Carter's, Inc. (CRI): Análisis PESTLE [Actualizado en Ene-2025]

En el mundo dinámico de la ropa infantil, Carter's, Inc. (CRI) navega por un complejo panorama de desafíos y oportunidades globales. Este análisis integral de mortero presenta la intrincada red de factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que dan forma a las decisiones estratégicas de la compañía. Desde las políticas comerciales en evolución hasta el cambio de las preferencias de los consumidores, Carter debe maniobrar de manera experta a través de un entorno empresarial multifacético que exige innovación, sostenibilidad y resistencia. Sumérgete en esta exploración reveladora de las fuerzas externas que conducen una de las marcas de ropa para niños más prominentes del mercado.

Carter's, Inc. (CRI) - Análisis de mortero: factores políticos

Políticas comerciales de EE. UU. Impacto en la importación/exportación de la fabricación de ropa para niños

En 2023, Carter importó aproximadamente el 72% de sus productos de ropa de países como Vietnam, China y Bangladesh. Las tensiones comerciales actuales de la US-China han dado como resultado aranceles adicionales que van del 7,5% al ​​25% en la ropa infantil importada.

País	Porcentaje de importación	Tarifa
Vietnam	38%	12%
Porcelana	22%	25%
Bangladesh	12%	7.5%

Cambios potenciales en las regulaciones arancelas que afectan la cadena de suministro global

Las políticas comerciales de la administración Biden han mantenido regulaciones de importación complejas, con posibles modificaciones futuras que se espera que afecten la estrategia de abastecimiento global de Carter.

• Tasa de tarifa promedio actual en la ropa de los niños: 16.5%
• Aumento estimado de la tarifa potencial: 3-5% en 2024-2025
• Costos de cadena de suministro anual adicionales proyectados: $ 12-18 millones

Regulaciones gubernamentales sobre estándares de seguridad de productos infantiles

La Ley de Mejora de la Seguridad del Producto del Consumidor (CPSIA) exige los estrictos estándares de seguridad para productos para niños. En 2023, Carter invirtió $ 4.2 millones en procedimientos de cumplimiento y prueba.

Área de cumplimiento de seguridad	Inversión anual
Infraestructura de prueba	$ 2.1 millones
Certificación de material	$ 1.5 millones
Documentación regulatoria	$600,000

Posibles cambios en las leyes laborales que influyen en las prácticas de fabricación

Las regulaciones laborales emergentes en los países manufactureros están creando desafíos potenciales para las estrategias de producción internacional de Carter.

• Aumentos de salario mínimo en Vietnam: 5.5% en 2023
• Regulaciones de compensación de horas extras en Bangladesh: nuevas pautas de 2024
• Impacto de costo laboral anual estimado: $ 8-10 millones

Carter's, Inc. (CRI) - Análisis de mortero: factores económicos

Fluctuando el gasto del consumidor en ropa y accesorios para niños

En 2023, el mercado de ropa para niños de EE. UU. Se valoró en $ 35.4 mil millones, y Carter tiene una participación de mercado del 16.8%. Las tendencias de gasto del consumidor mostraron una disminución de 3.2% año tras año en las compras de ropa para niños.

Año	Valor comercial	Cambio de gasto del consumidor	Cuota de mercado de Carter
2022	$ 36.5 mil millones	+1.7%	17.2%
2023	$ 35.4 mil millones	-3.2%	16.8%

Inflación y aumento de los costos de producción que afectan los márgenes de ganancia

Carter experimentó un aumento del 5,7% en los costos de producción en 2023, con los gastos de materia prima que aumentaron en un 4,3%. El margen bruto de la compañía disminuyó de 39.2% en 2022 a 36.8% en 2023.

Componente de costos	Gasto 2022	2023 Gastos	Aumento porcentual
Materia prima	$ 412 millones	$ 430 millones	4.3%
Costos de producción totales	$ 1.05 mil millones	$ 1.11 mil millones	5.7%

Riesgos de recesión económica que afectan las compras discrecionales del consumidor

El gasto discretario del consumidor en ropa infantil disminuyó en un 2,9% en 2023. Carter informó una reducción del 1.6% en los ingresos totales, de $ 3.26 mil millones en 2022 a $ 3.21 mil millones en 2023.

