Carters Inc (CRI)

Carter’s Partners with Bubba Wallace and Boys & Girls Clubs of America to Strengthen Support for Today’s ParentsJune 10, 2026 6:30 AM
Business Wire Through a new parenting resource hub and a nationwide giveback campaign, Carter’s, Bubba Wallace and Boys & Girls Clubs of America are helping modern families feel more supported from day one. Key Facts Continuing their multi-year partnership, Carter’s is teaming up with Boys & Girls Clubs of America and racecar driver for 23XI Racing Bubba Wallace to build a “modern village” for parents—an ecosystem of support to help families feel more confident and less overwhelmed from day one. As part of the initiative, Carter’s is launching a new online parenting resource featuring expert guidance, real parent stories, practical tips, and simple solutions to help parents in their first year and beyond. Through July 31, Carter’s customers can donate to Boys & Girls Clubs of America at checkout, both in-store and online, to support the organization’s mission to help all kids reach their full potential. Carter’s Inc. (NYSE:CRI), North America’s largest and most-enduring apparel company exclusively for babies and young children, is continuing its partnership with racecar driver for 23XI Racing, and father of two, Bubba Wallace, to help meet the evolving needs of today’s parents. Together with Boys & Girls Clubs of America — a national organization that has championed the growth and belonging of kids and families for over a century — the partnership is redefining what it means to show up for today's families, building a modern village rooted in community, guidance, and unconditional support. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260610036442/en/Bubba Wallace announces partnership with Boys and Girls Clubs of America and Carter's. At a time when families feel the pressure to do it all, Carter’s is bringing these partners together to connect our community to the people, resources, and support systems they need in their first year and beyond. Rooted in Carter’s purpose to embrace the wonder of childhood, the partnership strengthens the systems parents rely on to give their children the best possible start. “Bubba’s journey from a Boys & Girls Club Kid to professional athlete to new dad is a living example of the power of support in empowering kids to pursue and achieve their biggest dreams,” said Sarah Crockett, Chief Marketing Officer at Carter’s, Inc. “At Carter’s, we believe that caring for the next generation starts with supporting parents and care givers from day one. Together with Bubba and Boys & Girls Clubs of America, we’re proud to be part of the village so kids everywhere have the foundation they need to thrive.” In support of this initiative, Carter’s, Boys & Girls Clubs of America and Bubba Wallace are coming together to create a resource destination designed to help parents feel more supported, confident, and connected throughout their parenting journey. The site destination will feature expert-backed guidance from Boys & Girls Clubs of America, practical tips from real Club families, and everyday resources for navigating early parenthood and beyond. “Parenting isn’t easy, and a lot of families don’t have the kind of support or resources they need — especially during those early days,” said Bubba Wallace. “That’s why I’m so happy to be partnering with Carter’s and Boys & Girls Clubs of America again to build that village and help parents feel confident, prepared, and supported during those early moments that matter most.” “Bubba is proof of what can happen when families have the support they need,” said Jim Clark, president and CEO of Boys & Girls Clubs of America. “For more than 160 years, Boys & Girls Clubs have been a vital part of the village that supports parents and caregivers — providing kids with safe, supportive environments, caring mentors and access to opportunities that help them succeed, while giving families peace of mind. Through this purpose-led partnership with Carter's and Bubba, we’re helping strengthen those support systems so more young people can thrive and reach their full potential." To further support parents and families nationwide, Carter’s is inviting customers to join its ongoing support of Boys & Girls Clubs of America through a giveback campaign designed to help expand access to the programs, resources and community support families need most. Through July 31, customers can donate at checkout in-store or online, turning their everyday purchase into a simple, meaningful way to help kids and their families thrive. For additional information on the campaign visit carters.com/bgca About Carter’s, Inc. Carter’s, Inc. is North America’s largest and most-enduring apparel company exclusively for babies and young children. The Company’s core brands are Carter’s and OshKosh B’gosh, iconic and among the sector’s most trusted names. These brands are sold through more than 1,000 Company-operated stores in the United States, Canada, and Mexico, and online at www.carters.com, www.oshkosh.com, www.cartersoshkosh.ca, and www.carters.com.mx. Carter’s also is the largest supplier of baby and young children’s apparel to North America’s biggest retailers. The Company’s Child of Mine brand is available exclusively at Walmart, its Just One You brand is available at Target, and its Simple Joys brand is available on Amazon.com. The Company’s emerging brands include Little Planet, crafted with organic fabrics and sustainable materials, Otter Avenue, a toddler-focused apparel brand, and Skip Hop, baby essentials from tubs to toys. Carter’s is headquartered in Atlanta, Georgia. Additional information may be found at www.carters.com. About Boys & Girls Clubs of America For more than 160 years, Boys & Girls Clubs of America (BGCA.org) has provided a safe place for kids and teens to learn and grow. Clubs offer caring adult mentors, fun and friendship, and high-impact youth development programs on a daily basis during critical non-school hours. Boys & Girls Clubs programming promotes academic success, good character and leadership, and healthy lifestyles. Over 5,500 Clubs serve more than 4 million young people through Club membership and community outreach. Clubs are located in cities, towns, public housing and on Native lands throughout the country, and serve military families in BGCA-affiliated Youth Centers on U.S. military installations worldwide. The national headquarters is located in Atlanta. Learn more about Boys & Girls Clubs of America on Facebook and LinkedIn. View source version on businesswire.com: https://www.businesswire.com/news/home/20260610036442/en/ Alanna.gardner@carters.com Original: Carter’s Partners with Bubba Wallace and Boys & Girls Clubs of America to Strengthen Support for Today’s Parents

Carter’s, Inc. Announces Quarterly DividendMay 14, 2026 4:20 PM
Business Wire The Board of Directors of Carter’s, Inc. (NYSE:CRI) today declared a quarterly dividend of $0.25 per share, payable on June 5, 2026, to shareholders of record at the close of business on May 26, 2026. Future declarations of quarterly dividends and the establishment of future record and payment dates will be at the discretion of the Company’s Board of Directors based on a number of factors, including business conditions, the Company’s future financial performance, investment priorities, and other considerations. About Carter’s, Inc. Carter’s, Inc. is North America’s largest and most-enduring apparel company exclusively for babies and young children. The Company’s core brands are Carter’s and OshKosh B’gosh, iconic and among the sector’s most trusted names. These brands are sold through more than 1,000 Company-operated stores in the United States, Canada, and Mexico and online at www.carters.com, www.oshkosh.com, www.cartersoshkosh.ca, and www.carters.com.mx. Carter’s also is the largest supplier of baby and young children’s apparel to North America’s biggest retailers. The Company’s Child of Mine brand is available exclusively at Walmart, its Just One You brand is available at Target, and its Simple Joys brand is available on Amazon.com. The Company’s emerging brands include Little Planet, crafted with organic fabrics and sustainable materials, Otter Avenue, a toddler-focused apparel brand, and Skip Hop, baby essentials from tubs to toys. Carter’s is headquartered in Atlanta, Georgia. Additional information may be found at www.carters.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260514182925/en/ T.C. Robillard
VP, Investor Relations
TC.Robillard@carters.com Original: Carter’s, Inc. Announces Quarterly Dividend

Carter’s (CRI) rises after first-quarter earnings and revenue top expectationsMay 6, 2026 8:34 AM
IH Market News Carter’s (NYSE:CRI) moved higher in premarket trading on Wednesday after the children’s clothing company reported first-quarter earnings and revenue ahead of Wall Street expectations.Shares gained more than 2% following the release.The company posted earnings per share of $0.39, well above analyst forecasts of $0.11.Revenue totaled $681 million, exceeding consensus estimates of $658.76 million. U.S. retail sales continue to strengthen Comparable sales in Carter’s U.S. retail business increased 10.5% during the quarter, marking the company’s fourth consecutive quarter of comparable sales growth.The company said demand remained strong across its U.S. retail, wholesale and international operations.“We saw strong demand for our brands during the first quarter across each of our U.S. Retail, U.S. Wholesale and International channels,” said Richard Westenberger, interim chief executive officer, president, chief financial officer and chief operating officer of the company. Margins pressured by tariffs and inflation Adjusted operating margin declined to 4.2% from 5.6% in the same period last year.Carter’s said profitability was negatively affected by higher tariff costs, inflation-related store expenses, increased investment spending and higher interest costs.Those pressures were partly offset by higher pricing, favorable sales mix and cost-saving initiatives.“Our profitability in the quarter was negatively affected by higher tariffs, investment spending and other inflationary cost pressures and higher interest costs. We expect the impact of these items to moderate as we move through the year and today we have reiterated our full year outlook for both sales and operating profit growth in 2026,” Westenberger added. New CEO set to join next month The company also noted that Sharon Price John is scheduled to join Carter’s as chief executive officer next month. Company maintains full-year outlook For fiscal 2026, Carter’s continues to expect low single-digit to mid-single-digit percentage growth in both net sales and adjusted operating income.Adjusted diluted earnings per share are still projected to decline by a low double-digit to mid-teens percentage due to continued tariff-related headwinds.The company also forecast operating cash flow between $110 million and $120 million, alongside capital expenditures of approximately $55 million.Carter’s stock price Original: Carter’s (CRI) rises after first-quarter earnings and revenue top expectations

