Jay Sole

Paul Lejuez

Chris Nardone

Christopher Nardone

Irwin Boruchow

Jim Chartier

William Reuter

Ike Boruchow

James Chartier

Kelly Crago

Paul Kearney

Carla Casella

Janet Kloppenberg

Paul Kelly

- **Carter's, Inc.** announced the **pricing of an upsized senior notes offering** on **October 29, 2025**.  **[1060822_0001193125-25-256979_d36548dex991.htm:1]** 
- The offering consists of **$575 million** aggregate principal amount of **7.375% senior notes due 2031**, representing an **increase of $75 million** from the initially proposed size.  **[1060822_0001193125-25-256979_d36548dex991.htm:1]** 
- The net proceeds, along with cash on hand, are intended to **redeem all outstanding 5.625% senior notes due 2027** and for general corporate purposes.  **[1060822_0001193125-25-256979_d36548dex991.htm:1]** 
- The offering is expected to **close on November 13, 2025**.  **[1060822_0001193125-25-256979_d36548dex991.htm:1]**

Carter's, Inc. Announces Pricing of Upsized Senior Notes Offering

- For Q3 2025, CRI reported **net sales of $758 million**, which remained flat compared to the prior year, while **GAAP diluted EPS decreased by 80% to $0.32**.  **[0001060822_2204685:0]**  Adjusted diluted EPS also saw a **55% decline to $0.74**.  **[0001060822_2204685:2]** 
- Year-to-date Q3 2025, the company experienced a significant decline in cash flow, reporting **operating cash flow of $(136) million** and **free cash flow of $(179) million**.  **[0001060822_2204685:4]** 
- CRI is implementing a comprehensive productivity agenda, including a planned **15% reduction-in-force** of office-based roles expected to save **~$35 million annually**, and the **closure of 150 low-margin stores**.  **[0001060822_2204685:6]** 
- The company anticipates a **net impact of additional proposed tariffs of ~$25 million to $35 million** in Q4 2025, with an estimated annualized gross impact of **~$200 million to $250 million**.  **[0001060822_2204685:7]**  For Q4 2025, the gross margin rate is expected to be around **43%**.  **[0001060822_2204685:8]**

CRI Announces Q3 2025 Results with Significant EPS Decline and Productivity Initiatives

- Carter's (CRI) reported **Q3 2025 net sales of $758 million**, comparable to the prior year, and **adjusted earnings per share of $0.74**.  **[0001060822_2205221_1]** **[0001060822_2205221_2]** 
- The **gross margin for Q3 2025 was 45.1%**, a decrease of 180 basis points year-over-year, primarily due to higher product costs, including a **$20 million gross impact from tariffs**.  **[0001060822_2205221_1]** **[0001060822_2205221_2]** 
- The company is undertaking a **restructuring plan** to achieve **$45 million in gross savings for 2026**, which includes a **15% reduction in office-based roles** by year-end 2025.  **[0001060822_2205221_5]** 
- CRI plans to close **150 North America stores**, with up to 100 expected to exit by the end of 2026, which previously generated approximately **$110 million in revenue** over the last 12 months.  **[0001060822_2205221_5]** **[0001060822_2205221_10]** 
- For Q4 2025, the company projects a gross margin rate around **43%** and a net tariff impact on earnings between **$25 million and $35 million**.  **[0001060822_2205221_8]**  For 2026, CRI anticipates **growth in both sales and earnings**, with sales growth primarily driven by price increases.  **[0001060822_2205221_8]**

Carter's (CRI) Announces Q3 2025 Results and Strategic Initiatives

- CRI reported **Q3 2025 net sales of $758,000,000**, operating income of **$29,000,000**, and reported earnings per share of **$0.32**, which included significant one-time charges such as a **$7,000,000** non-cash pension plan termination charge and a **$6,000,000** organizational restructuring charge.  **[0001060822_2205248_1]** 
- The company's gross margin for Q3 2025 was **45.1%**, a **180 basis point** decrease year-over-year, primarily due to higher product costs and tariffs, which had a gross impact of **$20,000,000** on gross margin.  **[0001060822_2205248_1]**  The effective duty rate has risen to the **high 30% range**, with an estimated annualized incremental impact of **$200,000,000 to $250,000,000** from higher tariffs, and a net impact on 2025 operating income of **$25,000,000 to $35,000,000**.  **[0001060822_2205248_1]** **[0001060822_2205248_8]** 
- For Q4 2025, CRI has not reinstated sales and earnings guidance but anticipates a low single-digit comparable sales increase in U.S. Retail (with quarter-to-date comps up **7%**) and sales growth in the International segment, while wholesale sales are projected to decline.  **[0001060822_2205248_8]** **[0001060822_2205248_9]**  Gross margin is expected to be around **43%**.  **[0001060822_2205248_9]** 
- Looking into 2026, the company expects **growth in both sales and earnings**, driven by price increases to mitigate tariffs and an estimated **$45,000,000** in productivity initiatives.  **[0001060822_2205248_9]** **[0001060822_2205248_13]**  Additionally, CRI plans to close approximately **150 marginally profitable stores** across North America, which is expected to be accretive to operating income.  **[0001060822_2205248_11]**