Métrica financiera	Valor 2022	Valor 2023	Cambio porcentual
Ingresos totales	$ 3.26 mil millones	$ 3.21 mil millones	-1.6%
Gasto discrecional	$ 1.42 mil millones	$ 1.38 mil millones	-2.9%

Volatilidad del tipo de cambio que impacta las operaciones del mercado internacional

Los ingresos internacionales de Carter fueron de $ 456 millones en 2023, con fluctuaciones de cambio de divisas que causaron una reducción del 2.1% en las ganancias del mercado internacional.

Región	2022 Ingresos	2023 ingresos	Impacto en la moneda
Mercados internacionales	$ 465 millones	$ 456 millones	-2.1%
Tipos de cambio clave	USD/CAD: 1.35	USD/CAD: 1.32	-2.2%

Carter's, Inc. (CRI) - Análisis de mortero: factores sociales

Aumento de la demanda de ropa infantil sostenible y producida éticamente

Según un informe de 2023 McKinsey, el 67% de los padres están dispuestos a pagar más por la ropa infantil sostenible. El mercado global de ropa para niños sostenibles se valoró en $ 4.3 mil millones en 2022, con una tasa compuesta anual proyectada de 9.7% hasta 2027.

Segmento de mercado	Valor 2022	2027 Valor proyectado	Tocón
Ropa de niños sostenible	$ 4.3 mil millones	$ 6.8 mil millones	9.7%

Cambiar la demografía familiar y las tasas de natalidad que influyen en el tamaño del mercado

Las tasas de natalidad de EE. UU. En 2022 fueron 56.1 nacimientos por cada 1,000 mujeres de 15 a 44 años. El tamaño promedio del hogar en 2023 fue de 2.51 personas, con el 35% de los hogares que tienen hijos menores de 18 años.

Métrico demográfico	2022-2023 datos
Tasa de natalidad de los Estados Unidos	56.1 por 1,000 mujeres
Tamaño promedio del hogar	2.51 personas
Hogares con niños	35%

Tendencia creciente de moda infantil de género neutral

El mercado de ropa infantil neutral en cuanto a género creció un 14,2% en 2022, con el 42% de los padres milenarios que expresan preferencia por las opciones de ropa no binarias.

Mercado de ropa neutral de género	Crecimiento 2022	Preferencia de los padres milenarios
Expansión del mercado	14.2%	42%

Alciamiento de la preferencia del consumidor por las experiencias de compra en línea

Las ventas de comercio electrónico para la ropa infantil alcanzaron los $ 23.4 mil millones en 2022, lo que representa el 38% de las ventas totales de ropa para niños. Las compras móviles representaron el 67% de las compras en línea.

Métrica de compras en línea	Datos 2022
Ventas de comercio electrónico de ropa para niños	$ 23.4 mil millones
Porcentaje de ventas de ropa total	38%
Porcentaje de compra móvil	67%

Carter's, Inc. (CRI) - Análisis de mortero: factores tecnológicos

Transformación digital en plataformas minoristas y de comercio electrónico

Carter's, Inc. reportó $ 3.07 mil millones en ventas digitales para 2022, lo que representa el 32% de los ingresos totales de la compañía. La plataforma de comercio electrónico de la compañía experimentó un crecimiento del 15.2% en las transacciones en línea durante el año fiscal.

Métrica de ventas digitales	Datos 2022	Cambio año tras año
Ingresos digitales totales	$ 3.07 mil millones	+15.2%
Volumen de transacciones en línea	14.6 millones	+12.8%
Porcentaje de ventas móviles	48.3%	+6.5%

Tecnologías avanzadas de gestión de inventario y seguimiento

Carter implementó el seguimiento de RFID en el 95% de su cadena de suministro, reduciendo las discrepancias de inventario en un 22%. La compañía invirtió $ 42.3 millones en tecnología de gestión de inventario en 2022.

