First Quarter 2016 Business Update

Balance Sheet and Cash Flow Balance Sheet (at Q1 end) Cash Flow (Q1) 2016 $395 Accounts Receivable 193 Inventory 376 Accounts Payable Long-Term Debt Cash $ in millions 1 Non-GAAP measure Note: Results may not be additive due to rounding. 90 580 2015 $377 196 358 94 580 2016 2015 Operating Cash Flow $128 $87 Capital Expenditures (26) (21) Free Cash Flow¹ $103 $66 • Strong liquidity • Inventory +5% vs. LY due to business growth • Returned $89 million to shareholders in Q1 $72 million in share repurchases - $17 million in dividends ● carter's OSHKOSH 1 Bgosh - Additional $54 million in share repurchases Q2 QTD Total of $125 million in share repurchases YTD (through 4/27/16) - Approximately $449 million remaining on share repurchase authorizations • Free cash flow improvement reflects higher earnings and favorable changes in net working capital, offset in part by increased capital expenditures 01 5

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