CRI Reports Q3 2025 Results Amidst Significant Tariff Headwinds and Strategic Restructuring

- Carter's reported **Q3 2025 net sales of $758 million**, with a **GAAP operating income of $29 million** and **GAAP earnings per share of $0.32**.  **[0001060822_2205460_1]** 
- The company incurred significant one-time charges in Q3 2025, including **$7 million** for pension plan termination, **$0.8 million** for deferred compensation plan termination, and **$6 million** for organizational restructuring.  **[0001060822_2205460_1]** 
- Carter's is implementing an organizational restructuring to reduce office-based roles by **approximately 15%** by year-end 2025, aiming for **$35 million** in annual savings starting 2026, as part of **$45 million** in total gross savings identified for 2026.  **[0001060822_2205460_5]** 
- The company is targeting **150 North America store closures**, with up to **100** expected by the end of 2026.  **[0001060822_2205460_5]** 
- The annualized incremental impact of higher tariffs is estimated at **$200-$250 million**, with a net impact on operating income for 2025 projected to be **$25-$35 million**.  **[0001060822_2205460_7]**  For Q4 2025, the gross tariff impact is estimated at **$40 million**, and the net impact on earnings is expected to be **$25 million-$35 million**.  **[0001060822_2205460_8]** **[0001060822_2205460_14]**  The company plans for sales and earnings growth in 2026, driven by price increases and productivity initiatives.  **[0001060822_2205460_8]**

Carter's Reports Q3 2025 Results and Outlines Strategic Initiatives

- Carter's, Inc. reported **Q3 fiscal 2025 net sales of $757.8 million**, comparable to the prior year, with **diluted EPS of $0.32** and **adjusted diluted EPS of $0.74**, significantly lower than Q3 2024.  **[1060822_0001060822-25-000157_cri-ex991q32025.htm:0]** **[1060822_0001060822-25-000157_cri-ex991q32025.htm:2]** 
- The company's profitability was **meaningfully impacted by elevated product costs, including higher tariffs, and additional investments**, resulting in a **62.2% decrease in operating income** to **$29.1 million** in Q3 2025 compared to Q3 2024.  **[1060822_0001060822-25-000157_cri-ex991q32025.htm:0]** **[1060822_0001060822-25-000157_cri-ex991q32025.htm:2]** 
- To improve financial performance, Carter's is implementing productivity actions, including **reducing office-based roles by approximately 300 positions (15%)** by the end of 2025, which is expected to yield **annualized savings of approximately $35 million** beginning in 2026.  **[1060822_0001060822-25-000157_cri-ex991q32025.htm:4]** 
- Additionally, the company plans to **close approximately 150 stores** in North America over the next three years, representing about **$110 million in annual net sales**, and is targeting **over $10 million in other annual SG&A reductions** starting in 2026.  **[1060822_0001060822-25-000157_cri-ex991q32025.htm:4]** 
- Due to significant uncertainty surrounding incremental tariffs, which are estimated to have a gross pre-tax earnings impact of **$200 million to $250 million annually**, Carter's has **suspended its fiscal 2025 guidance**.  **[1060822_0001060822-25-000157_cri-ex991q32025.htm:5]**

Carter's, Inc. Reports Q3 Fiscal 2025 Results and Announces Productivity Improvement Actions

- Carter's, Inc. reported **net sales of $758 million** for the third quarter fiscal 2025, which was comparable to the prior year.  **[1060822_7b8bed4808a74b3cbc0033bd1b73ac15_0]** 
- **Diluted EPS** for Q3 fiscal 2025 was **$0.32**, a decrease from $1.62 in Q3 2024, while **adjusted diluted EPS** was **$0.74**, down from $1.64 in the prior-year quarter, primarily impacted by elevated product costs, higher tariffs, and additional investments.  **[1060822_7b8bed4808a74b3cbc0033bd1b73ac15_0]** **[1060822_7b8bed4808a74b3cbc0033bd1b73ac15_2]** 
- The company returned **$47 million to shareholders** through dividends in the first three quarters of fiscal 2025.  **[1060822_7b8bed4808a74b3cbc0033bd1b73ac15_0]** 
- Carter's announced **productivity improvement actions**, including reducing office-based roles by approximately **300 positions (15%)** by the end of 2025, expected to generate **$35 million in annualized savings** starting in 2026, and plans to close approximately **150 stores** over the next three years.  **[1060822_7b8bed4808a74b3cbc0033bd1b73ac15_4]** 
- In October 2025, the company obtained commitments for a new **five-year asset-based revolving credit facility of no less than $750 million** and is evaluating refinancing its **$500 million senior notes** due March 2027.  **[1060822_7b8bed4808a74b3cbc0033bd1b73ac15_4]**

CARTERS (CRI)