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THIRD QUARTER & YEAR TO DATE 2026 BUSINESS UPDATE OCTOBER 30, 2026
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Q3 2026 % of Net Sales Q3 2025 % of Net Sales Change Net sales $752 $758 (1%) Gross profit 355 47.1% 342 45.1% 4% Royalty income, net 5 0.7% 5 0.7% (5%) SG&A 304 40.4% 318 42.0% (4%) Operating income 56 7.4% 29 3.8% 92% Interest expense 12 1.6% 7 0.9% 65% Interest income (5) (0.6%) (3) (0.3%) 86% Other expense (income), net 0 0.0% 10 1.3% (97%) Income before taxes 48 6.4% 15 2.0% n/m Income tax provision 12 1.6% 3 0.4% n/m Net income $37 4.9% $12 1.5% n/m Diluted EPS $1.00 $0.32 n/m Weighted-average shares outstanding 36 35 1% EBITDA1 $68 9.1% $33 4.4% n/m THIRD QUARTER 2026 RESULTS GAAP BASIS 1 Non-GAAP measure; see reconciliation to GAAP in Supplemental Information. Note: Results may not be additive due to rounding. 2 in millions, except EPS
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Q3 YTD 2026 % of Net Sales Q3 YTD 2025 % of Net Sales Change Net sales $2,049 $1,973 4% Gross profit 1,061 51.8% 914 46.4% 16% Royalty income, net 13 0.6% 14 0.7% (6%) SG&A 850 41.5% 869 44.1% (2%) Operating income 224 10.9% 59 3.0% n/m Interest expense 35 1.7% 23 1.2% 53% Interest income (17) (0.8%) (10) (0.5%) 65% Other expense (income), net 1 0.0% 9 0.4% (91%) Income before taxes 205 10.0% 38 1.9% n/m Income tax provision 49 2.4% 10 0.5% n/m Net income $156 7.6% $28 1.4% n/m Diluted EPS $4.27 $0.75 n/m Weighted-average shares outstanding 36 35 1% EBITDA1 $263 12.8% $91 4.6% n/m THIRD QUARTER YTD 2026 RESULTS GAAP BASIS 1 Non-GAAP measure; see reconciliation to GAAP in Supplemental Information. Note: Results may not be additive due to rounding. 3 in millions, except EPS
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NON -GAAP ADJUSTMENTS 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 4 Third Quarter 2026 2025 Operating Income % Net Sales Net Income Diluted EPS Operating Income % Net Sales Net Income Diluted EPS As reported (GAAP) $55.8 7.4% $36.6 $1.00 $29.1 3.8% $11.6 $0.32 Organizational restructuring - - - 6.1 4.6 0.13 Operating model improvement costs - - - 3.7 2.8 0.08 Leadership transition costs - - - 0.5 0.4 0.01 Pension plan settlement - - - - 6.7 0.18 Deferred compensation plan termination - - - - 0.8 0.02 IP litigation 1.2 0.9 0.02 - - - As adjusted $56.9 7.6% $37.5 $1.03 $39.4 5.2% $26.8 $0.74 Q3 Year-to-Date 2026 2026 2025 Operating Income % Net Sales Net Income Diluted EPS Operating Income % Net Sales Net Income Diluted EPS As reported (GAAP) $224.0 10.9% $155.9 $4.27 $59.2 3.0% $27.6 $0.75 Operating model improvement costs - - - 13.5 10.2 0.29 Organizational restructuring - - - 6.1 4.6 0.13 Leadership transition costs 4.7 3.6 0.10 7.7 7.0 0.19 Pension plan settlement - - - - 6.7 0.19 Deferred compensation plan termination - - - - 0.8 0.02 Tariff refund recovery (127.7) (100.1) (2.74) - - - IP litigation 2.4 1.8 0.05 - - - As adjusted $103.5 5.0% $61.2 $1.68 $86.5 4.4% $56.9 $1.57
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Q3 2026 % of Net Sales Q3 2025 % of Net Sales Change Net sales $752 $758 (1%) Gross profit 355 47.1% 342 45.1% 4% Royalty income, net 5 0.7% 5 0.7% (5%) SG&A 303 40.3% 308 40.6% (2%) Operating income 57 7.6% 39 5.2% 45% Interest expense and other, net 7 1.0% 5 0.7% 35% Income before taxes 50 6.6% 34 4.5% 46% Income tax provision 12 1.6% 7 0.9% 71% Net income $37 5.0% $27 3.5% 40% Diluted EPS $1.03 $0.74 39% Weighted-average shares outstanding 36 35 1% EBITDA $69 9.2% $52 6.9% 33% ADJUSTED THIRD QUARTER 2026 RESULTS 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. 5 in millions, except EPS
