0001060822-22-000124 | 10-Q | XBRL Viewer

DOCUMENT AND ENTITY INFORMATION - shares	3 Months Ended
DOCUMENT AND ENTITY INFORMATION - shares	Apr. 02, 2022	Apr. 22, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 02, 2022
Document Transition Report	false
Entity File Number	001-31829
Entity Registrant Name	CARTER’S, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3912933
Entity Address, Address Line One	Phipps Tower
Entity Address, Address Line Two	3438 Peachtree Road NE
Entity Address, Address Line Three	Suite 1800
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30326
City Area Code	678
Local Phone Number	791-1000
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	CRI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		40,291,624
Entity Central Index Key	0001060822
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 02, 2022	Jan. 01, 2022	Apr. 03, 2021
Current assets:
Cash and cash equivalents, end of period	$ 702,266	$ 984,294	$ 1,053,690
Accounts receivable, net	265,694	231,354	240,212
Finished goods inventories, net	679,729	647,742	560,683
Prepaid expenses and other current assets	64,389	50,131	63,290
Total current assets	1,712,078	1,913,521	1,917,875
Property, plant and equipment, net	197,515	216,004	248,799
Operating lease assets	469,354	487,748	559,391
Tradenames, net	307,581	307,643	307,830
Goodwill	212,518	212,023	212,271
Customer relationships, net	33,151	33,969	36,596
Other assets	29,084	30,889	27,711
Total assets	2,961,281	3,201,797	3,310,473
Current liabilities:
Accounts payable	284,034	407,044	334,831
Current portion of long-term debt, net	495,743	0	0
Current operating lease liabilities	146,823	147,537	172,117
Other current liabilities	111,078	176,449	149,911
Total current liabilities	1,037,678	731,030	656,859
Long-term debt, net	496,104	991,370	989,980
Deferred income taxes	48,450	40,910	56,990
Long-term operating lease liabilities	419,493	441,861	517,875
Other long-term liabilities	44,266	46,440	59,160
Total liabilities	2,045,991	2,251,611	2,280,864
Commitments and contingencies - Note 14
Stockholders’ equity:
Preferred stock; par value $0.01 per share;100,000 shares authorized; none issued or outstanding at April 2, 2022, January 1, 2022, and April 3, 2021	0	0	0
Common stock, voting; par value $0.01 per share; 150,000,000 shares authorized; 40,555,922, 41,148,870, and 43,947,659 shares issued and outstanding at April 2, 2022, January 1, 2022, and April 3, 2021, respectively	406	411	440
Additional paid-in capital	0	0	21,904
Accumulated other comprehensive loss	(26,115)	(28,897)	(31,534)
Retained earnings	940,999	978,672	1,038,799
Total stockholders’ equity	915,290	950,186	1,029,609
Total liabilities and stockholders’ equity	$ 2,961,281	$ 3,201,797	$ 3,310,473

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Apr. 02, 2022	Jan. 01, 2022	Apr. 03, 2021
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 5,766	$ 7,281	$ 6,695
Inventory valuation reserves	11,307	14,378	15,581
Accumulated depreciation of property, plant, and equipment	$ 536,580	$ 528,926	$ 557,608
Preferred stock par value (in USD per share)	$ 0.01	$ 0.01	$ 0.01
Preferred stock shares authorized (in shares)	100,000	100,000	100,000
Preferred stock shares issued and outstanding (in shares)	0	0	0
Common stock par value (in USD per share)	$ 0.01	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	150,000,000	150,000,000	150,000,000
Common stock shares issued and outstanding (in shares)	40,555,922	41,148,870	43,947,659

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Income Statement [Abstract]
Net sales	$ 781,284	$ 787,361
Cost of goods sold	426,193	401,731
Adverse purchase commitments (inventory and raw materials), net	49	(6,330)
Gross profit	355,042	391,960
Royalty income, net	7,474	7,463
Selling, general, and administrative expenses	259,893	271,927
Operating income	102,623	127,496
Interest expense	15,132	15,348
Interest income	(338)	(225)
Other income, net	(512)	(917)
Income before income taxes	88,341	113,290
Income tax provision	20,408	27,094
Net income	$ 67,933	$ 86,196
Basic net income per common share (in USD per share)	$ 1.66	$ 1.96
Diluted net income per common share (in USD per share)	1.66	1.96
Dividend declared and paid per common share (in USD per share)	$ 0.75	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 67,933	$ 86,196
Other comprehensive income:
Foreign currency translation adjustments	2,782	1,226
Comprehensive income	$ 70,715	$ 87,422

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional paid-in capital	Accumulated other comprehensive loss	Retained earnings
Balance at beginning of period (in shares) at Jan. 02, 2021		43,780,075
Balance at beginning of period at Jan. 02, 2021	$ 938,033	$ 438	$ 17,752	$ (32,760)	$ 952,603
Exercise of stock options (in shares)		12,065
Exercise of stock options	811	$ 0	811	0	0
Withholdings from vesting of restricted stock (in shares)		(37,444)
Withholdings from vesting of restricted stock	(3,588)	$ 0	(3,588)	0	0
Restricted stock activity (in shares)		192,963
Restricted stock activity	0	$ 2	(2)	0	0
Stock-based compensation expense	6,931	0	6,931	0	0
Comprehensive income	87,422	$ 0	0	1,226
Net income	$ 86,196				86,196
Balance at end of period (in shares) at Apr. 03, 2021	43,947,659	43,947,659
Balance at end of period at Apr. 03, 2021	$ 1,029,609	$ 440	21,904	(31,534)	1,038,799
Balance at beginning of period (in shares) at Jan. 01, 2022	41,148,870	41,148,870
Balance at beginning of period at Jan. 01, 2022	$ 950,186	$ 411	0	(28,897)	978,672
Exercise of stock options (in shares)		5,100
Exercise of stock options	222	$ 0	222	0	0
Withholdings from vesting of restricted stock (in shares)		(70,452)
Withholdings from vesting of restricted stock	(6,623)	$ 0	(6,623)	0	0
Restricted stock activity (in shares)		265,412
Restricted stock activity	0	$ 3	(3)	0	0
Stock-based compensation expense	5,859	$ 0	5,859	0	0
Repurchase of common stock (in shares)		(793,008)
Repurchase of common stock	(74,496)	$ (8)	(545)	0	(75,033)
Cash dividends declared and paid of $0.75 per common share	(30,573)	0	0	0	(30,573)
Comprehensive income	70,715	$ 0	0	2,782
Net income	$ 67,933				67,933
Balance at end of period (in shares) at Apr. 02, 2022	40,555,922	40,555,922
Balance at end of period at Apr. 02, 2022	$ 915,290	$ 406	$ 0	$ (26,115)	$ 940,999