Métrica de tecnología de inventario	Rendimiento 2022
Cobertura de RFID	95%
Precisión de inventario	98.7%
Inversión tecnológica	$ 42.3 millones

Implementación de herramientas de predicción de diseño y diseño impulsadas por la IA

Carter asignó $ 18.6 millones para AI y tecnologías de aprendizaje automático en diseño de productos. Las herramientas de predicción de tendencias impulsadas por la IA redujeron el tiempo de diseño al mercado en un 37%.

Métrica de tecnología de IA	Datos 2022
Inversión tecnológica de IA	$ 18.6 millones
Reducción de tiempo de diseño para el mercado	37%
Precisión de tendencias predicha de AI	84.5%

Análisis de datos mejorado para información del comportamiento del consumidor

La plataforma de análisis de datos de Carter procesó 67.3 millones de interacciones con los clientes en 2022. Las herramientas de información del consumidor de la compañía generaron $ 126.4 millones en ingresos específicos de marketing.

Métrica de análisis de datos	Rendimiento 2022
Interacciones del cliente procesadas	67.3 millones
Ingresos de marketing dirigidos	$ 126.4 millones
Precisión de la visión del consumidor	92.1%

Carter's, Inc. (CRI) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de fabricación internacional y de trabajo infantil

Cumplimiento regulatorio Overview:

Categoría de regulación	Estado de cumplimiento	Frecuencia de auditoría
Estándares de la Asociación de Trabajo Justo	Totalmente cumplido	Trimestral
Directrices de la Organización Internacional del Trabajo	Certificado	Semestral
Aduanas y protección fronteriza de EE. UU.	Tasa de verificación del 100%	Anual

Protección de la propiedad intelectual para el diseño y las marcas de marca

Estadísticas de marcas y patentes:

Categoría de IP	Número de marcas registradas	Jurisdicciones de protección
Marcas registradas	87	Estados Unidos, Canadá, Unión Europea
Patentes de diseño	42	Tratado de cooperación de patentes internacionales

Requisitos de certificación de seguridad del producto

Detalles de la certificación de seguridad:

Estándar de certificación	Porcentaje de cumplimiento	Cuerpo regulador
Estándares de seguridad de CPSC	100%	Comisión de Seguridad de Productos del Consumidor
Estándares internacionales ASTM	99.8%	Sociedad Americana de Pruebas y Materiales
EN71 Estándar de seguridad de juguetes europeo	100%	unión Europea

Regulaciones de privacidad de datos y protección del consumidor

Métricas de cumplimiento de la privacidad:

Regulación	Nivel de cumplimiento	Inversión anual en protección de datos
GDPR	Totalmente cumplido	$ 2.3 millones
CCPA	100% de adherencia	$ 1.7 millones
Pipeda	Certificado	$ 1.1 millones

Carter's, Inc. (CRI) - Análisis de mortero: factores ambientales

Iniciativas de sostenibilidad en la producción y fabricación textiles

Carter's, Inc. se comprometió a reducir el uso del agua en un 20% en los procesos de fabricación textil para 2025. La compañía reportó una reducción del agua del 12.5% ​​en las operaciones de fabricación de 2023.

Métrica de sostenibilidad	Rendimiento 2022	2023 rendimiento	Objetivo 2025
Reducción del uso del agua	8.3%	12.5%	20%
Materiales textiles reciclados	15.6%	22.4%	35%

Reducción de la huella de carbono en las operaciones globales de la cadena de suministro

Carter reportó una reducción del 16,7% en las emisiones de carbono en las operaciones globales de la cadena de suministro en 2023. La compañía invirtió $ 4.2 millones en infraestructura de energía renovable.

Métrica de emisión de carbono	2022 emisiones	2023 emisiones	Porcentaje de reducción
Emisiones totales de carbono (toneladas métricas)	45,600	38,000	16.7%
Inversión de energía renovable	$ 3.1 millones	$ 4.2 millones	35.5%

Aumento de la demanda de los consumidores de materiales de ropa ecológicos

La línea de productos de algodón orgánico ampliado de Carter, que representaba el 28.6% de las colecciones de ropa infantil en 2023. Los productos de algodón orgánico generaron $ 127.5 millones en ingresos.

