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S E C O N D Q U A R T E R 2025 B U S I N E S S U P D A T E J U L Y 2 5 , 2 0 2 5
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2 S E C O N D Q U A R T E R 2 0 25 R E S U L T S G A A P B A S I S $ in millions, except EPS 1 Non-GAAP measure; see reconciliation to GAAP in Supplemental Information. Note: Results may not be additive due to rounding. Second Quarter 2025 % of Net Sales Second Quarter 2024 % of Net Sales Change Net sales $585 $564 4% Gross profit 282 48.1% 283 50.1% - % Royalty income, net 3 0.6% 4 0.7% (19%) SG&A 281 48.0% 247 43.8% 13% Operating income 4 0.7% 39 7.0% (90%) Interest expense & other, net 2 0.4% 5 0.9% (54%) Income before taxes 2 0.3% 34 6.1% (95%) Income tax provision 1 7 (81%) Net income $ - 0.1% $28 4.9% (98%) Diluted EPS $0.01 $0.76 (99%) Weighted-average shares outstanding 35 36 (1%) EBITDA1 $19 3.2% $53 9.5% (65%)
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3 F I R S T H A L F 2 0 2 5 R E S U L T S G A A P B A S I S $ in millions, except EPS 1 Non-GAAP measure; see reconciliation to GAAP in Supplemental Information. Note: Results may not be additive due to rounding. First Half 2025 % of Net Sales First Half 2024 % of Net Sales Change Net sales $1,215 $1,226 (1%) Gross profit 573 47.1% 598 48.8% (4%) Royalty income 9 0.7% 9 0.8% (7%) SG&A 551 45.4% 513 41.8% 7% Operating income 30 2.5% 94 7.7% (68%) Interest and other, net 7 0.6% 10 0.8% (30%) Income before taxes 23 2.0% 84 6.9% (73%) Income tax provision 7 19 (62%) Net income $16 1.3% $66 5.4% (76%) Diluted EPS $0.43 $1.80 (76%) Weighted-average shares outstanding 35 36 (1%) EBITDA1 $58 4.8% $123 10.0% (53%)
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4 N O N- G A A P A D J U S T M E N T S 1 See reconciliation to GAAP in Supplemental Information. Note: Results may not be additive due to rounding. $ in millions, except EPS Second Quarter 2025 Operating Income % Net Sales Pre-Tax Income Net Income Diluted EPS As reported (GAAP) $4 0.7% $2 $0.4 $0.01 Operating model improvement costs 7 7 5 0.14 Leadership transition costs 1 1 1 0.02 As adjusted1 $12 2.0% $9 $6 $0.17 • Adjustments to second quarter and first half 2025 results are shown below • No adjustments to second quarter and first half 2024 results First Half 2025 Operating Income % Net Sales Pre-Tax Income Net Income Diluted EPS As reported (GAAP) $30 2.5% $23 $16 $0.43 Operating model improvement costs 10 10 7 0.21 Leadership transition costs 7 7 7 0.18 As adjusted1 $47 3.9% $40 $30 $0.83
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51 Non-GAAP measure; see reconciliation to GAAP in Supplemental Information. S E C O N D Q U A R T E R 2 0 2 5 P E R F O R M A N C E +4% vs. 2024 $564 $585 (70%) vs. 2024 $39 $12 $0.76 $0.17 (78%) vs. 2024 Net Sales Adjusted Diluted EPS1Adjusted Operating Income1 (Adjusted Operating Margin) $ in millions, except EPS 2024 2025 2024 2025 2024 2025 7.0% of Net Sales 2.0% of Net Sales
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A D J U S T E D S E C O N D Q U A R T E R 2 0 2 5 R E S U L TS 1 1 Certain measures are presented on an adjusted basis, a non-GAAP presentation; see reconciliation to GAAP in Supplemental Information. Note: Results may not be additive due to rounding. $ in millions, except EPS Second Quarter 2025 % of Net Sales Second Quarter 2024 % of Net Sales Change Net sales $585 $564 4% Gross profit 282 48.1% 283 50.1% - % Royalty income 3 0.6% 4 0.7% (19%) Adjusted SG&A 273 46.7% 247 43.8% 10% Adjusted operating income 12 2.0% 39 7.0% (70%) Interest and other, net 2 0.4% 5 0.9% (54%) Adjusted income before taxes 9 1.6% 34 6.1% (73%) Adjusted income tax provision 3 7 (54%) Adjusted net income $6 1.1% $28 4.9% (77%) Adjusted diluted EPS $0.17 $0.76 (78%) Weighted-average shares outstanding 35 36 (1%) Adjusted EBITDA $26 4.5% $53 9.5% (50%) 6
