Earnings Releases·Oct 30, 2026, 6:11 AM ET

Carter's, Inc. — Third Quarter Fiscal 2026 Earnings Summary

Q3 2026 consolidated net sales declined 0.7% to $752.5 million, while full-year net sales rose 3.9% to $2.05 billion; adjusted diluted EPS surged 39% to $1.03 in Q3 and 7% to $1.68 for the first three quarters, driven by a $127.7 million tariff refund and margin expansion.
The company raised full-year fiscal 2026 guidance to net sales of $2.91–$2.93 billion, adjusted operating income of $178–$187 million, and adjusted diluted EPS of $3.05–$3.23, with Q4 projected net sales of $860–$880 million.
Strategic updates include a leadership structure evolution, a reimagined Carter's brand identity, and $27.5 million in shareholder dividends paid in the first three quarters, with no share repurchases.
Operating cash flow for the first three quarters improved significantly to $101.8 million from a $136.3 million outflow in the prior year, supported by working capital improvements and the tariff recovery, though risks remain regarding IP litigation and macroeconomic uncertainty.