Carter’s operations in the United Kingdom are focused on selling Skip Hop branded product to third-party wholesalers who subsequently sell the product to the end consumer.

Carter’s uses its best efforts to adhere to all applicable laws, rules, regulations and disclosure requirements in each jurisdiction in which it operates. Employees of Carter’s are required to follow Carter’s Code of Ethics, which can be found at ir.carters.com. Senior tax and finance executives regularly report to the board of directors of Carter’s on tax matters, and the board ultimately oversees Carter’s approach to tax governance. We disclose our tax matters in the disclosures to our financial statements based on generally accepted accounting principles in the United States, which are filed with the U.S. Securities and Exchange Commission on a quarterly basis. Our financial statements and regulatory filings are available at www.sec.gov and ir.carters.com.

Carter’s tolerance for tax risk is low. Carter’s complies with all relevant laws, rules and regulations and only carries out tax planning that supports its business goals consistent with the law. Carter’s is committed to building transparent, honest and collaborative relationships with tax authorities. Carter’s proactively monitors changing tax laws, including the OECD transfer pricing guidelines, to ensure that tax procedures and policies align with enacted laws. Carter’s also regularly engages external tax professionals to advise on various tax matters.

Should there be any questions about our approach to taxation or other business matters, please contact our Investor Relations department at [email protected].