CARTERS Business Summary

Carter’s, Inc. (CRI) is the preeminent North American designer and marketer of apparel for babies and young children, generating revenue through a diversified multi-channel model across U.S. Retail, U.S. Wholesale, and International segments. The company’s primary income streams include direct-to-consumer (DTC) sales via its network of over 1,000 retail stores and high-growth e-commerce platforms, complemented by a robust wholesale business that supplies the Carter’s, OshKosh B’gosh, and Skip Hop brands to major partners like Target, Walmart, and Amazon. As of March 2026, CRI is executing a strategic transformation involving the closure of approximately 150 lower-margin stores by 2028 and a shift toward higher-priced, productivity-focused assortments for Gen Z and Millennial families. Carter’s holds a dominant ~10% share of the total U.S. children's apparel market, positioning itself as a premium-value leader relative to specialty competitors like The Children’s Place and Gap Inc., as well as mass-market private labels such as Target’s Cat & Jack and Walmart’s Garanimals. Founded in 1865 by William Carter, the company is led by President and CEO Douglas C. Palladini, a branding veteran who joined in April 2025 after serving as Global Brand President of Vans. The executive suite is anchored by Senior EVP, CFO, and COO Richard F. Westenberger, who manages finance, IT, and real estate, and Chief Brand Officer David B. Tichiaz, who joined in January 2026 to sharpen the company's marketing and product identity. Other critical leadership roles include Chief Strategy Officer Emily D. Evert and Chief Retail & Digital Officer Allison Peterson, both of whom are central to the firm's digital-first pivot. Carter’s is governed by a board of directors chaired by William J. Montgoris and maintains a strong institutional investor base, with major holdings by The Vanguard Group, BlackRock, and State Street Corporation.