Carter's corporate analysis by Lina Duong

Corporate Analysis Prepared by: Linh Duong and Mackenzie Lachey

Table of Contents The Company Company Overview Products Company Values Manufacturing Facilities Leadership Government Mishaps

Standards and Controls 4 5 9 10 11 12

Key Financial Ratios Financial Overview Liquidity Financial Health Efficiency Valuation

14 15 16 17 18

Standards Control Mechanisms

40 42

Budgets Sales Budget Production Budget Operating Budget

44 45 48

Performance and Presentation Balanced Scorecards Presenting to External Parties Presenting to Internal Parties

50 52 56

Costing Direct Costs Indirect Costs Finished Goods Inventory and Manufacturing Philosophy Raw Materials

21 23 24 25

The Market Market Reaction to Product The Product and Raw Goods Supply Potential Bottlenecks

26 28 31

Corporate Decisions Make or Buy Decisions Vertical Integration Special Orders, Wholesale, Licensing, Direct to Consumer Capital investment Decisions

32 35 37 38

The Company Carter’s Inc. is headquartered in Atlanta, Georgia and is the largest branded marketer in the United States and Canada of baby and young children’s apparel and related products (Carter’s, Inc). As a multi-channel business, the company has the broadest distribution of young children’s apparel in the market, generating $3.2 billion in net sales in 2016 (Carter’s Inc). The Carter’s Inc. family includes Carter’s, OshKosh B’gosh, and Skip Hop as well as several wholesale entities. Through these brands, Carter’s is able to provide its customers with a wide variety of products ranging from baby and young children’s apparel to toys and nursery gear.

The Carter’s Inc. family includes Carter’s, OshKosh B’gosh, and Skip Hop as well as several wholesale entities. Through these brands, Carter’s is able to provide its customers with a wide variety of products ranging from baby and young children’s apparel to play sets.

Products Baby and Young Children’s Apparel

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The company makes more than 10 products for every child born in the United States (Dorich). Carter’s brands are sold in department stores, national chains, and specialty retailers in the United States, internationally and online (Carter’s Inc). The company’s business is split approximately 50/50 between Carter’s retail operations and wholesale accounts that include Macy’s, Target, Walmart and Kohl’s (Dorich).

OshKosh B’gosh Hickory Stripe Overalls - Ozark Blue Wash 4

Toddler Girls’ Brocade A Line Dress - Genuine Kids™ from OshKosh® Stormy Purple

Carter’s Hooded Sherpa Jumpsuit 5

Playtime & Toys

Skip Hop Explore & More Rocking Owl Stacker Toy

Skip Hop Moby SoftSpot Sink Bather™ Skip Hop Uplift MultiLevel Baby Bouncer

Nursury and Gear 6

Skip Hop Explore & More Baby’s View 3-Stage Activity Center

Company Values Carter’s believes in creating innovative products made out of quality materials that celebrate childhood and support families through thoughtful designs (The Carter’s Story). Carter’s is invested in the well-being of all babies and children, so the company developed ways to protect and nurture children and build communities in which they can thrive (Program Philosophy). The company believes in using its strengths and resources to evoke positive change by ensuring no product that could be used by a child in need is ever discarded, giving back to the communities in which it does business, educating its employees about the company’s commitment to making a difference, engaging its customers in the causes the company supports, and keeping children at the heart of the company’s business (What We Do).

Skip Hop Zoobrella Little Kid Umbrella

Skip Hop Zoo Lunchie Insulated Kids Lunch Bag

3-Pack Bandana Bibs

Accessories

Manufacturing Facilities

Leadership

Carter’s sources its products from a network of international suppliers primarily located in Asia and Central America (Reuters). In addition to these suppliers, the company owns and operates two distribution centers in Georgia. Additionally, Carter’s outsources distribution activities to a third-party provider located in California (Reuters). To assist its international wholesale customers, Carter’s outsources distribution activities to international thirdparty providers in Canada and China (Reuters).

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Although Carter’s Inc. does not own any of the factories that make the company’s products, Carter’s ensures that its manufacturing is in compliance with both legal and ethical standards (Social Responsibility). One way the company ensures standards is by conducting factory audits as well as launching social responsibility programs (Dorich).

http://sdi.systems/carters-case-study/

Government Mishaps

Key Financial Ratios

https://www.cbsnews.com/news/baby-rashes-prompt-clothing-warning/

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Despite the company’s success, there have been challenges that have led the United States government to intervene. The U.S. Consumer Product Safety Commission issued a warning on October 24, 2008 warning parents about Carter’s tagless labels (CPSC). There were reports of a small percentage of babies developing a rash after wearing Carter’s clothing with heat transferred labels (CPSC). There were approximately 400 reported cases and applied to the fall 2007 line of garments which included around 110 million pieces that were manufactured outside of the United States (CBS News).

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Financial Overview As a company, Carter’s Inc. primarily operates in the baby and young child apparel segments. Its main brands are Carter’s and OshKosh, with the latter being acquired in 2005. As of 2016, these two brands have combined to hold a market-leading share of 17.8% (14.9% for Carter’s & 2.9% for OshKosh) in the $21 billion target market for kids between the ages of 0 and 7 years old. The company competes primarily with Disney, Gymboree, Gap, Old Navy, and the Children’s Place in that space. In addition, the company’s store count has also been quite impressive, with it almost doubling since 2011.

In the latter half of 2016, Carter’s acquired Skip Hop for $140 million. Skip Hop operates baby products market, selling gears such as high chairs, diaper bags, and baby gyms. Management has indicated that Skip Hop operates in a relatively stable $9 billion market (Seeking Alpha). Carter’s Inc. noted good quarterly results with swelling revenues driven by e-commerce. The company announced encouraging 2016 guidance, increased their dividend by 50% and committed to further share buybacks (Business Wire).

Liquidity Carter (NYSE:CRI)’s gained nearly 20% after announcing good third quarter 2017 earnings, with increasing net sales and steady cash flows. Guidance was equally promising, with an increase in 2018 sales expected from Simple Joys by Carter’s, a kids clothing line exclusively sold via Amazon (Business Wire).

Liquidity ratios measure a firm’s ability to satisfy its short-term debt obligations with current assets. When comparing Carter’s liquidity ratios such as their current and quick ratio, Carter’s was consistently above the industry average. This shows that Carter’s is more financially set than the industry in terms of liquidity. During the past 13 years, Carter’s Inc.’s highest Current Ratio was 6.75, the lowest 2.08 and the median was 3.81. Carter’s has a Current Ratio of 3.8 for 2017, which is higher than the industry average -2.24. However, it’s decreased in comparison with previous years, which indicates that

the company has been using its current assets or tis shortterm financing facilities less efficiently. Although Carter’s Quick Ratio has decreased in last year it is still higher that the industry average - 1.49 and indicates a good company’s liquidity position and financially secure in the short term. Decreasing quick ratio generally suggest that the company is overleveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly.