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6 THIRD QUARTER 2026 SEGMENT RESULTS 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. in millions 2026 2025 $ Change 2026 2025 $ Change 2026 2025 U.S. Retail $363 $362 $0 $19 $10 $9 5.3% 2.8% U.S. Wholesale 273 284 (11) 49 44 5 17.8% 15.5% International 117 112 5 12 9 3 10.0% 8.2% Total before Corporate expenses 752 758 (5) 80 63 17 10.6% 8.3% Corporate expenses - - - (23) (24) 1 (3.0%) (3.1%) Total1 $752 $758 ($5) $57 $39 $18 7.6% 5.2% Net Sales Operating Income Operating Margin
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THIRD QUARTER 2026 PERFORMANCE – U.S. RETAIL 2026 vs. 2025 • Net sales comparable vs. LY − AUR up LSD, building on LY’s MSD growth; Units down LSD − Growth in Carter’s and Little Planet brands − Growth in Baby and Toddler driven by strength in key destination categories − Offset by uneven product acceptance of older Kids back-to-school seasonal assortments • Continued growth in comparable sales − +0.4% vs. LY; +3.0% on a two-year basis − Demand improved as quarter progressed, September comp +DD in one of the largest historical birth months of the year − Traffic trends slowed while average transaction value increased vs. Q2 • Operating margin 5.3% (+250 bps vs. LY) − Higher realized pricing − Benefits from productivity initiatives, including store closures Sales Profitability 7
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AFTERBEFORE FIRST SIGNIFICANT BRAND EVOLUTION IN 25 YEARS 8
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BRAND ILLUMINATION HIGHLIGHTS INCREASE IN PURCHASE CONSIDERATION REFLECTED IN +18% BRANDED SEARCH 9
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STELLAR SLEEP MAKE BEDTIME THE BEST TIME Q3 2026 Comp Sales in Sleepwear +18% 10
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11 U.S. WHOLESALE • Net sales: -4% ― Decrease vs. LY due to changes in shipment timing (benefitted Q2 2026) ― Q3 year-to-date +2% vs. LY ― Q3 year-to-date Exclusive Brand sales up high-single digits driven by Carter’s Child of Mine and Just One You • Operating margin 17.8% (+230 bps vs. LY) ― Higher realized pricing, favorable customer mix and benefits from productivity initiatives ― Partially offset by higher tariff costs and investments in product make INTERNATIONAL • Net sales: +4% +4% in constant currency ― Canada total sales +4% ― Retail comp +2% ― Wholesale growth ― Mexico total sales +3% ― Retail comp +8% ― 6 new stores YTD ― Favorable FX impact • Operating margin 10.0% (+180 bps vs. LY) ― Higher realized pricing, productivity savings, and FX benefits ― Partially offset by higher product costs THIRD QUARTER 2026 SEGMENT PERFORMANCE 2026 vs. 2025
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12 BALANCE SHEET & CASH FLOW $ in millions 1 Sum of current and non-current operating lease liabilities. 2 Non-GAAP measure. Balance Sheet (Q3) 2026 2025 Cash / Short Term Investments $526 $184 Accounts receivable, net 229 238 Inventory, net 587 656 Accounts payable 254 240 Long-term debt, net 568 499 Operating lease liabilities1 611 680 Cash Flow (Q3 YTD) 2026 2025 Operating cash flow $102 ($136) Capital expenditures (30) (43) Free cash flow2 $72 ($179) Return of Capital (Q3 YTD) Dividends $27 $47 Share repurchases - - Total capital returned $27 $47 • Total liquidity $1.1 billion • Inventories (11%) vs. LY • Long-term debt reflects senior notes refinanced in Q4 2025 • Improvement in operating cash flow reflects: ― Tariff recovery ― Improved working capital • $27 million in dividends paid year-to-date