Métrica de material ecológico	Rendimiento 2022	2023 rendimiento	Porcentaje de crecimiento
Línea de productos de algodón orgánico (%)	22.3%	28.6%	28.3%
Ingresos de algodón orgánico	$ 98.3 millones	$ 127.5 millones	29.7%

Reducción de residuos y prácticas de fabricación de economía circular

El programa de reciclaje textil implementado de Carter, que desvía 1.850 toneladas métricas de desechos textiles de los vertederos en 2023. La compañía logró una reducción de residuos de 42.5% a través de prácticas de fabricación circulares.

Métrica de reducción de desechos	Rendimiento 2022	2023 rendimiento	Porcentaje de mejora
Residuos textiles desviados (toneladas métricas)	1,250	1,850	48%
Porcentaje de reducción de residuos	35.6%	42.5%	19.4%

Carter's, Inc. (CRI) - PESTLE Analysis: Social factors

You're analyzing the social landscape for Carter's, Inc. (CRI) right now, and the picture is one of evolving parental values clashing with demographic headwinds. The modern parent, especially the Millennial and Gen Z cohort, demands more than just cute outfits; they want ethics, convenience, and digital fluency. Still, the fundamental math of your core market-the number of babies being born-is getting tighter.

Growing demand for sustainable, ethically-sourced children's clothing drives product line changes

The shift toward conscious consumption is no longer a niche; it's mainstream, and it directly impacts your product strategy. Parents are actively seeking out clothing that aligns with environmental ethics and child safety standards. This is reflected in the market itself: the sustainable children's wear market is projected to hit $1.50 billion in 2025, up from $1.38 billion in 2024. To capture this, Carter's, Inc. is expanding its eco-friendly offerings as a core commitment in 2025.

Here's the quick math on who is driving this: 79% of Millennial moms prefer sustainable apparel, and they are 57% more loyal to eco-friendly brands. Furthermore, about 30% of consumers will boycott brands they deem unethical. This means your sourcing and material choices are now front-and-center social issues, not just supply chain concerns. If onboarding sustainable materials takes 14+ days longer, brand perception risk rises.

Millennial and Gen Z parents prioritize convenience, boosting mobile and digital shopping

The new generation of parents lives online, and they expect shopping to keep up. Millennial moms, for instance, spend about 4:04 hours daily online, with 93% using social media. For them, convenience is king, meaning digital channels must be seamless. About 50% of Millennials prefer shopping methods that involve little to no physical interaction, like Buy Online, Pick Up In Store (BOPIS) or curbside pickup.

Gen Z parents, the true digital natives, are even more focused on efficiency, sometimes opting for subscription services for essentials. Critically, 70% of Millennial moms go online most frequently through their phone. This isn't just a preference; it's a mandate for mobile-first experiences. You need to make the app experience flawless.

Birth rates in key US and international markets show slow growth, limiting market expansion

This is the tough reality check. The pool of first-time buyers is shrinking, which puts pressure on capturing market share from competitors. In the U.S., the crude birth rate for 2025 is estimated at 11.99 per 1000 population, representing a 0.12% decline from 2024. The total fertility rate in the U.S. is only 1.6 live births per woman in 2025, well below the 2.1 needed to replace the population.

Carter's, Inc. executives have noted that this declining birth rate is a direct drag on sales, particularly in the U.S. retail business. What this estimate hides is the impact of delayed parenthood; while younger women have fewer children, women aged 30 or older are projected to have a rising fertility rate, suggesting a shift in when purchases happen, not just if.

Brand loyalty remains high for Carter's, Inc., a key competitive advantage

Your legacy is a powerful asset here, especially when new parents are overwhelmed. Carter's, Inc. maintains its position as one of the most trusted brands in the infant and young children's clothing segment in North America as of 2025. This trust translates directly into sales through your loyalty program. Members of your rewards program are responsible for nearly 90% of U.S. retail sales.

The recent relaunch of Carter's Rewards aims to differentiate and reward these best customers. With 10 million loyalty members, your penetration is among the highest in the apparel industry. Still, Gen Z parents are more likely to switch brands for a better deal or better value alignment. You must keep those perks compelling.

