Consumer Confidence and Discretionary Spending: The strength of the US economy, evidenced by job growth, can support consumer spending on non-essential items like children's apparel, but global growth downgrades and rising oil prices may temper confidence.

Inflationary Pressures and Supply Chain Costs: Higher oil prices driven by Middle East conflict increase transportation and manufacturing costs, particularly for goods sourced from Asia, potentially impacting Carter's profit margins.

Tariff Exposure and Trade Policies: Carter's has faced scrutiny and pressure from incremental tariff costs, which directly affect its cost of goods sold and overall profitability.