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REVENUE RECOGNITION
 12 Months Ended
Dec. 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. The Company also earns royalties from certain of its licensees. Disaggregated revenues from these sources for the fiscal years presented were as follows:
Fiscal year ended December 28, 2024
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$1,417,108 $— $268,409 $1,685,517 
Wholesale channel— 1,021,396 137,189 1,158,585 
$1,417,108 $1,021,396 $405,598 $2,844,102 
Royalty income, net$5,365 $11,072 $2,814 $19,251 
Fiscal year ended December 30, 2023
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$1,501,780 $— $268,596 $1,770,376 
Wholesale channel— 1,014,584 160,634 1,175,218 
$1,501,780 $1,014,584 $429,230 $2,945,594 
Royalty income, net$6,549 $11,660 $3,201 $21,410 
Fiscal year ended December 31, 2022
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$1,680,159 $— $279,903 $1,960,062 
Wholesale channel— 1,080,471 172,200 1,252,671 
$1,680,159 $1,080,471 $452,103 $3,212,733 
Royalty income, net$8,815 $12,915 $4,090 $25,820 
Accounts Receivable from Customers and Licensees
The components of Accounts receivable, net, were as follows:
(dollars in thousands)December 28, 2024December 30, 2023
Trade receivables from wholesale customers, net$187,715 $172,106 
Royalties receivable, net3,728 4,753 
Other receivables(1)
13,444 20,032 
Total receivables$204,887 $196,891 
Less: Wholesale accounts receivable reserves(2)(3)
(10,053)(13,117)
Accounts receivable, net$194,834 $183,774 
(1)Includes 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 $4.4 million and $8.4 million for the periods ended December 28, 2024 and December 30, 2023, respectively.
(3)Includes allowance for credit losses of $5.7 million and $4.8 million for the periods ended December 28, 2024 and December 30, 2023, respectively.
Information regarding Wholesale accounts receivable reserves is as follows:
(dollars in thousands)Wholesale accounts receivable reserves
Balance at January 1, 2022$18,695 
Additional provisions9,280 
Charges to reserve(11,527)
Balance at December 31, 2022$16,448 
Additional provisions5,220 
Charges to reserve(8,551)
Balance at December 30, 2023$13,117 
Additional provisions2,836 
Charges to reserve(5,900)
Balance at December 28, 2024$10,053 
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)December 28, 2024December 30, 2023
Contract liabilities - current:
Unredeemed gift cards$25,043 $25,162 
Unredeemed customer loyalty rewards2,552 3,355 
Carter’s credit card - upfront bonus(1)
714 714 
Total contract liabilities - current(2)
$28,309 $29,231 
Contract liabilities - non-current(3)
$— $714 
Total contract liabilities$28,309 $29,945 
(1)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.
(2)Included within Other current liabilities on the Company’s consolidated balance sheet.
(3)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 consolidated balance sheet.
Composition of Contract Liabilities
Unredeemed gift cards - the Company is obligated to transfer goods in the future to customers who have purchased gift cards. Periodic changes in the gift card contract liability result from the purchase of gift cards, the redemption of gift cards by customers and the recognition of estimated breakage revenue for those gift card balances that are not expected to be redeemed. Although gift cards do not have an expiration date, the Company classifies all outstanding gift card balances as current liabilities, as they are redeemable on demand by the valid card holder. The majority of the Company’s gift cards are redeemed within one year of issuance. During fiscal 2024 and fiscal 2023, the Company recognized revenue of $10.5 million and $9.4 million related to the gift card liability balance that existed at December 30, 2023 and December 31, 2022, respectively.
Unredeemed loyalty rewards - points and reward certificates earned by customers under the Company’s loyalty program represent obligations of the Company to transfer goods to the customer upon redemption. Periodic changes in the loyalty program contract liability result from new rewards earned, reward certificate redemptions and expirations. The earning and redemption cycles for our loyalty program are under one year in duration.
Carter’s credit card - upfront bonus - the Company received an upfront bonus from a third-party financial institution, which will be recognized as revenue on a straight-line basis over the term of the agreement.