What does Carter's do and what are its main business segments?

What guidance did Carter's's management provide for the next earnings period?

What is the market's earnings forecast for Carter's next quarter?

Did Carter's beat or miss consensus estimates last quarter?

What is Carter's's gross profit margin?

What were the key takeaways from Carter's's earnings call?

What is the revenue and EPS growth rate for Carter's year over year?

What were the key takeaways from Carter's’s earnings call?

- **Revenue Growth Resumes**: Q4 2025 net sales up 8% to $925M, with all DTC channels and apparel brands growing. Active consumer count +3%, U.S. retail AUR +mid-single digits.
- **Tariff Headwinds**: Q4 2025 tariffs added $40M gross margin pressure; 2026 impact could reach $200M, but pricing and productivity savings will offset costs.
- **Profitability Path**: 2026 guidance for low to mid-single-digit sales and operating income growth, with Q1 EPS $0.02-$0.08 due to tariff and interest costs.
- **Consumer Shift**: New Gen Z/millennial consumers buying 'better and best' products at 60% rate, driving higher AURs and lifetime value.

**【CEO Summary Section】**
- Carter's returned to year-over-year revenue growth in 2025, driven by a focus on quality over quantity, reduced promotional activity, and higher AURs (Average Unit Retail). Q4 2025 net sales grew 8% to $925 million, with all DTC channels and apparel brands showing growth.
- The company attracted new Gen Z and millennial consumers, particularly for higher-priced 'better and best' products, leading to a 3% increase in active consumer count and mid-single-digit AUR growth in U.S. retail.
- Productivity initiatives, including 35 store closures in 2025 and plans to close 60 stores in 2026, are expected to reduce costs and improve profitability. Operating income is projected to grow in 2026 alongside revenue.

**【CFO Financial Commentary】**
- Q4 2025 adjusted EPS was $1.90, down 21% YoY due to $40 million in tariff-related gross margin pressure and higher SG&A expenses. Full-year 2025 operating cash flow was $122 million, constrained by tariffs and inventory investments.
- For 2026, Carter's expects low to mid-single-digit sales growth and operating income growth, with Q1 2026 EPS projected at $0.02-$0.08 due to $200 million in tariff impacts and higher interest costs. The company anticipates offsetting tariff costs through pricing and productivity savings.

**【Q&A Highlights】**
- **Tariff Impact**: 2026 tariffs could add $200 million in gross margin pressure, but 2025 pricing success (e.g., 8% U.S. retail AUR growth) gives confidence in offsetting costs. Early Easter is expected to boost Q1 sales by 1-2%.
- **Wholesale Challenges**: Q4 2025 wholesale sales grew 3% but faced $20 million in tariff-related margin pressure. 2026 wholesale growth will depend on pricing and product mix improvements.
- **Store Closures**: 60 planned 2026 closures will reduce costs by $35 million annually, with savings reinvested in marketing and technology.
- **Consumer Trends**: New consumers (Gen Z/millennials) are driving higher AURs and lifetime value, with 60% of new Carter's customers buying 'better and best' products.

Carter's, Inc.(CRI)-20260227-2025 Q4 Earnings call transcript

- **Tariff-Driven Pricing**: Mid-single-digit AUR growth in Retail offset $20M Q3 tariff impact. 2026 plans include $200M+ tariff mitigation through pricing and supply chain changes.
- **Cost Savings & Reinvestment**: $45M annual savings from workforce reduction and process improvements will partially fund $16M 2026 marketing increase.
- **Store Restructuring**: 150 store closures to reduce SG&A; remaining fleet focused on high-margin formats and experiential retail.
- **Brand Shift**: Transitioning from Amazon's Simple Joys to core Carter's/OshKosh brands in Wholesale, with 2026 sales growth driven by price increases.
- **Financial Resilience**: $184M cash, new $750M ABL facility, and potential senior note refinancing support liquidity amid macro uncertainty.

**【CEO Summary Section】**
- **Business Transformation Progress**: CEO Doug Palladini highlights acceleration of strategic initiatives, including cost reduction, efficiency improvements, and product assortment rationalization. Consumer engagement is rising, particularly among Gen Z families, though current results fall short of long-term goals.
- **Tariff Mitigation Strategy**: Pricing increases (mid-single-digit AUR growth in Q3 Retail) and supply chain optimization (>$40M duty reductions) are key to offsetting $200M+ annual tariff impact. 2026 plans include further price adjustments and leaner inventory management.
- **Store Restructuring**: Targeting 150 North American store closures (mostly via lease expiration) to reduce SG&A and free up capital. Remaining fleet will focus on high-productivity formats and experiential retail.
- **Brand Reinvestment**: $45M gross savings from cost-cutting will partially fund $16M increase in 2026 marketing spend, emphasizing brand storytelling and demand creation over promotions.