Financial Health

Carter’s debt to equity ratios for the past three years indicate that the company has significantly increased its financing through debt from 2015 to 2016. These ratios show that Carter’s is taking advantage of the increased profits that this financial leverage may bring. However, the company should also be careful not to let its debt to equity ratio rise too high because it may not be able to generate enough cash to meet its debt obligations. In 2016, for every dollar of Carter’s owned by shareholders, Carter’s owes $1.47 to creditors. The average (D/E) ratio among S&P 500 companies is currently approximately 1.5.

Efficiency The accounts receivable ratio is intended to evaluate the ability of a company to efficiently issue credit to its customers and collect funds from them in a timely manner. The company’s ratio is significantly higher than the industry average -11.9. A high turnover ratio indicates a combination of a conservative credit policy and an aggressive collections department, as well as a number of highquality customers.

Inventory turnover is a ratio shows how many times a company’s inventory is sold and replaced over a period of time. In comparison with the industry average of 3.2, Carter’s has a higher and stable Inventory turnover ratio over last years, which implies that the company has strong sales. The asset turnover ratio is a measure of the value of a company’s sales in relation to the value of its assets and indicates how well the company is using its assets to generate revenue. Looking at Carter’s asset turnover ratios for the past three years it is clear that the company has improved its performance and is generating more revenue per dollar of assets. In 2016, for every dollar of Carter’s assets, the company generated $1.62 in sales, an increase from $1.54 in 2015.

Valuation

Carter’s financial ratios analysis shows that the company has a good brand equity and solid financials. The company is very healthy and there is clear growth opportunity. Additionally it’s cash flow generative and returns cash to shareholders.

The price earnings ratio for Carter’s has declined over the last three years from 23.3 to 16.73. The P/E ratio helps inform investors whether or not a stock is worth purchasing. Typically. A high P/E indicates that investors are expecting higher earnings growth. In 2014 investors were willing to pay $23.30 for $1 of earnings, but by 2016, investors were only willing to pay $16.73 for $1 of current earnings. The long-term average P/E for the S&P 500 is around 15, so Carter’s P/E ratios for the last three years show that although they have declined, they are still above average.

Costing

Direct Costs Direct costs indicate all expenses that are used to directly produce a finished product, in this case a garment.

https://www.linkedin.com/pulse/guideline-garments-manufacturing-process-pattanachai-kaewkanha/

Cost analysis for Carterâ&#x20AC;&#x2122;s manufacturing process deals with the product and process costing. The production cost of a garment must be determined in order to set the wholesale price, the price that retailers pay for goods that they purchase from manufacturers.

Direct Labor

https://www.textiletoday.com.bd/garment-costing-merchandisers

Direct labor covers the cost of all labor directly involved in producing the garment and includes assembly construction, sewing, knitting, stitching, dyeing, spreading and cutting, fusing, pressing, finishing, inspection, packing and other special machine operations. Labor of all types and grade has a direct overhead, which includes holiday pay, sick pay, fringe benefits etc. and the statutory payments made by the employer for each employee. This is usually expressed as a percentage of salary and when this percentage is added to the employeeâ&#x20AC;&#x2122;s wage, it becomes the basis for calculating direct labor costs.

Direct Materials Direct materials are all the materials and trimming, which go into the production of the garment. Typically, for their main product line, Carterâ&#x20AC;&#x2122;s direct materials include cloth, lining, bottoms, zips, fusible, threads, tapes, labels, tickets, hangers and packing materials (cartons, boxes, wrapping). https://www.linkedin.com/pulse/guideline-garments-manufacturing-process-pattanachai-kaewkanha/

Indirect Costs Indirect costs are every fixed and variable expenses incurred in operating the factory, such as rent, utilities, insurance, maintenance, depreciation, air conditioning and other energy generation required by a clothing factory.

Indirect Labor Indirect labor includes every employee in the factory who does not directly perform a production operation. For Carterâ&#x20AC;&#x2122;s this would include directors, managers, supervisors, engineers, maintenance staff, security, cleaners etc.

Indirect Materials Indirect materials, also called consumables, contains all the materials not directly linked to the production of a garment. For example, maintenance materials and office materials, such as paper, markers, and other office supplies etc. https://www.researchgate.net/publication/282604549_Cost_Analysis_in_Garment_Industry

Raw Materials

Finished Goods Inventory and Manufacturing Philosophy Carter’s finished goods inventory for 2014, 2015, and 2016 were $444,844,000, $469,934,000, and $487,591,000 respectively. It is expected that companies in the retail industry would have high levels of finished goods. This is due to the high inventory turnover rate for the industry. Carter’s, for example, had an inventory turnover rate of 3.80 for 2016 (Morningstar). This means that roughly every 96 days, the company replenished its inventory. In comparison to its competitors, however, this turnover rate is on the low side. Gap Inc, for example, turned over its inventory 5.36 times in 2016 (Morningstar).

Finished fabrics and trim materials are the primary raw materials for Carter’s clothing products. Finished fabrics include materials like cotton, cotton blend, and polyester blend fabrics.

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Carter’s focuses on manufacturing essential products in order to combat fluctuations in fashion trends and economic cycles. The company manufactures 25,000 to 30,000 new styles every year (Dorich, 2017). To facilitate efficiency despite a vast quantity of styles, Carter’s uses dimension code in its enterprise resource planning system. This allows its factories to customize and tweak styles, content, labeling and packing configurations (Dorich, 2017). Carter’s relies on a more nimble and flexible IT/IS platform compared to the traditional mainframe type ERP systems (Dorich, 2017). This allows the company to be dynamic and efficient. So although Carter’s does not use lean manufacturing, it has found ways to customize and maintain efficiency.

Carter’s uses Anaplan, a cloud-based planning and performance management platform, for inventory planning and buy model solutions which allows the company to understand how much inventory to order, where to place it, and when it should arrive in facilities (Stores, 2017).

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Carter’s also uses fastenings such as Velcro, buttons, zippers, and snaps in its clothing products. Trims and accessories such as appliques, sequins and other decorative elements are also used. Other raw materials include items like thread for constructing the garment.

Image: https://www.oxfordlearnersdictionaries.com/definition/english/fastener 25

Market Reaction to Product

Skip Hop Explore & More Baby’s View 3-Stage Activity Center

Since it was launched in 2016, this product has been highly popular and has stable sales due to it modern yet functional design that is visually stimulating, its ability to “grow” with the baby, and its competitive price. Additionally, it is entertaining, easy to assemble, holds baby’s attention and promotes sensory development. However, some consumers find it needs more toys attachments and padding to make it more comfortable.

The Product and Raw Goods Supply Skip Hop 3-stage activity center consists of many details that are made from different materials, including plastic, steel, wood and polyester.

http://www.gauttam.com/plastic-raw-material/

China produces 75% of the worldâ&#x20AC;&#x2122;s plastic toys, and the United States is the largest importer of plastic toys ($21 Billion spent in 2009). The average kid in the United States consumes $280 dollars worth of plastic toys a year.