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Q3 YTD 2026 % of Net Sales Q3 YTD 2025 % of Net Sales Change Net sales $2,049 $1,973 4% Gross profit 934 45.6% 914 46.4% 2% Royalty income, net 13 0.6% 14 0.7% (6%) SG&A 843 41.2% 842 42.7% 0% Operating income 103 5.0% 87 4.4% 20% Interest expense and other, net 23 1.1% 13 0.6% 84% Income before taxes 80 3.9% 74 3.7% 9% Income tax provision 19 0.9% 17 0.9% 12% Net income $61 3.0% $57 2.9% 8% Diluted EPS $1.68 $1.57 7% Weighted-average shares outstanding 36 35 1% EBITDA $142 6.9% $127 6.5% 12% ADJUSTED THIRD QUARTER YTD 2026 RESULTS 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. 13 in millions, except EPS
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14 THIRD QUARTER YTD 2026 SEGMENT RESULTS 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. in millions 2026 2025 $ Change 2026 2025 $ Change 2026 2025 U.S. Retail $1,000 $956 $43 $33 $16 $17 3.3% 1.7% U.S. Wholesale 740 727 13 115 126 (11) 15.6% 17.4% International 309 290 20 21 13 9 6.9% 4.3% Total before Corporate expenses 2,049 1,973 76 169 155 14 8.3% 7.9% Corporate expenses - - - (66) (68) 3 (3.2%) (3.5%) Total1 $2,049 $1,973 $76 $103 $87 $17 5.0% 4.4% Net Sales Operating Income Operating Margin
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2026 OUTLOOK 15
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16 FOURTH QUARTER 2026 OUTLOOK 13 WEEKS vs. 14 WEEKS 2025 NET SALES • Net sales: $860 million to $880 million (Q4 2025: $925 million) U.S. Retail U.S. Wholesale International High-single to low-double digit decline Comp sales down low-single digits Mid-to-high single digit decline High-single digit growth PROFITABILITY 1 KEY ASSUMPTIONS 2 • Higher gross margin rate • Comparable to low-single digit decrease in SG&A1 expense • Net interest expense ~$10 million • Average number of shares outstanding ~36 million Adjusted Operating Income Adjusted Diluted EPS $74 million to $83 million (Q4 2025: $89 million) $1.37 to $1.55 (Q4 2025: $1.90) 1 See reconciliations to GAAP in Supplemental Information. Forward looking adjusted measures have not been reconciled to their most directly comparable GAAP measures (see page 29 for additional information). 2 Comparisons vs. prior year unless otherwise noted.
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17 FISCAL YEAR 2026 OUTLOOK 52 WEEKS vs. 53 WEEKS 2025 Updated net sales outlook; maintained outlook for adjusted operating income and adjusted diluted EPS NET SALES • Net sales: $2.910 billion to $2.930 billion (FY2025: $2.898 billion) Comparable to up 1% vs. LY; up ~2% excluding 53rd week U.S. Retail U.S. Wholesale International Comparable to low-single digit decline Comp sales up low-single digits Comparable to LY High-single digit growth PROFITABILITY & CASH FLOW Adjusted1 Operating Income Diluted EPS Operating Cash Flow CapEx Low-to-mid single digit growth $178 million to $187 million (FY2025: $176 million) High-single to low-double digit decline $3.05 to $3.23 (FY2025: $3.47) ~$240 million to $250 million ~$50 million KEY ASSUMPTIONS 2 • Slightly lower gross margin1 rate • Comparable SG&A1 expense • Net interest expense1 ~$32 million • Effective tax rate ~23% • Average number of shares outstanding ~36 million 1 See reconciliations to GAAP in Supplemental Information. Forward looking adjusted measures have not been reconciled to their most directly comparable GAAP measures (see page 29 for additional information). 2 Comparisons vs. prior year unless otherwise noted.