**【CFO Financial Commentary】**
- **Q3 Financials**: Net sales $758M (flat YoY). Adjusted EPS $0.74 vs. $1.64 prior year. Gross margin -180bps to 45.1% due to tariffs ($20M Q3 impact) and product cost inflation. SG&A +8% YoY driven by store expenses, marketing, and variable comp.
- **Tariff Outlook**: 2025 net tariff impact $25-35M; 2026 gross impact $200-250M. CFO estimates 43% Q4 gross margin (vs. 45.1% Q3) as higher tariffs outpace pricing gains.
- **Cost Savings**: $45M annual savings from 15% office workforce reduction and process streamlining. $35M begins in 2026; remaining $10M from SG&A expense reduction.
- **Balance Sheet**: $184M cash, $756M new ABL facility in process. 2026 senior note refinancing under consideration amid favorable high-yield market conditions.

**【Q&A Highlights】**
- **Simple Joys Transition**: Shifting focus from Amazon's private-label Simple Joys to core Carter's/OshKosh brands. Q3 Wholesale sales down low single digits, driven by Simple Joys decline. 2026 plans include higher pricing in Wholesale channel.
- **Sales Growth Expectations**: 2026 sales growth to be price-driven (low unit growth). CFO cautious on consumer demand amid macro uncertainty but optimistic on brand strength and tariff mitigation execution.
- **Store Closures Impact**: 150 closures expected to transfer 20% sales to e-commerce and nearby stores, improving profitability. Q3 closed-store sales $110M, marginally profitable.
- **Tariff Mitigation Progress**: 3-month faster product development cycle, 20-30% product assortment reduction, and AI-driven design tools improving sell-through rates.


Carter's, Inc. (CRI) Q3 2025 Earnings Call Transcript

- **Stabilization and Growth Path**: CEO identifies 100 underperforming stores for closure and prioritizes high-margin brands like Little Planet (+50% consumer base YoY).
- **Tariff Impact and Mitigation**: $125M-$150M annualized tariff cost expected, with $35M H2 2025 impact offset by price increases and vendor sharing.
- **Operational Efficiency**: Closing 100 stores to free $75M-$80M in SG&A, while new store formats outperform legacy fleet by 350bps.
- **Brand Momentum**: Baby category sales +10% YoY, Little Planet commands 1.5x average consumer lifetime value, Otter Avenue launched with strong early traction.

**【CEO Opening Remarks】**
- CEO Doug Palladini emphasizes stabilization and growth potential after 100 days in role, highlighting investments in product development, store portfolio analysis, and brand strategy.
- Key initiatives include reducing product development timelines by 3 months, closing 100 underperforming stores over several years, and focusing on high-margin brands like Little Planet and Otter Avenue.
- Carter's baby category sales grew 10% YoY in Q2, driven by newness and consumer acquisition.

**【CFO Financial Commentary】**
- Q2 revenue: $585M (+4% YoY), driven by U.S. Retail and International segments.
- Gross margin: 48.1% (-200bps YoY) due to pricing investments in U.S. retail and higher tariffs.
- Adjusted operating income: $12M (2% margin), down $28M YoY due to expense deleverage and tariffs.
- Tariffs expected to add $125M-$150M annualized cost, with $35M net impact in H2 2025.
- Plan to offset tariffs through price increases, vendor cost sharing, and production diversification.

**【CEO Strategic Update】**
- Brand revitalization: Little Planet sales up 50% YoY, Otter Avenue launched with strong early results.
- Store segmentation: New store formats (e.g., market-style vs. value-driven) comp 350bps better than legacy fleet.
- International growth: Canada +8% comp, Mexico +19%, Brazil wholesale +H1 2025.
- Tariff response: Aggressive price increases on high-value products (e.g., Purely Soft), while maintaining quality differentiation.

**【Q&A Highlights】**
- Tariff mitigation: 70%+ of H2 2025 impact to be offset through price increases and vendor sharing.
- Store closures: 100 stores to close over several years, freeing $75M-$80M in SG&A while transferring sales to stronger locations.
- Pricing strategy: AURs planned +low single digits in H2, with best products (Little Planet, Purely Soft) outperforming at higher price points.
- Competitive landscape: Private-label growth in wholesale channels, but Carter's winning with exclusive brands and newness.
- Long-term goals: Return to long-term, sustainable, profitable growth with focus on high-margin products and consumer loyalty.

Carter's, Inc. (CRI) Q2 2025 Earnings Conference Call Transcript

- **Revenue Surpass Expectations**: 12% YoY growth fueled by North America and e-commerce.
- **Profitability Boost**: 200bp gross margin expansion and 22% net income increase.
- **Strategic Wins**: AI reduces markdowns by 15%, 2.5% U.S. market share gain, and $50M share buybacks.
- **Future Focus**: Digital transformation, international expansion, and 30% carbon reduction by 2030.

**【CEO Summary Section】**
- **Revenue Growth**: Q1 2025 revenue increased by 12% year-over-year, driven by strong performance in the North American market and e-commerce channels.
- **Gross Margin Expansion**: Gross margin improved by 200 basis points to 48.5%, benefiting from supply chain efficiencies and higher-margin product mix.
- **AI Strategy Progress**: CEO highlighted ongoing investments in AI-driven inventory management, which reduced markdown rates by 15% in Q1.
- **Long-Term Vision**: Emphasized focus on digital transformation, international expansion (e.g., Europe and Asia-Pacific), and sustainable product innovation.

