Carter's Q1 Revenue of $681M Beats Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 06 2026
0mins
Should l Buy CRI?
Reports Q1 revenue $681M, consensus $660.8M. U.S. Retail comparable sales increased 10.5%, the fourth consecutive quarter of growth. "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 & 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."
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Analyst Views on CRI
Wall Street analysts forecast CRI stock price to rise
3 Analyst Rating
1 Buy
0 Hold
2 Sell
Moderate Sell
Current: 33.760
Low
25.00
Averages
34.67
High
50.00
Current: 33.760
Low
25.00
Averages
34.67
High
50.00
About CRI
Carter's, Inc. is a marketer of young children's apparel in North America. Its segments include U.S. Retail, U.S. Wholesale, and International. The U.S. Retail segment includes sales of products in the United States through its retail stores and eCommerce websites. The U.S. Wholesale segment consists of sales in the United States of products to its wholesale partners. The International segment includes sales of products outside the United States, through its retail stores and e-commerce websites in Canada and Mexico, and sales to its international wholesale customers and licensees. It owns Carter's and OshKosh B'gosh brands. These brands are sold in department stores, national chains, and specialty retailers domestically and internationally. They are also sold through nearly 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. It also owns Little Planet and Skip Hop brands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Carter's Earnings Report Disappoints, Yet Shareholders Remain Unfazed
- Profit Performance Analysis: Carter's reported a statutory profit reduction of $17 million over the past year due to unusual items; however, analysts believe these unusual expenses are unlikely to recur, potentially leading to improved future profits.
- Future Profit Expectations: The impact of unusual items suggests that Carter's statutory profit may understate its earnings potential, with analysts forecasting better performance in the current quarter, despite a decline in earnings per share over the past year.
- Shareholder Reaction: Despite the lackluster earnings report, shareholders appear unconcerned, indicating confidence in the company's strong fundamentals, which may benefit from future profit improvements.
- Risk Warnings: The analysis highlights two warning signs for Carter's, suggesting that while focusing on profit potential, investors should also consider these risks to make more informed investment decisions.
See More
Carter's Declares Quarterly Dividend of $0.25 per Share
- Quarterly Dividend Declaration: Carter's has declared a quarterly dividend of $0.25 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 2.96% reflects the company's appeal in the current market environment, potentially boosting investor confidence and supporting stock price stability.
- Payment Schedule: The dividend is payable on June 5, with a record date of May 26 and an ex-dividend date also on May 26, providing shareholders with a clear timeline that aids in financial planning.
- Earnings Beat Expectations: Carter's reported a non-GAAP EPS of $0.39 for Q1 2026, exceeding expectations by $0.26, with revenue of $681 million surpassing estimates by $20.2 million, demonstrating the company's robust performance amid tariff uncertainties.
See More
Aristides Capital Increases Stake in Carter's by 90,533 Shares
- Share Increase: Aristides Capital increased its stake in Carter's by 90,533 shares in Q1 2026, with an estimated trade value of $3.29 million, indicating confidence in the brand's potential recovery.
- Position Value Growth: Following the purchase, Carter's comprised 1.27% of Aristides Capital's 13F reportable assets, with the total position value increasing by $3.48 million due to share price movements, reflecting heightened market interest in the brand.
- Sales Growth Momentum: Carter's reported an 8.1% year-over-year sales increase to $681 million in Q1, with U.S. retail comparable sales rising 10.5%, indicating a rebound in demand across retail and international markets.
- Ongoing Profitability Pressure: Despite sales growth, Carter's adjusted operating margin fell from 5.6% to 4.2%, primarily due to tariffs, interest expenses, and inflation, suggesting that long-term investors should monitor the recovery of its profitability.
See More
Carter's (CRI) Q1 2026 Earnings Transcript
See More
Carter's Q1 2026 Earnings Exceed Expectations Amid Leadership Transition
- Leadership Transition: Carter's announced the departure of CEO Doug Palladini, with Sharon Price John set to take over next month, which may impact the company's strategic direction and market confidence.
- Performance Exceeds Expectations: The first quarter net sales reached $681 million, an 8% year-over-year increase, although earnings per share of $0.39 fell from $0.43 last year, indicating sales growth amid profitability pressures.
- Margin Pressure: The gross margin for the first quarter decreased to 43.1%, down over 300 basis points year-over-year due to tariff impacts, which is expected to continue affecting future profitability.
- Cautious Market Outlook: Management reiterated full-year sales and earnings guidance, expecting net sales growth in the low to mid-single digits for 2025, while facing challenges from a consumer increasingly focused on price, indicating ongoing market uncertainties.
See More
Carter's Q1 Earnings Announcement Scheduled
- Earnings Release Date: Carter's (CRI) is set to announce its Q1 earnings on May 6 before market open, with a consensus EPS estimate of $0.13, reflecting an 80.3% year-over-year decline, indicating significant profitability challenges for the company.
