Carter's, Inc. (CRI): Analyse de Pestle [Jan-2025 MISE À JOUR]

Dans le monde dynamique des vêtements pour enfants, Carter's, Inc. (CRI) navigue dans un paysage complexe de défis et d'opportunités mondiales. Cette analyse complète du pilon dévoile le réseau complexe des facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent les décisions stratégiques de l'entreprise. De l'évolution des politiques commerciales à la transition des préférences des consommateurs, Carter doit manœuvrer habilement à travers un environnement commercial à multiples facettes qui exige l'innovation, la durabilité et la résilience. Plongez dans cette exploration révélatrice des forces externes à conduire l'une des marques de vêtements pour enfants les plus éminentes du marché.

Carter's, Inc. (CRI) - Analyse du pilon: facteurs politiques

Les politiques commerciales américaines ont un impact sur l'importation / l'exportation de la fabrication de vêtements pour enfants

En 2023, Carter a importé environ 72% de ses produits de vêtements de pays comme le Vietnam, la Chine et le Bangladesh. Les tensions commerciales actuelles-chinoises ont entraîné des tarifs supplémentaires allant de 7,5% à 25% sur les vêtements pour enfants importés.

Pays	Pourcentage d'importation	Taux tarifaire
Vietnam	38%	12%
Chine	22%	25%
Bangladesh	12%	7.5%

Changements potentiels dans les réglementations tarifaires affectant la chaîne d'approvisionnement mondiale

Les politiques commerciales de l'administration Biden ont maintenu des réglementations d'importation complexes, avec des modifications futures potentielles qui devraient avoir un impact sur la stratégie d'approvisionnement mondial de Carter.

• Tarif tarif moyen actuel sur les vêtements pour enfants: 16,5%
• Augmentation du tarif potentiel estimé: 3-5% en 2024-2025
• Coûts de chaîne d'approvisionnement annuels supplémentaires projetés: 12 à 18 millions de dollars

Règlements gouvernementaux sur les normes de sécurité des produits pour enfants

La Consumer Product Safety Improvement Act (CPSIA) oblige des normes de sécurité strictes pour les produits pour enfants. En 2023, Carter a investi 4,2 millions de dollars dans les procédures de conformité et de test.

Zone de conformité de la sécurité	Investissement annuel
Test d'infrastructure	2,1 millions de dollars
Certification matérielle	1,5 million de dollars
Documentation réglementaire	$600,000

Changements potentiels dans les lois du travail influençant les pratiques de fabrication

Les réglementations émergentes du travail dans les pays manufacturières créent des défis potentiels pour les stratégies de production internationales de Carter.

• Augmentation du salaire minimum au Vietnam: 5,5% en 2023
• Règlements sur la rémunération des heures supplémentaires au Bangladesh: Nouvelles directives 2024
• Impact estimé des coûts de main-d'œuvre annuelle: 8 à 10 millions de dollars

Carter's, Inc. (CRI) - Analyse du pilon: facteurs économiques

Fluctuant les dépenses de consommation pour les vêtements et accessoires pour enfants

En 2023, le marché américain des vêtements pour enfants était évalué à 35,4 milliards de dollars, Carter détenant une part de marché de 16,8%. Les tendances des dépenses de consommation ont montré une baisse de 3,2% d'une année à l'autre des achats de vêtements pour enfants.

Année	Valeur marchande	Changement de dépenses de consommation	Part de marché de Carter
2022	36,5 milliards de dollars	+1.7%	17.2%
2023	35,4 milliards de dollars	-3.2%	16.8%

Inflation et augmentation des coûts de production ayant un impact sur les marges bénéficiaires

Carter a connu une augmentation de 5,7% des coûts de production en 2023, les dépenses de matières premières augmentant de 4,3%. La marge brute de l'entreprise est passée de 39,2% en 2022 à 36,8% en 2023.

Composant coût	2022 dépenses	2023 dépenses	Pourcentage d'augmentation
Matières premières	412 millions de dollars	430 millions de dollars	4.3%
Coût total de production	1,05 milliard de dollars	1,11 milliard de dollars	5.7%

Risques de récession économique affectant les achats de consommation discrétionnaires

Les dépenses discrétionnaires des consommateurs pour les vêtements pour enfants ont diminué de 2,9% en 2023. Carter a déclaré une réduction de 1,6% du chiffre d'affaires total, passant de 3,26 milliards de dollars en 2022 à 3,21 milliards de dollars en 2023.