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7 S E C O N D Q U A R T E R 2 0 2 5 S E G M E N T R E S U L T S Net Sales Operating Income Operating Margin 2025 2024 $ Change 2025 2024 $ Change 2025 2024 U.S. Retail $300 $290 $9 $4 $18 ($14) 1.3% 6.2% U.S. Wholesale 193 193 - 27 36 (9) 14.0% 18.8% International 93 81 11 4 6 (2) 3.9% 6.8% Total before Corporate expenses 585 564 21 34 60 (25) 5.9% 10.6% Corporate expenses (23) (20) (2) (3.9%) (3.6%) Total1 $585 $564 $21 $12 $39 ($28) 2.0% 7.0% $ in millions 1 See reconciliation of segment operating income and operating margin to consolidated operating income and operating margin in Supplemental Information. Note: Results may not be additive due to rounding.
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88 S E C O N D Q U A R T E R 2 0 2 5 P E R F O R M A N C E – U . S . R E T A I L 2 0 2 5 v s . 2 0 2 4 • Net sales +3% vs. LY; units +6% • Comparable sales +2% − Performance led by Stores − Growth driven by strong April and product & promotional strategies − Strong conversion trends in both channels − Third consecutive quarter of comp growth in units − New stores comping positively 1H and outperforming chain • Operating margin 1.3% (-490 bps vs. LY) − Pricing investment − Expense deleverage, including variable compensation & new stores Sales Profitability Momentum • Baby (0 – 24 months) segment strongest performing category (+10%) • Growth in active customers (improved retention and new customers vs. LY) • Improved store traffic trend (comparable vs. LY)
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9 U . S . W H O L E S A L E • Net sales: comparable (units +6%) ― Growth with 2 of 3 Exclusive Brands, off-price channel (excess), and Skip Hop ― Lower department store demand • Operating margin 14.0% (-480 bps vs. LY) ― Lower pricing ― Customer mix ― Expense deleverage I N T E R N A T I O N A L • Net sales: +14% (units +15%) ― Strong growth in all International components ― Canada retail comp: +8% ― Mexico retail comp: +19% ― Adverse FX translation ($3M) • Net sales constant currency +18% • Operating margin 3.9% (-290 bps vs. LY) ― Higher product costs (including FX) ― Spending leverage S E C O N D Q U A R T E R S E G M E N T P E R F O R M A N C E 2 0 2 5 v s . 2 0 2 4
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10 F I R S T H A L F 2 0 2 5 P E R F O R M A N C E (1%) vs. 2024 $1,226 $1,215 (50%) vs. 2024 $94 $47 $1.80 $0.83 (54%) vs. 2024 Net Sales Adjusted Diluted EPS1Adjusted Operating Income1 (Adjusted Operating Margin) $ in millions, except EPS 1 Non-GAAP measure; see reconciliation to GAAP in Supplemental Information. 2024 2025 2024 2025 2024 2025 7.7% of Net Sales 3.9% of Net Sales
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11 A D J U S T E D F I R S T H A L F 2 0 2 5 R E S U L T S1 $ in millions, except EPS First Half 2025 % of Net Sales First Half 2024 % of Net Sales Change Net sales $1,215 $1,226 (1%) Gross profit 573 47.1% 598 48.8% (4%) Royalty income 9 0.7% 9 0.8% (7%) Adjusted SG&A 534 44.0% 513 41.8% 4% Adjusted operating income 47 3.9% 94 7.7% (50%) Interest and other, net 7 0.6% 10 0.8% (30%) Adjusted income before taxes 40 3.3% 84 6.9% (52%) Adjusted income tax provision 10 19 (46%) Adjusted net income $30 2.5% $66 5.4% (54%) Adjusted diluted EPS $0.83 $1.80 (54%) Weighted-average shares outstanding 35 36 (1%) Adjusted EBITDA $75 6.2% $123 10.0% (39%) 1 Certain measures are presented on an adjusted basis, a non-GAAP presentation; see reconciliation to GAAP in Supplemental Information. Note: Results may not be additive due to rounding.