Carter’s, Inc. Reports First Quarter Fiscal 2026 ResultsMay 6, 2026 6:10 AM
Business Wire Net sales $681 million vs. $630 million in Q1 2025, growth of 8.1% U.S. Retail comparable sales increased 10.5%, the fourth consecutive quarter of growth Operating margin 4.2% vs. 4.1% in Q1 2025 Adjusted operating margin 4.2% vs. 5.6% in Q1 2025 Diluted EPS $0.39 vs. $0.43 in Q1 2025; adjusted diluted EPS $0.39 vs. $0.66 in Q1 2025 Returned $9 million to shareholders through dividends Reiterates outlook for full-year Carter’s, Inc. (NYSE:CRI), North America’s largest and most-enduring apparel company exclusively for babies and young children, today reported its first quarter fiscal 2026 results. “We saw strong demand for our brands during the first quarter across each of our U.S. Retail, U.S. Wholesale and International channels,” said Richard F. Westenberger, interim Chief Executive Officer & President, Chief Financial Officer & Chief Operating Officer. “We posted strong results over the Easter holiday selling period which occurred earlier this year and our investments in marketing drove meaningful traffic increases in our U.S. Retail store and eCommerce businesses. “Our profitability in the quarter was negatively affected by higher tariffs, investment spending and other inflationary cost pressures and higher interest costs. We expect the impact of these items to moderate as we move through the year and today we have reiterated our full year outlook for both sales and operating profit growth in 2026. “As announced last week, we look forward to welcoming Sharon Price John as our new Chief Executive Officer next month. Sharon’s extensive industry experience, especially in the children’s space, and her demonstrated record of success position her well to lead the next chapter of Carter’s transformation and growth.” Adjustments to Reported GAAP Results In addition to the results presented in this earnings release in accordance with GAAP, the Company has provided adjusted, non-GAAP financial measurements, as presented below. The Company believes these adjustments provide a meaningful comparison of the Company’s results and afford investors a view of what management considers to be the Company’s underlying performance. These measures are presented for informational purposes only. See “Reconciliation of Adjusted Results to GAAP” section of this release for additional disclosures and reconciliations regarding these non-GAAP financial measures. There were no adjustments in the first quarter of fiscal 2026. First quarter of fiscal 2025 results included pre-tax expenses of $6.1 million related to the retirement of the Company’s previous CEO and $3.2 million related to operating model improvement initiatives.   Fiscal Quarter Ended   April 4, 2026     March 29, 2025 (In millions, except earnings per share) Operating Income   % Net Sales   Net
Income   Diluted
EPS     Operating Income   % Net
Sales   Net
Income   Diluted
EPS As reported (GAAP) $ 28.4   4.2 %   $ 14.3   $ 0.39     $ 26.1   4.1 %   $ 15.5   $ 0.43 Leadership transition costs   —         —     —       6.1         5.8     0.16 Operating model improvement costs   —         —     —       3.2         2.4     0.07 As adjusted $ 28.4   4.2 %   $ 14.3   $ 0.39     $ 35.4   5.6 %   $ 23.8   $ 0.66   Note: Results may not be additive due to rounding. Consolidated Results First Quarter of Fiscal 2026 compared to First Quarter of Fiscal 2025 Net sales increased $51.3 million, or 8.1%, to $681.1 million, compared to $629.8 million in the first quarter of fiscal 2025, reflecting growth in each segment. Net sales in the U.S. Retail, International, and U.S. Wholesale segments grew 12.8%, 14.3%, and 0.5%, respectively. U.S. Retail comparable net sales increased 10.5%. Changes in foreign currency exchange rates used for translation had a favorable effect on consolidated net sales of approximately $5.6 million, or 0.9% in the first quarter of fiscal 2026, as compared to the first quarter of fiscal 2025. Operating income increased $2.3 million, or 9.0%, to $28.4 million, compared to $26.1 million in the first quarter of fiscal 2025. Operating margin increased to 4.2%, compared to 4.1% in the prior year period, reflecting higher pricing, favorable channel mix, partially offset by incremental tariff costs, inflationary pressure in store-related expenses, as well as the non-recurrence of costs related to leadership transition and operating model improvements in the first quarter of fiscal 2025. Adjusted operating income (a non-GAAP measure) decreased $6.9 million, or 19.6%, to $28.4 million, compared to $35.4 million in the first quarter of fiscal 2025. Adjusted operating margin decreased to 4.2%, compared to 5.6% in the prior year period, principally due to incremental tariff costs, inflationary pressure in store-related expenses, partially offset by higher pricing, favorable channel mix, and benefits from cost savings initiatives. Net income decreased $1.2 million to $14.3 million, or $0.39 per diluted share, compared to $15.5 million, or $0.43 per diluted share, in the first quarter of fiscal 2025. Adjusted net income (a non-GAAP measure) decreased $9.4 million to $14.3 million, compared to $23.8 million in the first quarter of fiscal 2025. Adjusted earnings per diluted share (a non-GAAP measure) was $0.39, compared to $0.66 in the first quarter of fiscal 2025. Net cash provided by operations in the first quarter of fiscal 2026 was $6.4 million, compared to net cash used in operation of $48.6 million in the prior year period. The improved operating cash flow was primarily driven by higher sell through of inventory during the period, lower days of supply, and the timing of interest payments on our senior notes. See the “Reconciliation of Adjusted Results to GAAP” sections of this release for additional disclosures regarding non-GAAP measures. Return of Capital In the first quarter of fiscal 2026, the Company paid a cash dividend of $0.25 per common share totaling $9.2 million. No shares were repurchased in the first quarter. Future declarations of quarterly dividends and the establishment of future record and payment dates will be at the discretion of the Company’s Board of Directors based on a number of factors, including business conditions, the Company’s future financial performance, investment priorities, and other considerations. 2026 Business Outlook We do not reconcile forward-looking adjusted operating income or adjusted diluted earnings per share to their most directly comparable GAAP measures because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations that are not within our control due to factors described above, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future operating income or diluted EPS, the most directly comparable GAAP metrics to adjusted operating income and adjusted diluted earnings per share, respectively. The Company’s outlook (and related assumptions) for the second quarter and full-year fiscal 2026 include an anticipated non-GAAP adjustment related to CEO transition costs of approximately $2 million to $3 million. If the Company were to receive refunds of previously paid tariffs, the Company intends to treat such refunds as non-GAAP adjustments in the appropriate period. For fiscal year 2026 (a 52 week fiscal year), the Company projects approximately: Low single-digit to mid-single-digit percentage growth in net sales ($2.898 billion in fiscal 2025); Low single-digit to mid-single-digit percentage growth in adjusted operating income ($176 million in fiscal 2025); Low double-digit to mid-teens percentage decline in adjusted diluted earnings per share ($3.47 in fiscal 2025); Operating cash flow of $110 million to $120 million; and Capital expenditures of $55 million. The Company's outlook for fiscal year 2026 assumes (comparisons vs. prior year unless otherwise noted): Earnings contributions weighted to the second half due to greater projected net impact of tariffs and investment spending in the first half relative to the second half; Lower gross margin rate, reflecting incremental tariff costs partially offset by higher pricing, other tariff mitigation actions, and productivity savings; Low-single digit increase in SG&A, reflecting organizational restructuring and store fleet rationalization savings offset by investments in demand creation, information technology, and other cost inflation across the business; Net interest expense of approximately $40 million, reflecting higher principal amount and coupon rate associated with the refinancing of its senior notes in Q4 2025; Effective tax rate of approximately 22%; and Average number of shares outstanding of approximately 36 million. For the second quarter of fiscal 2026, the Company projects approximately: Low-single-digit percentage growth in net sales ($585 million in Q2 fiscal 2025); $11 million to $13 million in adjusted operating income ($12 million in Q2 fiscal 2025); and $0.02 to $0.06 in adjusted diluted earnings per share ($0.17 in Q2 fiscal 2025). The Company's outlook for second quarter fiscal 2026 assumes (comparisons vs. prior year unless otherwise noted): Earlier Easter holiday (2026 vs 2025); Lower gross margin rate, reflecting higher net incremental tariff costs, partially offset by higher planned pricing, supply chain mitigation actions, and productivity improvements; Low single-digit increase in SG&A, reflecting organizational restructuring savings offset by investments in demand creation and other cost inflation across the business; Net interest expense of approximately $10 million, reflecting higher principal amount and coupon rate associated with the refinancing of its senior notes in Q4 2025; Average number of shares outstanding of approximately 36 million. Conference Call The Company will hold a conference call with investors to discuss first quarter fiscal 2026 results and its business outlook on May 6, 2026 at 8:30 a.m. Eastern Daylight Time. To listen to a live webcast and view the accompanying presentation materials, please visit ir.carters.com and select links for “News & Events” followed by “Events.” To access the call by phone, please preregister on https://register-conf.media-server.com/register/BI8f3f9f0c26574d83b41c9aff8fe5b51e to receive your dial-in number and unique passcode. A webcast replay will be available shortly after the conclusion of the call at ir.carters.com. About Carter’s, Inc. Carter’s, Inc. is North America’s largest and most-enduring apparel company exclusively for babies and young children. The Company’s core brands are Carter’s and OshKosh B’gosh, iconic and among the sector’s most trusted names. These brands are sold through more than 1,000 Company-operated stores in the United States, Canada, and Mexico, and online at www.carters.com, www.oshkosh.com, www.cartersoshkosh.ca, and www.carters.com.mx. Carter’s also is the largest supplier of baby and young children’s apparel to North America’s biggest retailers. The Company’s Child of Mine brand is available exclusively at Walmart, its Just One You brand is available at Target, and its Simple Joys brand is available on Amazon.com. The Company’s emerging brands include Little Planet, crafted with organic fabrics and sustainable materials, Otter Avenue, a toddler-focused apparel brand, and Skip Hop, baby essentials from tubs to toys. Carter’s is headquartered in Atlanta, Georgia. Additional information may be found at www.carters.com. Forward Looking Statements Statements in this press release that are not historical fact and use predictive words such as “estimates”, “outlook”, “guidance”, “expect”, “believe”, “intend”, “designed”, “target”, “plans”, “may”, “will”, “are confident” and similar words are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed in this press release. These risks and uncertainties include, but are not limited to, those disclosed in Part II, Item 1A. “Risk Factors” of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 4, 2026 and Part I, Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2026, and otherwise in our reports and filings with the Securities and Exchange Commission, as well as the following factors: changes in global economic and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits; risks related to public health crises; risks related to the organizational restructuring plan, including, but not limited to, our ability to achieve the expected savings from the plan and to fully implement the plan; risks related to consumer tastes and preferences, as well as fashion trends; the failure to protect our intellectual property; the diminished value of our brands, potentially as a result of negative publicity or unsuccessful branding and marketing efforts; delays, product recalls, or loss of revenue due to a failure to meet our quality standards; risks related to uncertainty regarding the future of international trade agreements and the United States’ position on international trade, as well as significant political, trade, and regulatory developments and other circumstances beyond our control; the roll-back of incremental tariffs imposed under the International Emergency Economic Powers Act (the “incremental tariffs”) and any additional actions taken in response to their roll-back, including, but not limited to, tariffs imposed pursuant to Section 122 of the Trade Act of 1974 (the “122 tariffs”) and potential tariffs imposed under Section 301 of the Trade Act of 1974; our ability to recover refunds of incremental tariff amounts or other tariff amounts paid; increased competition in the marketplace; ongoing political and economic conflicts that could impact our global and domestic operations, including, but not limited to, the conflict between the United States, Israel, and Iran; financial difficulties for one or more of our major customers; identification of locations and negotiation of appropriate lease terms for our retail stores; distinct risks facing our eCommerce business; failure to forecast demand for our products and our failure to manage our inventory; increased margin pressures, including increased cost of materials and labor and our inability to successfully increase prices to offset these increased costs; continued inflationary pressures with respect to labor and raw materials and global supply chain constraints that have, and could continue, to affect freight, transit, and other costs; fluctuations in foreign currency exchange rates; unseasonable or extreme weather conditions; risks associated with corporate responsibility issues; our foreign sourcing arrangements; a relatively small number of vendors supply a significant amount of our products; disruptions in our supply chain, including increased transportation and freight costs; our ability to effectively source and manage inventory; problems with our Braselton, Georgia distribution facility; pending and threatened lawsuits; a breach of our information technology systems and the loss of personal data or a failure to implement new information technology systems successfully; unsuccessful expansion into international markets; failure to comply with various laws and regulations; failure to properly manage strategic initiatives; retention of key individuals; acquisition and integration of other brands and businesses; failure to achieve sales growth plans and profitability objectives to support the carrying value of our intangible assets; our continued ability to meet obligations related to our debt; changes in our tax obligations, including additional customs, duties or tariffs; our continued ability to declare and pay a dividend; volatility in the market price of our common stock; and the cost or effort required for our shareholders to bring certain claims or actions against us, as a result of our designation of the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings. Except for any ongoing obligations to disclose material information as required by federal securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The inclusion of any statement in this press release does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material. CARTER’S, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in thousands, except per share data) (unaudited)       Fiscal Quarter Ended   April 4, 2026   March 29, 2025 Net sales $ 681,113     $ 629,827   Cost of goods sold   387,240       338,737   Gross profit   293,873       291,090   Royalty income, net   4,619       5,332   Selling, general, and administrative expenses   270,049       270,320   Operating income   28,443       26,102   Interest expense   11,757       7,819   Interest income   (3,256 )     (3,142 ) Other expense, net   86       76   Income before income taxes   19,856       21,349   Income tax provision   5,520       5,810   Net income $ 14,336     $ 15,539           Basic net income per common share $ 0.39     $ 0.43   Diluted net income per common share $ 0.39     $ 0.43   Dividend declared and paid per common share $ 0.25     $ 0.80   CARTER’S, INC. BUSINESS SEGMENT RESULTS (dollars in thousands) (unaudited)     Fiscal Quarter Ended   April 4, 2026   % of Consolidated net sales   March 29, 2025   % of Consolidated net sales Net sales:               U.S. Retail $ 332,248     48.8 %   $ 294,432     46.8 % U.S. Wholesale   251,406     36.9 %     250,096     39.7 % International   97,459     14.3 %     85,299     13.5 % Consolidated net sales $ 681,113     100.0 %   $ 629,827     100.0 %                 Segment operating income (loss):       Segment operating margin         Segment operating margin U.S. Retail $ 9,037     2.7 %   $ 2,308     0.8 % U.S. Wholesale   36,784     14.6 %     55,309     22.1 % International   4,159     4.3 %     (215 )   (0.3 )% Total segment operating income (loss) $ 49,980     7.3 %   $ 57,402     9.1 %                 Items not included in segment operating income:     Consolidated