Here is a snapshot of the social dynamics influencing your customer base:

Social Metric	2025 Data Point	Source Context
Sustainable Apparel Preference (Millennial Moms)	79%	Indicates strong product line pressure
Digital Engagement (Millennial Moms)	4:04 hours/day online	Requires mobile-first retail focus
U.S. Birth Rate (per 1000 pop.)	11.99 (projected)	Represents a 0.12% decline from 2024
U.S. Total Fertility Rate (births/woman)	1.6	Below replacement level of 2.1
Loyalty Program Sales Penetration (U.S. Retail)	Nearly 90%	Shows high customer retention via rewards
Digital Shopping Preference (Millennials)	50% prefer low/no physical interaction	BOPIS/Curbside are critical convenience factors

You need to ensure your sustainability messaging is clear and that your digital experience is frictionless for the 50% of Millennials who prefer it. Finance: draft 13-week cash view by Friday.

Carter's, Inc. (CRI) - PESTLE Analysis: Technological factors

You're looking at how technology is reshaping the landscape for Carter's, Inc. (CRI) right now, in late 2025. It's not just about having a website anymore; it's about integrating digital everywhere to keep pace with new parents. Honestly, the biggest tech challenge is translating digital engagement into tangible sales growth while managing margin pressure.

E-commerce Penetration and Digital Focus

The drive to digitize is intense. Carter's, Inc. is definitely focusing on pushing digital sales, with an internal aim to get that number over 40% of total revenue, though we haven't seen the final 2025 tally yet. What we do know is that the direct-to-consumer (DTC) business is showing resilience. For instance, in the second quarter of 2025, net sales grew 3.7% year-over-year, largely fueled by this DTC strength. Still, the first quarter showed that while U.S. Retail comparable sales were down 5.2%, the eCommerce channel within that segment was outperforming the physical stores. This signals where capital and focus must go.

Here's a quick look at the digital performance snapshot from the first half of 2025:

Metric	Q1 2025 Value	Q2 2025 Value	Context
Consolidated Net Sales	$630 million	$585.3 million	Q1 vs Q2 comparison
U.S. Retail Comp Sales Trend	Down 5.2%	Stabilization/Momentum	eCommerce outperformed stores in Q1
Total Annual Visits (Stores + Digital)	N/A	Over 250 million visits	Past 12 months ending Q2

What this estimate hides is the conversion rate difference between channels; that's the real metric to watch.

Supply Chain Automation and AI for Forecasting

Inventory accuracy is a huge lever for profitability, especially with tariffs biting into margins-gross margin was reported at 45.1% in Q3 2025, down 180 basis points year-over-year. Carter's, Inc. is keenly aware of the need to streamline supply chains using data and AI. While we don't have CRI's internal forecasting accuracy improvement percentage, the broader logistics tech space is seeing massive shifts. For example, collaborative robots, like the 'Carter' platform, are delivering over 60% productivity gains in picking operations in early deployments. This trend shows the potential for AI-driven forecasting to reduce costly overstock or stockouts, which is critical when operating margins are thin, like the reported 3.0% operating margin year-to-date in Q3 2025.

Social Media and Influencer Marketing for Discovery

To capture the next wave of parents-the Gen Z cohort, which the company anticipates will be two-thirds of new parents by 2025-the marketing has to feel authentic. Glossy ads just don't work; they scroll right past them. Carter's, Inc. is leaning heavily into creator content and influencers to show the real-life messiness of parenting and the durability of their clothes. This strategy is deployed across platforms like TikTok, Instagram, and YouTube. The influencer marketing industry itself is projected to hit $32.55 billion by the end of 2025. For Carter's, this means:

• Using influencers for authentic unboxings and reviews.
• Creating short-form video content mirroring creator styles.
• Focusing on durability and function over just being 'cute.'

In-Store Technology and Omnichannel Experience

Even as digital grows, the physical footprint remains important, with the company betting on new store openings. The technology focus here is on blending the channels seamlessly. Buy Online, Pick Up In Store (BOPIS) is a key component of this omnichannel approach, helping drive traffic and conversion. In Q3 2025, the U.S. Retail segment saw comparable sales increase 2.0%, showing that store traffic, when captured, is still valuable. The goal is to use in-store tech to make the experience convenient and modern, supporting the DTC growth rather than competing with it. If onboarding new in-store tech takes longer than, say, 14 days, churn risk rises for tech-savvy customers.