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12 F I R S T H A L F 2 0 2 5 S E G M E N T P E R F O R M A N C E Net Sales Operating Income Operating Margin 2025 2024 $ Change 2025 2024 $ Change 2025 2024 U.S. Retail $594 $598 ($4) $6 $32 ($26) 1.0% 5.4% U.S. Wholesale 443 457 (14) 82 100 (17) 18.6% 21.8% International 178 171 7 3 8 (4) 1.9% 4.5% Total before Corporate expenses 1,215 1,226 (11) 92 140 (48) 7.6% 11.4% Corporate expenses (45) (45) - (3.7%) (3.7%) Total1 $1,215 $1,226 ($11) $47 $94 ($47) 3.9% 7.7% $ in millions 1 See reconciliation of segment operating income and operating margin to consolidated operating income and operating margin in Supplemental Information. Note: Results may not be additive due to rounding.
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13 B A L A N C E S H E E T & C A S H F L O W $ in millions 1 Sum of current and non-current operating lease liabilities. 2 Non-GAAP measure. Balance Sheet (Q2 End) 2025 2024 Cash $338 $317 Accounts receivable, net 140 132 Inventory, net 619 599 Accounts payable 306 314 Long-term debt, net 499 498 Operating lease liabilities1 626 566 Cash Flow (First Half) 2025 2024 Operating cash flow $(8) $92 Capital expenditures (27) (24) Free cash flow2 $(35) $67 Dividends $38 $59 Share repurchases - 34 Total capital distributed $38 $92 • Total liquidity $1.2 billion • Inventories +3% vs. LY, principally driven by higher tariffs (units -1%) ― $17 million increase related to tariffs ― Quality of inventory strong – higher mix of current season product and less excess • No seasonal credit facility borrowings • 2025 operating cash flow reflects lower net income and higher inventory levels • $38 million in dividends paid in first half 2025
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14 INITIATIVE UPDATES
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15 P R O G R E S S I M P R O V I N G O U R O P E R A T I N G M O D E L Concept to Consumer Initiative • Shortening product development process by ~3 months with improving disciplines • Enhancing chase capabilities • Better leveraging technology including AI • Consumer insights strengthening assortment performance Retail Store Portfolio • Comprehensive assessment of current store portfolio • Strengthening analytics and disciplines for future site selection • Developing new fleet segmentation strategy
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16 I M P A C T O F N E W T A R I F F S & A C T I O N S T O M I T I G A T E Top 4 75% Rest of World 25% Top 4 Countries of Origin • Vietnam • Cambodia • Bangladesh • India 2024 Finished Goods Sourcing Mix China <4% Planned Actions to Offset Impact of Incremental Tariffs • Changes to product assortment • Cost sharing with vendors • Shifting country of origin mix • Price increases Estimated Impact of Incremental Tariffs • U.S. import duties paid in 2024: ~$110 million • Pre-tax earnings impact of additional proposed tariffs1: ‒ Annualized (gross): ~$125 million to $150 million ‒ Second half fiscal 2025 (net): ~$35 million 1 Estimate assumes baseline incremental tariff rates of 30% for China, 20% for Vietnam, 19% for Indonesia, and 10% for all other countries.