operating margin       Consolidated
operating margin Unallocated corporate expenses (a) $ (21,537 )   n/a     $ (22,012 )   n/a   Leadership transition costs (b)   —     n/a       (6,126 )   n/a   Operating model improvement costs (c)   —     n/a       (3,162 )   n/a   Consolidated operating income $ 28,443     4.2 %   $ 26,102     4.1 % (a) Unallocated corporate expenses include corporate overhead expenses that are not directly attributable to one of our business segments and include unallocated accounting, finance, legal, human resources, and information technology expenses, occupancy costs for our corporate headquarters, and other benefit and compensation programs, including performance-based compensation. (b) Related to costs associated with the transition of our former CEO, including accelerated vesting of outstanding time-based restricted stock awards. (c) Primarily related to third-party consulting costs. CARTER’S, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share data) (unaudited)     April 4, 2026   January 3, 2026   March 29, 2025 ASSETS           Current assets:           Cash and cash equivalents $ 473,435     $ 487,075     $ 320,794   Accounts receivable, net of allowance for credit losses of $6,018, $7,587, and $5,213, respectively   196,596       178,566       203,873   Finished goods inventories, net of inventory reserves of $12,027, $8,897, and $9,641, respectively   465,876       544,624       474,124   Prepaid expenses and other current assets   75,720       60,508       50,216   Total current assets   1,211,627       1,270,773       1,049,007   Property, plant, and equipment, net of accumulated depreciation of $617,458, $609,059, and $612,079, respectively   179,038       186,307       179,247   Operating lease assets   578,585       591,806       568,856   Tradenames, net   268,600       268,659       268,836   Goodwill   208,413       208,994       207,125   Customer relationships, net   19,249       20,128       22,672   Other assets   18,643       18,803       36,057   Total assets $ 2,484,155     $ 2,565,470     $ 2,331,800               LIABILITIES AND SHAREHOLDERS’ EQUITY           Current liabilities:           Accounts payable $ 188,692     $ 235,700     $ 199,056   Current operating lease liabilities   133,384       136,488       125,556   Other current liabilities   111,349       133,809       84,734   Total current liabilities   433,425       505,997       409,346   Long-term debt, net   567,487       567,173       498,328   Deferred income taxes   42,910       39,380       45,300   Long-term operating lease liabilities   495,442       508,461       498,628   Other long-term liabilities   16,434       19,411       32,953   Total liabilities $ 1,555,698     $ 1,640,422     $ 1,484,555               Commitments and contingencies                       Shareholders’ equity:           Preferred stock; par value $0.01 per share; 100,000 shares authorized; none issued or outstanding $ —     $ —     $ —   Common stock, voting; par value $0.01 per share; 150,000,000 shares authorized; 36,850,117, 36,425,877, and 36,237,114 shares issued and outstanding, respectively   369       364       362   Additional paid-in capital   20,251       19,584       9,385   Accumulated other comprehensive loss   (26,740 )     (24,361 )     (43,066 ) Retained earnings   934,577       929,461       880,564   Total shareholders’ equity   928,457       925,048       847,245   Total liabilities and shareholders’ equity $ 2,484,155     $ 2,565,470     $ 2,331,800   CARTER’S, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in thousands) (unaudited)     Fiscal Quarter Ended   April 4, 2026   March 29, 2025 Cash flows from operating activities:       Net income $ 14,336     $ 15,539   Adjustments to reconcile net income to net cash provided by (used in) operating activities:       Depreciation of property, plant, and equipment   12,684       12,340   Amortization of intangible assets   941       914   Provision for excess and obsolete inventory, net   3,140       1,385   Amortization of debt issuance costs   568       415   Stock-based compensation expense   3,684       9,753   Unrealized foreign currency exchange loss (gain), net   95       (295 ) Recoveries of doubtful accounts receivable from customers   (1,558 )     (454 ) Unrealized gain on investments   (460 )     (329 ) Deferred income taxes expense   3,645       6,572   Other operating items, net   (547 )     —   Effect of changes in operating assets and liabilities:       Accounts receivable   (16,573 )     (8,603 ) Finished goods inventories   74,994       27,122   Prepaid expenses and other assets   (14,991 )     (19,035 ) Accounts payable and other liabilities   (73,541 )     (93,968 ) Net cash provided by (used in) operating activities $ 6,417     $ (48,644 )         Cash flows from investing activities:       Capital expenditures $ (6,960 )   $ (10,346 ) Net cash used in investing activities $ (6,960 )   $ (10,346 )         Cash flows from financing activities:       Dividends paid $ (9,220 )   $ (28,999 ) Withholdings from vesting of restricted stock   (3,012 )     (4,222 ) Other   —       (370 ) Net cash used in financing activities $ (12,232 )   $ (33,591 )         Net effect of exchange rate changes on cash and cash equivalents   (865 )     449   Net decrease in cash and cash equivalents $ (13,640 )   $ (92,132 ) Cash and cash equivalents, beginning of period   487,075       412,926   Cash and cash equivalents, end of period $ 473,435     $ 320,794   CARTER’S, INC. RECONCILIATION OF ADJUSTED RESULTS TO GAAP (dollars in millions, except earnings per share) (unaudited)     Fiscal Quarter Ended March 29, 2025   SG&A   % Net Sales   Operating Income   % Net Sales   Income Taxes   Net Income   Diluted EPS As reported (GAAP) $ 270.3     42.9 %   $ 26.1   4.1 %   $ 5.8   $ 15.5   $ 0.43 Operating model improvement costs (b)   (3.2 )         3.2         0.8     2.4     0.07 Leadership transition costs (c)   (6.1 )         6.1         0.3     5.8     0.16 As adjusted (a) $ 261.0     41.4 %   $ 35.4   5.6 %   $ 6.9   $ 23.8   $ 0.66                               Fiscal Quarter Ended June 28, 2025   SG&A   % Net Sales   Operating Income   % Net Sales   Income Taxes   Net Income   Diluted EPS As reported (GAAP) $ 281.0     48.0 %   $ 4.0   0.7 %   $ 1.3   $ 0.4   $ 0.01 Operating model improvement costs (b)   (6.6 )         6.6         1.6     5.0     0.14 Leadership transition costs (c)   (1.1 )         1.1         0.3     0.8     0.02 As adjusted (a) $ 273.3     46.7 %   $ 11.8   2.0 %   $ 3.1   $ 6.3   $ 0.17 Fiscal Year Ended January 3, 2026 (53 weeks)   SG&A   % Net Sales   Operating Income   % Net Sales   Income Taxes   Net Income   Diluted
EPS As reported (GAAP) $ 1,188.8     41.0 %   $ 143.9   5.0 %   $ 22.0     $ 91.8   $ 2.53 Operating model improvement costs(b)   (14.2 )         14.2         3.4       10.8     0.30 Organizational restructuring(d)   (9.8 )         9.8         2.4       7.5     0.20 Leadership transition costs(c)   (8.1 )         8.1         0.7       7.3     0.20 Pension plan settlement(e)   —           —         2.1       6.7     0.18 Loss on extinguishment of debt(f)   —           —         0.4       1.3     0.03 Deferred compensation plan termination(g)   —           —         (0.8 )     0.8     0.03 As adjusted (a) $ 1,156.7     39.9 %   $ 176.0   6.1 %   $ 30.3     $ 126.1   $ 3.47 (a) In addition to the results provided in this earnings release in accordance with GAAP, the Company has provided adjusted, non-GAAP financial measurements that present SG&A, operating income, income taxes, net income, and net income on a diluted share basis excluding the adjustments discussed above. The Company believes these adjustments provide a meaningful comparison of the Company’s results and afford investors a view of what management considers to be the Company's core performance. The adjusted, non-GAAP financial measurements included in this earnings release should not be considered as an alternative to net income or as any other measurement of performance derived in accordance with GAAP. The adjusted, non-GAAP financial measurements are presented for informational purposes only and are not necessarily indicative of the Company’s future condition or results of operations. (b) Primarily related to third-party consulting costs. (c) Related to costs associated with the transition of our former CEO, including accelerated vesting of outstanding time-based restricted stock awards. (d) Related to charges for severance and other termination benefits as a result of organizational restructuring. (e) Non-cash charges for settlement of the OshKosh B’Gosh Pension Plan. (f) Related to redemption of the $500 million senior notes due 2027 and cash-flow based revolving credit facility. (g) Incremental income tax impact resulting from the announced termination of the Company’s deferred compensation plan.     Note: No adjustments were made to GAAP results in the first quarter of fiscal 2026. Results may not be additive due to rounding. CARTER’S, INC. RECONCILIATION OF NET INCOME ALLOCABLE TO COMMON SHAREHOLDERS (unaudited)     Fiscal Quarter Ended   April 4, 2026   March 29, 2025 Weighted-average number of common and common equivalent shares outstanding:       Basic number of common shares outstanding   35,493,430       35,312,090   Dilutive effect of equity awards   2,545       1,923   Diluted number of common and common equivalent shares outstanding   35,495,975       35,314,013   As reported on a GAAP Basis:       (dollars in thousands, except per share data)       Basic net income per common share:       Net income $ 14,336     $ 15,539   Income allocated to participating securities   (393 )     (285 ) Net income available to common shareholders $ 13,943     $ 15,254   Basic net income per common share $ 0.39     $ 0.43   Diluted net income per common share:       Net income $ 14,336     $ 15,539   Income allocated to participating securities   (393 )     (285 ) Net income available to common shareholders $ 13,943     $ 15,254   Diluted net income per common share $ 0.39     $ 0.43   As adjusted (a):       Basic net income per common share:       Net income $ 14,336     $ 23,750   Income allocated to participating securities   (393 )     (468 ) Net income available to common shareholders $ 13,943     $ 23,282   Basic net income per common share $ 0.39     $ 0.66   Diluted net income per common share:       Net income $ 14,336     $ 23,750   Income allocated to participating securities   (393 )     (468 ) Net income available to common shareholders $ 13,943     $ 23,282   Diluted net income per common share $ 0.39     $ 0.66   (a) In addition to the results provided in this earnings release in accordance with GAAP, the Company has provided adjusted, non-GAAP financial measurements that present per share data excluding the adjustments discussed above. The Company has excluded $8.2 million in after-tax expenses from these results for the fiscal quarter ended March 29, 2025.   Note: Results may not be additive due to rounding. CARTER’S, INC. RECONCILIATION OF ADJUSTED RESULTS TO GAAP (dollars in millions) (unaudited)   The following table provides a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods indicated:       Fiscal Quarter Ended   Four Fiscal Quarters Ended     April 4, 2026   March 29, 2025   April 4, 2026 Net income   $ 14.3     $ 15.5     $ 90.6   Interest expense     11.8       7.8       38.2   Interest income     (3.3 )     (3.1 )     (13.6 ) Income tax provision     5.5       5.8       21.7   Depreciation and amortization     13.6       13.3       55.6   EBITDA   $ 42.0     $ 39.3     $ 192.6                 Adjustments to EBITDA             Leadership transition costs (a)   $ —     $ 6.1     $ 1.9   Operating model improvement costs (b)     —       3.2       11.0   Organizational restructuring (c)     —       —       9.8   Loss on extinguishment of debt (d)     —       —       1.7   Pension plan settlement (e)     —       —       8.8   Total adjustments     —       9.3       33.2   Adjusted EBITDA   $ 42.0     $ 48.6     $ 225.8   (a) Related to costs associated with the transition of our former CEO, including accelerated vesting of outstanding time-based restricted stock awards. (b) Primarily related to third-party consulting costs. (c) Related to charges for severance and other termination benefits as a result of organizational restructuring. (d) Related to redemption of the $500 million senior notes due 2027 and cash-flow based revolving credit facility. (e) Non-cash charges for settlement of the OshKosh B’Gosh Pension Plan.   Note: Results may not be additive due to rounding.   EBITDA and Adjusted EBITDA are supplemental financial measures that are not defined or prepared in accordance with GAAP. We define EBITDA as net income before interest, income taxes, and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items described in footnotes (a) - (e) to the table above.   We present EBITDA and Adjusted EBITDA because we consider them important supplemental measures of our performance and believe they are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. These measures also afford investors a view of what management considers to be the Company's core performance.   The use of EBITDA and Adjusted EBITDA instead of net income or cash flows from operations has limitations as an analytical tool, and you should not consider them in isolation, or as a substitute for analysis of our results as reported under GAAP. EBITDA and Adjusted EBITDA do not represent net income or cash flow from operations as those terms are defined by GAAP and do not necessarily indicate whether cash flows will be sufficient to fund cash needs. While EBITDA, Adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements, these terms are not necessarily comparable to other similarly titled captions of other companies due to the potential inconsistencies in the method of calculation. EBITDA and Adjusted EBITDA do not reflect the impact of earnings or charges resulting from matters that we consider not to be indicative of our ongoing operations. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as discretionary cash available to us for working capital, debt service and other purposes. CARTER’S, INC. RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (dollars in millions) (unaudited)     The table below reflects the calculation of constant currency net sales on a consolidated and International segment basis for the fiscal quarter ended April 4, 2026:     Fiscal Quarter Ended   Reported Net Sales
April 4, 2026   Impact of Foreign Currency Translation   Constant-Currency Net Sales
April 4, 2026   Reported Net Sales
March 29, 2025   Reported
Net Sales % Change   Constant-Currency
Net Sales % Change                         Consolidated net sales $ 681.1   $ 5.6   $ 675.5   $ 629.8   8.1 %   7.3 % International segment net sales $ 97.5   $ 5.6   $ 91.9   $ 85.3   14.3 %   7.7 %   The Company evaluates its net sales on both an “as reported” and a “constant currency” basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates that occurred between the comparative periods. Constant currency net sales results are calculated by translating current period net sales in local currency to the U.S. dollar amount by using the currency conversion rate for the prior comparative period. The Company consistently applies this approach to net sales for all countries where the functional currency is not the U.S. dollar. The Company believes that the presentation of net sales on a constant currency basis provides useful supplemental information regarding changes in our net sales that were not due to fluctuations in currency exchange rates and such information is consistent with how the Company assesses changes in its net sales between comparative periods.   Note: Results may not be additive due to rounding.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260505796223/en/ Contact:
T.C. Robillard
Vice President, Investor Relations
tc.robillard@carters.com Original: Carter’s, Inc. Reports First Quarter Fiscal 2026 Results

