Carter’s reports Q3 earnings beat but trims full‑year sales and EPS outlook

Carter’s Inc. posted adjusted earnings per share of $1.03 for Q3 FY26, surpassing analyst estimates. Net sales were $752.5 million, essentially flat year‑over‑year. The company raised its operating margin to roughly 7.5% and returned $27 million to shareholders. However, it lowered its full‑year FY26 revenue guidance to $2.91‑$2.93 billion and EPS guidance to $3.05‑$3.23, below consensus forecasts.

The earnings beat shows short‑term profitability improvement, but the reduced full‑year guidance signals slower top‑line growth, prompting investors to reassess earnings expectations for the remainder of FY26.

  • 1Adjusted earnings per share for Q3 FY26 were $1.03, beating the consensus of $0.88.
  • 2Q3 net sales were $752.5 million, down 0.7% year‑over‑year.
  • 3Adjusted operating margin expanded to 7.6% from 5.2% in the prior‑year quarter.
  • 4Full‑year FY26 revenue guidance was cut to $2.91 billion‑$2.93 billion.
  • 5Full‑year FY26 adjusted EPS guidance was set at $3.05‑$3.23 per share.
  • 6Q4 FY26 revenue is forecast at $860 million‑$880 million and adjusted EPS at $1.37‑$1.55 per share.

Sources