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CHIEF EXECUTIVE OFFICER INSIGHTS & KEY LEARNINGS 17
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Douglas C. Palladini Chief Executive Officer & President Richard Westenberger Chief Financial Officer & Chief Operating Officer Sarah Crockett Chief Marketing Officer Julie D'Emilio Chief Sales Officer Kendra Krugman Chief Product Officer Allison Peterson Chief Retail & Digital Officer Antonio Robinson Chief Legal & Compliance Officer and Secretary Raghu Sagi Chief Information & Technology Officer Karen Smith Chief Supply Chain Officer Jill Wilson Chief Human Resource Officer C A R T E R ’ S L E A D E R S H I P T E A M Emily Evert Chief Strategy Officer1 181 Effective August 2025.
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O U R C O R E B R A N D S 19
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O U R E M E R G I N G B R A N D S 20
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O U R E X C L U S I V E B R A N D S 21
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CARTER’S PURPOSE IS TO embrace the wonder of childhood and uplift those shaping the future 22
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C A R T E R ’ S : 1 6 0 Y E A R S O F F A M I L Y T R U S T C L I C K H E R E T O V I E W V I D E O
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C A R T E R ’ S : 1 6 0 Y E A R S O F F A M I L Y T R U S T 24
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O S H K O S H B ’ G O S H : 1 3 0 Y E A R S O F D E N I M H E R I T A G E
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BRANDING ON PRODUCTS L I T T L E P L A N E T : E L E V A T E D- S T Y L E , E C O- F R I E N D L Y D E S I G N 26
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27 O T T E R A V E N U E : C R E A T E D J U S T F O R T O D D L E R S
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S K I P H O P : M U S T- H A V E S , M A D E B E T T E R
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C A R T E R ’ S S T O R E S : E V O L V I N G T H E B E S T E X P R E S S I O N O F O U R B R A N D S
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O U R E C O M M E R C E : S E A M L E S S D I G I T A L I N T E G R A T I O N 30
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31 THANK YOU
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32 SUPPLEMENTAL INFORMATION
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R E C O N C I L I A T I O N O F R E P O R T E D T O A D J U S T E D E A R N I N G S Note: Results may not be additive due to rounding. 33 (a) In addition to the results provided in this earnings release in accordance with GAAP, the Company has provided adjusted, non -GAAP financial measurements that present SG&A, operating income, income taxes, net income, and net income on a diluted share basis excluding the adjustme nts discussed above. The Company believes these adjustments provide a meaningful comparison of the Company’s results and afford investors a view of wh at management considers to be the Company's core performance. The adjusted, non-GAAP financial measurements included in this earnings release should not be considered as an alternative to net income or as any other measurement of performance derived in accordance with GAAP. The adjusted, non -GAAP financial measurements are presented for informational purposes only and are not necessarily indicative of the Company’s future condition or results of operations. (b) Primarily related to third-party consulting costs. (c) Related to costs associated with the transition of our former CEO, including accelerated vesting of outstanding time -based restricted stock awards. Second Quarter of Fiscal 2025 SG&A % of net sales Operating Income % of net sales Pre-Tax Income Income Tax Provision Net Income Diluted EPS As reported (GAAP) $281.0 48.0% $4.0 0.7% $1.7 $1.3 $0.4 $0.01 Operating model improvement costs (b) (6.6) 6.6 6.6 1.6 5.0 0.14 Leadership transition costs (c) (1.1) 1.1 1.1 0.3 0.8 0.02 As adjusted (a) $273.3 46.7% $11.8 2.0% $9.4 $3.1 $6.3 $0.17 $ in millions, except EPS First Half of Fiscal 2025 SG&A % of net sales Operating Income % of net sales Pre-Tax Income Income Tax Provision Net Income Diluted EPS As reported (GAAP) $551.3 45.4% $30.1 2.5% $23.0 $7.1 $16.0 $0.43 Operating model improvement costs (b) (9.8) 9.8 9.8 2.4 7.4 0.21 Leadership transition costs (c) (7.2) 7.2 7.2 0.6 6.6 0.18 As adjusted (a) $534.3 44.0% $47.1 3.9% $40.0 $10.0 $30.0 $0.83
