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Carter's Essay

724 Words3 Pages

New stores, ecommerce sales, similar store sales, and numerous store closings all played a vital role in the increase of Carter’s Retail and Wholesale segment. Online sales increased 24% and contributed about $390 million to Carter’s total revenues. Recently, Carter’s has expanded their current ecommerce range and have created a partnership with Amazon, the largest contributor to online augmentation who currently holds about 3.0% of the young children’s apparel market. This strategic partnership will definitely provide Carter’s the access to new markets that it requires to maintain the competitive advantage. The company forecasts that a total of $350 million in ecommerce sales will contribute to their overall growth in the next five years. …show more content…

Most of Carter’s international sales are generated in Canada where it clutches a top spot in the Canadian market. Retail sales in the Canadian market increased a notable 8.4% in FY2016. Management expresses that this is due to the 46.4% growth in sales related to ecommerce and a 5.9% in sales that were conducted at the actual retail stores. The company’s ecommerce website that is based in China had an increase of $11.4 million alone. Additionally, Carter’s has licensees, such as Walmart, Kohl’s, and Target (with Target being the biggest) where it expands the reach of their other licensed brands through these licensed affairs. Although obtaining licensed relationships provide endless benefits, Carter’s faced a downfall in FY2015 due to one of these stores. Due to the bankruptcy of the Canadian Target in FY2015, the company experienced a $1.0 million decrease in Canada wholesale. Also, while an increase of 11.8% in international net sales is evident, Carter’s recognizes that the exchange rates between the Canadian and United States dollar had an aggressive impact of almost $7.1 million. Revenues are forecasted to generate approximately $100 million from China and the market is expected to double in about 10 years. The recent acquisition of Skip Hop Holdings is also projected to generate approximately $$172 million, which is the double of what it generated last year

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