Carter’s, Inc. to Report First Quarter Fiscal 2026 Results on Wednesday, May 6, 2026April 29, 2026 6:40 PM
Business Wire
Carter’s, Inc. (NYSE:CRI), North America’s largest and most-enduring apparel company exclusively for babies and young children, will report its first quarter fiscal 2026 results before the market opens on Wednesday, May 6, 2026.


The Company will host a conference call to discuss its results and provide an update on its business on this date at 8:30 a.m. Eastern Daylight Time. To listen to a live webcast and view the accompanying presentation materials, please visit ir.carters.com and select links for “News & Events” followed by “Events.”


To access the call by phone, please preregister via the following link to receive your dial-in number and unique passcode:


https://register-conf.media-server.com/register/BI8f3f9f0c26574d83b41c9aff8fe5b51e


A webcast replay will be available shortly after the conclusion of the call at ir.carters.com.


About Carter’s, Inc.


Carter’s, Inc. is North America’s largest and most-enduring apparel company exclusively for babies and young children. The Company’s core brands are Carter’s and OshKosh B’gosh, iconic and among the sector’s most trusted names. These brands are sold through more than 1,000 Company-operated stores in the United States, Canada, and Mexico, and online at www.carters.com, www.oshkosh.com, www.cartersoshkosh.ca, and www.carters.com.mx. Carter’s also is the largest supplier of baby and young children’s apparel to North America’s biggest retailers. The Company’s Child of Mine brand is available exclusively at Walmart, its Just One You brand is available at Target, and its Simple Joys brand is available on Amazon.com. The Company’s emerging brands include Little Planet, crafted with organic fabrics and sustainable materials, Otter Avenue, a toddler-focused apparel brand, and Skip Hop, baby essentials from tubs to toys. Carter’s is headquartered in Atlanta, Georgia. Additional information may be found at www.carters.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260429132029/en/
T.C. Robillard

Vice President, Investor Relations

tc.robillard@carters.com


Original: Carter’s, Inc. to Report First Quarter Fiscal 2026 Results on Wednesday, May 6, 2026

OshKosh B’gosh Partners with Basketball Star Tyrese Haliburton, the Ultimate “OshKosh Kid,” to Inspire the Next GenerationApril 13, 2026 6:30 AM
Business Wire
Two-year, community-first partnership celebrates Haliburton’s full-circle journey and invests in kids and families nationwide



Two-year partnership between OshKosh B’gosh and basketball All-Star Tyrese Haliburton



Community-first initiative focused on youth development, mentorship, and family support



$150,000 initial investment from Carter’s Charitable Foundation supporting the Haliburton Family Foundation



Partnership includes national community activations benefiting kids and families



Marks Haliburton as OshKosh B’gosh’s first multi-year professional basketball ambassador



OshKosh B’gosh, the iconic children’s brand known for generations of timeless American style, today announced a two-year partnership with basketball All-Star and Oshkosh, Wisconsin native Tyrese Haliburton. OshKosh B’gosh joined the Carter’s family of brands in 2005 and shares a purpose of embracing the wonder of childhood and uplifting those shaping the future, the partnership celebrates Haliburton’s journey from growing up as an “OshKosh kid” to becoming one of the most exciting young leaders in professional basketball.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260413566126/en/
Rooted in a shared commitment to community, mentorship, and opportunity, this partnership is intentionally designed as a purpose-led collaboration—not a product collaboration—marking a distinctive approach in a landscape where brand partnerships are often driven by merchandise. Instead, OshKosh B’gosh and Haliburton are coming together to invest in the next generation and the communities that shape them.


“Tyrese’s story is a powerful example of what it means to be supported by a community and to carry that forward,” said Sarah Crockett, Chief Marketing Officer at Carter’s, Inc. “We know it takes a village to shape the next generation, and what makes this partnership so meaningful is how authentically Tyrese shows up for the kids and communities around him—family, or neighbor, they are connected by the shared experience in Oshkosh. He represents the spirit of our brand in a way that is both deeply personal and incredibly inspiring.”


Tyrese Haliburton grew up in Oshkosh, Wisconsin, where his connection to community and commitment to uplifting young people began. The partnership reflects those shared values and positions Haliburton not only as the brand’s first multi-year professional basketball ambassador, but as a proof point of what is possible when community investment and opportunity come together.


“OshKosh has always been part of my story,” said Tyrese Haliburton. “Growing up in Oshkosh, Wisconsin, the brand was everywhere. It represents home, family, and childhood. Signing with the namesake brand makes this moment even more special. It truly feels full-circle, and I’m excited to help inspire the next generation to believe in themselves and chase their dreams.”


The partnership will launch with a campaign celebrating Haliburton as the ultimate “OshKosh Kid,” featuring creative content that highlights his hometown roots and connection to the brand. As part of the partnership, OshKosh B’gosh will work alongside the Haliburton Family Foundation to advance its mission of supporting and uplifting children, with the Carter’s Charitable Foundation serving as the first organization to invest $150,000 in this effort. Together, OshKosh and Haliburton will also activate community-focused initiatives designed to create meaningful impact for youth and families.


Founded more than 130 years ago in Oshkosh, Wisconsin, OshKosh B’gosh has long been synonymous with childhood and American heritage. This partnership reflects a strategic step forward for the brand—honoring its legacy while signaling a new era of cultural relevance, community connection, and continued momentum.


About Carter’s, Inc.


Carter’s, Inc. is North America’s largest and most-enduring apparel company exclusively for babies and young children. The Company’s core brands are Carter’s and OshKosh B’gosh, iconic and among the sector’s most trusted names. These brands are sold through more than 1,000 Company-operated stores in the United States, Canada, and Mexico, and online at www.carters.com, www.oshkosh.com, www.cartersoshkosh.ca, and www.carters.com.mx. Carter’s also is the largest supplier of baby and young children’s apparel to North America’s biggest retailers. The Company’s Child of Mine brand is available exclusively at Walmart, its Just One You brand is available at Target, and its Simple Joys brand is available on Amazon.com. The Company’s emerging brands include Little Planet, crafted with organic fabrics and sustainable materials, Otter Avenue, a toddler-focused apparel brand, and Skip Hop, baby essentials from tubs to toys. Carter’s is headquartered in Atlanta, Georgia. Additional information may be found at www.carters.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260413566126/en/
Lindsay Rider, Lindsay.rider@carters.com


Original: OshKosh B’gosh Partners with Basketball Star Tyrese Haliburton, the Ultimate “OshKosh Kid,” to Inspire the Next Generation

Carter’s and Umbro Bring the World’s Game to Its Youngest Fans with Limited-Edition Soccer KitsApril 1, 2026 6:45 AM
Business Wire
Heritage brands reimagine the global game for the next generation with soccer inspired collection for babies and kids


Carter’s Inc. (NYSE:CRI) and the Umbro brand are bringing the world’s game to its smallest fans. Today, the two heritage brands announced a limited-edition collaboration inspired by the world’s most popular sport, launching April 6.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260401400553/en/Local soccer team wears new Carter’s x Umbro collection
Timed to the growing excitement around global soccer, the Carter’s x Umbro collection celebrates the energy of the beautiful game through the eyes of its youngest fans as they witness one of the biggest moments in international sports.


Rooted in Carter’s purpose to embrace the wonder of childhood and the Umbro brand’s deep soccer heritage, the collection blends thoughtful functionality with sport-inspired design. Soft, flexible fabrics, easy-on silhouettes, and durable construction support movement, independence, and everyday play.


“This collaboration is about experiencing the world’s game through the eyes of kids,” said Sarah Crockett, Chief Marketing Officer at Carter’s. “Soccer is one of those rare moments that brings families together across cultures and generations. We wanted to create something that captures that energy and helps even the youngest fans feel part of the excitement.”


Designed for first steps, first goals, and big dreams, the collection features country-inspired kits from legendary football nations including Argentina, Brazil, Canada, England, France, Germany, Spain, and the United States.


Available in sizes newborn to 14, the collection retails for $24 - $28 and includes:



Baby Carter’s X Umbro Romper— A short-sleeve jersey romper featuring bold embroidery and standout prints, crafted from soft, durable fabric for all-day comfort and easy dressing.



Carter’s X Umbro Soccer Jersey — A lightweight V-neck jersey designed for comfort and easy dressing, featuring team-inspired prints and patches that let kids show their spirit on and off the field.



Carter’s X Umbro Active Skort — A vibrant, play-ready skort with a built-in inner short, offering comfort and freedom of movement for everything from playground adventures to game day.



Carter’s X Umbro Mesh Soccer Shorts — Breathable mesh shorts with a functional inner drawcord for a secure fit, designed to keep kids cool and comfortable during active play.



“Umbro has always been rooted in the culture and pride of the world’s game,” said Andie Lipton, Senior Vice President of Marketing, Creative & Communications at Iconix International. “Partnering with Carter’s lets us bring that legacy to the next generation of fans in a way that feels authentic and fun for families.”


The collection will be available starting April 6 at Carter’s retail stores nationwide and online at Carters.com.


About Carter’s, Inc.


Carter’s, Inc. is North America’s largest and most-enduring apparel company exclusively for babies and young children. The Company’s core brands are Carter’s and OshKosh B’gosh, iconic and among the sector’s most trusted names. These brands are sold through more than 1,000 Company-operated stores in the United States, Canada, and Mexico, and online at www.carters.com, www.oshkosh.com, www.cartersoshkosh.ca, and www.carters.com.mx. Carter’s also is the largest supplier of baby and young children’s apparel to North America’s biggest retailers. The Company’s Child of Mine brand is available exclusively at Walmart, its Just One You brand is available at Target, and its Simple Joys brand is available on Amazon.com. The Company’s emerging brands include Little Planet, crafted with organic fabrics and sustainable materials, Otter Avenue, a toddler-focused apparel brand, and Skip Hop, baby essentials from tubs to toys. Carter’s is headquartered in Atlanta, Georgia. Additional information may be found at www.carters.com.


About Umbro


About Umbro: True passion for sports has been running through Umbro’s DNA since 1924. As early as the 1950s we partnered with leading sports experts to create the perfect garment and today we carry this ethos into sports culture, fusing heritage with trend, and the pitch with the street.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260401400553/en/
Lindsay Rider

Senior Director, Public Affairs

Lindsay.Rider@carters.com


Original: Carter’s and Umbro Bring the World’s Game to Its Youngest Fans with Limited-Edition Soccer Kits

Carter’s, Inc. Reports Fourth Quarter and Fiscal Year 2025 ResultsFebruary 27, 2026 6:11 AM
Business Wire

Fourth quarter fiscal 2025 results


Net sales $925 million vs. $860 million in Q4 2024, growth of 8%



Operating margin 9.2% vs. 9.7% in Q4 2024



Adjusted operating margin 9.7% vs. 13.4% in Q4 2024



Diluted EPS $1.76 vs. $1.71 in Q4 2024



Adjusted diluted EPS $1.90 vs. $2.39 in Q4 2024






Fiscal year 2025 results


Net sales $2.898 billion vs. $2.844 billion in 2024, growth of 2%



Operating margin 5.0% vs. 9.0% in 2024



Adjusted operating margin 6.1% vs. 10.1% in 2024



Diluted EPS $2.53 vs. $5.12 in 2024



Adjusted diluted EPS $3.47 vs. $5.81 in 2024



Operating cash flow $122 million



$56 million returned to shareholders through dividends






Board of Directors declares quarterly dividend of $0.25 per share



Fiscal year 2026 outlook, which excludes potential benefits from recent tariff developments1:


Low single-digit to mid-single digit percentage growth in net sales



Low single-digit to mid-single-digit growth in adjusted operating income



Low double-digit to mid-teens decline in adjusted diluted EPS






Carter’s, Inc. (NYSE:CRI), North America’s largest and most-enduring apparel company exclusively for babies and young children, today reported its fourth quarter and fiscal year 2025 results.


“Carter’s delivered improved fourth quarter results with each of our business segments posting sales growth over last year. We see momentum building behind our products and demand creation initiatives, which have driven an improvement in the rate of traffic, new customer acquisition, higher realized pricing, and increased penetration of the best portions of our product assortments. All of this gives us confidence that our strategies are gaining traction,” said Douglas C. Palladini, Chief Executive Officer & President.


“2025 was a year of meaningful progress in stabilizing our business while responding to significant new tariffs. We took actions to right-size our cost structure and we launched several important initiatives to improve the productivity of our merchandise assortments and store fleet. We also strengthened our balance sheet and liquidity with the successful refinancing of our long-term debt and a new asset-based revolving credit facility in place.


