#1carter's Fourth Quarter / Fiscal Year 2022 Results & Business Update February 24, 2023#2Fourth Quarter 2022 Results (GAAP Basis) Net sales Gross profit Royalty income SG&A Intangible asset impairment Operating income Interest and other, net Income before taxes Income tax provision Net income Diluted EPS Weighted-average shares outstanding EBITDA¹ ¹ Non-GAAP measure; see reconciliation to GAAP in appendix. Note: Results may not be additive due to rounding. $ in millions, except EPS Q4 % of 2022 Sales $912 416 5 302 9 110 9 100 20 $80 $2.11 37 45.6% 0.6% 33.2% 1.0% 12.0% 1.0% 11.0% 8.8% $126 13.8% Q4 2021 $1,062 493 6 361 138 15 123 26 $97 $2.31 41 $164 % of Sales 46.4% 0.6% 34.0% 13.0% 1.4% 11.6% 9.1% 15.4% carter's Change (14%) (16%) (11%) (16%) N/M (21%) (37%) (19%) (23%) (17%) (9%) (10%) (23%) 2 N#3Fiscal Year 2022 Results (GAAP Basis) Net sales Gross profit Royalty income SG&A Intangible asset impairment Operating income Interest and other, net Loss on extinguishment of debt Income before taxes Income tax provision Net income Diluted EPS Weighted-average shares outstanding EBITDA¹ ¹ Non-GAAP measure; see reconciliation to GAAP in appendix. Note: Results may not be additive due to rounding. $ in millions, except EPS Fiscal % of 2022 Sales $3,213 1,472 26 9 1,110 34.6% 42 20 379 11.8% 317 67 45.8% $250 $6.34 0.8% 39 0.3% 1.3% 0.6% 9.9% 7.8% $424 13.2% Fiscal 2021 $3,486 1,662 47.7% 29 497 1,194 34.2% 59 438 99 $340 $7.81 43 % of Sales $592 0.8% 14.3% 1.7% 12.6% 9.7% 17.0% carter's Change (8%) (11%) (10%) (7%) N/M (24%) (28%) N/M (28%) (32%) (26%) (19%) (10%) (28%) 3#4Non-GAAP Adjustments¹ As reported (GAAP) Intangible asset impairment COVID-19 expenses Restructuring benefit Store lease impairment benefit Total adjustments As adjusted As reported (GAAP) Loss on extinguishment of debt Intangible asset impairment COVID-19 expenses Restructuring costs Store lease impairment benefit Total adjustments As adjusted 9.0 $118.5 13.0% Operating % Net 2022 Pre-Tax Net Diluted Income Sales Income Income EPS $109.5 12.0% $100.5 $80.2 $2.11 0.18 9.0 9.0 6.9 Operating % Net Income Sales $379.2 11.8% 9.0 $ in millions, except EPS 9.0 $388.2 9.0 $109.5 2022 Pre-Tax Income $316.7 19.9 9.0 28.9 12.1% $345.7 6.9 $87.0 Fourth Quarter 15.2 6.9 0.18 $2.29 Net Diluted Income EPS $250.0 $6.34 0.38 0.17 Operating % Net Income Sales $138.0 13.0% Fiscal Year 22.0 0.56 $272.0 $6.90 - ¹ Certain measures are presented on an adjusted basis, a non-GAAP presentation; see reconciliation to GAAP in appendix. Note: Results may not be additive due to rounding. 0.4 (0.1) (0.4) (0.1) $137.9 Operating % Net Income Sales $497.1 14.3% 3.9 2.4 (2.6) 3.7 13.0% $500.8 carter's 2021 Pre-Tax Net Diluted Income Income EPS $123.5 $97.0 $2.31 - 0.4 0.3 (0.1) (0.1) (0.4) (0.3) (0.1) (0.1) $123.4 0.01 (0.01) $96.9 $2.31 3.9 3.0 2.4 1.8 (2.6) (2.0) 2.8 3.7 14.4% $442.0 $342.5 2021 Pre-Tax Net Diluted Income Income EPS $438.3 $339.7 $7.81 0.07 0.04 (0.05) 0.06 $7.87 4#5Fourth Quarter 2022 Performance Net Sales $1,062 2021 -14% vs. 2021 $912 2022 $ in millions, except EPS Adjusted Operating Income¹ (Adjusted Operating Margin) $138 13.0% of Net Sales 2021 -14% vs. 2021 $119 13.0% of Net Sales 2022 ¹ Certain measures are presented on an adjusted basis, a non-GAAP presentation; see reconciliation to GAAP in appendix. Adjusted Diluted EPS¹ $2.31 carter's 2021 -1% VS. 2021 $2.29 2022 5#6We Achieved Guidance Provided in October (Adjusted Basis) Q4 2022² Fiscal 2022 Net Sales Operating Income Operating Margin Diluted EPS Operating Cash Flow $ in millions, except EPS Guidance¹ $845 - $885 $85 - $115 10.1% -13.0% $1.40 - $2.00 $40 - $50 carter's Actual Results $912 $119 13.0% $2.29 ¹ Guidance provided on Q3 2022 earnings call on 10/28/22. 2 Operating income, operating margin and diluted EPS presented on an adjusted basis, a non-GAAP presentation; see reconciliation to GAAP in appendix. $88 6#7Fiscal Year 2022 Performance Net Sales $3,486 2021 -8% VS. 2021 $3,213 2022 $ in millions, except EPS Adjusted Operating Income¹ (Adjusted Operating Margin) $501 14.4% of Net Sales 2021 -22% vs. 2021 $388 12.1% of Net Sales 2022 ¹ Certain measures are presented on an adjusted basis, a non-GAAP presentation; see reconciliation to GAAP in appendix. Adjusted Diluted EPS¹ $7.87 carter's 2021 -12% VS. 2021 $6.90 2022 7#8Fourth Quarter 2022 Adjusted Results ¹ Net sales Gross profit Royalty income Adjusted SG&A Adjusted operating income Interest and other, net Adjusted income before taxes Adjusted provision for income taxes Adjusted net income Adjusted diluted EPS Weighted-average shares outstanding Adjusted EBITDA $ in millions, except EPS Q4 2022 $912 416 5 302 119 9 109 22 % of Sales $2.29 37 45.6% 0.6% 33.2% 13.0% 1.0% 12.0% $87 9.5% $135 14.8% Q4 2021 $1,062 493 6 ¹ Certain measures are presented on an adjusted basis, a non-GAAP presentation; see reconciliation to GAAP in appendix. Note: Results may not be additive due to rounding. 361 138 15 123 26 $97 $2.31 41 $164 % of Sales 46.4% 0.6% 34.0% 13.0% 1.4% 11.6% 9.1% 15.4% carter's Change (14%) (16%) (11%) (16%) (14%) (37%) (11%) (15%) (10%) (1%) (10%) (18%) 8