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THANK YOU 18
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SUPPLEMENTAL INFORMATION 19
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Note: Results may not be additive due to rounding. (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 COGS, gross profit, SG&A, operating income, interest income, income tax, net income, and net income on a diluted share basis excluding the adjustments discussed above. The Company believes these adjustments provide a meaningful comparison of the Company’s results and afford investors a view of what management considers to be the Company's core performance. The adjusted, non-GAAP financial measurements included in this presentation 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) Related legal defense costs arising from intellectual property litigation not in the ordinary course of business (c) Related to costs associated with the retirement of Michael D. Casey, the Company’s former Chief Executive Officer, in the first quarter of fiscal 2025 and costs related to the departure of Douglas C. Palladini, the Company’s former Chief Executive Officer, in the second quarter of fiscal 2026. (d) Related to $132 million of IEEPA tariff recoveries, including $4 million of interest received. $ in millions, except EPS RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS 20 Third Quarter Fiscal 2026 Cost of Goods Sold Gross Profit % of net sales SG&A % of net sales Operating Income % of net sales Interest Income Income Tax Provision Net Income Diluted EPS As reported (GAAP) $397.7 $354.8 47.1% $304.2 40.4% $55.8 7.4% $4.8 $11.8 $36.6 $1.00 IP litigation (b) - - (1.2) 1.2 - 0.3 0.9 0.02 As adjusted (a) $397.7 $354.8 47.1% $303.0 40.3% $56.9 7.6% $4.8 $12.1 $37.5 $1.03 Three Fiscal Quarters 2026 Cost of Goods Sold Gross Profit % of net sales SG&A % of net sales Operating Income % of net sales Interest Income Income Tax Provision Net Income Diluted EPS As reported (GAAP) $987.8 $1,061.2 51.8% $850.4 41.5% $224.0 10.9% $16.5 $49.0 $155.9 $4.27 Tariff refund recovery (d) 127.7 (127.7) - (127.7) (4.0) (31.6) (100.1) (2.74) Leadership transition costs (c) - - (4.7) 4.7 - 1.1 3.6 0.10 IP litigation (b) - - (2.4) 2.4 - 0.6 1.8 0.05 As adjusted (a) $1,115.5 $933.6 45..6% $843.2 41.2% $103.5 5.0% $12.5 $19.1 $61.2 $1.68
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Note: Results may not be additive due to rounding. (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 COGS, gross profit, SG&A, operating income, interest income, income tax, net income, and net income on a diluted share basis excluding the adjustments discussed above. The Company believes these adjustments provide a meaningful comparison of the Company’s results and afford investors a view of what 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. Primarily related to third-party consulting costs. (b) Primarily related to third-party consulting costs. (c) Related to costs associated with the retirement of Michael D. Casey, the Company’s former Chief Executive Officer, in the first quarter of fiscal 2025 and costs related to the departure of Douglas C. Palladini, the Company’s former Chief Executive Officer, in the second quarter of fiscal 2026. (d) Related to charges for severance and other termination benefits as a result of organizational restructuring. (e) Non-cash charges for settlement of the OshKosh B’Gosh Pension Plan. (f) Incremental income tax impact resulting from the announced termination of the Company’s deferred compensation plan. $ in millions, except EPS RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS 21 Third Quarter Fiscal 2025 Cost of Goods Sold Gross Profit % of net sales SG&A % of net sales Operating Income % of net sales Interest Income Income Tax Provision Net Income Diluted EPS As reported (GAAP) $416.2 $341.6 45.1% $318.0 42.0% $29.1 3.8% $2.6 $3.2 $11.6 $0.32 Operating model improvement (b) - - (3.7) 3.7 - 0.9 2.8 0.08 Leadership transition cost (c) - - (0.5) 0.5 - 0.1 0.4 0.01 Organizational restructuring (d) - - (6.1) 6.1 - 1.5 4.6 0.13 Pension plan settlement (e) - - - - - 2.1 6.7 0.18 Deferred compensation plan termination (f) - - - - - (0.8) 0.8 0.02 As adjusted (a) $416.2 $341.6 45.1% $307.7 40.6% $39.4 5.2% $2.6 $7.1 $26.8 $0.74 Three Fiscal Quarters 2025 Cost of Goods Sold Gross Profit % of net sales SG&A % of net sales Operating Income % of net sales Interest Income Income Tax Provision Net Income Diluted EPS As reported (GAAP) $1,058.5 $914.5 46.4% $869.2 44.1% $59.2 3.0% $10.0 $10.3 $27.6 $0.75 Operating model improvement (b) - - (13.5) 13.5 - 3.2 10.2 0.29 Leadership transition cost (c) - - (7.7) 7.7 - 0.7 7.0 0.19 Organizational restructuring (d) - - (6.1) 6.1 - 1.5 4.6 0.13 Pension plan settlement (e) - - - - - 2.1 6.7 0.19 Deferred compensation plan termination (f) - - - - - (0.8) 0.8 0.02 As adjusted (a) $1,058.5 $914.5 46.4% $842.0 42.7% $86.5 4.4% $10.0 $17.0 $56.9 $1.57