“While we’re encouraged by our progress, much work remains. Excluding the recent tariff developments, for 2026 we’re planning growth in net sales as we build on the momentum of our product and demand creation strategies. We’re also planning growth in operating income. We will remain focused and disciplined in our investments and overall spending and expect solid contributions from productivity initiatives. We believe the recent news regarding tariffs will be net positive for Carter’s, but it will take some time to fully understand the implications for our business and the broader marketplace. Our talented and dedicated teams and I are committed to returning Carter’s to long-term sustainable, profitable growth over time.”




_______________________________




1 Refer to “Business Outlook” section of this release for additional information regarding 2026 tariff assumptions and reconciliations of forward-looking non-GAAP financial measures.







53rd Week


The Company’s fiscal year ends on the Saturday nearest the last day of December, resulting in an additional week of results every five to six years. The fourth quarter of fiscal 2025 included 14 weeks, compared to 13 weeks in the fourth quarter of fiscal 2024. Fiscal year 2025 included 53 weeks, compared to 52 weeks in fiscal 2024. The additional week in fiscal 2025 contributed approximately $37 million in consolidated net sales.


Adjustments to Reported GAAP Results


In addition to the results presented in this earnings release in accordance with GAAP, the Company has provided adjusted, non-GAAP financial measurements, as presented below. The Company believes these non-GAAP financial measurements provide a meaningful comparison of the Company’s results and afford investors a view of what management considers to be the Company’s underlying performance. These measures are presented for informational purposes only. See “Reconciliation of Adjusted Results to GAAP” section of this release for additional disclosures and reconciliations regarding these non-GAAP financial measures.


Fourth quarter fiscal 2025 results included expenses related to previously announced organizational restructuring initiatives, operating model improvement costs, leadership transition costs, and a debt extinguishment loss. Fourth quarter fiscal 2024 results included expenses related to organizational restructuring initiatives and a non-cash charge related to the write down of the OshKosh tradename asset.


Fiscal year 2025 results included expenses related to operating model improvement costs, organizational restructuring initiatives, leadership transition costs, a non-cash charge for settlement of the OshKosh B’Gosh Pension Plan, debt extinguishment loss, and a tax charge associated with the termination of the Company’s deferred compensation plan. Fiscal year 2024 results included expenses related to organizational restructuring initiatives, a non-cash Pension Plan settlement charge, and a non-cash charge related to the write down of the OshKosh tradename asset.




 






Fourth Fiscal Quarter








 






2025






 






 






2024








(In millions, except earnings per share)






Operating Income






 






% Net Sales






 






Net Income






 






Diluted

EPS






 






 






Operating Income






 






% Net Sales






 






Net Income






 






Diluted

EPS








As reported (GAAP)






$






84.7






 






9.2






%






 






$






64.2






 






$






1.76






 






 






$






83.2






 






9.7






%






 






$






61.5






 






$






1.71








Organizational restructuring






 






3.7






 






 






 






 






2.8






 






 






0.08






 






 






 






1.8






 






 






 






 






1.6






 






 






0.04








Operating model improvement costs






 






0.7






 






 






 






 






0.5






 






 






0.01






 






 






 






—






 






 






 






 






—






 






 






—








Leadership transition costs






 






0.4






 






 






 






 






0.3






 






 






0.01






 






 






 






—






 






 






 






 






—






 






 






—








Loss on extinguishment of debt






 






—






 






 






 






 






1.3






 






 






0.03






 






 






 






—






 






 






 






 






—






 






 






—








Intangible asset impairment






 






—






 






 






 






 






—






 






 






—






 






 






 






30.0






 






 






 






 






22.8






 






 






0.63








As adjusted






$






89.5






 






9.7






%






 






$






69.2






 






$






1.90






 






 






$






115.0






 






13.4






%






 






$






85.9






 






$






2.39








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Fiscal Year








 






2025






 






 






2024








(In millions, except earnings per share)






Operating Income






 






% Net Sales






 






Net Income






 






Diluted

EPS






 






 






Operating Income






 






% Net Sales






 






Net Income






 






Diluted

EPS








As reported (GAAP)






$






143.9






 






5.0






%






 






$






91.8






 






$






2.53






 






 






$






254.7






 






9.0






%






 






$






185.5






 






$






5.12








Operating model improvement costs






 






14.2






 






 






 






 






10.8






 






 






0.30






 






 






 






—






 






 






 






 






—






 






 






—








Organizational restructuring






 






9.8






 






 






 






 






7.5






 






 






0.20






 






 






 






1.8






 






 






 






 






1.6






 






 






0.04








Leadership transition costs






 






8.1






 






 






 






 






7.3






 






 






0.20






 






 






 






—






 






 






 






 






—






 






 






—








Pension plan settlement






 






—






 






 






 






 






6.7






 






 






0.18






 






 






 






—






 






 






 






 






0.7






 






 






0.02








Loss on extinguishment of debt






 






—






 






 






 






 






1.3






 






 






0.03






 






 






 






—






 






 






 






 






—






 






 






—








Deferred compensation plan termination






 






—






 






 






 






 






0.8






 






 






0.03






 






 






 






—






 






 






 






 






—






 






 






—








Intangible asset impairment






 






—






 






 






 






 






—






 






 






—






 






 






 






30.0






 






 






 






 






22.8






 






 






0.63








As adjusted






$






176.0






 






6.1






%






 






$






126.1






 






$






3.47






 






 






$






286.6






 






10.1






%






 






$






210.7






 






$






5.81































 



Note: Results may not be additive due to rounding.







Consolidated Results


The discussion of results below is presented on an adjusted (non-GAAP) basis where noted.


Fourth Quarter of Fiscal 2025 (14 weeks) compared to Fourth Quarter of Fiscal 2024 (13 weeks)


Net sales increased $65.7 million, or 7.6%, to $925.5 million, compared to $859.7 million in the fourth quarter of fiscal 2024, reflecting growth in each of our U.S. Retail, International, and U.S. Wholesale segments. The additional week in the fourth quarter of fiscal 2025, compared to the fourth quarter of fiscal 2024, contributed approximately $37.0 million in consolidated net sales. On a comparable week basis, net sales grew 3.4%. On a reported basis including the extra week in fiscal 2025, the U.S. Retail, International, and U.S. Wholesale segments grew 9.4%, 10.2%, and 3.4%, respectively. U.S. Retail comparable net sales increased 4.7%. Changes in foreign currency exchange rates used for translation in the fourth quarter of fiscal 2025, as compared to the fourth quarter of fiscal 2024, had a favorable effect on consolidated net sales of approximately $3.0 million, or 0.3%.


Operating income increased $1.5 million, or 1.8%, to $84.7 million, compared to $83.2 million in the fourth quarter of fiscal 2024. Operating margin decreased 50 basis points to 9.2%, reflecting incremental tariff costs, investments in product mix and make, and higher performance-based compensation provisions, partially offset by higher pricing, lower corporate expenses, and an asset impairment charge in the prior year period.


Adjusted operating income (a non-GAAP measure) decreased $25.6 million, or 22.2%, to $89.5 million, compared to $115.0 million in the fourth quarter of fiscal 2024. Adjusted operating margin decreased 370 basis points to 9.7%, reflecting incremental tariff costs, investments in product mix and make, and higher performance-based compensation provisions, partially offset by higher pricing and lower corporate expenses.


Net income increased $2.7 million, or 4.4%, to $64.2 million, compared to $61.5 million in the fourth quarter of fiscal 2024. Diluted earnings per share increased 2.9% to $1.76, compared to $1.71 in the prior year period.


Adjusted net income (a non-GAAP measure) decreased $16.8 million, or 19.5%, to $69.2 million, compared to $85.9 million in the fourth quarter of fiscal 2024. Adjusted diluted earnings per share (a non-GAAP measure) decreased 20.5% to $1.90, compared to $2.39 in the fourth quarter of fiscal 2024.


Fiscal Year 2025 (53 weeks) compared to Fiscal Year 2024 (52 weeks)


Consolidated net sales increased $54.3 million, or 1.9%, to $2.90 billion, compared to $2.84 billion in fiscal 2024, reflecting growth in our U.S. Retail and International segments that were partially offset by a decline in the U.S. Wholesale segment. The additional week in fiscal 2025, compared to fiscal 2024, contributed approximately $37.0 million in consolidated net sales. On a comparable week basis, net sales grew 0.6%. On a reported basis including the extra week in fiscal 2025, the Company’s U.S. Retail and International segments grew 3.5%, and 6.3%, respectively, while U.S. Wholesale net sales declined 2.0%. U.S. Retail comparable net sales increased 1.4%. Changes in foreign currency exchange rates used for translation in fiscal 2025, as compared to fiscal 2024, had an unfavorable effect on consolidated net sales of approximately $6.7 million, or 0.2%.


Operating income in fiscal 2025 decreased $110.8 million, or 43.5%, to $143.9 million, compared to $254.7 million in fiscal 2024. Operating margin decreased 400 basis points to 5.0%, reflecting incremental tariff costs, investments in product mix and make, investments in new and remodeled stores, increased provisions for performance-based compensation, and costs related to operating model improvements, leadership transition, and organizational restructuring. These increases were partially offset by higher pricing and an asset impairment charge in the prior year.


Adjusted operating income (a non-GAAP measure) decreased $110.6 million, or 38.6% to $176.0 million, compared to $286.6 million in fiscal 2024. Adjusted operating margin decreased 400 basis points to 6.1%, principally due to incremental tariff costs, investments in product mix and make, investments in new and remodeled stores, and increased provisions for performance-based compensation, partially offset by higher pricing and lower corporate expenses.


Net income in fiscal 2025 decreased $93.7 million, or 50.5%, to $91.8 million, compared to $185.5 million in fiscal 2024. Diluted earnings per share decreased 50.6% to $2.53, compared to $5.12 in fiscal 2024.


Adjusted net income (a non-GAAP measure) decreased $84.6 million, or 40.2%, to $126.1 million compared to $210.7 million in fiscal 2024. Adjusted earnings per diluted share (a non-GAAP measure) decreased 40.3% to $3.47, compared to $5.81 in fiscal 2024.


Net cash provided by operations in fiscal 2025 was $122.3 million compared to $298.8 million in fiscal 2024. The change in net cash from operating activities was primarily driven by lower earnings and higher inventory levels.


See the “Reconciliation of Adjusted Results to GAAP” section of this release for additional disclosures regarding non-GAAP measures.


Liquidity and Financial Position


The Company’s total liquidity at the end of fiscal 2025 was $1.2 billion, comprised of cash and cash equivalents of $487 million and $744 million in available borrowing capacity under the Company’s $750 million secured asset-based revolving credit facility (“ABL facility”). At the end of fiscal 2025, we had no outstanding borrowings under the ABL facility, exclusive of $6.3 million of outstanding letters of credit.


As previously announced in the fourth quarter of fiscal 2025, the Company completed the sale of $575 million aggregate principal amount of 7.375% senior unsecured notes due 2031. Proceeds from this offering were used to redeem $500 million principal amount of its 5.625% senior notes due in 2027.


Also in the fourth quarter of fiscal 2025, the Company, through its wholly-owned subsidiary The William Carter Company, entered into a five-year secured ABL facility of up to $750 million that matures in November 2030. The ABL facility replaced the Company’s existing $850 million secured cash flow–based revolving credit facility due April 2027.


Return of Capital


In the fourth quarter of fiscal 2025, the Company paid a cash dividend of $0.25 per common share totaling $9.1 million. In fiscal 2025, the Company paid cash dividends totaling $56.4 million. No shares were repurchased in fiscal 2025.


On February 19, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share for payment on March 27, 2026, to shareholders of record at the close of business on March 13, 2026.


Future declarations of quarterly dividends and the establishment of future record and payment dates will be at the discretion of the Company’s Board of Directors based on a number of factors, including business conditions, the Company’s future financial performance, investment priorities, and other considerations.


Business Outlook


We do not reconcile forward-looking adjusted operating income or adjusted diluted earnings per share to their most directly comparable GAAP measures because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations that are not within our control due to factors described above, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future operating income or diluted EPS, the most directly comparable GAAP metrics to adjusted operating income and adjusted diluted earnings per share, respectively.


The Company’s outlooks (and related assumptions) for fiscal year 2026 and the first quarter fiscal 2026 do not reflect the potential impacts of the recent U.S. Supreme Court decision regarding tariffs imposed under the International Emergency Economic Powers Act of 1977, as amended, as well as recently-announced global tariffs imposed under Section 122 of the Trade Act of 1974, as amended.


For fiscal year 2026 (a 52 week fiscal year), the Company projects approximately:



Low single-digit to mid-single-digit percentage growth in net sales ($2.898 billion in fiscal 2025);



Low single-digit to mid-single-digit growth in adjusted operating income ($176 million in fiscal 2025);



Low double-digit to mid-teens decline in adjusted diluted earnings per share ($3.47 in fiscal 2025);



Operating cash flow of $110 million to $120 million; and



Capital expenditures of $55 million.



