Carter’s beats third quarter estimates but cuts guidance

Carter’s (CRI) forecasts Q4 net sales between $860M-$880M, citing a successful Q3 despite macroeconomic challenges. The company attributes this to strategic refocusing efforts and a new brand relaunch.

Carter's (CRI) reported Q3 2026 net sales of $752M, flat YoY, with adjusted operating income up 45% to $57M. The company attributed the improvement to successful marketing initiatives, including a new branding campaign and product launches. Despite early softness, September sales rebounded, driven by cooler weather and strategic promotions. Carter's also announced organizational changes to support long-term growth and consumer-centric strategies.

Carter's Q3 sales were mixed, with U.S. retail sales flat and wholesale down 4%. Baby segment grew, but older-kids declined. Margins improved, with adjusted gross margin up 200 bps. The company cut Q4 sales outlook, citing softer trends. Cash and inventory levels were reported. Leadership changes were announced. (CRI)

Carter's (CRI) reported Q3 2026 revenue of $752.5M, meeting expectations, and adjusted EPS of $1.03, beating estimates. Adjusted EBITDA also exceeded forecasts. However, Q4 revenue guidance of $870M missed expectations, and full-year EPS guidance fell short by 0.8%. Operating margin improved to 7.4% from 3.8% year-over-year, while same-store sales were flat.

Carters Inc. COO Richard F. Westenberger will step down upon the appointment of a successor, according to an SEC filing. Westenberger will continue as CFO. The effective date and successor are not yet disclosed. This change may impact leadership stability and investor confidence.

Carter’s (CRI) reported Q3 EPS of $1.03, beating estimates by $0.15, with revenue at $752.46M, slightly above expectations. The company forecasted FY 2026 EPS of $3.05-$3.23 and revenue of $2.91B-$2.93B, both below analyst consensus. CRI’s stock is down 13.46% over the last 3 months but up 6.31% year-over-year.