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Statement of Stockholders' Equity [Abstract]
Dividend declared and paid per common share (in USD per share)	$ 0.75	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Statement of Cash Flows [Abstract]
Net income	$ 67,933	$ 86,196
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation of property, plant, and equipment	13,282	23,183
Amortization of intangible assets	932	932
(Recoveries of) provisions for excess and obsolete inventory, net	(3,109)	1,364
Other asset impairments and loss (gain) on disposal of property, plant and equipment, net of recoveries	190	(25)
Amortization of debt issuance costs	787	738
Stock-based compensation expense	5,859	6,931
Unrealized foreign currency exchange (gain) loss, net	(189)	49
(Recoveries of) provisions for doubtful accounts receivable from customers	(1,513)	766
Unrealized loss (gain) on investments	935	(179)
Deferred income taxes	7,759	4,365
Effect of changes in operating assets and liabilities:
Accounts receivable	(32,484)	(54,484)
Finished goods inventories	(27,720)	37,812
Prepaid expenses and other assets	(13,245)	(5,007)
Accounts payable and other liabilities	(183,224)	(142,171)
Net cash used in operating activities	(163,807)	(39,530)
Cash flows from investing activities:
Capital expenditures	(7,652)	(11,665)
Proceeds from sale of investments	0	5,000
Net cash used in investing activities	(7,652)	(6,665)
Cash flows from financing activities:
Payment of debt issuance costs	(3)	0
Repurchases of common stock	(74,496)	0
Dividends paid	(30,573)	0
Withholdings from vesting of restricted stock	(6,623)	(3,588)
Proceeds from exercises of stock options	222	811
Net cash used in financing activities	(111,473)	(2,777)
Net effect of exchange rate changes on cash and cash equivalents	904	339
Net decrease in cash and cash equivalents	(282,028)	(48,633)
Cash and cash equivalents, beginning of period	984,294	1,102,323
Cash and cash equivalents, end of period	$ 702,266	$ 1,053,690

THE COMPANY	3 Months Ended
THE COMPANY	Apr. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
THE COMPANY	THE COMPANYCarter’s, Inc. and its wholly owned subsidiaries (collectively, the “Company”) design, source, and market branded childrenswear under the Carter’s, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter’s My First Love, Little Planet, and other brands. The Company’s products are sourced through contractual arrangements with manufacturers worldwide for: 1) wholesale distribution to leading department stores, national chains, and specialty retailers domestically and internationally and 2) distribution to the Company’s own retail stores and eCommerce sites that market its brand name merchandise and other licensed products manufactured by other companies.

BASIS OF PRESENTATION	3 Months Ended
BASIS OF PRESENTATION	Apr. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”). All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to state fairly the consolidated financial condition, results of operations, comprehensive income, statement of stockholders’ equity, and cash flows of the Company for the interim periods presented. Except as otherwise disclosed, all such adjustments consist only of those of a normal recurring nature. Operating results for the fiscal quarter ended April 2, 2022 are not necessarily indicative of the results that may be expected for the current fiscal year ending December 31, 2022. The preparation of these unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates. The accompanying condensed consolidated balance sheet as of January 1, 2022 was derived from the Company’s audited consolidated financial statements included in its most recently filed Annual Report on Form 10-K. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC and the instructions to Form 10-Q. Accounting Policies The accounting policies the Company follows are set forth in its most recently filed Annual Report on Form 10-K. There have been no material changes to these accounting policies.

REVENUE RECOGNITION

3 Months Ended

Apr. 02, 2022

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

The Company’s revenues are earned from contracts or arrangements with retail and wholesale customers and licensees. Contracts include written agreements, as well as arrangements that are implied by customary practices or law.

Disaggregation of Revenue

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 first quarter of fiscal 2022 and 2021 were as follows:


	Fiscal quarter ended April 2, 2022
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	307,301	$	50,432	$	357,733
Direct-to-consumer	366,358		—		57,193		423,551

	$	366,358	$	307,301	$	107,625	$	781,284

Royalty income, net	$	3,240	$	3,430	$	804	$	7,474


	Fiscal quarter ended April 3, 2021
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	283,377	$	42,792	$	326,169
Direct-to-consumer	407,067		—		54,125		461,192

	$	407,067	$	283,377	$	96,917	$	787,361

Royalty income, net	$	3,070	$	3,775	$	618	$	7,463

Accounts Receivable from Customers and Licensees

The components of Accounts receivable, net, were as follows:


(dollars in thousands)	April 2, 2022		January 1, 2022		April 3, 2021
Trade receivables from wholesale customers, net	$	266,970	$	233,928	$	234,643
Royalties receivable	6,923		5,769		7,090
Tenant allowances and other receivables	9,282		10,352		11,664
Total gross receivables	$	283,175	$	250,049	$	253,397
Less: Wholesale accounts receivable reserves(*)	(17,481)		(18,695)		(13,185)
Accounts receivable, net	$	265,694	$	231,354	$	240,212

(*)Includes allowance for credit losses of $5.8 million, $7.3 million, and $6.7 million for the periods ended April 2, 2022, January 1, 2022, and April 3, 2021, respectively.

Contract Assets and Liabilities

The Company’s contract assets are not material.

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)	April 2, 2022		January 1, 2022		April 3, 2021
Contract liabilities - current:
Unredeemed gift cards	$	21,026	$	21,619	$	17,426
Unredeemed customer loyalty rewards	5,804		5,659		5,893
Carter’s credit card - upfront bonus(1)	714		714		714
Total contract liabilities - current(2)	$	27,544	$	27,992	$	24,033

Contract liabilities - non-current(3)	$	1,964	$	2,143	$	2,679
Total contract liabilities	$	29,508	$	30,135	$	26,712

(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 with 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.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

LEASES

3 Months Ended

Apr. 02, 2022

Leases [Abstract]

LEASES

The Company has operating leases for retail stores, distribution centers, corporate offices, data centers, and certain equipment. The Company’s leases generally have initial terms ranging from 1 year to 10 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to early terminate the lease.

As of the periods presented, the Company’s finance leases were not material to the consolidated balance sheets, consolidated statements of operations, or statements of cash flows.

The following components of lease expense are included in Selling, general and administrative expenses on the Company’s consolidated statements of operations for the first quarter of fiscal 2022 and 2021:


	Fiscal quarter ended
(dollars in thousands)	April 2, 2022		April 3, 2021
Operating lease cost	$	39,457	$	42,698




Variable lease cost(*)	17,068		16,398
Net lease cost	$	56,525	$	59,096

(*)Includes short-term leases, which are not material, and operating lease impairment charges.

As of April 2, 2022, the weighted average remaining operating lease term was 4.8 years, and the weighted average discount rate for operating leases was 3.26%.

Cash paid for amounts included in the measurement of operating lease liabilities in the first quarter of fiscal 2022 was $43.3 million.

Operating lease assets obtained in exchange for operating lease liabilities in the first quarter of fiscal 2022 were $16.3 million.

As of April 2, 2022, the maturities of lease liabilities were as follows:


(dollars in thousands)	Operating leases
Remainder of 2022	$	124,582
2023	146,425
2024	116,999
2025	83,204
2026	58,830
2027	36,730
After 2027	48,044
Total lease payments	$	614,814
Less: Interest	(48,498)
Present value of lease liabilities(*)	$	566,316

(*)As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments.

As of April 2, 2022, the minimum rental commitments for additional operating lease contracts, primarily for retail stores, that have not yet commenced are $9.7 million. These operating leases will commence between fiscal year 2022 and fiscal year 2023 with lease terms of 3 years to 10 years.

ACUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Apr. 02, 2022

AOCI Attributable to Parent [Abstract]

ACUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of Accumulated other comprehensive loss consisted of the following:


(dollars in thousands)	April 2, 2022		January 1, 2022		April 3, 2021
Cumulative foreign currency translation adjustments	$	(18,520)	$	(21,302)	$	(20,081)
Pension and post-retirement obligations(*)	(7,595)		(7,595)		(11,453)
Total accumulated other comprehensive loss	$	(26,115)	$	(28,897)	$	(31,534)

(*)Net of income taxes of $2.4 million, $2.4 million, and $3.5 million, for the period ended April 2, 2022, January 1, 2022, and April 3, 2021, respectively.

During the first quarter of both fiscal 2022 and fiscal 2021, no amounts were reclassified from Accumulated other comprehensive loss to the statement of operations.

GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Apr. 02, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

The balances and changes in the carrying amount of Goodwill attributable to each segment were as follows:


(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Balance at January 2, 2021	$	83,934	$	74,454	$	53,388	$	211,776



Foreign currency impact	—		—		495		495
Balance at April 3, 2021(*)	$	83,934	$	74,454	$	53,883	$	212,271


Balance at January 1, 2022	$	83,934	$	74,454	$	53,635	$	212,023



Foreign currency impact	—		—		495		495
Balance at April 2, 2022(*)	$	83,934	$	74,454	$	54,130	$	212,518

(*)Goodwill balance for the International reporting unit is net of accumulated impairment losses of $17.7 million.

A summary of the carrying value of the Company’s intangible assets were as follows:


		April 2, 2022						January 1, 2022
(dollars in thousands)	Weighted-average useful life	Gross amount		Accumulated amortization		Net amount		Gross amount		Accumulated amortization		Net amount
Carter’s tradename	Indefinite	$	220,233	$	—	$	220,233	$	220,233	$	—	$	220,233
OshKosh tradename	Indefinite	70,000		—		70,000		70,000		—		70,000
Skip Hop tradename	Indefinite	15,000		—		15,000		15,000		—		15,000
Finite-life tradenames	5 -20 years	3,911		1,563		2,348		3,911		1,501		2,410

Total tradenames, net		$	309,144	$	1,563	$	307,581	$	309,144	$	1,501	$	307,643

Skip Hop customer relationships	15 years	$	47,300	$	15,804	$	31,496	$	47,300	$	15,010	$	32,290
Carter’s Mexico customer relationships	10 years	3,099		1,444		1,655		3,047		1,368		1,679
Total customer relationships, net		$	50,399	$	17,248	$	33,151	$	50,347	$	16,378	$	33,969


		April 3, 2021
(dollars in thousands)	Weighted-average useful life	Gross amount		Accumulated amortization		Net amount
Carter’s tradename	Indefinite	$	220,233	$	—	$	220,233
OshKosh tradename	Indefinite	70,000		—		70,000
Skip Hop tradename	Indefinite	15,000		—		15,000
Finite-life tradenames	5 - 20 years	3,911		1,314		2,597
Total tradenames, net		$	309,144	$	1,314	$	307,830

Skip Hop customer relationships	15 years	$	47,300	$	12,628	$	34,672
Carter’s Mexico customer relationships	10 years	3,063		1,139		1,924
Total customer relationships, net		$	50,363	$	13,767	$	36,596

Amortization expense for intangible assets subject to amortization was approximately $0.9 million for both first fiscal quarters ended April 2, 2022 and April 3, 2021.

The estimated amortization expense for the next five fiscal years is as follows:


(dollars in thousands)	Amortization expense
Remainder of 2022	$	2,803
2023	$	3,695
2024	$	3,665
2025	$	3,665
2026	$	3,665
2027	$	3,535

COMMON STOCK

3 Months Ended

Apr. 02, 2022

Equity [Abstract]

COMMON STOCK

Open Market Share Repurchases

The Company repurchased and retired shares in open market transactions in the following amounts for the fiscal periods indicated:


	Fiscal quarter ended
	April 2, 2022		April 3, 2021(*)
Number of shares repurchased	793,008		—
Aggregate cost of shares repurchased (dollars in thousands)	$	74,496	$	—
Average price per share	$	93.94	$	—

(*)As a result of actions taken in connection with the COVID-19 pandemic, the Company did not repurchase or retire any shares in open market transactions in the first quarter of fiscal 2021.

On February 24, 2022, the Company’s Board of Directors authorized share repurchases up to $1.00 billion, inclusive of approximately $301.9 million remaining under previous authorizations. The total aggregate remaining capacity under outstanding repurchase authorizations as of April 2, 2022 was approximately $974.7 million, based on settled repurchase transactions. The share repurchase authorizations have no expiration date.

Future repurchases may occur from time to time in the open market, in privately negotiated transactions, or otherwise. The timing and amount of any repurchases will be at the discretion of the Company subject to restrictions under the Company’s revolving credit facility, market conditions, stock price, other investment priorities, and other factors.

Dividends

In the first quarter of fiscal 2022, the Board of Directors declared and the Company paid cash dividends of $0.75 per common share. As a result of actions taken in connection with the COVID-19 pandemic, the Board of Directors did not declare and we did not pay cash dividends for the first quarter of fiscal 2021. The Board of Directors will evaluate future dividend declarations based on a number of factors, including restrictions under the Company’s revolving credit facility, business conditions, the Company’s financial performance, and other considerations.

Provisions in the Company’s secured revolving credit facility could have the effect of restricting the Company’s ability to pay cash dividends on, or make future repurchases of, its common stock, as further described in Note 8, Long-term Debt, to the consolidated financial statements.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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+ Details

LONG-TERM DEBT

3 Months Ended

Apr. 02, 2022

Debt Disclosure [Abstract]

LONG-TERM DEBT

Long-term debt consisted of the following:


(dollars in thousands)	April 2, 2022		January 1, 2022		April 3, 2021
$500 million 5.500% senior notes due May 15, 2025(*)	$	—	$	500,000	$	500,000
$500 million 5.625% senior notes due March 15, 2027	500,000		500,000		500,000
Total senior notes	$	500,000	$	1,000,000	$	1,000,000
Less unamortized issuance-related costs for senior notes(*)	(3,896)		(8,630)		(10,020)
Senior notes, net	$	496,104	$	991,370	$	989,980
Secured revolving credit facility	—		—		—
Total long-term debt, net	$	496,104	$	991,370	$	989,980

(*)As of April 2, 2022, senior notes due May 15, 2025 and the unamortized debt issuance-related costs for these senior notes are presented in Current portion of long-term debt.

On March 4, 2022, the Company announced an irrevocable commitment to redeem the $500 million principal amount of senior notes, bearing interest at a rate of 5.500% per annum, and originally maturing on May 15, 2025 (the “5.500% Senior Notes”). Accordingly, the principal amount of these senior notes have been presented on the Company’s consolidated balance sheet as Current portion of long-term debt, net as of April 2, 2022. The debt issuance costs of approximately $4.3 million associated with these senior notes have been presented on the Company’s consolidated balance sheet as a direct reduction in the carrying value of the associated current debt liability.

On April 4, 2022, the Company, through its wholly-owned subsidiary, The William Carter Company (“TWCC”), redeemed the 5.500% Senior Notes. Pursuant to the optional redemption provisions described in the Indenture dated as of May 11, 2020, TWCC paid the outstanding principal plus accrued interest and an Applicable Premium as defined in the Indenture. This debt redemption is estimated to result in a loss on extinguishment of debt of approximately $19.9 million in the second quarter of fiscal 2022.

Secured Revolving Credit Facility

As of April 2, 2022, the Company had no outstanding borrowings under its secured revolving credit facility, exclusive of $4.1 million of outstanding letters of credit. As of April 2, 2022, approximately $745.9 million remained available for future borrowing. All outstanding borrowings under the Company’s secured revolving credit facility are classified as non-current liabilities on the Company’s consolidated balance sheet because of the contractual repayment terms under the credit facility.

The Company’s revolving credit facility provides for an aggregate credit line of $750 million which includes a $650 million U.S. dollar facility and a $100 million multicurrency facility denominated in U.S. dollars, Canadian dollars, Euros, Pounds Sterling, or other currencies agreed to by the applicable lenders. The credit facility matures on September 21, 2023. The facility contains covenants that restrict the Company’s ability to, among other things: (i) create or incur liens, debt, guarantees or other investments, (ii) engage in mergers and consolidations, (iii) pay dividends or other distributions to, and redemptions and repurchases from, equity holders, (iv) prepay, redeem or repurchase subordinated or junior debt, (v) amend organizational documents, and (vi) engage in certain transactions with affiliates.

