CARTERS INC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES

We have provided non-GAAP adjusted operating income and diluted net income per common share measures, which exclude certain

items presented below. We believe that this information provides a meaningful comparison of our results and affords investors a view of

what management considers to be our core performance, and we also, from time to time, use some of these non-GAAP measures, such

as adjusted operating income, as performance metrics in awards under our annual and long-term incentive compensation plans. These

measures are not in accordance with, or an alternative to, generally accepted accounting principles in the U.S. (GAAP). The most

comparable GAAP measures are operating income and diluted net income per common share, respectively. Adjusted operating income

and diluted net income per common share should not be considered in isolation or as a substitute for analysis of our results as reported

in accordance with GAAP. Other companies may calculate adjusted operating income and diluted net income per common share

differently than we do, limiting the usefulness of the measure for comparisons with other companies.

(*) Fiscal year 2020 included 53 weeks, compared to 52 weeks in fiscal 2024, 2023, 2022, and 2021.

(1)Related to charges for organizational restructuring in fiscal 2024. Fiscal 2023 relates to charges for organizational restructuring and related corporate

office lease amendment actions. Fiscal 2021 and 2020 amounts relate to certain lease exit, severance and related costs resulting from restructuring

actions (not related to COVID-19).

(2)Related to a non-cash impairment charge on the OshKosh indefinite-lived tradename asset in fiscal 2024. Fiscal 202 write-down relates to Skip Hop

tradename asset. Fiscal 2020 write-down relates to OshKosh and Skip Hop tradename assets.

(3)Related to a non-cash partial pension settlement charge in the fiscal in 2024.

(4)In fiscal 2023, a pre-tax adjustment of approximately $6.9 million ($5.3 million net of tax, or $0.14 per diluted share) was made related to a gain on a

court-approved settlement in December 2023.

(5)In fiscal 2022, a pre-tax adjustment of approximately $19.9 million ($15.2 million net of tax, or $0.38 per diluted share) was made related to a loss on

extinguishment of debt in fiscal 2022.

(6)Net expenses incurred due to the COVID-19 pandemic.

(7)Impairments include an immaterial gain on the remeasurement of retail store operating leases.

(8)Goodwill impairment charge recorded in the International segment.

Note: Results may not be additive due to rounding.