Carter's, Inc. (CRI) Earnings
Carter's, Inc. is expected to report next earnings on July 24, 2026 (in NaN days), with a consensus EPS estimate of $0.02. CRI has beaten EPS estimates in 11 of its last 12 reported quarters (average surprise +51.0% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $0.13 | $0.39 | +212.0% | $681M | +3.1% |
| Jul 25, 2025 | $0.43 | $0.17 | -60.5% | $585M | -21.2% |
| Apr 25, 2025 | $0.53 | $0.66 | +24.5% | $630M | +13.5% |
| Feb 25, 2025 | $1.87 | $2.39 | +27.8% | $860M | +2.9% |
| Oct 25, 2024 | $1.40 | $1.62 | +15.7% | $758M | -9.1% |
| Jul 26, 2024 | $0.49 | $0.76 | +55.1% | $564M | -0.7% |
| Apr 26, 2024 | $0.77 | $1.04 | +35.1% | $661M | +3.3% |
| Feb 27, 2024 | $2.61 | $2.76 | +5.7% | $858M | -1.1% |
| Oct 27, 2023 | $1.54 | $1.84 | +19.5% | $792M | +0.7% |
| Jul 28, 2023 | $0.54 | $0.64 | +18.5% | $600M | -0.5% |
| Apr 28, 2023 | $0.59 | $0.98 | +66.1% | $696M | +7.3% |
| Feb 24, 2023 | $1.71 | $2.29 | +33.9% | $912M | +5.6% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 6, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Leadership transition: Doug Palladini departed, Sharon Price-John to join as new CEO. - First quarter performance: Sales and earnings exceeded expectations, impacted by tariffs, spending, and interest costs. - Areas of progress: Positive comparable sales in U.S. retail, new consumers attracted including Gen Z, Disney and Oshkosh collaboration. - Marketing investments: Strong results leading to increased traffic and consumer file growth via social media, connected TV, etc. - Productivity initiatives: $6 million cost reduction in first quarter, funding investment agenda.
Guidance
- Full-year net sales growth in low to mid single digits. U.S. retail: low single-digit sales growth, comp sales up mid-single digits. U.S. wholesale: mid-single-digit net sales growth. International: mid-single-digit net sales growth. - Adjusted operating income growth in low to mid single digits, more growth in second half. - 2026 earnings per share expected down low double digits to down mid-teens. - Second quarter net sales expected low single-digit increase, U.S. retail comp sales mid-single-digit up, U.S. wholesale mid to high single-digit net sales up, international roughly comparable. Gross margin down ~100 basis points, adjusted operating income $11M - $13M, adjusted EPS $0.02 - $0.06.
Segment performance
Net sales were $681 million. Reported operating income was $28 million vs $26 million last year. Reported earnings per share were 39 cents vs 43 cents last year. First quarter adjusted net sales were $681 million, up 8% y-o-y. Gross margin was 43.1%, down ~300 basis points y-o-y due to tariffs, partially offset by improved pricing, etc. AURs improved in high single digits, units up low single digits. U.S. retail: net sales grew nearly 13% y-o-y, comp sales up over 10% y-o-y and nearly 5% on two-year basis, AURs up low single digits, units up double digits. U.S. wholesale: net sales slightly up y-o-y, improved pricing offset by unit volume reduction. International: total reported net sales up 14% y-o-y, 8% on constant currency basis, Canadian and Mexican businesses strong.
Risks & headwinds
- Evolving tariff landscape with uncertainties, potential reimposition of higher tariffs. - Consumer resilience questions due to ongoing inflation and other pressures. - Marketplace uncertainties affecting pricing and profitability.
Analyst Q&A
Q: Unpack SG&A change from flat to low single-digit increase.
A: Intended store closings pushing out, more marketing spend, higher professional fees and inflationary impacts.
Q: Tariff assumption impact on gross margin.
A: Difficult to precise, $30M upside from lower rates and India tariff elimination but still gross margin pressure.
Q: Initiatives continuing vs paused.
A: Demand creation, product focus, productivity initiatives like store fleet and e-commerce enhancements continuing.
Q: Children's apparel industry growth and share.
A: Market up ~5% y-o-y in first quarter, maintained share.
Q: Tariff refunds, timing, use.
A: $130M in incremental IEPA tariffs filed for refund, not counting on it yet, plan to invest back in business.
Q: Second quarter comp sales confidence despite April softness.
A: April softness due to March strength, May/June easier compares, marketing driving traffic.
Q: Umbro collaboration and future collaborations.
A: Umbro collaboration strong, will do selectively where makes sense.
Q: Wholesale margin and future.
A: Wholesale more impacted by tariffs, more in control in DTC, margin may be lower now but plan to expand over time.
Q: Store openings/closings and wholesale Amazon business.
A: Plan to close ~60 locations, some pushed to Q4, Amazon relationship had growth, SimpleJoys volume improved.
Q: Tariff timing and impact on P&L, unit growth.
A: Inventory turn ~4-5 months, unit growth may moderate, pricing more in second half.