Despite revenue growth, the significant decline in profitability and negative EPS guidance for 2026 suggest ongoing margin pressures from tariffs and investments. Traders should monitor gross margin trends and the company's ability to offset tariff costs with pricing.
Price Chart
Executive Summary
Carter's Inc. reported mixed fiscal year 2025 results with 2% revenue growth to $2.898 billion, but a significant 50.6% decline in diluted EPS to $2.53. The company guided for low single-digit to mid-single-digit revenue growth in 2026 but a low double-digit to mid-teens decline in adjusted EPS, citing ongoing tariff impacts and increased investments.
Key Financial Metrics
Key Facts
- Fiscal year 2025 revenue grew 2% to $2.898 billion, including a $37 million benefit from a 53rd week
- Diluted EPS declined 50.6% to $2.53 from $5.12 in 2024
- Adjusted diluted EPS declined 40.3% to $3.47 from $5.81 in 2024
- Operating margin declined 400 basis points to 5.0%
- Company guided for low double-digit to mid-teens decline in adjusted EPS for fiscal 2026
- Net cash from operations declined to $122 million from $298.8 million
Financial Impact
Revenue increased by $54.3 million but EPS declined by $2.59 per share (50.6%) from 2024
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| U.S. Retail | $1.5B | +3.5% |
| U.S. Wholesale | $1.0B | -2.0% |
| International | $431.0M | +6.3% |
Risk Factors
- Continued margin pressure from incremental tariff costs
- Higher net interest expense from debt refinancing ($40 million projected in 2026)
- Guidance for significant EPS decline in 2026 despite revenue growth
- Increased inventory levels impacting cash flow
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001060822-26-000015 |
| Document: cri-20260227.htm | 0001060822-26-000015 |
| Document: 0001060822-26-000015-index-headers.html | 0001060822-26-000015 |
| Document: 0001060822-26-000015-index.html | 0001060822-26-000015 |
| Document: 0001060822-26-000015.txt | 0001060822-26-000015 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 22, 2026 4w ago | 25-NSE | $30.86 | awaiting T+60 | — | $31.81 (+3.08%) |
Aug 20, 2026 9w ago | 8-K | $35.77 | awaiting T+60 | — | $31.81 (−11.07%) |
Jul 31, 2026 12w ago | 8-K | $38.57 $31.81 | ▼ −17.53% | ▼ −19.98% | $31.81 (−17.53%) |
May 6, 2026 24w ago | 8-K | $37.23 $38.57 | ▼ −3.60% | ▼ −1.54% | $31.81 (+14.56%) |
May 1, 2026 25w ago | 8-K | $33.17 $38.70 | ▲ +16.67% | ▲ +14.82% | $31.81 (−4.10%) |
Apr 23, 2026 26w ago | Court Ruling | $37.20 $38.29 | ▲ +2.93% | ▼ −1.76% | $31.81 (−14.49%) |
Apr 23, 2026 26w ago | Court Ruling | $37.20 $38.29 | ▲ +2.93% | ▼ −1.76% | $31.81 (−14.49%) |
Apr 1, 2026 29w ago | DEFA14A | $35.91 $41.16 | ▲ +14.62% | ▲ +0.46% | $31.81 (−11.42%) |
Feb 27, 2026 34w ago | 8-K | $33.31 $38.40 | ▼ −15.29% | ▼ −5.90% | $31.81 (+4.50%) |
US Market Status
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