Quarterly ResultMay 6, 2026, 06:22 AM
Carter's Q1 Net Sales $681.1M (+8.1%); EPS $0.39
AI Summary
Carter's, Inc. reported its first quarter fiscal 2026 results, with net sales increasing 8.1% to $681.1 million, driven by strong demand across U.S. Retail, U.S. Wholesale, and International channels. However, diluted EPS decreased to $0.39 from $0.43 in the prior year, and adjusted diluted EPS also declined. The company reiterated its full-year outlook, which includes projected growth in net sales and adjusted operating income, but a decline in adjusted diluted earnings per share, citing higher tariffs, investment spending, and inflationary cost pressures.
Key Highlights
- Net sales increased 8.1% to $681.1 million in Q1 2026, up from $629.8 million in Q1 2025.
- U.S. Retail comparable sales grew 10.5%, marking the fourth consecutive quarter of growth.
- Diluted EPS decreased to $0.39 in Q1 2026 from $0.43 in Q1 2025.
- Adjusted diluted EPS fell to $0.39 in Q1 2026 from $0.66 in Q1 2025.
- Operating income increased 9.0% to $28.4 million, with operating margin at 4.2%.
- Net cash provided by operations was $6.4 million, an improvement from $48.6 million used in Q1 2025.
- Full-year 2026 outlook projects low single-digit to mid-single-digit percentage growth in net sales.
- Full-year 2026 adjusted diluted EPS is projected to decline by low double-digit to mid-teens percentage.