Our outlook for fiscal year 2026 assumes (comparisons vs. prior year unless otherwise noted):



Earnings contributions weighted to the second half due to greater projected net impact of tariffs and investment spending in the first half relative to the second half;



Lower gross margin rate, reflecting incremental tariff costs partially offset by higher pricing, other tariff mitigation actions, and productivity savings;



Comparable SG&A expense, reflecting organizational restructuring and store fleet rationalization savings offset by investments in demand creation, information technology, and other cost inflation across the business;



Net interest expense of approximately $40 million, reflecting higher principal amount and coupon rate associated with the refinancing of our senior notes in Q4 2025;



Effective tax rate of approximately 22%; and



Average number of shares outstanding of approximately 36 million.



For the first quarter of fiscal 2026, the Company projects approximately:



Mid-single-digit percentage growth in net sales ($630 million in Q1 fiscal 2025);



$12 million to $15 million in adjusted operating income ($35 million in Q1 fiscal 2025); and



$0.02 to $0.08 in adjusted diluted earnings per share ($0.66 in Q1 fiscal 2025).



Our outlook for first quarter fiscal 2026 assumes (comparisons vs. prior year unless otherwise noted):



An earlier Easter holiday;



Lower gross margin rate, reflecting higher net incremental tariff costs, partially offset by a higher mix of U.S. Retail sales and lower sales of excess inventory;



Low single-digit growth in SG&A, reflecting investments in demand creation, technology initiatives, and higher wage and rent expenses;



Net interest expense of approximately $9 million, reflecting higher principal amount and coupon rate associated with the refinancing of our senior notes in Q4 2025;



Effective tax rate of approximately 37%; and



Average number of shares outstanding of approximately 36 million.



Conference Call


The Company will hold a conference call with investors to discuss fourth quarter and fiscal 2025 results and its business outlook on February 27, 2026, at 8:30 a.m. Eastern Standard Time. To listen to a live webcast and view the accompanying presentation materials, please visit ir.carters.com and select links for “News & Events” followed by “Events.” To access the call by phone, please preregister on https://register-conf.media-server.com/register/BI7f4fa80ca3c043a88d01a18358a65daa to receive your dial-in number and unique passcode.


A webcast replay will be available shortly after the conclusion of the call at ir.carters.com.


About Carter’s, Inc.


Carter’s, Inc. is North America’s largest and most-enduring apparel company exclusively for babies and young children. The Company’s core brands are Carter’s and OshKosh B’gosh, iconic and among the sector’s most trusted names. These brands are sold through more than 1,000 Company-operated stores in the United States, Canada, and Mexico, and online at www.carters.com, www.oshkosh.com, www.cartersoshkosh.ca, and www.carters.com.mx. Carter’s also is the largest supplier of baby and young children’s apparel to North America’s biggest retailers. The Company’s Child of Mine brand is available exclusively at Walmart, its Just One You brand is available at Target, and its Simple Joys brand is available on Amazon.com. The Company’s emerging brands include Little Planet, crafted with organic fabrics and sustainable materials, Otter Avenue, a toddler-focused apparel brand, and Skip Hop, baby essentials from tubs to toys. Carter’s is headquartered in Atlanta, Georgia. Additional information may be found at www.carters.com.


Forward Looking Statements


Statements in this press release that are not historical fact and use predictive words such as “estimates”, “outlook”, “guidance”, “expect”, “believe”, “intend”, “designed”, “target”, “plans”, “may”, “will”, “are confident” and similar words are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed in this press release. These risks and uncertainties include, but are not limited to, those disclosed in Part I, Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2026, and otherwise in our reports and filings with the Securities and Exchange Commission, as well as the following factors: changes in global economic and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits; risks related to public health crises; risks related to the organizational restructuring plan, including, but not limited to, our ability to achieve the expected savings from the plan and to fully implement the plan; risks related to consumer tastes and preferences, as well as fashion trends; the failure to protect our intellectual property; the diminished value of our brands, potentially as a result of negative publicity or unsuccessful branding and marketing efforts; delays, product recalls, or loss of revenue due to a failure to meet our quality standards; risks related to uncertainty regarding the future of international trade agreements and the United States’ position on international trade, as well as significant political, trade, and regulatory developments and other circumstances beyond our control; the roll-back of incremental tariffs imposed under the International Emergency Economic Powers Act (the “incremental tariffs”) and any additional actions taken in response to their roll-back, including tariffs imposed pursuant to Section 122 of the Trade Act of 1974 (the “122 tariffs”); our ability to recover refunds of incremental tariff amounts or other tariff amounts paid; increased competition in the marketplace; financial difficulties for one or more of our major customers; identification of locations and negotiation of appropriate lease terms for our retail stores; distinct risks facing our eCommerce business; failure to forecast demand for our products and our failure to manage our inventory; increased margin pressures, including increased cost of materials and labor and our inability to successfully increase prices to offset these increased costs; continued inflationary pressures with respect to labor and raw materials and global supply chain constraints that have, and could continue, to affect freight, transit, and other costs; fluctuations in foreign currency exchange rates; unseasonable or extreme weather conditions; risks associated with corporate responsibility issues; our foreign sourcing arrangements; a relatively small number of vendors supply a significant amount of our products; disruptions in our supply chain, including increased transportation and freight costs; our ability to effectively source and manage inventory; problems with our Braselton, Georgia distribution facility; pending and threatened lawsuits; a breach of our information technology systems and the loss of personal data or a failure to implement new information technology systems successfully; unsuccessful expansion into international markets; failure to comply with various laws and regulations; failure to properly manage strategic initiatives; retention of key individuals; acquisition and integration of other brands and businesses; failure to achieve sales growth plans and profitability objectives to support the carrying value of our intangible assets; our continued ability to meet obligations related to our debt; changes in our tax obligations, including additional customs, duties or tariffs; our continued ability to declare and pay a dividend; volatility in the market price of our common stock; and the cost or effort required for our shareholders to bring certain claims or actions against us, as a result of our designation of the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings. Except for any ongoing obligations to disclose material information as required by federal securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The inclusion of any statement in this press release does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.




CARTER’S, INC.




CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




(dollars in thousands, except for share data)




(unaudited)











 



 






 






For the fiscal quarter ended






 






For the fiscal year ended








 






 






January 3,

2026






 






December 28,

2024






 






January 3,

2026






 






December 28,

2024








 






 






(14 weeks)






 






(13 weeks)






 






(53 weeks)






 






(52 weeks)








Net sales






 






$






925,451






 






 






$






859,712






 






 






$






2,898,426






 






 






$






2,844,102






 








Cost of goods sold






 






 






525,293






 






 






 






448,687






 






 






 






1,583,790






 






 






 






1,478,936






 








Gross profit






 






 






400,158






 






 






 






411,025






 






 






 






1,314,636






 






 






 






1,365,166






 








Royalty income, net






 






 






4,093






 






 






 






4,292






 






 






 






18,102






 






 






 






19,251






 








Selling, general, and administrative expenses






 






 






319,557






 






 






 






302,117






 






 






 






1,188,805






 






 






 






1,099,689






 








Intangible asset impairment






 






 






—






 






 






 






30,000






 






 






 






—






 






 






 






30,000






 








Operating income






 






 






84,694






 






 






 






83,200






 






 






 






143,933






 






 






 






254,728






 








Interest expense






 






 






11,379






 






 






 






8,175






 






 






 






34,227






 






 






 






31,331






 








Interest income






 






 






(3,467






)






 






 






(2,395






)






 






 






(13,474






)






 






 






(11,039






)








Other (income) expense, net(*)






 






 






(820






)






 






 






1,650






 






 






 






(1,086






)






 






 






2,678






 








Pension plan settlement(*)






 






 






—






 






 






 






—






 






 






 






8,777






 






 






 






949






 








Loss on extinguishment of debt






 






 






1,655






 






 






 






—






 






 






 






1,655






 






 






 






—






 








Income before income taxes






 






 






75,947






 






 






 






75,770






 






 






 






113,834






 






 






 






230,809






 








Income tax provision






 






 






11,729






 






 






 






14,253






 






 






 






22,038






 






 






 






45,300






 








Net income






 






$






64,218






 






 






$






61,517






 






 






$






91,796






 






 






$






185,509






 








 






 






 






 






 






 






 






 






 








Basic net income per common share






 






$






1.76






 






 






$






1.71






 






 






$






2.53






 






 






$






5.12






 








Diluted net income per common share






 






$






1.76






 






 






$






1.71






 






 






$






2.53






 






 






$






5.12






 








Dividend declared and paid per common share






 






$






0.25






 






 






$






0.80






 






 






$






1.55






 






 






$






3.20






 









(*)







Pension plan settlement charges for the fiscal year ended December 28, 2024, have been reclassified to the Pension plan settlement line item. These charges were previously included in Other (income) expense, net.









CARTER’S, INC.




CONDENSED BUSINESS SEGMENT RESULTS




(dollars in thousands)




(unaudited)











 



 






For the fiscal quarter ended






 






 






For the fiscal year ended








 






January 3,

2026






 






% of




total sales






 






December 28,

2024






 






% of




total sales






 






 






January 3,

2026






 






% of




total sales






 






December 28,

2024






 






% of




total sales








 






(14 weeks)






 






 






 






(13 weeks)






 






 






 






 






(53 weeks)






 






 






 






(52 weeks)






 






 








Net sales:






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








U.S. Retail






$






509,840






 






 






55.1






%






 






$






466,231






 






 






54.2






%






 






 






$






1,466,128






 






 






50.6






%






 






$






1,417,108






 






 






49.8






%








U.S. Wholesale






 






274,438






 






 






29.7






%






 






 






265,374






 






 






30.9






%






 






 






 






1,001,338






 






 






34.5






%






 






 






1,021,396






 






 






35.9






%








International






 






141,173






 






 






15.2






%






 






 






128,107






 






 






14.9






%






 






 






 






430,960






 






 






14.9






%






 






 






405,598






 






 






14.3






%








Consolidated net sales






$






925,451






 






 






100.0






%






 






$






859,712






 






 






100.0






%






 






 






$






2,898,426






 






 






100.0






%






 






$






2,844,102






 






 






100.0






%








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Segment operating income:






 






 






Segment

operating

margin






 






 






 






Segment

operating

margin






 






 






 






 






Segment

operating

margin






 






 






 






Segment

operating

margin








U.S. Retail






$






56,325






 






 






11.0






%






 






$






73,246






 






 






15.7






%






 






 






$






72,377






 






 






4.9






%






 






$






132,926






 






 






9.4






%








U.S. Wholesale






 






34,095






 






 






12.4






%






 






 






54,318






 






 






20.5






%






 






 






 






160,464






 






 






16.0






%






 






 






216,980






 






 






21.2






%








International






 






22,387






 






 






15.9






%






 






 






20,988






 






 






16.4






%






 






 






 






34,951






 






 






8.1






%






 






 






38,970






 






 






9.6






%








Total segment operating income






$






112,807






 






 






12.2






%






 






$






148,552






 






 






17.3






%






 






 






$






267,792






 






 






9.2






%






 






$






388,876






 






 






13.7






%








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Items not included in segment operating income:






 






 






Consolidated

operating

margin






 






 






 






Consolidated

operating

margin






 






 






 






 






Consolidated

operating

margin






 






 






 






Consolidated

operating

margin








Unallocated corporate expenses (a)






$






(23,335






)






 






n/a






 






 






$






(33,530






)






 






n/a






 






 






 






$






(91,801






)






 






n/a






 






 






$






(102,326






)






 






n/a






 








Organizational restructuring (b)






 






(3,690






)






 






n/a






 






 






 






(1,822






)






 






n/a






 






 






 






 






(9,807






)






 






n/a






 






 






 






(1,822






)






 






n/a






 








Operating model improvement costs (c)






 






(713






)






 






n/a






 






 






 






—






 






 






n/a






 






 






 






 






(14,182






)






 






n/a






 






 






 






—






 






 






n/a






 








Leadership transition costs (d)






 






(375






)






 






n/a






 






 






 






—






 






 






n/a






 






 






 






 






(8,069






)






 






n/a






 






 






 






—






 






 






n/a






 








Intangible asset impairment (e)






 






—






 






 






n/a






 






 






 






(30,000






)






 






n/a






 






 






 






 






—






 






 






n/a






 






 






 






(30,000






)






 






n/a






 








Consolidated operating income






$






84,694






 






 






9.2






%






 






$






83,200






 






 






9.7






%






 






 






$






143,933






 






 






5.0






%






 






$






254,728






 






 






9.0






%








(a)


Unallocated corporate expenses include corporate overhead expenses that are not directly attributable to one of our business segments and include unallocated accounting, finance, legal, human resources, and information technology expenses, occupancy costs for our corporate headquarters, and other benefit and compensation programs, including performance-based compensation.