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R E C O N C I L I A T I O N O F T O T A L S E G M E N T O P E R A T I N G I N C O M E T O C O N S O L I D A T E D O P E R A T I N G I N C O M E Note: Results may not be additive due to rounding. 34 (a) In fiscal 2024, the Company changed its measure of segment profitability to segment operating income. Segment operating incom e includes net sales, royalty income, and related cost of goods sold and selling, general, and administrative expenses attributable to each segment . Segment operating income excludes unallocated corporate expenses as well as specific charges that are not directly attributable to segment oper ations, including restructuring costs, operating model improvement costs, executive transition costs, and impairment charges related to goodwil l and indefinite-lived intangible assets, which were included in our previous measure of segment profitability. Prior period segment operating incom e for the fiscal quarter and two fiscal quarters ended June 29, 2024, have been recast to conform to the current presentation. (b) Unallocated corporate expenses include corporate overhead expenses that are not directly attributable to one of our business segments and include unallocated accounting, finance, legal, human resources, and information technology expenses, occupancy costs for our corpora te headquarters, and other benefit and compensation programs, including performance-based compensation. (c) Primarily related to third-party consulting costs. (d) Related to costs associated with the transition of our former CEO, including accelerated vesting of outstanding time -based restricted stock awards. Fiscal Quarter Ended Two Fiscal Quarters Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 % of net sales % of net sales % of net sales % of net sales Total segment operating income (a) $34.4 5.9% $59.8 10.6% $91.8 7.6% $139.6 11.4% Unallocated corporate expenses (b) (22.7) (20.4) (44.7) (45.1) Subtotal $11.7 2.0% $39.4 7.0% $47.1 3.9% $94.5 7.7% Operating model improvement costs (c) (6.6) - (9.8) - Leadership transition costs (d) (1.1) - (7.2) - Consolidated operating income $4.0 0.7% $39.4 7.0% $30.1 2.5% $94.5 7.7% $ in millions
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Note: Results may not be additive due to rounding. R E C O N C I L I A T I O N O F N E T I N C O M E T O A D J U S T E D E B I T D A Fiscal Quarter Ended Two Fiscal Quarters Ended Four Fiscal Quarters Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 June 28, 2025 Net income $0.4 $27.6 $16.0 $65.7 $135.8 Interest expense 7.9 7.9 15.7 15.8 31.2 Interest income (4.3) (3.2) (7.4) (6.3) (12.2) Tax expense 1.3 6.7 7.1 18.6 33.7 Depreciation and amortization 13.6 14.4 26.8 29.2 55.5 EBITDA $18.8 $53.5 $58.1 $123.1 $244.1 Adjustments to EBITDA Operating model improvement costs (a) $6.6 - $9.8 - $9.8 Leadership transition costs (b) 1.1 - 7.2 - 7.2 Organizational restructuring (c) - - - 1.8 Intangible asset impairment(d) - - - - 30.0 Partial pension plan settlement (e) - - - - 0.9 Total adjustments 7.7 - 17.0 - 49.8 Adjusted EBITDA $26.5 $53.5 $75.0 $123.1 $293.8 35 $ in millions (a) Primarily related to third-party consulting costs. (b) Related to costs associated with the transition of our former CEO, including accelerated vesting of outstanding time -based restricted stock awards. (c) Net expenses related to organizational restructuring. (d) Non-cash impairment charge on the OshKosh indefinite-lived tradename asset. (e) Non-cash charge for partial settlement of the OshKosh B’Gosh Pension Plan.
