Carter’s Inc (CRI)

History and Background

Carter's, Inc. was founded in 1865 by William Carter in Needham, Massachusetts. Initially focused on knitted undergarments, it evolved into a leading brand of children's clothing, gifts, and accessories. Significant milestones include expanding into retail, licensing agreements, and focusing on value-priced, durable clothing.

Core Business Areas

• Carter's Retail: Operates Carter's and OshKosh B'gosh branded retail stores across the US and Canada, selling clothing, accessories, and gifts directly to consumers.
• Carter's Wholesale: Sells its branded products to department stores, mass retailers, and e-commerce platforms globally.
• Carter's International: Manages international wholesale and retail operations outside of North America.

Leadership and Structure

Michael D. Casey serves as Chairman and Chief Executive Officer. The company has a traditional corporate structure with functional departments such as finance, marketing, operations, and human resources.

Key Offerings

• Bodysuits: Carter's bodysuits are a core product, known for their affordability and durability. They have a significant share of the infant apparel market, with exact figures varying annually. Competitors include Gerber, Hanes, and Burt's Bees Baby. Revenue from this product category is significant but not publicly broken out. Market share estimated to be >20%.
• Sleepwear: Carter's sleepwear is another major category, offering a wide range of styles and sizes. Similar market share to bodysuits. Competitors include Hanna Andersson, Primary, and Leveret.
• Playwear Sets: Coordinated playwear sets, known for their value and convenience, also holds a considerable market share. Competitors include Cat & Jack (Target brand), Old Navy, and Children's Place.

Industry Overview

The children's apparel industry is competitive and fragmented, driven by fashion trends, economic conditions, and demographics. Online channels are increasingly important.

Positioning

Carter's is positioned as a value-driven brand offering quality and affordability. Its competitive advantages include brand recognition, extensive distribution network, and strong supply chain.

Total Addressable Market (TAM)

The global childrenswear market is estimated at hundreds of billions of dollars. Carteru2019s is positioned as a leader but holds a portion of this TAM.

Key Competitors

• GIII
• PVH
• VFC

Competitive Landscape

Carter's competes on price, brand recognition, and distribution. Competitors like GIII and PVH have broader brand portfolios, while VFC focuses on specific segments.

Skip Hop

• Year: 2017
• Acquisition Price (USD millions): 140
• Strategic Rationale: Expanded Carter's product offerings into baby gear and accessories.

Historical Growth: Historical growth has been driven by retail expansion, wholesale partnerships, and e-commerce growth. Growth rates have varied based on market conditions.

Future Projections: Future growth projections depend on factors like international expansion, digital initiatives, and cost management. Analyst estimates vary.

Recent Initiatives: Recent initiatives include focusing on digital channels, streamlining the supply chain, and enhancing brand marketing.

Carter's is a well-established brand with a strong presence in the children's apparel market. Its value-driven pricing and extensive distribution network are key strengths. However, it faces competition and economic risks and needs to innovate in its designs. The company continues to invest in digital channels and international expansion.

• GIII
• PVH
• VFC
• TGT
• WMT

Data Sources:

• Carter's Investor Relations
• SEC Filings
• Industry Reports
• Market Research Reports

Disclaimers:

This analysis is based on available data and analyst estimates, which are subject to change. It is not financial advice. Please conduct your own research before making investment decisions.