Question · Q3 2025
Janet Kloppenberg sought confirmation that Carter's positive comparable sales, driven by price, were against last year's high promotional levels. She also inquired about the acceptance of price increases by other exclusive brand partners, the year-over-year status of clearance inventories, and whether merchandising initiatives were contributing to the healthy consumer response to price increases. Finally, she asked about the company's outlook for its moderate to lower consumer target market amidst economic pressures.
Answer
Richard Westenberger (Senior Executive VP, CFO and COO, Carter's Inc) confirmed that positive comps and AUR gains were against a period of significant promotional intensity last year. He noted constructive conversations with wholesale partners regarding price increases and reported improved clearance inventory levels year over year. Doug Palladini (CEO and President, Carter's Inc) affirmed that merchandising initiatives, including stronger design intent and growth in "better and best" categories attracting new consumers, were contributing to positive consumer response. He acknowledged macro factors but focused on controllable aspects of the business.