As of April 2, 2022, the interest rate margins applicable to the secured revolving credit facility were 1.375% for LIBOR (London Interbank Offered Rate) rate loans and 0.375% for base rate loans.

On April 11, 2022, the Company, through its wholly owned subsidiary, TWCC entered into Amendment No. 4 to its fourth amended and restated credit agreement (“Amendment No. 4”) that, among other things, increased the borrowing capacity of the secured revolving credit facility to $850.0 million (combined U.S. dollar and multicurrency facility borrowings), extended the maturity of the secured revolving credit facility from September 2023 to April 2027, and reduced the number of financial maintenance covenants from two to one. Approximately $2.4 million, including both bank fees and other third-party expenses, has been capitalized in connection with Amendment No. 4 in the second quarter of fiscal 2022 and will be amortized over the remaining term of the secured revolving credit facility. As of April 2, 2022, the Company was in compliance with its financial and other covenants under the secured revolving credit facility.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
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-Paragraph 1I
-Subparagraph (b)
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

STOCK-BASED COMPENSATION

3 Months Ended

Apr. 02, 2022

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

The Company recorded stock-based compensation expense as follows:


	Fiscal quarter ended
(dollars in thousands)	April 2, 2022		April 3, 2021
Stock options	$	166	$	474
Restricted stock:
Time-based awards	5,159		3,900
Performance-based awards	534		2,557

Total	$	5,859	$	6,931

On February 16, 2022, the Company’s Board of Directors approved the issuance of the following new awards to certain key employees under the Company’s existing stock-based compensation plan, subject to vesting: 198,480 shares of time-based restricted stock awards with a grant-date fair value of $91.12 each; and 89,760 shares of performance-based restricted stock awards with a grant-date fair value of $91.12 each.

During the first quarter of fiscal 2022, a total of 169,620 restricted stock awards (time- and performance-based) vested.

The Company recognizes compensation cost ratably over the applicable performance periods based on the estimated probability of achievement of its performance targets at the end of each period. During the first quarter of fiscal 2021, the achievement of performance target estimates relating to certain performance-based grants were revised resulting in a $2.6 million increase to stock-based compensation expense.

INCOME TAXES	3 Months Ended
INCOME TAXES	Apr. 02, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES As of April 2, 2022, the Company had gross unrecognized income tax benefits of approximately $11.0 million, of which $7.7 million, if ultimately recognized, may affect the Company’s effective income tax rate in the periods settled. The Company has recorded tax positions for which the ultimate deductibility is more likely than not, but for which there is uncertainty about the timing of such deductions. Included in the reserves for unrecognized tax benefits at April 2, 2022 is approximately $2.8 million of reserves for which the statute of limitations is expected to expire within the next 12 months. If these tax benefits are ultimately recognized, such recognition, net of federal income taxes, may affect the annual effective income tax rate for fiscal 2022 and/or fiscal 2023 along with the effective income tax rate in the quarter in which the benefits are recognized. The Company recognizes interest related to unrecognized tax benefits as a component of interest expense and recognizes penalties related to unrecognized income tax benefits as a component of income tax expense. Interest expense recorded on uncertain tax positions was not material for the first fiscal quarter ended April 2, 2022 and April 3, 2021. The Company had approximately $2.0 million, $1.8 million, and $2.9 million of interest accrued on uncertain tax positions as of April 2, 2022, January 1, 2022, and April 3, 2021, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

FAIR VALUE MEASUREMENTS	3 Months Ended
FAIR VALUE MEASUREMENTS	Apr. 02, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Investments The Company invests in marketable securities, principally equity-based mutual funds, to mitigate the risk associated with the investment return on employee deferrals of compensation. All of the marketable securities are included in Other assets on the accompanying condensed consolidated balance sheets, and their aggregate fair values were approximately $16.6 million, $17.5 million, and $15.4 million at April 2, 2022, January 1, 2022, and April 3, 2021, respectively. These investments are classified as Level 1 within the fair value hierarchy. The change in the aggregate fair values of marketable securities are due to the net activity of gains and losses and any contributions and distributions during the period. Losses on the investments in marketable securities were $0.9 million for the first fiscal quarter ended April 2, 2022. Gains on the investments in marketable securities were not material for the first fiscal quarter ended April 3, 2021. These amounts are included in Other (income) expense, net on the Company’s consolidated statement of operations. Borrowings As of April 2, 2022, the Company had no outstanding borrowings under its secured revolving credit facility. The fair value of the Company’s senior notes, including the 5.500% Senior Notes classified as a current liability, at April 2, 2022 was approximately $1.02 billion. The fair value of these senior notes with a notional value and carrying value (gross of debt issuance costs) of $1.00 billion was estimated using a quoted price as provided in the secondary market, which considers the Company’s credit risk and market related conditions, and is therefore within Level 2 of the fair value hierarchy. Goodwill, Intangible, and Long-Lived Tangible Assets Some assets are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances. These assets can include goodwill, indefinite-lived intangible assets, and long-lived tangible assets that have been reduced to fair value when impaired. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

EARNINGS PER SHARE

3 Months Ended

Apr. 02, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

The following is a reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding:


	Fiscal quarter ended
	April 2, 2022		April 3, 2021
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding	40,270,895		43,370,744
Dilutive effect of equity awards	77,437		129,198
Diluted number of common and common equivalent shares outstanding	40,348,332		43,499,942

Earnings per share:
(dollars in thousands, except per share data)
Basic net income per common share:
Net income	$	67,933	$	86,196
Income allocated to participating securities	(921)		(1,033)
Net income available to common shareholders	$	67,012	$	85,163

Basic net income per common share	$	1.66	$	1.96

Diluted net income per common share:
Net income	$	67,933	$	86,196
Income allocated to participating securities	(920)		(1,030)
Net income available to common shareholders	$	67,013	$	85,166

Diluted net income per common share	$	1.66	$	1.96

Anti-dilutive awards excluded from diluted earnings per share computation(*)	172,987		481,491

(*)The volume of anti-dilutive awards is, in part, due to the related unamortized compensation costs.

OTHER CURRENT LIABILITIES

3 Months Ended

Apr. 02, 2022

Accrued Liabilities, Current [Abstract]

OTHER CURRENT LIABILITIES

Other current liabilities at the end of any comparable period, were as follows:


(dollars in thousands)	April 2, 2022		January 1, 2022		April 3, 2021
Unredeemed gift cards	$	21,026	$	21,619	$	17,426
Income taxes payable	16,049		13,850		40,143
Accrued taxes	11,962		12,883		16,054
Accrued interest	11,782		11,942		11,987
Accrued employee benefits	11,544		26,517		17,307
Accrued salaries and wages	4,831		10,821		4,773
Accrued bonuses and incentive compensation	4,592		47,363		10,222
Other	29,292		31,454		31,999
Other current liabilities	$	111,078	$	176,449	$	149,911

COMMITMENT AND CONTINGENCIES	3 Months Ended
COMMITMENT AND CONTINGENCIES	Apr. 02, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENT AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Company is subject to various claims and pending or threatened lawsuits in the normal course of business. The Company is not currently a party to any legal proceedings that it believes would have a material adverse impact on its financial position, results of operations, or cash flows. The Company’s contractual obligations and commitments include obligations associated with leases, the secured revolving credit agreement, senior notes, and employee benefit plans.