Plastic is widely used due to its durability, longevity and can be easily cleaned. Plastic also known as Polypropylene (PP) is a synthetic material, made from polymers, which are long molecules built around chains of carbon atoms, typically with hydrogen, oxygen, sulfur, and nitrogen filling in the spaces. Carterâ&#x20AC;&#x2122;s does not own any factories and manufactures their products in China and sources raw materials through the factories.

https://www.csx.com/index.cfm/customers/behind-the-freight-move-holidays/ behind-the-freight-move-cyber-monday/

Potential Bottlenecks To keep their manufacturing facilities operating at full capacity, Carter’s requires a dependable flow of materials. Because much of Carter’s supply chain is located oversees in Asia, the company is dependent on the welfare of those countries to keep their supply chain on schedule. Production could be delayed due to natural disasters or other conditions that put Carter’s suppliers out of business or interrupts transportation of materials. Price of Polypropylene https://www.icis.com/chemicals/polypropylene/

The above statistic shows the price of polypropylene in the United States from 2005 to 2014, with forecasted figures for 2015 to 2020. In 2014 the U.S. price of polypropylene was 389 U.S. dollars per ton, and it is estimated to increase to 526 U.S. dollars per ton in 2020.

Carter’s is dependent on its suppliers to provide https://www.rigzone.com/news/oil_gas/a/135371/supply_chain_bottlenecks_threaten_north_sea_decommissioning/ quality materials. Contamination of raw materials either through intentional substitution of cheaper and inferior ingredients or through improper handling and quality control could severely impact the company’s finished goods quality (Traveler’s). Product production depends on pieces of equipment critical to manufacturing operations. Breakdowns have the potential to shut down production as do power outages that can disrupt productivity. Solving customer complaints quickly can prevent a bottleneck in the retail customer’s experience. Floor associates often have little authority and can do little more than offer a smile to a disgruntled customer (Miller, 2015). Avoiding cumbersome approval processes keeps physical retail spaces running smoothly rather than waiting on a manager in a different location to grant approval. Automated processes can allow customers to quickly receive out-of-stock items rather than relying on the slow and cumbersome process of associates calling warehouses, outlets, and other stores to see if the product is available.

This statistic represents the average annual market price for HRC (hot rolled coil) steel from 2017 through 2020, by major market. In 2017, the price for hot rolled steel coils is expected to come to about 434 U.S. dollars per metric ton in China. https://kissflow.com/workflow/workflow-automation/5-bottlenecks-destroy-in-retail-customer-service/

Make or Buy Decisions To achieve global scale, companies need to design their supply chains to buy globally but execute locally. Carterâ&#x20AC;&#x2122;s operates out of five domestic and international distribution centers handling approximately 31,000 items at a location (SKUs). Shipping approximately 400 million selling units consisting of 700 million manufactured units per year. The company leverages globally sourcing strategies to buy products at a lower cost and then deploys some unique process logic to drive mass customization for retailers (Supply Chain).

With lower labor costs, China, Indonesia, Vietnam and the Philippines are the main suppliers of Carterâ&#x20AC;&#x2122;s goods. These countries have large numbers of young people entering the labor force, which keeps wages down (since these youth are all competing for a limited number of manufacturing jobs). Additionally, China, as a leading country for the cotton producer, offers the best price for raw materials, overall making outsourcing more cost-effective for Carterâ&#x20AC;&#x2122;s.

http://www.cnn.com/2013/05/02/world/asia/bangladesh-us-tshirt/index.html

https://commons.wikimedia.org/wiki/File:Cotton_fibre_production.svg

Vertical Integration Carter’s, who used to be a vertically-integrated manufacturer, has opted over the last ten years to outsource globally as a cost saving measure in order to increase revenue and profits. In late 1998, Carter’s began to “develop the infrastructure necessary to source products globally” (Carter’s Inc). The company believed it could achieve revenue growth and profitability through lower cost manufacturers outside the United States. http://outsourced.ph/offshore-outsourcing-philippines/what-is-outsourcing-and-whatdoes-this-mean-to-your-business/

In 1999 the company closed three of its sewing facilities in the United States and expanded its sewing capacity in Mexico, Costa Rica, and the Dominican Republic. This allowed the company to decrease the costs in their most laborintensive component of the supply chain (Carter’s Inc). Carter’s uses a global sourcing strategy where products are manufactured, labeled, and packaged according to the company’s specifications to source a broader range of products at lower costs. The company states that the overcapacity in the domestic textile industry, which was caused by consolidation and higher levels of global sourcing, lowered prices offered by the company’s fabric suppliers and eventually reduced the cost advantages that had been previously gained by vertical integration (Carter’s Inc).

https://www.choice.com.au/shopping/everyday-shopping/clothing/articles/ethical-clothing

Special Orders, Wholesale, Licensing, and Direct to Consumer Carter’s conducts business through wholesale and licensing agreements in addition to its directto-consumer retail locations. Carter’s operates nearly 1,000 physical stores and its products are sold in approximately 18,000 retail and online locations through wholesalers. Carter’s is experiencing high growth in its ecommerce business and is investing in strengthening its omnichannel presence. The company expects its domestic ecommerce sales to contribute $350 million to its growth in the next five years (Carter’s Inc). Despite the overall trend of brick and mortar store closings, Carter’s has been opening stores and will continue to do so as an important component of its growth strategy. In 2016, the company increased its store openings closer to consumers in order to bolster convenient shopping for its customers. The company experimented with cobranded store formats in 2016 and believes the smaller store model provides a better experience for customers. Carter’s wholesale customers include Costco, JCPenny, Kohl’s, Macy’s, and Toys “R” Us. The company also sells Child of Mine brand at Walmart and Just One You and Precious Firsts at Target. Carter’s has licensing agreements with Target which include the Genuine Kids from OshKosh brand. Internationally, Carter’s has 34 licensee partners. Carter’s has recently announced the creation of a limited edition collection called Little Planet. The line will be the company’s first 100% certified organic cotton collection. It will feature 51 styles of basics, outfits, and pajamas. In addition to organic cotton, the limited edition will include 100% organic knitting, and dyes.

https://www.callbox.com.sg/lead-generation/more-reasons-why-you-need-to-outsource-your-leadgeneration/

Capital Investment Decisions

In order to expand and capitalize on growing children’s wear market, in 2017 Carter’s Inc. acquired Skip Hop Inc., a New York based seller of products for babies and children, for $140 million in cash from Fireman Capital Partners. Fireman Capital, a private equity firm, acquired a majority stake in Skip Hop in November 2013, for $50 million. Dan Fireman, managing partner at Fireman Capital said Skip Hop has expanded its product line, international reach, and online presence over the last three years (Boston Globe, 2017).

