CARTERS (CRI) Company Report

Carter's reported Q4 2025 net sales of $925 million, an 8% increase over the prior year, and adjusted earnings per share of $1.90. On a comparable 13-week basis, net sales increased 3%. This marks the first time since 2021 that the company grew year-over-year revenue, excluding the 53rd week.
For the full year 2026, the company forecasts net sales growth in the low to mid-single digits and adjusted operating income growth in the low to mid-single digits over 2025.
Despite top-line and operating income growth, adjusted earnings per share for 2026 is projected to be down low double digits to down mid-teens compared to 2025's adjusted EPS of $3.47, primarily due to higher interest costs and an increased effective tax rate.
The gross impact of tariffs is expected to increase significantly from approximately $60 million in 2025 to over $200 million in 2026, though the company plans significant offsets through pricing and supply chain mitigation.
For Q1 2026, net sales are expected to increase in the mid-single digits, with adjusted operating income projected between $12 million and $15 million, and adjusted EPS between $0.02 and $0.08.

11 hours ago

Transcript

Carter's Reports Q4 and Full Year 2025 Results, Provides 2026 Outlook

CRI

Earnings

Guidance Update

Layoffs

Carter's reported Q4 2025 net sales of $925 million, an 8% increase over the prior year, or 3% on a comparable 13-week basis, with adjusted earnings per share of $1.90.
For the full year 2025, the company achieved its first year-over-year revenue growth since 2021 (excluding the 53rd week) and generated $122 million in operating cash flow.
The company provided 2026 guidance, expecting low to mid-single digit growth in both net sales and adjusted operating income.
Management anticipates a significant gross impact from tariffs of over $200 million in 2026, up from $60 million in 2025, which they plan to offset with pricing increases and supply chain mitigation.
Strategic initiatives for 2026 include closing approximately 60 stores and realizing $35 million in cost savings from workforce rightsizing, alongside continued investments in demand creation and product development.

11 hours ago

Transcript

Carter's Reports Q4 2025 Results and Provides 2026 Outlook

CRI

Earnings

Guidance Update

Profit Warning

Carter's (CRI) exceeded its Q4 2025 forecasts, reporting net sales of $925 million (an 8% increase year-over-year, or 3% on a comparable 13-week basis) and adjusted earnings per share of $1.90.
Fourth quarter gross margin decreased 460 basis points to 43.2%, primarily due to a $40 million impact from tariffs and higher product costs. Adjusted operating income for the quarter was $89 million.
For the full year 2026, Carter's anticipates adjusted earnings per share to be down low double digits to down mid-teens compared to $3.47 in 2025, with an effective tax rate of approximately 22% and operating cash flow projected between $110 million and $120 million.
The company expects mid-single digit net sales growth for Q1 2026, with adjusted operating income projected between $12 million and $15 million.
To mitigate the estimated $200 million+ gross impact of tariffs in 2026, Carter's plans mid-single digit pricing increases across all segments and expects $40 million in productivity benefits from initiatives like store closures and organizational savings.

12 hours ago

Transcript

Carter's, Inc. Reports Q4 and Full Year Fiscal 2025 Results and Provides 2026 Outlook

CRI

Earnings

Guidance Update

Dividends

For the fourth fiscal quarter ended January 3, 2026, Carter's, Inc. reported net sales of $925.5 million, an increase of 7.6% compared to the prior year, and adjusted diluted earnings per share of $1.90, a decrease of 20.5%.
For the full fiscal year ended January 3, 2026, the company's net sales were $2.898 billion and adjusted diluted earnings per share were $3.47.
The company projects for fiscal year 2026, low single-digit to mid-single-digit percentage growth in net sales and a low double-digit to mid-teens decline in adjusted diluted earnings per share.
For the first fiscal quarter of 2026, Carter's, Inc. anticipates mid-single-digit percentage growth in net sales and adjusted diluted earnings per share between $0.02 and $0.08.
A quarterly cash dividend of $0.25 per share was declared on February 19, 2026, payable on March 27, 2026.

14 hours ago

8-K

Carters Announces Q4 and Fiscal Year 2025 Results

CRI

Earnings

Guidance Update

Demand Weakening

For the fourth quarter of 2025, Carters reported GAAP net sales of $925 million, an 8% increase compared to the prior year, with diluted EPS of $1.76, up 3%.
However, adjusted diluted EPS for Q4 2025 decreased by 21% to $1.90 from $2.39 in Q4 2024.
For the full fiscal year 2025, GAAP net income and diluted EPS both decreased by 51%, reaching $92 million and $2.53, respectively.
The U.S. Retail segment showed strong performance in Q4 2025 with net sales up 9% and comparable sales increasing by 5%.
The company's Q1 2026 outlook projects adjusted diluted EPS between $0.02 and $0.08, a significant decrease from $0.66 in Q1 2025.