SEGMENT INFORMATION

3 Months Ended

Apr. 02, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

The table below presents certain information for our reportable segments and unallocated corporate expenses for the periods indicated:


	Fiscal quarter ended
(dollars in thousands)	April 2, 2022		% of consolidated net sales		April 3, 2021		% of consolidated net sales
Net sales:
U.S. Retail	$	366,358	46.9	%	$	407,067	51.7	%
U.S. Wholesale	307,301		39.3	%	283,377		36.0	%
International	107,625		13.8	%	96,917		12.3	%
Consolidated net sales	$	781,284	100.0	%	$	787,361	100.0	%

Operating income:			% of segment net sales				% of segment net sales
U.S. Retail	$	49,994	13.6	%	$	76,521	18.8	%
U.S. Wholesale	60,506		19.7	%	70,058		24.7	%
International	10,388		9.7	%	9,734		10.0	%
Corporate expenses(*)	(18,265)		n/a		(28,817)		n/a
Consolidated operating income	$	102,623	13.1	%	$	127,496	16.2	%

(*)Corporate expenses include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, office occupancy, information technology, certain legal fees, consulting fees, and audit fees.


(dollars in millions)	Fiscal quarter ended April 3, 2021
Charges:	U.S. Retail		U.S. Wholesale		International




Incremental costs associated with COVID-19 pandemic	$	1.1	$	0.9	$	0.1
Gain on modification of retail store leases(1)	(1.5)		—		—
Total charges(2)(3)	$	(0.4)	$	0.9	$	0.1

(1)Related to gains on the modification of previously impaired retail store leases.

(2)The first fiscal quarter ended April 3, 2021 also included corporate charges related to organizational restructuring of $0.5 million.

(3)Total charges exclude a customer bankruptcy recovery of $38,000.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

REVENUE RECOGNITION (Tables)

3 Months Ended

Apr. 02, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Disaggregated revenues from these sources for the first quarter of fiscal 2022 and 2021 were as follows:


	Fiscal quarter ended April 2, 2022
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	307,301	$	50,432	$	357,733
Direct-to-consumer	366,358		—		57,193		423,551

	$	366,358	$	307,301	$	107,625	$	781,284

Royalty income, net	$	3,240	$	3,430	$	804	$	7,474


	Fiscal quarter ended April 3, 2021
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	283,377	$	42,792	$	326,169
Direct-to-consumer	407,067		—		54,125		461,192

	$	407,067	$	283,377	$	96,917	$	787,361

Royalty income, net	$	3,070	$	3,775	$	618	$	7,463

Accounts Receivable from Customers and Licensees

The components of Accounts receivable, net, were as follows:


(dollars in thousands)	April 2, 2022		January 1, 2022		April 3, 2021
Trade receivables from wholesale customers, net	$	266,970	$	233,928	$	234,643
Royalties receivable	6,923		5,769		7,090
Tenant allowances and other receivables	9,282		10,352		11,664
Total gross receivables	$	283,175	$	250,049	$	253,397
Less: Wholesale accounts receivable reserves(*)	(17,481)		(18,695)		(13,185)
Accounts receivable, net	$	265,694	$	231,354	$	240,212

(*)Includes allowance for credit losses of $5.8 million, $7.3 million, and $6.7 million for the periods ended April 2, 2022, January 1, 2022, and April 3, 2021, respectively.

Contract with Customer, Contract Asset, Contract Liability, and Receivable

Total contract liabilities consisted of the following amounts:


(dollars in thousands)	April 2, 2022		January 1, 2022		April 3, 2021
Contract liabilities - current:
Unredeemed gift cards	$	21,026	$	21,619	$	17,426
Unredeemed customer loyalty rewards	5,804		5,659		5,893
Carter’s credit card - upfront bonus(1)	714		714		714
Total contract liabilities - current(2)	$	27,544	$	27,992	$	24,033

Contract liabilities - non-current(3)	$	1,964	$	2,143	$	2,679
Total contract liabilities	$	29,508	$	30,135	$	26,712

(2)Included with 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.

LEASES (Tables)

3 Months Ended

Apr. 02, 2022

Leases [Abstract]

Lease, Cost


	Fiscal quarter ended
(dollars in thousands)	April 2, 2022		April 3, 2021
Operating lease cost	$	39,457	$	42,698




Variable lease cost(*)	17,068		16,398
Net lease cost	$	56,525	$	59,096

(*)Includes short-term leases, which are not material, and operating lease impairment charges.

Lessee, Operating Lease, Liability, Maturity

As of April 2, 2022, the maturities of lease liabilities were as follows:


(dollars in thousands)	Operating leases
Remainder of 2022	$	124,582
2023	146,425
2024	116,999
2025	83,204
2026	58,830
2027	36,730
After 2027	48,044
Total lease payments	$	614,814
Less: Interest	(48,498)
Present value of lease liabilities(*)	$	566,316

ACUMULATED OTHER COMPREHENSIVE LOSS (Tables)

3 Months Ended

Apr. 02, 2022

AOCI Attributable to Parent [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The components of Accumulated other comprehensive loss consisted of the following:


(dollars in thousands)	April 2, 2022		January 1, 2022		April 3, 2021
Cumulative foreign currency translation adjustments	$	(18,520)	$	(21,302)	$	(20,081)
Pension and post-retirement obligations(*)	(7,595)		(7,595)		(11,453)
Total accumulated other comprehensive loss	$	(26,115)	$	(28,897)	$	(31,534)

(*)Net of income taxes of $2.4 million, $2.4 million, and $3.5 million, for the period ended April 2, 2022, January 1, 2022, and April 3, 2021, respectively.

GOODWILL AND INTANGIBLE ASSETS (Tables)

3 Months Ended

Apr. 02, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The balances and changes in the carrying amount of Goodwill attributable to each segment were as follows:


(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Balance at January 2, 2021	$	83,934	$	74,454	$	53,388	$	211,776



Foreign currency impact	—		—		495		495
Balance at April 3, 2021(*)	$	83,934	$	74,454	$	53,883	$	212,271


Balance at January 1, 2022	$	83,934	$	74,454	$	53,635	$	212,023



Foreign currency impact	—		—		495		495
Balance at April 2, 2022(*)	$	83,934	$	74,454	$	54,130	$	212,518

(*)Goodwill balance for the International reporting unit is net of accumulated impairment losses of $17.7 million.

Schedule Of Goodwill and Other Intangible Assets

A summary of the carrying value of the Company’s intangible assets were as follows:


		April 2, 2022						January 1, 2022
(dollars in thousands)	Weighted-average useful life	Gross amount		Accumulated amortization		Net amount		Gross amount		Accumulated amortization		Net amount
Carter’s tradename	Indefinite	$	220,233	$	—	$	220,233	$	220,233	$	—	$	220,233
OshKosh tradename	Indefinite	70,000		—		70,000		70,000		—		70,000
Skip Hop tradename	Indefinite	15,000		—		15,000		15,000		—		15,000
Finite-life tradenames	5 -20 years	3,911		1,563		2,348		3,911		1,501		2,410

Total tradenames, net		$	309,144	$	1,563	$	307,581	$	309,144	$	1,501	$	307,643

Skip Hop customer relationships	15 years	$	47,300	$	15,804	$	31,496	$	47,300	$	15,010	$	32,290
Carter’s Mexico customer relationships	10 years	3,099		1,444		1,655		3,047		1,368		1,679
Total customer relationships, net		$	50,399	$	17,248	$	33,151	$	50,347	$	16,378	$	33,969


		April 3, 2021
(dollars in thousands)	Weighted-average useful life	Gross amount		Accumulated amortization		Net amount
Carter’s tradename	Indefinite	$	220,233	$	—	$	220,233
OshKosh tradename	Indefinite	70,000		—		70,000
Skip Hop tradename	Indefinite	15,000		—		15,000
Finite-life tradenames	5 - 20 years	3,911		1,314		2,597
Total tradenames, net		$	309,144	$	1,314	$	307,830