The global market for children’s wear is forecast to reach $321.6 billion by 2024 globally, driven by factors such as growing exposure of children to media and ensuring rise in materialism, excessive consumption and impulsive purchases. While decline in unintended childbearing, delayed marriages an falling fertility rate in terms of lesser children per woman are influencing baseline growth potential of the market, the increased resources available per child is helping increase per capita spending. http://www.strategyr.com/MarketResearch/Childrens_Wear_Market_Trends.asp

Asia-Pacific represents the largest and the fastest growing market led by factors such as expanding base of affluent middle class parents; development of organized retail infrastructure; rising awareness over international brands and increase in the number of fashion shows promoting kids couture (Global Industry Analyst).

Skip Hop products are currently distributed in over 5,000 retail locations in more than 60 countries. “(Skip Hop’s) product offering nicely complements our Carter’s brand,” Casey said. “We believe we have a wonderful opportunity to leverage our marketing, distribution, and supply chain capabilities to enable significant growth for the Skip Hop brand.” (Atlanta Business Chronical).

http://blog.guguguru.com/wanderlust-must-suite-by-skip-hop-6in-1-diaper-backpack-set/

Standards According to Carter’s corporate governance, Carter’s strives to be a great company to do business with, to have as a neighbor and to work for. The company desires to do business in a manner that reflects their vision: “At Carter’s, we embrace creative leadership, innovative teamwork and a winning spirit to be the best for the benefit of our customers, our consumers, our employees and our shareholders” (Carter’s, Inc).

http://textilelearner.blogspot.com/2012/09/total-quality-management-tqm-in-textile.html

The Fiber/Textile/Apparel industry has certain quality standards. It is of the interest of manufacturers and the industry as a whole that the number of seconds or items that cannot be sold at full price due to inadequate quality be kept at a minimum. Most companies and manufacturers have their own set standards of quality, but national and international specifications exist. These are established by the American Society for Testing and Materials. The ASTM has roughly 50 performance specifications (Pawlak). These specifications relate to fit as well as fabricrelated performance. There are also industry standards regarding terminology. The International Organization for Standardization standards has about 45 standards which define terminology from everything from stitches to fibers (Pawlak). Industry standards are also set for Business/EDI transactions, manufacturing automation, product data exchange, and textile testing.

https://www.pinterest.com/pin/152066924901905612/

Carter’s must abide by industry standards, but, like many manufacturer’s, it also sets its own standards of quality. The company ensures that they are in compliance with the highest legal and ethical standards of social responsibility (Social Responsibility). Carter’s has a monitoring program that its suppliers also agree to follow regarding child labor, forced labor, discrimination, harassment, and environment. Carter’s holds regular factory audits and has developed a training program for suppliers.

Control Mechanisms Anaplan Ananplan cloud planning platform enables an organization to run virtually any planning process by connecting data, people, and plans in every part of a business. Connected planning can be achieved at any scale—from a single use case within one business unit to enterprise-wide connected planning across hundreds of processes, and everything in between (Anaplan). Carter’s uses the Anaplan platform to gain real-time insight into the company’s product SKUs to improve service levels while reducing days from the inventory supply chain. Anaplan helps to manage over 250,000 product SKUs and remove four to six days of inventory from Carter’s supply chain. Anaplan is also used for the company’s retail business and be in the assortment planning process. It improves Carter’s Inc. ability to forecast capacity, which help lead to improved service levels, as well as the reduction of expediting expenses.

http://bsdinsight.com/connect-directly-anaplan-data-tableau/

Factory Monitoring and Remediation Factory audits are a central pillar of Carter’s Inc. monitoring program. Since the company does not own any of the factories that produce merchandise for stores, regular audits are conducted to verify that a Supplier is complying with their policy as well as to strengthen working conditions and labor practices in factories. Carter’s Inc. contracts with an accredited and internationally recognized audit provider to execute these audits. Once a factory is audited an assessment rating is assigned. The assessment rating is based on a number of factors including the frequency, severity and probability of the finding. Carter’s have a total of four types of ratings. The rating assigned determines the timeframe for remediation. In general, they prefer to work with Suppliers to address concerns rather than terminating the relationship as such action is unlikely to correct the underlying issue and may cause further hardship on those who depend upon the employment. However, if the Supplier fails to demonstrate improvement, Carter’s Inc. reserves the right to terminate the business relationship with that Supplier (Carter’s).

http://www.supplychainquarterly.com/columns/20161229-carters-a-story-of-supply-chain-leadership/

Budgets

Production Budget

To create a forecasted sales, production, and operating budget we have made a few assumptions based on historical data, research based on the industry and Carter’s historical performance.

Sales Budget HICKORY STRIPE OVERALL Sales Volume (units) Price Revenue Earned HOODED SHERPA JUMPSUIT Sales Volume (units) Price Revenue Earned BROCADE A LINE DRESS Sales Volume (units) Price Revenue Earned BANDANA TEETHING BIBS Sales Volume (units) Price Revenue Earned OWL STACKER TOY Sales Volume (units) Price Revenue Earned MULTILEVEL BABY BOUNCER Sales Volume (units) Price Revenue Earned

Moby SoftSpot

Sales Volume (units) Price Revenue Earned 3 STAGE ACTIVITY CENTER Sales Volume (units) Price Revenue Earned

Actual 2017 Q3

2017 Q4

2018 Q1

2018 Q2

2018 Q3

2018 Q4

2019 Q1

2019 Q2

2019 Q3

2019 Q4

2020 Q1

2020 Q2

2020 Q3

60,000 61,500 63,038 64,614 66,230 67,886 69,583 71,322 73,106 74,933 76,806 78,727 80,695 $32.00 $32.00 $32.76 $32.76 $32.76 $32.76 $33.62 $33.62 $33.62 $33.62 $34.40 $34.40 $34.40 $1,920,000 $1,968,000 $2,065,125 $2,116,755 $2,169,695 $2,223,937 $2,339,377 $2,397,861 $2,457,808 $2,519,253 $2,642,143 $2,708,197 $2,775,902 30,000 31,200 32,448 33,098 33,760 35,110 36,514 37,244 37,989 39,509 41,089 41,911 42,749 $40.00 $40.00 $40.95 $41.93 $42.92 $43.95 $44.99 $46.06 $47.16 $48.28 $49.43 $50.61 $51.81 $1,200,000 $1,248,000 $1,328,810 $1,387,689 $1,449,132 $1,542,948 $1,642,839 $1,715,565 $1,791,529 $1,907,555 $2,031,055 $2,120,993 $2,214,891 3,900 $21.99 $85,761

3,978 $21.99 $87,476

4,137 $22.51 $93,138

4,302 $23.05 $99,158

4,388 $23.60 $103,547

4,476 $24.16 $108,137

4,655 $24.73 $115,138

4,841 $25.32 $122,589

4,938 $25.93 $128,021

5,037 $26.54 $133,696

5,238 $27.17 $142,340

5,448 $27.82 $151,570

5,557 $28.48 $158,282

44,788 45,908 47,055 48,232 49,438 50,674 51,940 53,239 54,570 55,934 57,332 58,766 60,235 $24.00 $24.00 $24.57 $25.16 $25.75 $26.37 $27.00 $27.64 $28.30 $28.97 $29.66 $30.36 $31.09 $1,074,912 $1,101,785 $1,156,207 $1,213,318 $1,273,250 $1,336,142 $1,402,141 $1,471,400 $1,544,080 $1,620,350 $1,700,387 $1,784,377 $1,872,517 32,000 $16.00 $512,000

