First Quarter 2016 Business Update

First Quarter 2016 Highlights ● ● Net Sales $684.8 2015 +6% $724.1 2016 $ in millions, except EPS Adjusted Operating Income* (Adjusted Operating Margin) $87.3 12.7% of Net Sales 2015 +8% * Results are stated on an adjusted basis; see reconciliation to GAAP on pages 26 and 27. $94.0 13.0% of Net Sales 2016 $0.97 2015 carter's OSHKOSH 1 Bgosh Adjusted EPS* +8% • Net sales +6% driven by growth in our U.S. Retail, Carter's Wholesale, and International business Adjusted operating margin +30 bps, driven by stronger gross margin Adjusted EPS growth +8% $1.05 2016 2

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