Skip Hop customer relationships	15 years	$	47,300	$	12,628	$	34,672
Carter’s Mexico customer relationships	10 years	3,063		1,139		1,924
Total customer relationships, net		$	50,363	$	13,767	$	36,596

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated amortization expense for the next five fiscal years is as follows:


(dollars in thousands)	Amortization expense
Remainder of 2022	$	2,803
2023	$	3,695
2024	$	3,665
2025	$	3,665
2026	$	3,665
2027	$	3,535

COMMON STOCK (Tables)

3 Months Ended

Apr. 02, 2022

Equity [Abstract]

Open Market Repurchases

The Company repurchased and retired shares in open market transactions in the following amounts for the fiscal periods indicated:


	Fiscal quarter ended
	April 2, 2022		April 3, 2021(*)
Number of shares repurchased	793,008		—
Aggregate cost of shares repurchased (dollars in thousands)	$	74,496	$	—
Average price per share	$	93.94	$	—

(*)As a result of actions taken in connection with the COVID-19 pandemic, the Company did not repurchase or retire any shares in open market transactions in the first quarter of fiscal 2021.

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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+ Details

LONG-TERM DEBT (Tables)

3 Months Ended

Apr. 02, 2022

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt consisted of the following:


(dollars in thousands)	April 2, 2022		January 1, 2022		April 3, 2021
$500 million 5.500% senior notes due May 15, 2025(*)	$	—	$	500,000	$	500,000
$500 million 5.625% senior notes due March 15, 2027	500,000		500,000		500,000
Total senior notes	$	500,000	$	1,000,000	$	1,000,000
Less unamortized issuance-related costs for senior notes(*)	(3,896)		(8,630)		(10,020)
Senior notes, net	$	496,104	$	991,370	$	989,980
Secured revolving credit facility	—		—		—
Total long-term debt, net	$	496,104	$	991,370	$	989,980

(*)As of April 2, 2022, senior notes due May 15, 2025 and the unamortized debt issuance-related costs for these senior notes are presented in Current portion of long-term debt.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Apr. 02, 2022

Share-based Payment Arrangement [Abstract]

Summary of Recorded Stock-based Compensation Cost

The Company recorded stock-based compensation expense as follows:


	Fiscal quarter ended
(dollars in thousands)	April 2, 2022		April 3, 2021
Stock options	$	166	$	474
Restricted stock:
Time-based awards	5,159		3,900
Performance-based awards	534		2,557

Total	$	5,859	$	6,931

EARNINGS PER SHARE (Tables)

3 Months Ended

Apr. 02, 2022

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding:


	Fiscal quarter ended
	April 2, 2022		April 3, 2021
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding	40,270,895		43,370,744
Dilutive effect of equity awards	77,437		129,198
Diluted number of common and common equivalent shares outstanding	40,348,332		43,499,942

Earnings per share:
(dollars in thousands, except per share data)
Basic net income per common share:
Net income	$	67,933	$	86,196
Income allocated to participating securities	(921)		(1,033)
Net income available to common shareholders	$	67,012	$	85,163

Basic net income per common share	$	1.66	$	1.96

Diluted net income per common share:
Net income	$	67,933	$	86,196
Income allocated to participating securities	(920)		(1,030)
Net income available to common shareholders	$	67,013	$	85,166

Diluted net income per common share	$	1.66	$	1.96

Anti-dilutive awards excluded from diluted earnings per share computation(*)	172,987		481,491

(*)The volume of anti-dilutive awards is, in part, due to the related unamortized compensation costs.

OTHER CURRENT LIABILITIES (Tables)

3 Months Ended

Apr. 02, 2022

Accrued Liabilities, Current [Abstract]

Schedule of Other Current Liabilities

Other current liabilities at the end of any comparable period, were as follows:


(dollars in thousands)	April 2, 2022		January 1, 2022		April 3, 2021
Unredeemed gift cards	$	21,026	$	21,619	$	17,426
Income taxes payable	16,049		13,850		40,143
Accrued taxes	11,962		12,883		16,054
Accrued interest	11,782		11,942		11,987
Accrued employee benefits	11,544		26,517		17,307
Accrued salaries and wages	4,831		10,821		4,773
Accrued bonuses and incentive compensation	4,592		47,363		10,222
Other	29,292		31,454		31,999
Other current liabilities	$	111,078	$	176,449	$	149,911

SEGMENT INFORMATION (Tables)

3 Months Ended

Apr. 02, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The table below presents certain information for our reportable segments and unallocated corporate expenses for the periods indicated:


	Fiscal quarter ended
(dollars in thousands)	April 2, 2022		% of consolidated net sales		April 3, 2021		% of consolidated net sales
Net sales:
U.S. Retail	$	366,358	46.9	%	$	407,067	51.7	%
U.S. Wholesale	307,301		39.3	%	283,377		36.0	%
International	107,625		13.8	%	96,917		12.3	%
Consolidated net sales	$	781,284	100.0	%	$	787,361	100.0	%

Operating income:			% of segment net sales				% of segment net sales
U.S. Retail	$	49,994	13.6	%	$	76,521	18.8	%
U.S. Wholesale	60,506		19.7	%	70,058		24.7	%
International	10,388		9.7	%	9,734		10.0	%
Corporate expenses(*)	(18,265)		n/a		(28,817)		n/a
Consolidated operating income	$	102,623	13.1	%	$	127,496	16.2	%


(dollars in millions)	Fiscal quarter ended April 3, 2021
Charges:	U.S. Retail		U.S. Wholesale		International




Incremental costs associated with COVID-19 pandemic	$	1.1	$	0.9	$	0.1
Gain on modification of retail store leases(1)	(1.5)		—		—
Total charges(2)(3)	$	(0.4)	$	0.9	$	0.1

(1)Related to gains on the modification of previously impaired retail store leases.

(2)The first fiscal quarter ended April 3, 2021 also included corporate charges related to organizational restructuring of $0.5 million.

(3)Total charges exclude a customer bankruptcy recovery of $38,000.

REVENUE RECOGNITION - Schedule of Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021	Jan. 01, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 781,284	$ 787,361
Royalty income, net	7,474	7,463
Total gross receivables	283,175	253,397	$ 250,049
Less: Wholesale accounts receivable reserves	(5,766)	(6,695)	(7,281)
Accounts receivable, net	265,694	240,212	231,354
Trade receivables from wholesale customers, net
Disaggregation of Revenue [Line Items]
Total gross receivables	266,970	234,643	233,928
Royalties receivable
Disaggregation of Revenue [Line Items]
Total gross receivables	6,923	7,090	5,769
Tenant allowances and other receivables
Disaggregation of Revenue [Line Items]
Total gross receivables	9,282	11,664	10,352
SEC Schedule, 12-09, Allowance, Credit Loss
Disaggregation of Revenue [Line Items]
Less: Wholesale accounts receivable reserves	(17,481)	(13,185)	$ (18,695)
U.S. Retail
Disaggregation of Revenue [Line Items]
Net sales	366,358	407,067
U.S. Wholesale
Disaggregation of Revenue [Line Items]
Net sales	307,301	283,377
International
Disaggregation of Revenue [Line Items]
Net sales	107,625	96,917
Wholesale channel
Disaggregation of Revenue [Line Items]
Net sales	357,733	326,169
Wholesale channel \| U.S. Retail
Disaggregation of Revenue [Line Items]
Net sales	0	0
Wholesale channel \| U.S. Wholesale
Disaggregation of Revenue [Line Items]
Net sales	307,301	283,377
Wholesale channel \| International
Disaggregation of Revenue [Line Items]
Net sales	50,432	42,792
Direct-to-consumer
Disaggregation of Revenue [Line Items]
Net sales	423,551	461,192
Direct-to-consumer \| U.S. Retail
Disaggregation of Revenue [Line Items]
Net sales	366,358	407,067
Direct-to-consumer \| U.S. Wholesale
Disaggregation of Revenue [Line Items]
Net sales	0	0
Direct-to-consumer \| International
Disaggregation of Revenue [Line Items]
Net sales	57,193	54,125
Licensing Agreements
Disaggregation of Revenue [Line Items]
Royalty income, net	7,474	7,463
Licensing Agreements \| U.S. Retail
Disaggregation of Revenue [Line Items]
Royalty income, net	3,240	3,070
Licensing Agreements \| U.S. Wholesale
Disaggregation of Revenue [Line Items]
Royalty income, net	3,430	3,775
Licensing Agreements \| International
Disaggregation of Revenue [Line Items]
Royalty income, net	$ 804	$ 618