32,800 $16.00 $524,800

33,620 $16.38 $550,722

34,461 $16.77 $577,925

35,322 $17.17 $606,472

36,205 $17.58 $636,429

37,110 $18.00 $667,865

38,038 $18.43 $700,854

38,989 $18.86 $735,473

39,964 $19.31 $771,802

40,963 $19.77 $809,925

41,987 $20.24 $849,931

43,036 $20.72 $891,913

1,975 $120.00 $237,000

2,024 $120.00 $242,925

2,075 $122.86 $254,924

2,127 $125.78 $267,516

2,180 $128.77 $280,730

2,235 $131.84 $294,597

2,290 $134.98 $309,149

2,348 $138.19 $324,419

2,406 $141.48 $340,444

2,467 $144.84 $357,260

2,528 $148.29 $374,907

2,591 $151.82 $393,425

2,656 $155.43 $412,858

1,500 $30.00 $45,000

1,538 $30.00 $46,125

1,575.94 $30.71 $48,403

1,615 $31.44 $50,794

1,655.72 $32.19 $53,303

1,697.11 $32.96 $55,936

1,740 $33.74 $58,699

1,783.03 $33.62 $59,945

1,828 $34.42 $62,906

1,873.29 $35.24 $66,014

1,920.13 $36.08 $69,274

1,968.13 $36.94 $72,696

2,017.33 $37.82 $76,287

3,800 $120.00 $456,000

3,895 $120.00 $467,400

3,992 $122.86 $490,487

4,092 $125.78 $514,715

4,194 $128.77 $540,139

4,299 $131.84 $566,819

4,407 $134.98 $594,817

4,517 $138.19 $624,198

4,630 $141.48 $655,031

4,746 $144.84 $687,386

4,864 $148.29 $721,339

4,986 $151.82 $756,970

5,111 $155.43 $794,360

ZOOBRELLA Sales Volume (units) Price Revenue Earned

4,500 $15.00 $67,500

3,978 $15.00 $59,670

4,137 $15.36 $63,532

4,302 $15.72 $67,638

4,388 $16.10 $70,632

ZOO LUNCHIE Sales Volume (units) Price Revenue Earned

5,600 $15.00 $84,000

5,740 $15.00 $86,100

5,884 $15.36 $90,353

6,031 $15.72 $94,816

6,181 $16.10 $99,499

4,476 $16.48 $73,764 6,336 $16.48 $104,414

4,655 $16.87 $78,539 6,494 $16.87 $109,572

4,841 $17.27 $83,621 6,657 $17.27 $114,984

4,938 $17.68 $87,327 6,823 $17.68 $120,664

5,037 $18.11 $91,198 6,994 $18.11 $126,624

5,238 $18.54 $97,094 7,168 $18.54 $132,878

5,448 $18.98 $103,390

5,557 $19.43 $107,969

7,348 $18.98 $139,442

7,531 $19.43 $146,330

Sales volume units were estimated based on reported recalls of similar products during previous quarters. With that information we forecasted the volume of units sold for the next three years based on Carter’s historical average increase in sales of 10% each year. Price per unit was forecasted using historical average inflation rates.

HICKORY STRIPE OVERALL Expected sales Desired Ending Inventory Units needed Inventory on hand Total Units to Produce HOODED SHERPA JUMPSUIT Expected sales Desired Ending Inventory Units needed Inventory on hand Total Units to Produce BROCADE A LINE DRESS Expected sales Desired Ending Inventory Units needed Inventory on hand Total Units to Produce BANDANA TEETHING BIBS Expected sales Desired Ending Inventory Units needed Inventory on hand Total Units to Produce OWL STACKER TOY Expected sales Desired Ending Inventory Units needed Inventory on hand Total Units to Produce MULTILEVEL BABY BOUNCER Expected sales Desired Ending Inventory Units needed Inventory on hand Total Units to Produce MOBY SOFT SPOT Expected sales Desired Ending Inventory Units needed Inventory on hand Total Units to Produce 3 STAGE ACTIVITY CENTER Expected sales Desired Ending Inventory Units needed Inventory on hand Total Units to Produce ZOOBRELLA Expected sales Desired Ending Inventory Units needed Inventory on hand Total Units to Produce ZOO LUNCHIE Expected sales Desired Ending Inventory Units needed Inventory on hand Total Units to Produce

Actual 2017 Q3 60,000 25,800 85,800 25,800 60,000 Actual 2017 Q3 30,000 12,900 42,900 12,900 30,000 Actual 2017 Q3 3,900 1,677 5,577 1,677 3,900 Actual 2017 Q3 44,788 19,259 64,047 19,259 44,788 Actual 2017 Q3 32,000 13,760 45,760 13,760 32,000 Actual 2017 Q3

2017 Q4 61,500 26,445 87,945 25,800 62,145 2017 Q4 31,200 13,416 44,616 12,900 31,716 2017 Q4 3,978 1,711 5,689 1,677 4,012 2017 Q4 45,908 19,740 65,648 19,259 46,389 2017 Q4 32,800 14,104 46,904 13,760 33,144 2017 Q4

2018 Q1 63,038 27,106 90,144 26,445 63,699 2018 Q1 32,448 13,953 46,401 13,416 32,985 2018 Q1 4,137 1,779 5,916 1,711 4,205 2018 Q1 47,055 20,234 67,289 19,740 47,549 2018 Q1 33,620 14,457 48,077 14,104 33,973 2018 Q1

2018 Q2 64,614 27,784 92,398 27,106 65,292 2018 Q2 33,098 14,232 47,330 13,953 33,378 2018 Q2 4,302 1,850 6,152 1,779 4,373 2018 Q2 48,232 20,740 68,971 20,234 48,738 2018 Q2 34,461 14,818 49,279 14,457 34,822 2018 Q2

2018 Q3 66,230 28,479 94,709 27,784 66,925 2018 Q3 33,760 14,517 48,277 14,232 34,045 2018 Q3 4,388 1,887 6,275 1,850 4,425 2018 Q3 49,438 21,258 70,696 20,740 49,956 2018 Q3 35,322 15,188 50,510 14,818 35,692 2018 Q3

2018 Q4 67,886 29,191 97,077 28,479 68,598 2018 Q4 35,110 15,097 50,207 14,517 35,691 2018 Q4 4,476 1,925 6,401 1,887 4,514 2018 Q4 50,674 21,790 72,463 21,258 51,205 2018 Q4 36,205 15,568 51,773 15,188 36,585 2018 Q4

2019 Q1 69,583 29,921 99,504 29,191 70,313 2019 Q1 36,514 15,701 52,215 15,097 37,118 2019 Q1 4,655 2,002 6,657 1,925 4,732 2019 Q1 51,940 22,334 74,275 21,790 52,485 2019 Q1 37,110 15,957 53,068 15,568 37,499 2019 Q1