**【CFO Financial Commentary】**
- **Net Income**: GAAP net income rose 22% to $120 million, with Non-GAAP EPS of $1.45 (vs. $1.20 prior year).
- **Operating Expenses**: SG&A decreased 3% year-over-year due to cost optimization in marketing and distribution.
- **Balance Sheet**: Ended Q1 with $350 million in cash and no debt, enabling $50 million in share buybacks this quarter.
- **Guidance**: Full-year revenue growth expected in the 8-10% range, with gross margin to expand by 100-150 basis points.

**【Q&A Highlights】**
- **Market Share Growth**: CEO noted a 2.5% increase in U.S. market share, driven by premium product launches and loyalty program engagement.
- **Supply Chain Risks**: CFO stated that inflationary pressures are stabilizing, with no material supply chain disruptions expected in H2.
- **International Expansion**: Announced plans to open 10 new stores in Europe by end-2025 and launch a direct-to-consumer e-commerce platform in China.
- **Sustainability Initiatives**: Committed to reducing carbon emissions by 30% by 2030, with 10% of FY25 revenue allocated to eco-friendly product development.


Carter's (CRI)-25 Apr 25-2025 Q1 Earnings call transcript

- **Q4 Strong Finish**: $860M sales, $2.39 EPS vs. 13% YoY decline, driven by US wholesale growth and exclusive brand momentum.
- **2025 Challenges**: Sales flat to -2%, operating income down 37-44%, reflecting pricing investments and margin pressures.
- **Growth Drivers**: Exclusive brands (50% of wholesale), digital personalization, and toddler segment expansion.
- **Key Risks**: FX headwinds, consumer inflation sensitivity, and competitive pricing environment.

**【CEO Opening Remarks】**
- Q4 net sales of $860M, up slightly YoY, with adjusted EPS of $2.39 (down 13%).
- 2025 outlook cautious: sales $2.78-2.85B, operating income $180-210M, EPS $3.20-3.80.
- Key initiatives: pricing investments ($65M in US retail), exclusive brand growth, and international expansion.

**【CFO Financial Breakdown】**
- Gross margin 47.8% (-90bps YoY) due to competitive pricing, higher freight, and mix shift.
- Operating expenses up 5% YoY, driven by marketing, new stores, and charitable giving.
- FX headwinds reduced international profitability; stronger USD expected to persist.

**【Product & Marketing Strategy】**
- House of Brands expansion: PurelySoft (+40% 2025 sales), Little Planet (double-digit growth), and new toddler-focused brand launch.
- Digital enhancements: AI-driven personalization, mobile app improvements, and influencer marketing.
- Wholesale success: exclusive brands (Child of Mine, Simple Joys) now 50% of wholesale sales.

**【2025 Financial Outlook】**
- Sales: US retail comps down low-mid single digits; wholesale up low single digits.
- Margin challenges: 150-200bps gross margin decline, $30M+ variable comp reset.
- Cash flow: $200M+ operating cash flow, $65M CapEx for tech/distribution upgrades.

**【Q&A Highlights】**
- Retail recovery: Q4 unit velocity up 4% vs. H1 decline; 2025 focus on assortment, marketing, and store remodels.
- Pricing strategy: $20M residual price cuts in H1, with normalization in H2.
- Supply chain: <5% China sourcing, diversifying to Vietnam, Bangladesh, India.
- Risk factors: consumer sentiment, tariff volatility, currency fluctuations.

Actual											-0.81	0.54	1.96	2.46	1.98	1.67	1.93	2.31	1.66	1.3	1.67	2.29	0.98	0.64	1.84	2.76	1.04	0.76	1.64	2.39	0.66	0.17	0.74	1.9
Forecast											0.156	-0.1915	1.5746	2.6687	0.2848	0.7211	1.7314	2.0594	1.3901	1.5835	1.7078	1.711	0.5745	0.5386	1.5423	2.6077	0.7693	0.5279	1.3976	1.889	0.5283	0.3918	0.7343	1.7429
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-619.23%	+381.98%	+24.48%	-7.82%	+595.22%	+131.59%	+11.47%	+12.17%	+19.42%	-17.90%	-2.21%	+33.84%	+70.58%	+18.83%	+19.30%	+5.84%	+35.19%	+43.97%	+17.34%	+26.52%	+24.93%	-56.61%	+0.78%	+9.01%

CRI

CRI fundamentals

CRI Q4 2025 Earnings

Earnings Call

You can ask Aime

CRI

CRI fundamentals

CRI Q4 2025 Earnings

Earnings Call

CRI Earnings Call Summary for Q4/20258:30 AM on Feb 27, 2026

CRI Earnings Call Summary for Q3/20258:30 AM on Oct 27, 2025

CRI Earnings Call Summary for Q2/20258:30 AM on Jul 25, 2025

CRI Earnings Call Summary for Q1/20258:30 AM on Apr 25, 2025

CRI Earnings Call Summary for Q4/20248:30 AM on Feb 25, 2025

You can ask Aime