REVENUE RECOGNITION - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Apr. 02, 2022	Jan. 01, 2022	Apr. 03, 2021
Revenue from Contract with Customer [Abstract]
Unredeemed gift cards	$ 21,026	$ 21,619	$ 17,426
Unredeemed customer loyalty rewards	5,804	5,659	5,893
Carter's credit card - upfront bonus	714	714	714
Total contract liabilities - current	27,544	27,992	24,033
Contract liabilities - non-current	1,964	2,143	2,679
Total contract liabilities	$ 29,508	$ 30,135	$ 26,712

LEASES - Narrative (Details) $ in Millions	3 Months Ended
LEASES - Narrative (Details) $ in Millions	Apr. 02, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Minimum rental commitments for contracts not yet commenced	$ 9.7
Minimum
Lessee, Lease, Description [Line Items]
Initial term	1 year
Lease term for contracts not yet commenced	3 years
Maximum
Lessee, Lease, Description [Line Items]
Initial term	10 years
Extension option term	5 years
Lease term for contracts not yet commenced	10 years

LEASES - Schedule of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Leases [Abstract]
Operating lease cost	$ 39,457	$ 42,698
Variable lease cost	17,068	16,398
Net lease cost	$ 56,525	$ 59,096

LEASES - Supplemental balance sheet information (Details) $ in Millions	3 Months Ended
	Apr. 02, 2022 USD ($)
Leases [Abstract]
Weighted average remaining operating lease term	4 years 9 months 18 days
Weighted average discount rate for operating leases	3.26%
Operating lease payments	$ 43.3
Non-cash transaction	$ 16.3

LEASES - Maturities of lease liabilities (Details) $ in Thousands	Apr. 02, 2022 USD ($)
Leases [Abstract]
Remainder of 2022	$ 124,582
2023	146,425
2024	116,999
2025	83,204
2026	58,830
2027	36,730
After 2027	48,044
Total lease payments	614,814
Less: Interest	(48,498)
Present value of lease liabilities	$ 566,316

ACUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 02, 2022	Apr. 03, 2021	Jan. 01, 2022
AOCI Attributable to Parent [Abstract]
Cumulative foreign currency translation adjustments	$ (18,520)	$ (20,081)	$ (21,302)
Pension and post-retirement obligations	(7,595)	(11,453)	(7,595)
Total accumulated other comprehensive loss	(26,115)	(31,534)	(28,897)
Net income taxes attributable to pension plan	$ 2,400	$ 3,500	$ 2,400

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021	Jan. 01, 2022
Goodwill [Line Items]
Goodwill, beginning balance	$ 212,023	$ 211,776
Foreign currency impact	495	495
Goodwill, ending balance	212,518	212,271
Amortization expense for intangible assets	900	900
Remainder of 2022	2,803
2023	3,695
2024	3,665
2025	3,665
2026	3,665
2027	3,535
Finite-life tradenames
Goodwill [Line Items]
Finite-lived intangible assets, gross	3,911	3,911	$ 3,911
Accumulated amortization	1,563	1,314	1,501
Net amount	$ 2,348	$ 2,597	2,410
Finite-life tradenames \| Minimum
Goodwill [Line Items]
Weighted-average useful life	5 years	5 years
Finite-life tradenames \| Maximum
Goodwill [Line Items]
Weighted-average useful life	20 years	20 years
Trade Names
Goodwill [Line Items]
Finite-lived intangible assets, gross	$ 309,144	$ 309,144	309,144
Accumulated amortization	1,563	1,314	1,501
Net amount	307,581	307,830	307,643
Skip Hop customer relationships
Goodwill [Line Items]
Finite-lived intangible assets, gross	47,300	47,300	47,300
Accumulated amortization	15,804	12,628	15,010
Net amount	$ 31,496	$ 34,672	32,290
Weighted-average useful life	15 years	15 years
Carter’s Mexico customer relationships
Goodwill [Line Items]
Finite-lived intangible assets, gross	$ 3,099	$ 3,063	3,047
Accumulated amortization	1,444	1,139	1,368
Net amount	$ 1,655	$ 1,924	1,679
Weighted-average useful life	10 years	10 years
Customer Relationships
Goodwill [Line Items]
Finite-lived intangible assets, gross	$ 50,399	$ 50,363	50,347
Accumulated amortization	17,248	13,767	16,378
Net amount	33,151	36,596	33,969
Carter’s tradename
Goodwill [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	220,233	220,233	220,233
OshKosh tradename
Goodwill [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	70,000	70,000	70,000
Skip Hop tradename
Goodwill [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	15,000	15,000	$ 15,000
U.S. Retail
Goodwill [Line Items]
Goodwill, beginning balance	83,934	83,934
Foreign currency impact	0	0
Goodwill, ending balance	83,934	83,934
U.S. Wholesale
Goodwill [Line Items]
Goodwill, beginning balance	74,454	74,454
Foreign currency impact	0	0
Goodwill, ending balance	74,454	74,454
International
Goodwill [Line Items]
Goodwill, beginning balance	53,635	53,388
Foreign currency impact	495	495
Goodwill, ending balance	54,130	$ 53,883
Goodwill, net of accumulated impairment losses	$ 17,700

COMMON STOCK - Schedule of Shares (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021	Feb. 24, 2022
Equity [Abstract]
Number of share repurchased (in shares)	793,008	0
Aggregate cost of shares repurchased (dollars in thousands)	$ 74,496	$ 0
Average price per share (in USD per share)	$ 93.94	$ 0
Authorized share repurchases (in shares)			$ 1,000,000
Aggregate remaining capacity under repurchase authorization	$ 974,700		$ 301,900

COMMON STOCK - Dividends (Details) - $ / shares	3 Months Ended
COMMON STOCK - Dividends (Details) - $ / shares	Apr. 02, 2022	Apr. 03, 2021
Equity [Abstract]
Dividend declared and paid per common share (in USD per share)	$ 0.75	$ 0

LONG-TERM DEBT - Schedule of Long-term Debt (Details) - USD ($)	Apr. 02, 2022	Mar. 04, 2022	Jan. 01, 2022	Apr. 03, 2021
Debt Instrument [Line Items]
Long-term debt, net	$ 496,104,000		$ 991,370,000	$ 989,980,000
Total Senior Notes Member
Debt Instrument [Line Items]
Total senior notes	500,000,000		1,000,000,000	1,000,000,000
Less unamortized issuance-related costs for senior notes	(3,896,000)		(8,630,000)	(10,020,000)
Senior notes, net	496,104,000		991,370,000	989,980,000
Revolving Credit Facility
Debt Instrument [Line Items]
Secured revolving credit facility	0		0	0
5.500% senior notes due 2025
Debt Instrument [Line Items]
Less unamortized issuance-related costs for senior notes	(4,300,000)
Interest rate		5.50%
5.500% senior notes due 2025 \| Senior Notes
Debt Instrument [Line Items]
Total senior notes	$ 0		500,000,000	500,000,000
Interest rate	5.50%
5.625% senior notes due 2027 \| Senior Notes
Debt Instrument [Line Items]
Total senior notes	$ 500,000,000		$ 500,000,000	$ 500,000,000
Interest rate	5.625%