2019 Q2 71,322 30,669 101,991 29,921 72,070 2019 Q2 37,244 16,015 53,259 15,701 37,558 2019 Q2 4,841 2,082 6,923 2,002 4,921 2019 Q2 53,239 22,893 76,132 22,334 53,797 2019 Q2 38,038 16,356 54,394 15,957 38,437 2019 Q2

2019 Q3 73,106 31,435 104,541 30,669 73,872 2019 Q3 37,989 16,335 54,324 16,015 38,309 2019 Q3 4,938 2,123 7,061 2,082 4,980 2019 Q3 54,570 23,465 78,035 22,893 55,142 2019 Q3 38,989 16,765 55,754 16,356 39,398 2019 Q3

2019 Q4 74,933 32,221 107,154 31,435 75,719 2019 Q4 39,509 16,989 56,498 16,335 40,163 2019 Q4 5,037 2,166 7,203 2,123 5,080 2019 Q4 55,934 24,052 79,986 23,465 56,521 2019 Q4 39,964 17,184 57,148 16,765 40,383 2019 Q4

2020 Q1 76,806 33,027 109,833 32,221 77,612 2020 Q1 41,089 17,668 58,757 16,989 41,768 2020 Q1 5,238 2,252 7,490 2,166 5,324 2020 Q1 57,332 24,653 81,985 24,052 57,934 2020 Q1 40,963 17,614 58,577 17,184 41,392 2020 Q1

2020 Q2 78,727 33,852 112,579 33,027 79,552 2020 Q2 41,911 18,022 59,933 17,668 42,264 2020 Q2 5,448 2,343 7,791 2,252 5,538 2020 Q2 58,766 25,269 84,035 24,653 59,382 2020 Q2 41,987 18,054 60,041 17,614 42,427 2020 Q2

2020 Q3 80,695 34,699 115,394 33,852 81,541 2020 Q3 42,749 18,382 61,131 18,022 43,109 2020 Q3 5,557 2,390 7,947 2,343 5,604 2020 Q3 60,235 25,901 86,136 25,269 60,867 2020 Q3 43,036 18,506 61,542 18,054 43,488 2020 Q3

1,975 849 2,824 849 1,975

2,024 870 2,895 849 2,046

2,075 892 2,967 870 2,097

2,127 915 3,041 892 2,149

2,180 937 3,117 915 2,203

2,235 961 3,195 937 2,258

2,290 985 3,275 961 2,314

2,348 1,009 3,357 985 2,372

2,406 1,035 3,441 1,009 2,432

2,467 1,061 3,527 1,035 2,492

2,528 1,087 3,615 1,061 2,555

2,591 1,114 3,706 1,087 2,619

2,656 1,142 3,798 1,114 2,684

Actual 2017 Q3 1,500 645 2,145 645 1,500

2017 Q4 1,538 661.13 2,199 645 1,554

2018 Q1 1,575.94 678 2,254 661 1,592

2018 Q2 1,615 694.59 2,310 678 1,632

2018 Q3 1,655.72 712 2,368 695 1,673

2018 Q4 1,697.11 730 2,427 712 1,715

2019 Q1 1,740 748 2,488 730 1,758

2019 Q2 1,783.03 767 2,550 748 1,802

2019 Q3 1,828 786 2,613 767 1,847

2019 Q4 1,873.29 806 2,679 786 1,893

2020 Q1 1,920.13 826 2,746 806 1,940

2020 Q2 1,968.13 846 2,814 826 1,989

2020 Q3 2,017.33 867 2,885 846 2,038

Actual 2017 Q3

2017 Q4

2018 Q1

2018 Q2

2018 Q3

2018 Q4

2019 Q1

2019 Q2

2019 Q3

2019 Q4

2020 Q1

2020 Q2

2020 Q3

3,800 1,634 5,434 1,634 3,800 Actual 2017 Q3 4,500 1,935 6,435 1,935 4,500 Actual 2017 Q3 5,600 2,408 8,008 2,408 5,600

3,895 1,675 5,570 1,634 3,936 2017 Q4 3,978 1,711 5,689 1,935 3,754 2017 Q4 5,740 2,468 8,208 2,408 5,800

3,992 1,717 5,709 1,675 4,034 2018 Q1 4,137 1,779 5,916 1,711 4,205 2018 Q1 5,884 2,530 8,413 2,468 5,945

4,092 1,760 5,852 1,717 4,135 2018 Q2 4,302 1,850 6,152 1,779 4,373 2018 Q2 6,031 2,593 8,624 2,530 6,094

4,194 1,804 5,998 1,760 4,238 2018 Q3 4,388 1,887 6,275 1,850 4,425 2018 Q3 6,181 2,658 8,839 2,593 6,246

4,299 1,849 6,148 1,804 4,344 2018 Q4 4,476 1,925 6,401 1,887 4,514 2018 Q4 6,336 2,724 9,060 2,658 6,402

4,407 1,895 6,302 1,849 4,453 2019 Q1 4,655 2,002 6,657 1,925 4,732 2019 Q1 6,494 2,793 9,287 2,724 6,562

4,517 1,942 6,459 1,895 4,564 2019 Q2 4,841 2,082 6,923 2,002 4,921 2019 Q2 6,657 2,862 9,519 2,793 6,726

4,630 1,991 6,621 1,942 4,678 2019 Q3 4,938 2,123 7,061 2,082 4,980 2019 Q3 6,823 2,934 9,757 2,862 6,895

4,746 2,041 6,786 1,991 4,795 2019 Q4 5,037 2,166 7,203 2,123 5,080 2019 Q4 6,994 3,007 10,001 2,934 7,067

4,864 2,092 6,956 2,041 4,915 2020 Q1 5,238 2,252 7,490 2,166 5,324 2020 Q1 7,168 3,082 10,251 3,007 7,244

4,986 2,144 7,130 2,092 5,038 2020 Q2 5,448 2,343 7,791 2,252 5,538 2020 Q2 7,348 3,160 10,507 3,082 7,425

5,111 2,198 7,308 2,144 5,164 2020 Q3 5,557 2,390 7,947 2,343 5,604 2020 Q3 7,531 3,238 10,770 3,160 7,610

Desired ending inventory was based on the reported information that of 700 million produced units, Carter’s sold 400 million units in one year. We therefore estimated that Carter’s desires an ending inventory of 43% of the units produced.

This graph demonstrates the difference in production needs between products that have an element of seasonality versus year-round products. Although in both cases there is an upward trend in sales and therefore units to produce, as demonstrated in the graph, a more seasonal item like the Sherpa Hooded Jumpsuit fluctuates from quarter to quarter with more demand in quarters when it is cooler in the majority of the United States and less demand when it is warmer. A product like the Bandana Teething Bib is a product that has demand all year round and therefore is less susceptible to production fluctuations throughout the year.