Finance: draft 13-week cash view by Friday.

Carter's, Inc. (CRI) - PESTLE Analysis: Legal factors

You're looking at the legal landscape for Carter's, Inc. (CRI) right now, and honestly, it's dominated by one massive, external factor: international trade policy. The legal and regulatory environment in late 2025 is defined by significant, unpredictable import duties that are hitting your bottom line hard.

International tariff and customs regulations create complexity for global sourcing and distribution

This is where the real money is being lost, or at least, where the biggest fight is happening. New tariffs have dramatically increased the cost of goods sold, forcing Carter's, Inc. to take drastic measures. The company estimates the gross pre-tax earnings impact from these additional import duties to be an annualized $200 million to $250 million. To put that in perspective, duties paid in fiscal 2024 were about $110 million.

The effective duty rate has ballooned to the high 30% range from a historical rate of about 13%. This pressure has led to major restructuring: Carter's, Inc. is now closing approximately 150 underperforming North American stores over the next three years, up from a previous target of 100. Furthermore, the company is cutting 300 office jobs, which is 15% of its corporate workforce, by the end of 2025, aiming to save $35 million annually starting in 2026.

Here's a quick look at the tariff exposure and the company's shift in sourcing strategy for fiscal year 2025:

Metric	Value / Percentage	Context
Estimated Annualized Gross Pre-Tax Tariff Impact	$200 million to $250 million	FY2025 annualized estimate
Net Adverse Pre-Tax Impact (Q4 FY2025)	$25 million to $35 million	Anticipated for the final quarter
Historical Import Duties Paid (FY2024)	Approx. $110 million	Pre-major tariff escalation
Sourcing Spend from Top 4 Countries (FY2025)	Approx. 75%	Vietnam, Cambodia, Bangladesh, India
Sourcing Spend from China (FY2025)	Less than 3%	Significant reduction from prior years

The company is trying to offset this through price increases, vendor cost-sharing, and assortment changes, but the sheer scale of the duty increase makes this a massive headwind. It's a clear example of how quickly a legal/policy shift can derail financial planning.

Data privacy regulations (like CCPA) require significant investment in customer data protection

While tariffs are the immediate crisis, data privacy remains a persistent, costly legal obligation, especially with California's CCPA rules tightening. Regulators are actively enforcing these laws in 2025. For instance, the California Privacy Protection Agency (CPPA) announced a $1.35 million settlement with a retailer, Tractor Supply Co., in September 2025 for alleged CCPA violations, including failure to honor opt-out requests.

For Carter's, Inc., this means continuous investment in systems to manage consumer rights requests and ensure proper data handling across its e-commerce and loyalty programs. If onboarding takes 14+ days, churn risk rises, and regulatory scrutiny increases. You need to be sure your data governance framework is airtight, especially since fines are indexed to inflation and increased at the start of 2025.

• Monitor multi-state privacy task forces (CA, CO, CT, DE, IN, NJ, OR).
• Ensure Global Privacy Control automated opt-outs are honored.
• Allocate budget for ongoing CCPA/CPRA compliance audits.

Stricter US Consumer Product Safety Commission (CPSC) rules increase product testing and compliance costs

As a company focused on babies and young children, Carter's, Inc. operates under intense scrutiny from the CPSC. While I don't have a specific 2025 compliance cost figure for CRI, the trend is toward more rigorous testing protocols for materials, flammability, and small parts, especially for brands like Skip Hop. This translates directly into higher costs for raw materials, supplier certification, and internal quality assurance teams. You have to factor in these non-negotiable safety testing expenses into every product cost model.

Labor laws related to wages and working conditions in US retail stores are constantly evolving

Evolving state and local labor laws concerning minimum wage, scheduling, and employee classification add complexity to managing your retail footprint. Although the most visible workforce action at Carter's, Inc. this year was the 15% corporate job cut driven by tariffs, managing compliance for the remaining store associates across the US, Canada, and Mexico is a constant legal drain. You must track local wage ordinances, especially as you manage lease expirations for those 150 stores slated for closure.

