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REVENUE RECOGNITION (Tables)

12 Months Ended

Dec. 28, 2024

Revenue from Contract with Customer [Abstract]

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. Retail		U.S. Wholesale		International		Total
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. Retail		U.S. Wholesale		International		Total
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. Retail		U.S. Wholesale		International		Total
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, 2024		December 30, 2023
Trade receivables from wholesale customers, net	$	187,715	$	172,106
Royalties receivable, net	3,728		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.

Accounts Receivable Reserves

Information regarding Wholesale accounts receivable reserves is as follows:


(dollars in thousands)	Wholesale accounts receivable reserves
Balance at January 1, 2022	$	18,695
Additional provisions	9,280
Charges to reserve	(11,527)

Balance at December 31, 2022	$	16,448
Additional provisions	5,220
Charges to reserve	(8,551)

Balance at December 30, 2023	$	13,117
Additional provisions	2,836
Charges to reserve	(5,900)
Balance at December 28, 2024	$	10,053

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, 2024		December 30, 2023
Contract liabilities - current:
Unredeemed gift cards	$	25,043	$	25,162
Unredeemed customer loyalty rewards	2,552		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.