LONG-TERM DEBT - Narrative (Details) - USD ($)	3 Months Ended
LONG-TERM DEBT - Narrative (Details) - USD ($)	Jul. 02, 2022	Apr. 11, 2022	Apr. 04, 2022	Apr. 02, 2022	Mar. 04, 2022	Jan. 01, 2022	Apr. 03, 2021
Debt Instrument [Line Items]
Current portion of long-term debt, net				$ 495,743,000		$ 0	$ 0
Outstanding letters of credit				4,100,000
5.500% senior notes due 2025
Debt Instrument [Line Items]
Current portion of long-term debt, net					$ 500,000,000
Interest rate					5.50%
Debt issuance costs				$ 4,300,000
Subsequent Event \| 5.500% senior notes due 2025
Debt Instrument [Line Items]
Interest rate			5.50%
Loss on extinguishment of debt	$ 19,900,000
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate				1.375%
Base Rate
Debt Instrument [Line Items]
Interest rate				0.375%
Revolving Credit Facility
Debt Instrument [Line Items]
Secured revolving credit facility				$ 0		$ 0	$ 0
Remaining borrowing capacity				745,900,000
Revolving credit facility borrowing capacity				750,000,000
Revolving Credit Facility \| Amendment No. 3 \| Subsequent Event
Debt Instrument [Line Items]
Debt issuance costs		$ 2,400,000
Revolving credit facility borrowing capacity		$ 850,000,000
Revolving Credit Facility \| United States Dollar Credit Facility
Debt Instrument [Line Items]
Revolving credit facility borrowing capacity				650,000,000
Revolving Credit Facility \| Multicurrency Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility borrowing capacity				$ 100,000,000
Senior Notes \| 5.500% senior notes due 2025
Debt Instrument [Line Items]
Interest rate				5.50%

STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Feb. 16, 2022	Apr. 02, 2022	Apr. 03, 2021
Performance-based awards
Stock-based compensation expense		$ 5,859	$ 6,931
Total stock-based compensation expense		(5,859)	(6,931)
Stock options
Performance-based awards
Stock-based compensation expense		166	474
Time-based awards
Performance-based awards
Stock-based compensation expense		$ 5,159	3,900
Time-based awards granted (in shares)	198,480
Grant-date fair value of shares issued (in USD per share)	$ 91.12
Time-based awards vest (in shares)		169,620
Performance-based awards
Performance-based awards
Stock-based compensation expense		$ 534	$ 2,557
Time-based awards granted (in shares)	89,760
Grant-date fair value of shares issued (in USD per share)	$ 91.12

INCOME TAXES (Details) - USD ($) $ in Millions	Apr. 02, 2022	Jan. 01, 2022	Apr. 03, 2021
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 11.0
Unrecognized tax benefits, impact on effective tax rate	7.7
Reserves that statue of limitations is expected to expire	2.8
Interest accrued on uncertain tax positions	$ 2.0	$ 1.8	$ 2.9

FAIR VALUE MEASUREMENTS - Investments (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Jan. 01, 2022	Apr. 03, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loss on investments	$ (0.9)
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 16.6	$ 17.5	$ 15.4

FAIR VALUE MEASUREMENTS - Borrowings (Details) - USD ($)	Apr. 02, 2022	Mar. 04, 2022	Jan. 01, 2022	Apr. 03, 2021
5.500% senior notes due 2025
Debt Instrument [Line Items]
Interest rate		5.50%
Revolving Credit Facility
Debt Instrument [Line Items]
Secured revolving credit facility	$ 0		$ 0	$ 0
Total Senior Notes Member
Debt Instrument [Line Items]
Fair value of senior notes	1,020,000,000.00
Notional and carrying value of senior notes	$ 1,000,000,000

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

- Definition

The carrying value as of the balance sheet date of the noncurrent portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding (in shares)	40,270,895	43,370,744
Dilutive effect of equity awards (in shares)	77,437	129,198
Diluted number of common and common equivalent shares outstanding (in shares)	40,348,332	43,499,942
Earnings per share:
Net income	$ 67,933	$ 86,196
Income allocated to participating securities	(921)	(1,033)
Net income available to common shareholders	$ 67,012	$ 85,163
Basic net income per common share (in USD per share)	$ 1.66	$ 1.96
Diluted net income per common share:
Net income	$ 67,933	$ 86,196
Income allocated to participating securities	(920)	(1,030)
Net income available to common shareholders	$ 67,013	$ 85,166
Diluted net income per common share (in USD per share)	$ 1.66	$ 1.96
Anti-dilutive awards excluded from dilutive earnings per share computation (in shares)	172,987	481,491

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Apr. 02, 2022	Jan. 01, 2022	Apr. 03, 2021
Accrued Liabilities, Current [Abstract]
Unredeemed gift cards	$ 21,026	$ 21,619	$ 17,426
Income taxes payable	16,049	13,850	40,143
Accrued taxes	11,962	12,883	16,054
Accrued interest	11,782	11,942	11,987
Accrued employee benefits	11,544	26,517	17,307
Accrued salaries and wages	4,831	10,821	4,773
Accrued bonuses and incentive compensation	4,592	47,363	10,222
Other	29,292	31,454	31,999
Other current liabilities	$ 111,078	$ 176,449	$ 149,911

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	Apr. 02, 2022	Apr. 03, 2021
Segment Reporting Information [Line Items]
Net sales	$ 781,284	$ 787,361
% of consolidated net sales	100.00%	100.00%
Operating income	$ 102,623	$ 127,496
Corporate expenses	$ (18,265)	$ (28,817)
% of segment net sales	13.10%	16.20%
(Recoveries of) provisions for doubtful accounts receivable from customers	$ (1,513)	$ 766
U.S. Retail
Segment Reporting Information [Line Items]
Net sales	366,358	407,067
U.S. Wholesale
Segment Reporting Information [Line Items]
Net sales	307,301	283,377
Operating Segments \| U.S. Retail
Segment Reporting Information [Line Items]
Net sales	$ 366,358	$ 407,067
% of consolidated net sales	46.90%	51.70%
Operating income	$ 49,994	$ 76,521
% of segment net sales	13.60%	18.80%
Incremental costs associated with COVID-19 pandemic		$ 1,100
Gain on modification of retail store leases		(1,500)
Total charges		(400)
Operating Segments \| U.S. Wholesale
Segment Reporting Information [Line Items]
Net sales	$ 307,301	$ 283,377
% of consolidated net sales	39.30%	36.00%
Operating income	$ 60,506	$ 70,058
% of segment net sales	19.70%	24.70%
Incremental costs associated with COVID-19 pandemic		$ 900
Gain on modification of retail store leases		0
Total charges		900
(Recoveries of) provisions for doubtful accounts receivable from customers		38
Operating Segments \| International
Segment Reporting Information [Line Items]
Net sales	$ 107,625	$ 96,917
% of consolidated net sales	13.80%	12.30%
Operating income	$ 10,388	$ 9,734
% of segment net sales	9.70%	10.00%
Incremental costs associated with COVID-19 pandemic		$ 100
Gain on modification of retail store leases		0
Total charges		100
Restructuring charges		$ 500