Métrique financière	Valeur 2022	Valeur 2023	Pourcentage de variation
Revenus totaux	3,26 milliards de dollars	3,21 milliards de dollars	-1.6%
Dépenses discrétionnaires	1,42 milliard de dollars	1,38 milliard de dollars	-2.9%

La volatilité des taux de change a un impact sur les opérations du marché international

Les revenus internationaux de Carter étaient de 456 millions de dollars en 2023, avec des fluctuations de change provoquant une réduction de 2,1% des bénéfices internationaux du marché.

Région	2022 Revenus	Revenus de 2023	Impact de la monnaie
Marchés internationaux	465 millions de dollars	456 millions de dollars	-2.1%
Taux de change clés	USD / CAD: 1,35	USD / CAD: 1,32	-2.2%

Carter's, Inc. (CRI) - Analyse du pilon: facteurs sociaux

Demande croissante de vêtements pour enfants durables et éthiques

Selon un rapport de McKinsey en 2023, 67% des parents sont prêts à payer plus pour les vêtements pour enfants durables. Le marché mondial des vêtements pour enfants durables était évalué à 4,3 milliards de dollars en 2022, avec un TCAC projeté de 9,7% à 2027.

Segment de marché	Valeur 2022	2027 Valeur projetée	TCAC
Vêtements pour enfants durables	4,3 milliards de dollars	6,8 milliards de dollars	9.7%

Changer la démographie familiale et les taux de natalité influençant la taille du marché

Les taux de natalité américains en 2022 étaient de 56,1 naissances pour 1 000 femmes âgées de 15 à 44 ans. La taille moyenne des ménages en 2023 était de 2,51 personnes, avec 35% des ménages ayant des enfants de moins de 18 ans.

Métrique démographique	Données 2022-2023
Taux de natalité américain	56,1 pour 1 000 femmes
Taille moyenne du ménage	2,51 personnes
Ménages avec enfants	35%

Tendance croissante de la mode pour enfants non sexistes

Le marché des vêtements pour enfants non sexistes a augmenté de 14,2% en 2022, avec 42% des parents du millénaire exprimant la préférence pour les options de vêtements non binaires.

Marché des vêtements neutres de genre	2022 Croissance	Préférence des parents du millénaire
Extension du marché	14.2%	42%

Préférence croissante des consommateurs pour les expériences d'achat en ligne

Les ventes de commerce électronique pour les vêtements pour enfants ont atteint 23,4 milliards de dollars en 2022, ce qui représente 38% du total des ventes de vêtements pour enfants. Les achats mobiles représentaient 67% des achats en ligne.

Métrique d'achat en ligne	2022 données
Ventes de commerce électronique des vêtements pour enfants	23,4 milliards de dollars
Pourcentage de la vente totale de vêtements	38%
Pourcentage d'achat mobile	67%

Carter's, Inc. (CRI) - Analyse du pilon: facteurs technologiques

Transformation numérique dans les plateformes de vente au détail et de commerce électronique

Carter's, Inc. a déclaré 3,07 milliards de dollars de ventes numériques pour 2022, ce qui représente 32% du total des revenus de l'entreprise. La plate-forme de commerce électronique de l'entreprise a connu une croissance de 15,2% des transactions en ligne au cours de l'exercice.

Métrique de vente numérique	2022 données	Changement d'une année à l'autre
Revenus numériques totaux	3,07 milliards de dollars	+15.2%
Volume de transaction en ligne	14,6 millions	+12.8%
Pourcentage de ventes mobiles	48.3%	+6.5%

Technologies avancées de gestion et de suivi des stocks

Carter a mis en œuvre le suivi RFID sur 95% de sa chaîne d'approvisionnement, réduisant les écarts d'inventaire de 22%. La société a investi 42,3 millions de dollars dans la technologie de gestion des stocks en 2022.

Métrique technologique des stocks	2022 Performance
Couverture RFID	95%
Précision des stocks	98.7%
Investissement technologique	42,3 millions de dollars

Implémentation d'outils de conception et de prédiction de tendance dirigés par l'IA

Carter a alloué 18,6 millions de dollars aux technologies de l'IA et de l'apprentissage automatique dans la conception des produits. Les outils de prédiction de tendance dirigés par l'IA ont réduit le temps de conception à la mise en marché de 37%.