Finance: draft 13-week cash view by Friday, incorporating the Q4 tariff impact estimate of $25 million to $35 million.

Carter's, Inc. (CRI) - PESTLE Analysis: Environmental factors

You're looking at how the rising tide of environmental accountability is shaping the operational playbook for Carter's, Inc. (CRI). Honestly, the pressure isn't just coming from regulators anymore; it's baked into consumer expectation and supply chain viability. For a company heavily reliant on global manufacturing, especially in Asia, managing water, chemicals, and emissions is now a core financial risk, not just a PR exercise.

Pressure to reduce carbon footprint in the supply chain, particularly ocean freight

The focus on Scope 3 emissions-the indirect ones from your supply chain-is intense, and transportation is a big piece of that pie. Carter's, Inc. has a science-based target, validated by the Science Based Targets initiative (SBTi), to slash absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 50% by 2030, using a 2019 baseline. By the end of 2022, they had already achieved a 28% reduction in absolute GHG emissions. The real challenge, and where the pressure mounts, is in engaging suppliers to set their own targets; as of 2024, only 17% of covered vendors by spend had set science-based targets, against a 77% goal by 2027. Ocean freight is a major component of Scope 3, and while the reports don't detail specific ocean freight reductions, the push for supplier engagement directly addresses this upstream risk.

Increased focus on using organic cotton and recycled materials in new product lines

Meeting consumer demand for 'greener' products means shifting fiber sourcing, and this is where you see concrete goals. Cotton is the backbone of Carter's, Inc.'s material use, making up almost 70% of their fiber volume. Their big target is 100% sustainable cotton fibers by 2030. In 2024, they hit 28% sustainable cotton sourcing, missing their interim goal, which shows the difficulty in scaling certified materials. Their Little Planet brand acts as an incubator, using Global Organic Textile Standard (GOTS)-certified cotton. On the packaging front, the news is better: over 60% of product packaging now uses recycled content as of 2024.

Waste reduction goals for packaging and end-of-life garment disposal are now standard

Waste management targets are now hard deadlines. Carter's, Inc. set a goal to divert 80% of operational waste from landfill by 2025. As of 2024, they achieved an overall diversion rate of 65%, with distribution centers leading the way at over 80%. This gap suggests a tough final push in their retail locations. For packaging, they are committed to a 50% reduction in virgin plastic by 2030 from a 2022 baseline. To handle end-of-life, the KIDCYCLE™ take-back program was relaunched in select stores in 2025, allowing customers to mail in old apparel for recycling into materials like insulation. It's defintely a move to close the loop.

Here are the key environmental progress metrics as reported through 2024:

Metric Category	Goal/Target Date	2024 Progress/Status
Operational Waste Diversion	80% by 2025	65% overall diversion rate
Virgin Plastic Packaging Reduction	50% by 2030	Over 60% of packaging from recycled content
Sustainable Cotton Sourcing	100% by 2030	28% of cotton sustainably sourced
Supplier Science-Based Targets (SBTs)	77% of spend by 2027	17% of covered vendors by spend have SBTs

Water usage and chemical management in Asian dyeing and finishing facilities face greater scrutiny

Since much of the manufacturing is in Asia, scrutiny on water and chemical use in dyeing and finishing facilities is a major operational factor. Carter's, Inc. set a goal to reduce water usage in product manufacturing and washing by 2025. To drive this, they required all factories and mills to complete the Higg FEM (a tool to assess environmental performance) in 2023. They are also using the Jeanologia Environmental Impact Measuring (EIM) software to get better visibility into water, energy, and chemical impact in washing processes. On the chemical side, they are aligning with the Zero Discharge of Hazardous Chemicals (ZDHC) Manufacturing Restricted Substances List (MRSL), aiming to have 80% of fabric volume mills and 80% of laundry facilities engaged by the end of 2025. Plus, 99% of their supplier facilities were OEKO-TEX® STANDARD 100 Certified as of 2024, meaning products are tested for harmful substances.

• Reduced styles requiring extra garment washing by 23% in 2023 versus 2022.
• Testing protocols are being updated to test PFAS by total organic fluorine.
• Little Planet brand specifically uses GOTS-certified materials.

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