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Note: Results may not be additive due to rounding. (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, interest income, income tax, net income, and net income on a diluted share basis excluding the adjustments discussed above. The Company believes these adjustments provide a meaningful comparison of the Company’s results and afford investors a view of what 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 retirement of Michael D. Casey, the Company’s former Chief Executive Officer, in the first quarter of fiscal 2025. (d) Related to charges for severance and other termination benefits as a result of organizational restructuring. (e) Non-cash charges for settlement of the OshKosh B’Gosh Pension Plan. (f) Incremental income tax impact resulting from the announced termination of the Company’s deferred compensation plan. (g) Related to redemption of the $500 million senior notes due 2027 and cash-flow based revolving credit facility. $ in millions, except EPS RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS 22 Fourth Quarter Fiscal 2025 SG&A % of net sales Operating Income % of net sales Income Tax Provision Net Income Diluted EPS As reported (GAAP) $319.6 34.5% $84.7 9.2% $11.7 $64.2 $1.76 Organizational restructuring (d) (3.7) 3.7 0.9 2.8 0.08 Operating model improvement (b) (0.7) 0.7 0.2 0.5 0.01 Leadership transition cost (c) (0.4) 0.4 - 0.3 0.01 Loss on extinguishment of debt (g) - - 0.4 1.3 0.03 As adjusted (a) $314.8 34.0% $89.5 9.7% $13.2 $69.2 $1.90 Full Year Fiscal 2025 SG&A % of net sales Operating Income % of net sales Income Tax Provision Net Income Diluted EPS As reported (GAAP) $1,188.8 41.0% $143.9 5.0% $22.0 $91.8 $2.53 Operating model improvement (b) (14.2) 14.2 3.4 10.8 0.30 Organizational restructuring (d) (9.8) 9.8 2.4 7.5 0.20 Leadership transition cost (c) (8.1) 8.1 0.7 7.3 0.20 Pension plan settlement (e) - - 2.1 6.7 0.18 Loss on extinguishment of debt (g) - - 0.4 1.3 0.03 Deferred compensation plan termination (f) - - (0.8) 0.8 0.03 As adjusted (a) $1,156.7 39.9% $176.0 6.1% $30.3 $126.1 $3.47
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RECONCILIATION OF TOTAL SEGMENT OPERATING INCOME TO CONSOLIDATED OPERATING INCOME Note: Results may not be additive due to rounding. (a) Related to $128 million of IEEPA tariff recoveries, excluding interest received, which are reflected as a reduction of Cost of goods sold in the first three quarters of fiscal 2026. (b) Unallocated corporate expenses include corporate overhead expenses that are not directly attributable to one of the Company’s business segments and include unallocated accounting, finance, legal, human resources, and information technology expenses, occupancy costs for its corporate headquarters, and other benefit and compensation programs, including performance-based compensation. (c) Related legal defense costs arising from intellectual property litigation not in the ordinary course of business. (d) Related to costs associated with the retirement of Michael D. Casey, the Company’s former Chief Executive Officer, in the first quarter of fiscal 2025 and costs related to the departure of Douglas C. Palladini, the Company’s former Chief Executive Officer, in the second quarter of fiscal 2026. (e) Primarily related to third-party consulting costs. (f) Related to charges for severance and other termination benefits as a result of organizational restructuring. Fiscal Quarter Ended Three Fiscal Quarters Ended October 3, 2026 September 27, 2025 October 3, 2026 September 27, 2025 % of Net Sales % of Net Sales % of Net Sales % of Net Sales Total segment operating income $79.7 10.6% $63.1 8.3% $169.1 8.3% $155.0 7.9% Unallocated corporate expenses (b) (22.8) (23.8) (65.6) (68.5) Subtotal $56.9 $39.4 $103.5 $86.5 Tariff refund recovery(a) - - 127.7 - IP litigation (c) (1.2) - (2.4) - Leadership transition costs (d) - (0.5) (4.7) (7.7) Operating model improvement costs (e) - (3.7) - (13.5) Organizational restructuring (f) - (6.1) - (6.1) Consolidated operating income $55.8 7.4% $29.1 3.8% $224.0 10.9% $59.2 3.0% $ in millions 23