Métrique technologique de l'IA	2022 données
Investissement technologique AI	18,6 millions de dollars
Réduction du temps de la conception à la mise en marché	37%
Précision des tendances prédits à l'AI	84.5%

Analyse de données améliorée pour les informations sur le comportement des consommateurs

La plate-forme d'analyse de données de Carter a traité 67,3 millions d'interactions clients en 2022. Les outils d'insistance à la consommation de l'entreprise ont généré 126,4 millions de dollars en revenus de marketing ciblés.

Métrique d'analyse des données	2022 Performance
Interactions du client traitées	67,3 millions
Revenus marketing ciblés	126,4 millions de dollars
Précision des informations du consommateur	92.1%

Carter's, Inc. (CRI) - Analyse du pilon: facteurs juridiques

Conformité au travail des enfants et aux réglementations internationales de fabrication

Conformité réglementaire Overview:

Catégorie de réglementation	Statut de conformité	Fréquence d'audit
Normes Fair Labor Association	Pleinement conforme	Trimestriel
Lignes directrices internationales de l'organisation du travail	Conforme certifié	Semestriel
Coutumes et protection des frontières aux États-Unis	Taux de vérification à 100%	Annuel

Protection de la propriété intellectuelle pour la conception et les marques de marque

Statistiques de marque et de brevets:

Catégorie IP	Nombre de marques enregistrées	Juridictions de protection
Marques enregistrées	87	États-Unis, Canada, Union européenne
Brevets de conception	42	Traité international de coopération en matière de brevets

Exigences de certification de sécurité des produits

Détails de la certification de sécurité:

Norme de certification	Pourcentage de conformité	Corps réglementaire
Normes de sécurité CPSC	100%	Commission de sécurité des produits de consommation
Normes internationales ASTM	99.8%	Société américaine pour les tests et les matériaux
EN71 Norme de sécurité des jouets européens	100%	Union européenne

Règlements sur la confidentialité des données et la protection des consommateurs

Métriques de la conformité à la confidentialité:

Règlement	Niveau de conformité	Investissement annuel dans la protection des données
RGPD	Pleinement conforme	2,3 millions de dollars
CCPA	Adhésion à 100%	1,7 million de dollars
Pipeda	Conforme certifié	1,1 million de dollars

Carter's, Inc. (CRI) - Analyse du pilon: facteurs environnementaux

Initiatives de durabilité dans la production et la fabrication de textiles

Carter's, Inc. s'est engagé à réduire la consommation d'eau de 20% dans les processus de fabrication textile d'ici 2025. La société a déclaré une réduction de 12,5% d'eau dans les opérations de fabrication de 2023.

Métrique de la durabilité	2022 Performance	Performance de 2023	Cible 2025
Réduction de l'utilisation de l'eau	8.3%	12.5%	20%
Matériaux textiles recyclés	15.6%	22.4%	35%

Réduire l'empreinte carbone dans les opérations mondiales de la chaîne d'approvisionnement

Carter a déclaré une réduction de 16,7% des émissions de carbone dans les opérations mondiales de la chaîne d'approvisionnement en 2023. La société a investi 4,2 millions de dollars dans les infrastructures d'énergie renouvelable.

Métrique d'émission de carbone	2022 émissions	2023 émissions	Pourcentage de réduction
Émissions totales de carbone (tonnes métriques)	45,600	38,000	16.7%
Investissement d'énergie renouvelable	3,1 millions de dollars	4,2 millions de dollars	35.5%

Augmentation de la demande des consommateurs de matériaux de vêtements respectueux de l'environnement

La gamme de produits en coton biologique de Carter, qui représentait 28,6% des collections de vêtements pour enfants en 2023. Les produits en coton biologique ont généré 127,5 millions de dollars de revenus.

Métrique matérielle respectueuse de l'environnement	2022 Performance	Performance de 2023	Pourcentage de croissance
Ligne de produit en coton biologique (%)	22.3%	28.6%	28.3%
Revenus de coton biologique	98,3 millions de dollars	127,5 millions de dollars	29.7%

Pratiques de fabrication de la réduction des déchets et de l'économie circulaire

Le programme de recyclage textile mis en œuvre de Carter, détournant 1 850 tonnes métriques de déchets textiles provenant de décharges en 2023. La société a réalisé 42,5% de réduction des déchets par le biais de pratiques de fabrication circulaires.

Métrique de réduction des déchets	2022 Performance	Performance de 2023	Pourcentage d'amélioration
Déchets textiles détournés (tonnes métriques)	1,250	1,850	48%
Pourcentage de réduction des déchets	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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