CARTERS INC reported results for the quarter ended 2026 with revenue of $615.49M and diluted EPS of $2.87, driven by higher average unit retail and volume across channels; net income rose to $104.96M from $446K a year earlier.

Financial Highlights

MetricCurrent quarterPrior year quarterYoY changeRevenue¹$615.49M$585.31M5.2%Net income²$104.96M$446K23433.2%Diluted EPS³$2.87$0.0128600%

¹ Reported as “Net sales”. ² Reported as “Net income”. ³ Reported as “Diluted net income per common share”.

Business Highlights

  • Revenue growth: Consolidated net sales rose 5.2% QoQ ($615.5M) and 6.7% year-to-date, driven by higher AUR and volume across channels.
  • Channel shifts: U.S. Wholesale led growth (+11.7% QoQ) while U.S. Retail delivered steady comps (+5.1% QoQ) despite net store closures.
  • Brand momentum: Core Carter’s brands, exclusive Carter’s assortments and Skip Hop supported Wholesale strength; international growth was led by Mexico and Canada.
  • Margins and costs: Gross margin improved due to tariff refund recoveries and higher AUR; average unit cost rose from tariff-related costs and product investments.
  • Operations: Opened 4 stores and closed 29 year-to-date; inventory days declined and working capital improved due to timing of receipts.

Original SEC Filing:

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