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Fiscal Quarter Ended $ in thousands, except EPS As reported on a GAAP Basis As adjusted (a) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Basic net income per common share: Net income $446 $27,639 $6,302 $27,639 Income allocated to participating securities (231) (523) (231) (523) Net income available to common shareholders $215 $27,116 $6,071 $27,116 Basic net income per common share $0.01 $0.76 $0.17 $0.76 Diluted net income per common share: Net income $446 $27,639 $6,302 $27,639 Income allocated to participating securities (231) (523) (231) (523) Net income available to common shareholders $215 $27,116 $6,071 $27,116 Diluted net income per common share $0.01 $0.76 $0.17 $0.76 Fiscal Quarter Ended Weighted-average number of common and common equivalent shares outstanding: June 28, 2025 June 29, 2024 Basic number of common shares outstanding 35,409,988 35,688,755 Dilutive effect of equity awards 135 Diluted number of common and common equivalent shares outstanding 35,409,988 35,688,890 S E C O N D Q U A R T E R R E C O N C I L I A T I O N O F A D J U S T E D N E T I N C O M E A L L O C A B L E T O C O M M O N S H A R E H O L D E R S (a) In addition to the results provided in this earnings release in accordance with GAAP, the Company has provided adjusted, non -GAAP financial measurements that present per share data excluding the adjustments discussed above. The Company has excluded $5.9 million in after -tax expenses from these results for the fiscal quarter ended June 28, 2025. Note: Results may not be additive due to rounding. 36
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Two Fiscal Quarters Ended $ in thousands, except EPS As reported on a GAAP Basis As adjusted (a) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Basic net income per common share: Net income $15,985 $65,672 $30,052 $65,672 Income allocated to participating securities (866) (1,218) (866) (1,218) Net income available to common shareholders $15,119 $64,454 $29,186 $64,454 Basic net income per common share $0.43 $1.80 $0.83 $1.80 Diluted net income per common share: Net income $15,985 $65,672 $30,052 $65,672 Income allocated to participating securities (866) (1,218) (866) (1,218) Net income available to common shareholders $15,119 $64,454 $29,186 $64,454 Diluted net income per common share $0.43 $1.80 $0.83 $1.80 Fiscal Quarter Ended Weighted-average number of common and common equivalent shares outstanding: June 28, 2025 June 29, 2024 Basic number of common shares outstanding 35,361,039 35,774,748 Dilutive effect of equity awards 605 1,692 Diluted number of common and common equivalent shares outstanding 35,361,644 35,776,440 F I R S T H A L F R E C O N C I L I A T I O N O F A D J U S T E D N E T I N C O M E A L L O C A B L E T O C O M M O N S H A R E H O L D E R S (a) In addition to the results provided in this earnings release in accordance with GAAP, the Company has provided adjusted, non -GAAP financial measurements that present per share data excluding the adjustments discussed above. The Company has excluded $14.1 million in after -tax expenses from these results for the two fiscal quarters ended June 28, 2025. Note: Results may not be additive due to rounding. 37
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Note: Results may not be additive due to rounding. N E T S A L E S C O N S T A N T C U R R E N C Y R E C O N C I L I A T I O N $ in millions Fiscal Quarter Ended Reported Net Sales June 28, 2025 Impact of Foreign Currency Translation Constant- Currency Net Sales June 28, 2025 Reported Net Sales June 29, 2024 Reported Net Sales % Change Constant- Currency Net Sales % Change Consolidated net sales $585.3 $(3.1) $588.4 $564.4 3.7% 4.2% International segment net sales $92.8 $(3.1) $95.8 $81.3 14.1% 17.9% 38 The Company evaluates its net sales on both an “as reported” and a “constant currency” basis. The constant currency presentat ion, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates that occurred between the comparative periods . Constant currency net sales results are calculated by translating current period net sales in local currency to the U.S. dollar amount by using the currency conversion rate for the prior comparative period. The Company consistently applies this approach to net sales for all countries where the functional currency is not the U.S. dollar. The Company believes that the presentation of net sales on a constant currency basis provides useful supplemental inf ormation regarding changes in our net sales that were not due to fluctuations in currency exchange rates and such information is consistent with how the Company assesses changes in its net sales between comparative periods. Two Fiscal Quarters Ended Reported Net Sales June 28, 2025 Impact of Foreign Currency Translation Constant- Currency Net Sales June 28, 2025 Reported Net Sales June 29, 2024 Reported Net Sales % Change Constant- Currency Net Sales % Change Consolidated net sales $1,215.1 $(9.5) $1,224.6 $1,225.9 (0.9)% (0.1)% International segment net sales $178.1 $(9.5) $187.6 $171.0 4.1% 9.7%