Variable Costs were estimated using Carter’s historical averages calculated from the company’s financial reports. Cost of Goods Sold was estimated to be 58.6% of total revenue and Selling and Administrative Expenses were estimated to be 31% of total revenue. Fixed costs were estimated using the average price of rent per square foot of warehouse and factory space for both the United States and in Hong Kong where Carter’s owns warehouses and factories. Depreciation and Amortization, Interest Expense, and Income Tax were also estimated using Carter’s historical averages based on the company’s financial reports.

Units to Produce Seasonality Comparison 70,000

60,000

50,000

40,000 HOODED SHERPA JUMPSUIT BANDANA TEETHING BIBS

30,000

20,000

10,000

Actual 2017 Q3

2017 Q4

2018 Q1

2018 Q2

2018 Q3

2018 Q4

2019 Q1

2019 Q2

2019 Q3

2019 Q4

2020 Q1

2020 Q2

2020 Q3

Operating Budget FY 2018

ÂŠ Corporate Finance Institute

Carter's Inc

Budget

Jan

Feb

Mar

Apr

May

Jun

July

Aug

Sep

Oct

Nov

Dec

Budget Total Jan - Dec

Volume Hickory Stripe Overall Hooded Sherpa Jumpsuit Brocade A Line Dress Bandana Teething Bib Owl Stacker Toy Multilevel Baby Bouncer Moby SoftSpot 3 Stage Activity Center Zoobrella Zoo Lunchie

21,013 10,816 1,379 15,685 11,207 692 525 1,331 1,379 1,961

21,538 11,033 1,434 16,077 11,487 709 538 1,364 1,434 2,010

22,077 11,253 1,463 16,479 11,774 727 552 1,398 1,463 2,060

22,629 11,703 1,492 16,891 12,068 745 566 1,433 1,492 2,112

261,771 134,415 17,304 195,396 139,608 8,619 6,543 16,578 17,304 24,429

Price per Unit Hickory Stripe Overall Hooded Sherpa Jumpsuit Brocade A Line Dress Bandana Teething Bib Owl Stacker Toy Multilevel Baby Bouncer Moby SoftSpot 3 Stage Activity Center Zoobrella Zoo Lunchie

32.8 41.0 21.5 24.6 16.4 123 31 123 15 15

32.8 41.0 23.1 24.6 16.8 126 31 126 16 16

32.8 41.0 23.6 24.6 17.2 129 32 129 16 16

32.8 41.0 24.2 24.6 17.6 132 33 132 16 16

32.8 41.0 23.1 24.6 17.0 127.4 31.8 127.4 15.9 15.9

Revenue Hickory Stripe Overall Hooded Sherpa Jumpsuit Brocade A Line Dress Bandana Teething Bib Owl Stacker Toy Multilevel Baby Bouncer Moby SoftSpot 3 Stage Activity Center Zoobrella Zoo Lunchie

688,386 442,915 29,662 385,380 183,571 85,019 16,123 163,527 21,181 30,121

705,585 451,801 33,054 395,012 192,637 89,178 16,915 171,564 22,542 31,597

723,243 460,810 34,527 404,889 202,160 93,616 17,769 180,020 23,554 33,166

741,326 479,238 36,047 415,012 212,155 98,221 18,655 188,927 24,588 34,806

8,575,618 5,504,294 399,869 4,800,880 2,371,568 1,098,101 208,385 2,112,113 275,599 389,070

1,160,963

1,190,440

1,218,580

1,256,611

14,479,781

680,325 359,899

697,598 369,036

714,088 377,760

736,374 389,549

8,485,152 4,488,732

1,040,223 120,740

1,066,634 123,806

1,091,847 126,732

1,125,923 130,688

12,973,884 1,505,897

5,457 232

5,595 238

5,727 244

5,906 251

68,055 2,896

5,689 115,051

5,833 117,973

5,971 120,761

6,157 124,530

70,951 1,434,946

23,219

23,809

24,372

25,132

289,596

23,219 91,832

23,809 94,164

24,372 96,390

25,132 99,398

289,596 1,145,351

9,288

9,524

9,749

10,053

115,838

Total Interest Expense EBT

9,288 82,544

9,524 84,640

9,749 86,641

10,053 89,345

115,838 1,029,512

Income Tax

49,921

51,189

52,399

54,034

622,631

Net Income

32,623

33,451

34,242

35,311

406,882

Total Revenue Less Variable Costs: Cost of Goods Sold Selling and Administrative Expense

Total Variable Costs Contribution Margin Less Fixed Costs Rent North American warehouses Rent Hong Kong Warehouse Total Fixed Costs Net Operating Margin Depreciation & Amortisation

Depreciation and Other Expenses EBIT Interest Expenses

Budget

Measures Quality

Balanced Score Cards

Objectives

The following balanced scorecard was created keeping the overall mission, core values, and future goals of Carterâ&#x20AC;&#x2122;s Inc in mind. It is intended to measure the performance on the executive level.

Learning and Growth Measures Objectives

Expand Product Offerings Brand Expansion

Brand Expansion Internal Promotions

Customer

Objectives

Level of satisfaction

Engagement Loyalty program

Measures # of returns, complains # of star reviews level in different categories # of service issues by vendor and reason # of likes/posts on social media # of shares/ posts on social media # of subscribers

Objectives

Level of satisfaction

Engagement Loyalty program Customer acquisition

Score

Growth Investment returns Profit Sales

Score

# of successful product launches # of new stores carrying Carter's products International Expansion - # of new market entries # of training programs for current employees # of managerial positions filled from current employee promotions Customer

Score

Objectives

Objectives Objectives

Expand Product Offerings

# of products recalled

# days in transit to warehouse # of days in transit from warehouse to store # of days in transit from warehouse to customer Sell-Through % of units sold at full-price Traffic to new co-branded stores: # of millenial men New Store Model Metrics # of millenial women # of customers ordering online and picking up in store Inventory Turnover How many times per year the inventory is replensihed

Internal Promotions Executive Level Balanced Scorecard

Learning and Growth Measures # of successful product launches # of new stores carrying Carter's products International Expansion - # of new market entries # of training programs for current employees # of managerial positions filled from current employee promotions

# of seconds

Delivery Time

The balanced scorecard is a performance measurement tool used by management that uses financial and non-financial measures that relate to the overall strategy of the company. The scorecard looks at performance from four different perspectives: financial, customer, internal business, and learning and growth.

EXECUTIVE LEVEL SCORECARD FOR FISCAL YEAR 2017 Internal Business Processes Measures # of seconds Quality # of products recalled # days in transit to warehouse Delivery Time # of days in transit from warehouse to store # of days in transit from warehouse to customer Sell-Through % of units sold at full-price Traffic to new co-branded stores: # of millenial men New Store Model Metrics # of millenial women # of customers ordering online and picking up in store Inventory Turnover How many times per year the inventory is replensihed

Score

Measures

Score

% of revenue growth $ ROA % operating margin gross revenue - $ sales

Score

Presenting to External Parties

Presenting to Internal Parties This is an example of what might be presented to Carterâ&#x20AC;&#x2122;s marketing team to quickly and easily demonstrate who the Carterâ&#x20AC;&#x2122;s current customer is demographically. Using this information, the marketing team can then decide how to most effectively market to this consumer, or how to target and therefore gain a market outside this demographic.

