existed at June 29, 2024 and July 1, 2023, respectively. Additionally, during the first three quarters of fiscal 2024 and fiscal 2023, the Company recognized revenue of $7.1 million and $6.4 million related to the gift card liability balance that existed at December 30, 2023 and December 31, 2022, respectively.
(2)The Company received an upfront signing bonus from a third-party financial institution, which will be recognized as revenue on a straight-line basis over the term of the agreement. This amount reflects the current portion of this bonus to be recognized as revenue over the next twelve months.
(3)Included with Other current liabilities on the Company’s condensed consolidated balance sheets.
(4)This amount reflects the non-current portion of the Carter’s credit card upfront bonus and is included within Other long-term liabilities on the Company’s condensed consolidated balance sheets.