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Statements in this presentation that are not historical fact and use predictive words such as “estimates”, “outlook”, “guidance”, “expect”, “believe”, “intend”, “designed”, “target”, “plans”, “may”, “will”, “are confident” and similar words are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed in this presentation. These risks and uncertainties include, but are not limited to, those disclosed in Part II, Item 1A. “Risk Factors” of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 28, 2025 and Part I, Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024, and otherwise in our reports and filings with the Securities and Exchange Commission, as well as the following factors: changes in global economic and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits; risks related to public health crises; risks related to consumer tastes and preferences, as well as fashion trends; the failure to protect our intellectual property; the diminished value of our brands, potentially as a result of negative publicity or unsuccessful branding and marketing efforts; delays, product recalls, or loss of revenue due to a failure to meet our quality standards; risks related to uncertainty regarding the future of international trade agreements and the United States’ position on international trade, as well as significant political, trade, and regulatory developments and other circumstances beyond our control; increased competition in the marketplace; financial difficulties for one or more of our major customers; identification of locations and negotiation of appropriate lease terms for our retail stores; distinct risks facing our eCommerce business; failure to forecast demand for our products and our fail ure to manage our inventory; increased margin pressures, including increased cost of materials and labor and our inability to successfully increase prices to offset these increased costs; continued inflationary pressures with respect to labor and raw materials and global supply chain constraints that have, and could continue, to affect freight, transit, and other costs; fluctuations in foreign currency exchange rates; unseasonable or extreme weather conditions; risks associated with corporate responsibility issues; our foreign sourcing arrangements; a relatively small number of vendors supply a significant amount of our products; disruptions in our supply chain, including increased transportation and freight costs; our ability to effectively source and manage inventory; problems with our Braselton, Georgia distribution facility; pending and threatened lawsuits; a breach of our information technology systems and the loss of personal data or a failure to implement new information technology systems successfully; unsuccessful expansion into international markets; failure to comply with various laws and regulations; failure to properly manage strategic initiatives; retention of key individuals; acquisition and integration of other brands and businesses; failure to achieve sales growth plans and profitability objectives to support the carrying value of our intangible assets; our continued ability to meet obligations related to our debt; changes in our tax obligations, including additional customs, duties or tariffs; our continued ability to declare and pay a dividend; volatility in the market price of our common stock; and the cost or effort required for our shareholders to bring certain claims or actions against us , as a result of our designation of the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings. Except for any ongoing obligations to disclose material information as required by federal securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The inclusion of any statement in this presentation does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material. F O R W A R D L O O K I N G S T A T E M E N T S 39
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40 U.S Canada Mexico Total Store count at June 29, 2024 789 186 52 1,027 Openings 26 6 11 43 Closings (11) (1) (1) (13) Store count at December 28, 2024 804 191 62 1,057 Openings 14 2 4 20 Closings (9) (1) (2) (12) Store count at June 28, 2025 809 192 64 1,065 S T O R E C O U N T R E C O N C I L I A T I O N