14 hours ago

Presentation

Carter's, Inc. Reports Fourth Quarter and Fiscal Year 2025 Results and Provides 2026 Outlook

CRI

Earnings

Guidance Update

Dividends

Carter's, Inc. reported fourth quarter fiscal 2025 net sales of $925 million, an 8% increase from Q4 2024, with diluted EPS of $1.76 and adjusted diluted EPS of $1.90.
For fiscal year 2025, net sales reached $2.898 billion, up 2% from 2024, but diluted EPS decreased to $2.53 and adjusted diluted EPS fell to $3.47. The 53-week fiscal year included an extra week, which contributed approximately $37 million in consolidated net sales.
The company provided a fiscal year 2026 outlook projecting low single-digit to mid-single-digit percentage growth in net sales and adjusted operating income, but a low double-digit to mid-teens decline in adjusted diluted EPS. This outlook excludes potential benefits from recent tariff developments.
In fiscal year 2025, Carter's generated $122 million in operating cash flow and returned $56 million to shareholders through dividends, declaring a quarterly dividend of $0.25 per share.

15 hours ago

Press Release

CRI Outlines Strategic Investments and Store Optimization Plan for FY 2026 Growth

CRI

New Projects/Investments

Revenue Acceleration/Inflection

Guidance Update

CEO Doug Palladini highlighted the need to invest in products and demand creation, particularly marketing, to attract Gen Z parents and leverage the inherent value of the brands, noting initial returns in Q4 performance.
The company reported a strong holiday period with the third consecutive quarter of comparable store growth and successful price increases, leading to an expectation of growth in sales and earnings for FY 2026.
A significant operational change involves the planned closure of 150 lowest-margin stores over the next few years (30 last year, 70 this year, 50 next year), representing approximately $110 million in revenue, which is anticipated to be accretive to profit due to sales transfer to other channels.
The wholesale strategy is evolving, including a shift in the Amazon business from the exclusive Simple Joys brand to core brands like Carter's, OshKosh, and Little Planet, aiming for long-term growth in this $1 billion segment of their revenue.

Jan 12, 2026, 4:30 PM

Transcript

Carter's Outlines Growth Strategy and Store Optimization for 2026

CRI

New Projects/Investments

Revenue Acceleration/Inflection

Guidance Update

Carter's plans to increase investment in demand creation (marketing), noting that benchmarking indicates they currently under-index competitors in this area, and initial investments are already showing returns in Q4 performance.
The company is implementing a store optimization strategy, intending to close approximately 150 lower-margin stores over the next few years (30 in the past year, 70 this year, and 50 next year), which represent about $110 million in revenue but are expected to be accretive to profit.
Carter's reported strong Q4 performance, achieving its third consecutive quarter of comparable store growth with higher average unit retail (AUR) and less promotion, while attracting new consumers with higher household incomes.
The company anticipates growth in sales and earnings in 2026, driven by a focus on long-term, sustainable, profitable growth and allowing each brand to develop its own identity.
In its wholesale segment, Carter's is transitioning its Amazon business from Simple Joys to its core flagship brands (Carter's, Oshkosh, Little Planet) to drive future growth.

Jan 12, 2026, 4:30 PM

Transcript

Carter's Discusses Store Closures, 2026 Growth Outlook, and Holiday Performance

CRI

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Carter's plans to close approximately 150 lowest margin stores over the next few years, including 30 last year, 70 this year, and 50 next year, representing about $110 million in revenue. These closures are expected to be accretive to profit due to revenue transfer to other channels and existing cost leverage.
The company expects growth in sales and earnings in 2026, building on three consecutive quarters of comparable store growth in retail.
Carter's reported a strong holiday period, with its direct-to-consumer (DTC) and wholesale businesses outperforming expectations across all channels and age categories. This performance was achieved while maintaining higher prices and average unit retail (AURs) with less promotion.
The wholesale business, which accounts for about $1 billion of the company's $3 billion revenue, is evolving with a focus on mass channel retailers and a transition on Amazon from Simple Joys to core brands like Carter's, Oshkosh, and Little Planet.

Jan 12, 2026, 4:30 PM

Transcript

Carter's Provides Preliminary Q4 and FY 2025 Sales Update and Announces New Chief Brand Officer

CRI

Earnings

Management Change

Revenue Acceleration/Inflection

Carter's, Inc. announced preliminary fourth quarter fiscal 2025 consolidated net sales increased by a high single-digit percentage over the prior year period, and fiscal year 2025 consolidated net sales increased by a low single-digit percentage over the prior year.
The 53rd week in fiscal year 2025 contributed approximately $33 million in consolidated net sales.
David B. Tichiaz has joined Carter's as Chief Brand Officer, responsible for leading the Company’s product design and merchandising teams.

Jan 9, 2026, 11:30 AM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for CARTERS.

Q4 2025

Feb 27, 2026

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Q3 2025

Oct 27, 2025

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Q2 2025

Jul 25, 2025

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CARTERS (CRI)

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