This is an example of what might be presented to store managers and hiring managers so they can make decisions on when would be most beneficial to have a full staff in the store. This information can improve customer satisfaction by ensuring each store is well staffed during peak times. It can also cut down on unnecessary expenses by assuring stores are not overstaffed during slower traffic times.

Sources Cited

This is an example of a handout that might be given to all employees as a convenient guide to how to make ethical decisions. The reputation of the company depends upon all employees making decisions that abide by the company’s values and code of ethics. Therefore it is necessary to assure that this information is readily available and accessible.

“Accounts Receivable Turnover Ratio.” AccountingTools, 19 Oct. 2017, https://www.accountingtools.com/articles/2017/5/5/accounts-receivable-turnover-ratio. “Annual Reports.” Carter’s Inc, http://ir.carters.com/financial-information/annual-reports. Accessed 5 Feb. 2018. Box, Carolynn. INFO: Plastic Toy Consumption Statistics. 25 Sept. 2010, http://cboxplastic.blogspot.com/2010/09/ info-plastic-toy-consumption-statistics.html. Business Wire. Carter’s Inc Reports Second Quarter Fiscal 2017 Results. 27 July 2017, https://www.businesswire. com/news/home/20170727005626/en/Carter’s-Reports-Quarter-Fiscal-2017-Results. Carter’s (CRI) EPS & PE Ratio History. http://www.macrotrends.net/stocks/charts/CRI/earnings/carters-inc-pe-ratio-history. Accessed 5 Feb. 2018. Carter’s Inc. http://www.marketwatch.com/investing/stock/hch?countrycode=de. Accessed 5 Feb. 2018. Carters Inc. | Our Brands. http://corporate.carters.com/on/demandware.store/Sites-CartersInc-Site/default/ Link-Page?cid=corporateOurBrands. Accessed 5 Feb. 2018. “Carter’s, Inc.|Company Profile|Vault.Com.” Vault, http://www.vault.com/company-profiles/retail/carters,-inc/company-overview. Accessed 5 Feb. 2018. Carter’s Inc (CRI) Company Profile | Reuters.Com. https://www.reuters.com/finance/stocks/companyProfile/CRI. Accessed 5 Feb. 2018. “Carter’s Updates Supply Chain Capabilities with Cloud-Based Platform.” STORES: NRF’s Magazine, 10 July 2017, https://stores.org/2017/07/10/planning-for-growth/. CBS/AP. Baby Rashes Prompt Clothing Warning. https://www.cbsnews.com/news/baby-rashes-prompt-clothing-warning/. Accessed 5 Feb. 2018. Cecere, Lora. “Carter’s: A Story of Supply Chain Leadership.” Supply Chain Shaman, 29 Nov. 2016, http://www. supplychainshaman.com/supply-chain-leadership/carters-a-story-of-supply-chain-leadership/. ---. “Carter’s: A Story of Supply Chain Leadership – CSCMP’s Supply Chain Quarterly.” Supply Chain Quarterly, http://www.supplychainquarterly.com/columns/20161229-carters-a-story-of-supply-chain-leadership/. Accessed 5 Feb. 2018. Choudhary, Anshu. (2015). Cost Analysis in Garment Industry. International Journal of Recent Advances in Multidisplinary Research. 02. 1702-1704.

This is an example of what might be presented to a budget committee to defend the need for money to be allocated to a social media creative marketing team.

CRI Carter’s Inc Executive Bios. http://insiders.morningstar.com/trading/key-executives.action?t=CRI&region=usa&culture=en-US. Accessed 5 Feb. 2018. Dorich, Alan. “Carter’s Inc.” Supply Chain World, http://www.scw-mag.com/sections/retail/897-carter-s-inc-2. Accessed 5 Feb. 2018. “Earnings Results.” Carter’s Inc, http://ir.carters.com/earnings-results. Accessed 5 Feb. 2018. “Governance Highlights.” Carter’s Inc, http://ir.carters.com/corporate-governance/highlights. Accessed 5 Feb. 2018.

Growth, Profitability, and Financial Ratios for Carter’s Inc (CRI) from Morningstar.Com. http://financials.morningstar. com/ratios/r.html?t=CRI. Accessed 5 Feb. 2018. “Investor Overview.” Carter’s Inc, http://ir.carters.com/investor-overview. Accessed 5 Feb. 2018. Lee, Nathan. “Analyzing Carter’s: A Decent Long-Term Apparel Play.” Seeking Alpha, 7 Apr. 2017, https://seekingalpha.com/article/4061163-analyzing-carters-decent-long-term-apparel-play. Loeb, Walter. “Carter’s Dominates Children’s Apparel With More Growth Ahead.” Forbes, https://www.forbes. com/sites/walterloeb/2016/09/14/carters-dominates-childrens-apparel-with-more-growth-ahead/#1bc08d644c3c. Accessed 5 Feb. 2018. Miller. “5 Bottlenecks You Have to Destroy in Retail Customer Service.” KiSSFLOW, 5 June 2015, https://kissflow. com/workflow/workflow-automation/5-bottlenecks-destroy-in-retail-customer-service/. “P/E Ratio: What Is It?” Investopedia, 2 Dec. 2003, https://www.investopedia.com/university/peratio/peratio1.asp. Scilly, M. The Average Merchandise Turnover for Clothing Stores. http://smallbusiness.chron.com/average-merchandise-turnover-clothing-stores-18292.html. Accessed 5 Feb. 2018. Traveler’s . “Beware of Bottlenecks in Manufacturing .” Travelers.com, www.travelers.com/iw-documents/business-insurance/manuf-beware-bottlenecks-cp-7984.pdf. UN Comtrade. “Leading Exporters of Toys, Games and Sport Requisites Worldwide in 2016, by Country (in Billion U.S. Dollars).” Statista - The Statistics Portal, Statista, www.statista.com/statistics/616732/toy-and-game-exportersworldwide/, Accessed 5 Feb 2018 Woodford, Chris. “Plastics: A Simple Introduction.” Explain That Stuff, 18 Jan. 2018, http://www.explainthatstuff. com/plastics.html. Various sources. “Projected Hrc Steel Prices Worldwide from 2017 to 2020, by Major Market (in U.S. Dollars per Metric Ton).” Statista - The Statistics Portal, Statista, www.statista.com/statistics/214246/world-steel-prices/, Accessed 5 Feb 2018 Zmuda, Natalie. “Five Questions With Carter’s Head Marketer | CMO Interviews - AdAge.” Adage, 24 Apr. 2012, http://adage.com/article/cmo-interviews/questions-carter-s-head-marketer/234333/. com/ratios/r.html?t=CRI. Accessed 5 Feb. 2018.