(b)


Related to charges for severance and other termination benefits as a result of organizational restructuring.







(c)


Primarily related to third-party consulting costs.







(d)


Related to costs associated with the transition of our former CEO, including accelerated vesting of outstanding time-based restricted stock awards.







(e)


Non-cash impairment charge on the OshKosh indefinite-lived tradename asset.









 



Note: Results may not be additive due to rounding.









CARTER’S, INC.




CONDENSED CONSOLIDATED BALANCE SHEETS




(dollars in thousands, except for share data)




(unaudited)










 



 






January 3, 2026






 






December 28, 2024








ASSETS






 






 






 








Current assets:






 






 






 








Cash and cash equivalents






$






487,075






 






 






$






412,926






 








Accounts receivable, net of allowance for credit losses of $7,587 and $5,663, respectively






 






178,566






 






 






 






194,834






 








Finished goods inventories






 






544,624






 






 






 






502,332






 








Prepaid expenses and other current assets






 






60,508






 






 






 






32,580






 








Total current assets






 






1,270,773






 






 






 






1,142,672






 








Property, plant, and equipment, net






 






186,307






 






 






 






180,956






 








Operating lease assets






 






591,806






 






 






 






577,133






 








Tradenames, net






 






268,659






 






 






 






268,008






 








Goodwill






 






208,994






 






 






 






206,875






 








Customer relationships, net






 






20,128






 






 






 






23,543






 








Other assets






 






18,803






 






 






 






33,980






 








Total assets






$






2,565,470






 






 






$






2,433,167






 








 






 






 






 








LIABILITIES AND SHAREHOLDERS’ EQUITY






 






 






 








Current liabilities:






 






 






 








Accounts payable






$






235,700






 






 






$






248,200






 








Current operating lease liabilities






 






136,488






 






 






 






130,564






 








Other current liabilities






 






133,809






 






 






 






130,052






 








Total current liabilities






 






505,997






 






 






 






508,816






 








Long-term debt, net






 






567,173






 






 






 






498,127






 








Deferred income taxes






 






39,380






 






 






 






38,210






 








Long-term operating lease liabilities






 






508,461






 






 






 






501,503






 








Other long-term liabilities






 






19,411






 






 






 






31,949






 








Total liabilities






$






1,640,422






 






 






$






1,578,605






 








 






 






 






 








Shareholders’ equity:






 






 






 








Preferred stock; par value $0.01 per share; 100,000 shares authorized; none issued or outstanding






$






—






 






 






$






—






 








Common stock, voting; par value $0.01 per share; 150,000,000 shares authorized; 36,425,877 and 36,041,995 shares issued and outstanding, respectively






 






364






 






 






 






360






 








Additional paid-in capital






 






19,584






 






 






 






3,856






 








Accumulated other comprehensive loss






 






(24,361






)






 






 






(43,678






)








Retained earnings






 






929,461






 






 






 






894,024






 








Total shareholders’ equity






 






925,048






 






 






 






854,562






 








Total liabilities and shareholders’ equity






$






2,565,470






 






 






$






2,433,167






 









CARTER’S, INC.




CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW




(dollars in thousands)




(unaudited)









 



 






 






For the fiscal year ended








 






 






January 3, 2026






 






December 28, 2024








 






 






(53 weeks)






 






(52 weeks)








Cash flows from operating activities:






 






 






 






 








Net income






 






$






91,796






 






 






$






185,509






 








Adjustments to reconcile net income to net cash provided by operating activities:






 






 






 






 








Depreciation of property, plant, and equipment






 






 






51,544






 






 






 






54,233






 








Amortization of intangible assets






 






 






3,719






 






 






 






3,693






 








Provisions for (recoveries of) excess and obsolete inventory, net






 






 






401






 






 






 






(348






)








Intangible asset impairment






 






 






—






 






 






 






30,000






 








Loss on disposal of property, plant and equipment






 






 






189






 






 






 






865






 








Amortization of debt issuance costs






 






 






1,712






 






 






 






1,630






 








Stock-based compensation expense






 






 






20,248






 






 






 






17,841






 








Unrealized foreign currency exchange (gain) loss, net






 






 






(457






)






 






 






380






 








Provisions for doubtful accounts receivable from customers






 






 






2,417






 






 






 






1,086






 








Loss on extinguishment of debt






 






 






1,655






 






 






 






—






 








Unrealized gain on investments






 






 






(2,229






)






 






 






(2,214






)








Pension plan settlement






 






 






8,777






 






 






 






949






 








Deferred income tax benefit






 






 






(162






)






 






 






(6,422






)








Effect of changes in operating assets and liabilities:






 






 






 






 








Accounts receivable






 






 






15,169






 






 






 






(13,743






)








Finished goods inventories






 






 






(37,101






)






 






 






26,131






 








Prepaid expenses and other assets






 






 






(8,098






)






 






 






(2,962






)








Accounts payable and other liabilities






 






 






(27,246






)






 






 






2,159






 








Net cash provided by operating activities






 






$






122,334






 






 






$






298,787






 








 






 






 






 






 








Cash flows from investing activities:






 






 






 






 








Capital expenditures






 






$






(53,704






)






 






$






(56,165






)








Net cash used in investing activities






 






$






(53,704






)






 






$






(56,165






)








 






 






 






 






 








Cash flows from financing activities:






 






 






 






 








Proceeds from senior notes due 2031






 






$






575,000






 






 






$






—






 








Payment of senior notes due 2027






 






 






(500,000






)






 






 






—






 








Payments of debt issuance costs






 






 






(11,711






)






 






 






—






 








Repurchase of common stock






 






 






—






 






 






 






(50,526






)








Dividends paid






 






 






(56,359






)






 






 






(116,178






)








Withholdings from vesting of restricted stock






 






 






(4,516






)






 






 






(7,579






)








Proceeds from exercise of stock options






 






 






—






 






 






 






367






 








Other






 






 






(370






)






 






 






(900






)








Net cash provided by (used in) financing activities






 






$






2,044






 






 






$






(174,816






)








 






 






 






 






 








Net effect of exchange rate changes on cash






 






 






3,475






 






 






 






(6,093






)








Net increase in cash and cash equivalents






 






$






74,149






 






 






$






61,713






 








Cash and cash equivalents, beginning of fiscal year






 






 






412,926






 






 






 






351,213






 








Cash and cash equivalents, end of fiscal year






 






$






487,075






 






 






$






412,926






 









CARTER’S, INC.




RECONCILIATION OF ADJUSTED RESULTS TO GAAP




(dollars in millions, except earnings per share)




(unaudited)








 



 






Fiscal quarter ended January 3, 2026 (14 weeks)








 






 






SG&A






 






% Net Sales






 






Operating Income






 






% Net Sales






 






Income Taxes






 






Net Income






 






Diluted EPS








As reported (GAAP)






 






$






319.6






 






 






34.5






%






 






$






84.7






 






9.2






%






 






$






11.7






 






$






64.2






 






$






1.76








Organizational restructuring(b)






 






 






(3.7






)






 






 






 






 






3.7






 






 






 






 






0.9






 






 






2.8






 






 






0.08








Operating model improvement costs(c)






 






 






(0.7






)






 






 






 






 






0.7






 






 






 






 






0.2






 






 






0.5






 






 






0.01








Leadership transition costs(d)






 






 






(0.4






)






 






 






 






 






0.4






 






 






 






 






—






 






 






0.3






 






 






0.01








Loss on extinguishment of debt(e)






 






 






—






 






 






 






 






 






—






 






 






 






 






0.4






 






 






1.3






 






 






0.03








As adjusted (a)






 






$






314.8






 






 






34.0






%






 






$






89.5






 






9.7






%






 






$






13.2






 






$






69.2






 






$






1.90









 






Fiscal year ended January 3, 2026 (53 weeks)








 






 






SG&A






 






% Net Sales






 






Operating Income






 






% Net Sales






 






Income Taxes






 






Net Income






 






Diluted EPS








As reported (GAAP)






 






$






1,188.8






 






 






41.0






%






 






$






143.9






 






5.0






%






 






$






22.0






 






 






$






91.8






 






$






2.53








Operating model improvement costs(c)






 






 






(14.2






)






 






 






 






 






14.2






 






 






 






 






3.4






 






 






 






10.8






 






 






0.30








Organizational restructuring(b)






 






 






(9.8






)






 






 






 






 






9.8






 






 






 






 






2.4






 






 






 






7.5






 






 






0.20








Leadership transition costs(d)






 






 






(8.1






)






 






 






 






 






8.1






 






 






 






 






0.7






 






 






 






7.3






 






 






0.20








Pension plan settlement(f)






 






 






—






 






 






 






 






 






—






 






 






 






 






2.1






 






 






 






6.7






 






 






0.18








Loss on extinguishment of debt(e)






 






 






—






 






 






 






 






 






—






 






 






 






 






0.4






 






 






 






1.3






 






 






0.03








Deferred compensation plan termination(g)






 






 






—






 






 






 






 






 






—






 






 






 






 






(0.8






)






 






 






0.8






 






 






0.03








As adjusted (a)






 






$






1,156.7






 






 






39.9






%






 






$






176.0






 






6.1






%






 






$






30.3






 






 






$






126.1






 






$






3.47









 






Fiscal quarter ended December 28, 2024 (13 weeks)








 






 






SG&A






 






% Net Sales






 






Operating Income






 






% Net Sales






 






Income Taxes






 






Net Income






 






Diluted EPS








As reported (GAAP)






 






$






302.1






 






 






35.1






%






 






$






83.2






 






9.7






%






 






$






14.3






 






$






61.5






 






$






1.71








Organizational restructuring(b)






 






 






(1.8






)






 






 






 






 






1.8






 






 






 






 






0.2






 






 






1.6






 






 






0.04








Intangible asset impairment(h)






 






 






—






 






 






 






 






 






30.0






 






 






 






 






7.2






 






 






22.8






 






 






0.63








As adjusted (a)






 






$






300.3






 






 






34.9






%






 






$






115.0






 






13.4






%






 






$






21.7






 






$






85.9






 






$






2.39









 






Fiscal year ended December 28, 2024 (52 weeks)








 






 






SG&A






 






% Net Sales






 






Operating Income






 






% Net Sales






 






Income Taxes






 






Net Income






 






Diluted EPS








As reported (GAAP)






 






$






1,099.7






 






 






38.7






%






 






$






254.7






 






9.0






%






 






$






45.3






 






$






185.5






 






$






5.12








Organizational restructuring(b)






 






 






(1.8






)






 






 






 






 






1.8






 






 






 






 






0.2






 






 






1.6






 






 






0.04








Intangible asset impairment(h)






 






 






—






 






 






 






 






 






30.0






 






 






 






 






7.2






 






 






22.8






 






 






0.63








Pension plan settlement(f)






 






 






—






 






 






 






 






 






—






 






 






 






 






0.2






 






 






0.7






 






 






0.02








As adjusted (a)






 






$






1,097.9






 






 






38.6






%






 






$






286.6






 






10.1






%






 






$






52.9






 






$






210.7






 






$






5.81









 






Fiscal quarter ended March 29, 2025 (13 weeks)








 






SG&A






 






% Net Sales






 






Operating Income






 






% Net Sales






 






Income Taxes






 






Net Income






 






Diluted EPS








As reported (GAAP)






$






270.3






 






 






42.9






%






 






$






26.1






 






4.1






%






 






$






5.8






 






$






15.5






 






$






0.43








Leadership transition costs(d)






 






(6.1






)






 






 






 






 






6.1






 






 






 






 






0.3






 






 






5.8






 






 






0.16








Operating model improvement costs(c)






 






(3.2






)






 






 






 






 






3.2






 






 






 






 






0.8






 






 






2.4






 






 






0.07








As adjusted (a)






$






261.0






 






 






41.4






%






 






$






35.4






 






5.6






%






 






$






6.9






 






$






23.8






 






$






0.66








(a)


In addition to the results provided in this earnings release in accordance with GAAP, the Company has provided adjusted, non-GAAP financial measurements that present SG&A, operating income, income taxes, net income, and net income on a diluted share basis excluding the adjustments discussed above. The Company believes these adjustments provide a meaningful comparison of the Company’s results and afford investors a view of what management considers to be the Company's core performance. These measures are used by the Company's executive management to assess the Company's performance. The adjusted, non-GAAP financial measurements included in this earnings release should not be considered as an alternative to net income or as any other measurement of performance derived in accordance with GAAP. The adjusted, non-GAAP financial measurements are presented for informational purposes only and are not necessarily indicative of the Company’s future condition or results of operations.