- Revenue Expectations: The revenue estimate stands at $660.8 million, representing a 4.9% year-over-year increase, suggesting some market resilience despite the overall growth being modest, which may reflect stable consumer demand.
- Historical Performance Review: Over the past two years, Carter's has beaten EPS estimates 88% of the time and revenue estimates 75% of the time, indicating a strong track record in financial forecasting that could bolster investor confidence.
- Expectation Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates and five downward revisions, while revenue estimates saw five upward revisions, indicating market divergence regarding Carter's future performance, which may influence investor decisions.
See More
Carter's Earnings Report Disappoints, Yet Shareholders Remain Unfazed
- Profit Performance Analysis: Carter's reported a statutory profit reduction of $17 million over the past year due to unusual items; however, analysts believe these unusual expenses are unlikely to recur, potentially leading to improved future profits.
- Future Profit Expectations: The impact of unusual items suggests that Carter's statutory profit may understate its earnings potential, with analysts forecasting better performance in the current quarter, despite a decline in earnings per share over the past year.
- Shareholder Reaction: Despite the lackluster earnings report, shareholders appear unconcerned, indicating confidence in the company's strong fundamentals, which may benefit from future profit improvements.
- Risk Warnings: The analysis highlights two warning signs for Carter's, suggesting that while focusing on profit potential, investors should also consider these risks to make more informed investment decisions.
See More
Carter's Declares Quarterly Dividend of $0.25 per Share
- Quarterly Dividend Declaration: Carter's has declared a quarterly dividend of $0.25 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 2.96% reflects the company's appeal in the current market environment, potentially boosting investor confidence and supporting stock price stability.
- Payment Schedule: The dividend is payable on June 5, with a record date of May 26 and an ex-dividend date also on May 26, providing shareholders with a clear timeline that aids in financial planning.
- Earnings Beat Expectations: Carter's reported a non-GAAP EPS of $0.39 for Q1 2026, exceeding expectations by $0.26, with revenue of $681 million surpassing estimates by $20.2 million, demonstrating the company's robust performance amid tariff uncertainties.
See More
Aristides Capital Increases Stake in Carter's by 90,533 Shares
- Share Increase: Aristides Capital increased its stake in Carter's by 90,533 shares in Q1 2026, with an estimated trade value of $3.29 million, indicating confidence in the brand's potential recovery.
- Position Value Growth: Following the purchase, Carter's comprised 1.27% of Aristides Capital's 13F reportable assets, with the total position value increasing by $3.48 million due to share price movements, reflecting heightened market interest in the brand.
- Sales Growth Momentum: Carter's reported an 8.1% year-over-year sales increase to $681 million in Q1, with U.S. retail comparable sales rising 10.5%, indicating a rebound in demand across retail and international markets.
- Ongoing Profitability Pressure: Despite sales growth, Carter's adjusted operating margin fell from 5.6% to 4.2%, primarily due to tariffs, interest expenses, and inflation, suggesting that long-term investors should monitor the recovery of its profitability.
See More
Carter's (CRI) Q1 2026 Earnings Transcript
See More
Carter's Q1 2026 Earnings Exceed Expectations Amid Leadership Transition
- Leadership Transition: Carter's announced the departure of CEO Doug Palladini, with Sharon Price John set to take over next month, which may impact the company's strategic direction and market confidence.
- Performance Exceeds Expectations: The first quarter net sales reached $681 million, an 8% year-over-year increase, although earnings per share of $0.39 fell from $0.43 last year, indicating sales growth amid profitability pressures.
- Margin Pressure: The gross margin for the first quarter decreased to 43.1%, down over 300 basis points year-over-year due to tariff impacts, which is expected to continue affecting future profitability.
- Cautious Market Outlook: Management reiterated full-year sales and earnings guidance, expecting net sales growth in the low to mid-single digits for 2025, while facing challenges from a consumer increasingly focused on price, indicating ongoing market uncertainties.
See More
Carter's Q1 Earnings Announcement Scheduled
- Earnings Release Date: Carter's (CRI) is set to announce its Q1 earnings on May 6 before market open, with a consensus EPS estimate of $0.13, reflecting an 80.3% year-over-year decline, indicating significant profitability challenges for the company.
- Revenue Expectations: The revenue estimate stands at $660.8 million, representing a 4.9% year-over-year increase, suggesting some market resilience despite the overall growth being modest, which may reflect stable consumer demand.
- Historical Performance Review: Over the past two years, Carter's has beaten EPS estimates 88% of the time and revenue estimates 75% of the time, indicating a strong track record in financial forecasting that could bolster investor confidence.
- Expectation Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates and five downward revisions, while revenue estimates saw five upward revisions, indicating market divergence regarding Carter's future performance, which may influence investor decisions.
See More
