Question · Q3 2025
Paul Kelly inquired about the expected incremental price increases for Carter's retail channel in the first half of next year. He also asked for clarification on the timing of SG&A reductions, cost savings, and reinvestments, and sought more detail on the improving returns from media spend, current observations, and how media spending strategies would evolve next year.
Answer
Richard Westenberger (Senior Executive VP, CFO and COO, Carter's Inc) stated it was too soon to comment on specific H1 next year price increases. He confirmed that SG&A savings from the reduction in force would begin January 1, with the $16 million demand creation investment for next year being a full-year, rigorously managed amount. Doug Palladini (CEO and President, Carter's Inc) elaborated that demand creation would focus on driving traffic to owned platforms and building consumer loyalty through product storytelling and innovation, shifting from a price- and promotion-centric message.