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Note: Results may not be additive due to rounding. RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA Fiscal Quarter Ended Three Fiscal Quarters Ended Four Fiscal Quarters Ended October 3, 2026 September 27, 2025 October 3, 2026 September 27, 2025 October 3, 2026 Net income $36.6 $11.6 $155.9 $27.6 $220.1 Interest expense 11.8 7.2 34.9 22.8 46.3 Interest income (4.8) (2.6) (16.5) (10.0) (20.0) Tax expense 11.8 3.2 49.0 10.3 60.7 Depreciation and amortization 12.9 13.8 39.5 40.6 54.2 EBITDA $68.3 $33.2 $262.8 $91.3 $361.3 Adjustments to EBITDA Tariff refund recovery (a) - - (127.7) - (127.7) IP litigation(b) 1.2 - 2.4 - 2.4 Leadership transition costs (c) - 0.5 4.7 7.7 5.1 Operating model improvement costs (d) - 3.7 - 13.5 0.7 Organizational restructuring (e) - 6.1 - 6.1 3.7 Loss on extinguishment of debt (f) - - - - 1.7 Pension Plan Settlement (g) - 8.8 - 8.8 - Total adjustments 1.2 19.1 (120.6) 36.1 (114.1) Adjusted EBITDA $69.5 $52.3 $142.2 $127.4 $247.2 $ in millions (a) Related to $128 million of IEEPA tariff recoveries, excluding $4 million of interest received in the first three quarters of fiscal 2026. (b) Related legal defense costs arising from intellectual property litigation not in the ordinary course of business. (c) Related to costs associated with the retirement of Michael D. Casey, the Company’s former Chief Executive Officer, in the first quarter of fiscal 2025 and costs related to the departure of Douglas C. Palladini, the Company’s former Chief Executive Officer, in the second quarter of fiscal 2026. (d) Primarily related to third-party consulting costs. (e) Related to charges for severance and other termination benefits as a result of organizational restructuring. (f) Related to redemption of the $500 million senior notes due 2027 and cash-flow based revolving credit facility. (g) Non-cash charges for settlement of the OshKosh B’Gosh Pension Plan. 24
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Fiscal Quarter Ended $ in thousands, except EPS As reported on a GAAP Basis As adjusted (a) October 3, 2026 September 27, 2025 October 3, 2026 September 27, 2025 Basic net income per common share: Net income $36,611 $11,593 $37,491 $26,846 Income allocated to participating securities (842) (305) (863) (743) Net income available to common shareholders $35,769 $11,288 $36,628 $26,103 Basic net income per common share $1.00 $0.32 $1.03 $0.74 Diluted net income per common share: Net income $36,611 $11,593 $37,491 $26,846 Income allocated to participating securities (842) (305) (863) (743) Net income available to common shareholders $35,769 $11,288 $36,628 $26,103 Diluted net income per common share $1.00 $0.32 $1.03 $0.74 Fiscal Quarter Ended Weighted-average number of common and common equivalent shares outstanding: October 3, 2026 September 27, 2025 Basic number of common shares outstanding 35,623,722 35,443,712 Dilutive effect of equity awards 12,505 146 Diluted number of common and common equivalent shares outstanding 35,636,227 35,443,858 THIRD QUARTER RECONCILIATION OF ADJUSTED NET INCOME ALLOCABLE TO COMMON SHAREHOLDERS (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 $0.9 million and $15.3 million in after-tax expenses from these results for the fiscal quarters ended October 3, 2026, and September 27, 2025, respectively. Note: Results may not be additive due to rounding. 25
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Three Fiscal Quarters Ended $ in thousands, except EPS As reported on a GAAP Basis As adjusted (a) October 3, 2026 September 27, 2025 October 3, 2026 September 27, 2025 Basic net income per common share: Net income $155,905 $27,578 $61,238 $56,898 Income allocated to participating securities (4,103) (1,118) (1,561) (1,377) Net income available to common shareholders $151,802 $26,460 $59,677 $55,521 Basic net income per common share $4.27 $0.75 $1.68 $1.57 Diluted net income per common share: Net income $155,905 $27,578 $61,238 $56,898 Income allocated to participating securities (4,102) (1,118) (1,561) (1,377) Net income available to common shareholders $151,803 $26,460 $59,677 $55,521 Diluted net income per common share $4.27 $0.75 $1.68 $1.57 Three Fiscal Quarters Ended Weighted-average number of common and common equivalent shares outstanding: October 3, 2026 September 27, 2025 Basic number of common shares outstanding 35,569,482 35,388,596 Dilutive effect of equity awards 7,957 348 Diluted number of common and common equivalent shares outstanding 35,577,439 35,388,944 (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 $94.7 million in after-tax benefits from these results for the three fiscal quarters ended October 3, 2026. Additionally, the Company has excluded $29.3 million in after-tax expenses from these results for the three fiscal quarters ended September 27, 2025. Note: Results may not be additive due to rounding. THIRD QUARTER YTD RECONCILIATION OF ADJUSTED NET INCOME ALLOCABLE TO COMMON SHAREHOLDERS 26