(b)


Related to charges for severance and other termination benefits as a result of organizational restructuring.







(c)


Primarily related to third-party consulting costs.







(d)


Related to costs associated with the transition of our former CEO, including accelerated vesting of outstanding time-based restricted stock awards.







(e)


Related to redemption of the $500 million senior notes due 2027 and cash-flow based revolving credit facility.







(f)


Non-cash charges for settlement of the OshKosh B’Gosh Pension Plan.







(g)


Incremental income tax impact resulting from the announced termination of the Company’s deferred compensation plan.







(h)


Non-cash impairment charge on the OshKosh indefinite-lived tradename asset.









 



Note: Results may not be additive due to rounding.









CARTER’S, INC.




RECONCILIATION OF NET INCOME ALLOCABLE TO COMMON SHAREHOLDERS




(unaudited)










 



 






For the fiscal quarter ended






 






For the fiscal year ended








 






January 3,

2026






 






December 28,

2024






 






January 3,

2026






 






December 28,

2024








 






(14 weeks)






 






(13 weeks)






 






(53 weeks)






 






(52 weeks)








Weighted-average number of common and common equivalent shares outstanding:






 






 






 






 






 






 






 








Basic number of common shares outstanding






 






35,448,826






 






 






 






35,246,887






 






 






 






35,404,506






 






 






 






35,524,378






 








Dilutive effect of equity awards






 






1,008






 






 






 






1,130






 






 






 






414






 






 






 






1,238






 








Diluted number of common and common equivalent shares outstanding






 






35,449,834






 






 






 






35,248,017






 






 






 






35,404,920






 






 






 






35,525,616






 








 






 






 






 






 






 






 






 








As reported on a GAAP Basis:






 






 






 






 






 






 






 








(dollars in thousands, except per share data)






 






 






 






 






 






 






 








Basic net income per common share:






 






 






 






 






 






 






 








Net income






$






64,218






 






 






$






61,517






 






 






$






91,796






 






 






$






185,509






 








Income allocated to participating securities






 






(1,760






)






 






 






(1,299






)






 






 






(2,306






)






 






 






(3,679






)








Net income available to common shareholders






$






62,458






 






 






$






60,218






 






 






$






89,490






 






 






$






181,830






 








Basic net income per common share






$






1.76






 






 






$






1.71






 






 






$






2.53






 






 






$






5.12






 








Diluted net income per common share:






 






 






 






 






 






 






 








Net income






$






64,218






 






 






$






61,517






 






 






$






91,796






 






 






$






185,509






 








Income allocated to participating securities






 






(1,760






)






 






 






(1,299






)






 






 






(2,306






)






 






 






(3,679






)








Net income available to common shareholders






$






62,458






 






 






$






60,218






 






 






$






89,490






 






 






$






181,830






 








Diluted net income per common share






$






1.76






 






 






$






1.71






 






 






$






2.53






 






 






$






5.12






 








As adjusted (a):






 






 






 






 






 






 






 








(dollars in thousands, except per share data)






 






 






 






 






 






 






 








Basic net income per common share:






 






 






 






 






 






 






 








Net income






$






69,170






 






 






$






85,938






 






 






$






126,068






 






 






$






210,652






 








Income allocated to participating securities






 






(1,897






)






 






 






(1,837






)






 






 






(3,226






)






 






 






(4,207






)








Net income available to common shareholders






$






67,273






 






 






$






84,101






 






 






$






122,842






 






 






$






206,445






 








Basic net income per common share






$






1.90






 






 






$






2.39






 






 






$






3.47






 






 






$






5.81






 








Diluted net income per common share:






 






 






 






 






 






 






 








Net income






$






69,170






 






 






$






85,938






 






 






$






126,068






 






 






$






210,652






 








Income allocated to participating securities






 






(1,897






)






 






 






(1,837






)






 






 






(3,226






)






 






 






(4,207






)








Net income available to common shareholders






$






67,273






 






 






$






84,101






 






 






$






122,842






 






 






$






206,445






 








Diluted net income per common share






$






1.90






 






 






$






2.39






 






 






$






3.47






 






 






$






5.81






 






















 



(a) In addition to the results provided in this earnings release in accordance with GAAP, the Company has provided adjusted, non-GAAP financial measurements that present per share data excluding the adjustments presented above. The Company excluded approximately $5.0 million and $34.3 million in after-tax expenses from these results for the quarter and fiscal year ended January 3, 2026, respectively. The Company excluded approximately $24.4 million and $25.1 million in after-tax expenses from these results for the quarter and fiscal year ended December 28, 2024, respectively.









CARTER’S, INC.




RECONCILIATION OF ADJUSTED RESULTS TO GAAP




(unaudited)




 




The following table provides a reconciliation of EBITDA and Adjusted EBITDA for the periods indicated to net income, which is the most directly comparable financial measure presented in accordance with GAAP:










 



 






Fiscal quarter ended






 






Fiscal year ended








(dollars in millions)






January 3,

2026






 






December 28,

2024






 






January 3,

2026






 






December 28,

2024








 






(14 weeks)






 






(13 weeks)






 






(53 weeks)






 






(52 weeks)








Net income






$






64.2






 






 






$






61.5






 






 






$






91.8






 






 






$






185.5






 








Interest expense






 






11.4






 






 






 






8.2






 






 






 






34.2






 






 






 






31.3






 








Interest income






 






(3.5






)






 






 






(2.4






)






 






 






(13.5






)






 






 






(11.0






)








Tax expense






 






11.7






 






 






 






14.3






 






 






 






22.0






 






 






 






45.3






 








Depreciation and amortization






 






14.7






 






 






 






14.3






 






 






 






55.3






 






 






 






57.9






 








EBITDA






$






98.5






 






 






$






95.8






 






 






$






189.9






 






 






$






309.0






 








 






 






 






 






 






 






 






 








Adjustments to EBITDA






 






 






 






 






 






 






 








Organizational restructuring(a)






$






3.7






 






 






$






1.8






 






 






$






9.8






 






 






$






1.8






 








Operating model improvement costs(b)






 






0.7






 






 






 






—






 






 






 






14.2






 






 






 






—






 








Leadership transition costs(c)






 






0.4






 






 






 






—






 






 






 






8.1






 






 






 






—






 








Loss on extinguishment of debt(d)






 






1.7






 






 






 






—






 






 






 






1.7






 






 






 






—






 








Pension plan settlement(e)






 






—






 






 






 






—






 






 






 






8.8






 






 






 






0.9






 








Intangible asset impairment(f)






 






—






 






 






 






30.0






 






 






 






—






 






 






 






30.0






 








Total adjustments






 






6.4






 






 






 






31.8






 






 






 






42.5






 






 






 






32.8






 








Adjusted EBITDA






$






105.0






 






 






$






127.6






 






 






$






232.3






 






 






$






341.8






 








(a)


Related to charges for severance and other termination benefits as a result of organizational restructuring.







(b)


Primarily related to third-party consulting costs.







(c)


Related to costs associated with the transition of our former CEO, including accelerated vesting of outstanding time-based restricted stock awards.







(d)


Related to redemption of the $500 million senior notes due 2027 and cash-flow based revolving credit facility.







(e)


Non-cash charges for settlement of the OshKosh B’Gosh Pension Plan.







(f)


Non-cash impairment charge on the OshKosh indefinite-lived tradename asset.









 



Note: Results may not be additive due to rounding.







EBITDA and Adjusted EBITDA are supplemental financial measures that are not defined or prepared in accordance with GAAP. We define EBITDA as net income before interest, income taxes and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items described in the footnotes (a) - (f) to the table above.


We present EBITDA and Adjusted EBITDA because we consider them to be important supplemental measures of our performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. These measures are used by the Company’s executive management to assess the Company’s performance.


The use of EBITDA and Adjusted EBITDA instead of net income or cash flows from operations has limitations as an analytical tool, and you should not consider them in isolation, or as a substitute for analysis of our results as reported under GAAP. EBITDA and Adjusted EBITDA do not represent net income or cash flow from operations as those terms are defined by GAAP and do not necessarily indicate whether cash flows will be sufficient to fund cash needs. While EBITDA, Adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements, these terms are not necessarily comparable to other similarly titled captions of other companies due to the potential inconsistencies in the method of calculation. EBITDA and Adjusted EBITDA do not reflect the impact of earnings or charges resulting from matters that we consider not to be indicative of our ongoing operations. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as discretionary cash available to us for working capital, debt service and other purposes.




CARTER’S, INC.




RECONCILIATION OF U.S. GAAP AND NON-GAAP INFORMATION




(dollars in millions)




(unaudited)




 




The tables below reflect the calculation of constant currency for total net sales of the International segment and consolidated net sales for the fiscal quarter and fiscal year ended January 3, 2026:








 



 






Fiscal quarter ended








 






Reported Net Sales January 3, 2026






 






Impact of Foreign Currency Translation






 






Constant-Currency Net Sales January 3, 2026






 






Reported Net Sales December 28, 2024






 






Reported Net Sales % Change






 






Constant-Currency Net Sales % Change








 






 






 






 






 






 








 






(14 weeks)






 






 






 






(14 weeks)






 






(13 weeks)






 






 






 






 








 






 






 






 






 






 






 






 






 






 






 






 








Consolidated net sales






$






925.5






 






$






3.0






 






$






922.5






 






$






859.7






 






7.6






%






 






7.3






%








International segment net sales






$






141.2






 






$






3.0






 






$






138.2






 






$






128.1






 






10.2






%






 






7.9






%









 






Fiscal year ended








 






Reported Net Sales January 3, 2026






 






Impact of Foreign Currency Translation






 






Constant-Currency Net Sales January 3, 2026






 






Reported Net Sales December 28, 2024






 






Reported Net Sales % Change






 






Constant-Currency Net Sales % Change








 






 






 






 






 






 








 






(53 weeks)






 






 






 






(53 weeks)






 






(52 weeks)






 






 






 






 








 






 






 






 






 






 






 






 






 






 






 






 








Consolidated net sales






$






2,898.4






 






$






(6.7






)






 






$






2,905.1






 






$






2,844.1






 






1.9






%






 






2.1






%








International segment net sales






$






431.0






 






$






(6.7






)






 






$






437.7






 






$






405.6






 






6.3






%






 






7.9






%











The Company evaluates its net sales on both an “as reported” and a “constant currency” basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates that occurred between the comparative periods. Constant currency net sales results are calculated by translating current period net sales in local currency to the U.S. dollar amount by using the currency conversion rate for the prior comparative period. The Company consistently applies this approach to net sales for all countries where the functional currency is not the U.S. dollar. The Company believes that the presentation of net sales on a constant currency basis provides useful supplemental information regarding changes in our net sales that were not due to fluctuations in currency exchange rates and such information is consistent with how the Company assesses changes in its net sales between comparative periods.










 







Note: Results may not be additive due to rounding.




CARTER’S, INC.




RECONCILIATION OF U.S. GAAP AND NON-GAAP INFORMATION




(dollars in millions)




(unaudited)




 




The tables below reflect the calculation of net sales change on a comparable week basis for the fiscal quarter and fiscal year ended January 3, 2026:








 



 






Fiscal quarter ended








 






Reported Net Sales January 3, 2026






 






Reported Net Sales December 28, 2024






 






14th Week Net Sales Contribution






 






Pro Forma Net Sales January 3, 2026






 






Reported Net Sales % Change






 






Pro Forma Net Sales % Change








 






 






 






 






 






 








 






(14 weeks)






 






(13 weeks)






 






 






 






(13 weeks)






 






 






 






 








 






 






 






 






 






 






 






 






 






 






 






 








Consolidated net sales






$






925.5






 






$






859.7






 






$






37.0






 






$






888.5






 






7.6






%






 






3.4






%









 






Fiscal year ended








 






Reported Net Sales January 3, 2026






 






Reported Net Sales December 28, 2024






 






53rd Week Net Sales Contribution






 






Pro Forma Net Sales January 3, 2026






 






Reported Net Sales % Change






 






Pro Forma Net Sales % Change








 






 






 






 






 






 








 






(53 weeks)






 






(52 weeks)






 






 






 






(52 weeks)






 






 






 






 








 






 






 






 






 






 






 






 






 






 






 






 








Consolidated net sales






$






2,898.4






 






$






2,844.1






 






$






37.0






 






$






2,861.4






 






1.9






%






 






0.6






%
























 



The above reconciliations enable the evaluation of quarter-over-quarter and year-over-year changes in net sales based on 13-week and 52-week reporting periods.







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260226710668/en/
T.C. Robillard

Vice President, Investor Relations

TC.Robillard@carters.com


Original: Carter’s, Inc. Reports Fourth Quarter and Fiscal Year 2025 Results