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Note: Results may not be additive due to rounding. NET SALES CONSTANT CURRENCY RECONCILIATION $ in millions Fiscal Quarter Ended Reported Net Sales October 3, 2026 Impact of Foreign Currency Translation Constant- Currency Net Sales October 3, 2026 Reported Net Sales September 27, 2025 Reported Net Sales % Change Constant- Currency Net Sales % Change Consolidated net sales $752.5 $0.9 $751.5 $757.8 (0.7%) (0.8%) International segment net sales $116.7 $0.9 $115.8 $111.7 4.5% 3.6% The Company evaluates its net sales on both an “as reported” and a “constant currency” basis. The constant currency presentation, 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 information regarding changes in its 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. Three Fiscal Quarters Ended Reported Net Sales October 3, 2026 Impact of Foreign Currency Translation Constant- Currency Net Sales October 3, 2026 Reported Net Sales September 27, 2025 Reported Net Sales % Change Constant- Currency Net Sales % Change Consolidated net sales $2,049.1 $8.9 $2,040.2 $1,973.0 3.9% 3.4% International segment net sales $309.4 $8.9 $300.5 $289.8 6.8% 3.7% 27
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2026 STORE COUNT RECONCILIATION 28 U.S. Canada Mexico Total Store count at January 3, 2026 804 192 72 1,068 Openings 3 - 1 4 Closings (9) (1) - (10) Store count at April 4, 2026 798 191 73 1,062 Openings 1 - 1 2 Closings (20) (1) (1) (22) Store count at July 4, 2026 779 190 73 1,042 Openings 1 - 4 5 Closings (11) (1) - (12) Store count at October 3, 2026 769 189 77 1,035
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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”, “opportunities”, “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 press release. 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 October 3, 2026 and Part I, Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2026, 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 the organizational restructuring plan, including, but not limited to, our ability to achieve the expected savings from the plan and to fully implement the plan; 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; the roll-back of incremental tariffs imposed under the International Emergency Economic Powers Act (the “incremental tariffs”) and any additional actions taken in response to their roll-back, including, but not limited to, tariffs imposed pursuant to Section 122 of the Trade Act of 1974 and tariffs imposed under Section 301 of the Trade Act of 1974; our ability to recover refunds of in cremental tariff amounts or other tariff amounts paid; increased competition in the marketplace; ongoing political and economic conflicts that could impact our global and domestic operations, including, but not limited to, the conflict between the United States, Israel, and Iran; 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 failure 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; the timing of, and our ability to conduct, share repurchases; volatility in the market price of our common stock; and the cost or effort required for our shareholders to bring certain claims or actions aga inst 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 press release does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material. The Company’s outlook (and related assumptions) for the fourth quarter 2026 include an anticipated non-GAAP adjustment for third-party legal costs related to IP litigation of approximately $1 million to $2 million. The Company’s full-year fiscal 2026 outlook (and related assumptions) include anticipated non-GAAP adjustments for leadership transition costs and third-party legal costs related to IP litigation of approximately $8 million to $9 million and a recovery of previously paid import duties and related interest of $132 million. The Company does not reconcile forward-looking adjusted operating income or adjusted diluted earnings per share to its most directly comparable GAAP measures because it cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations that are not within its control due to factors described above, or others that may arise, without unreasonable effort. For these reasons, the Company is unable to assess the probable significance of the unavailable information, which could materially impact the amount of future operating income or diluted EPS, the most directly comparable GAAP metrics to adjusted operating income and adjusted diluted earnings per share, respectively. FORWARD LOOKING STATEMENTS & OTHER INFORMATION 29