10-Q · May 6, 2026
Carter's, Inc. reported Q1 2026 revenue of $681 million, exceeding consensus estimates of $661 million, with a diluted EPS of $0.39, higher than expected. Management anticipates low single-digit to mid-single-digit…
CRI earnings analysis
10-Q · Filed October 30, 2026 · Our reading of the company's report
The latest report
Carter’s delivered a strong third quarter, with revenue of $752.5 million, diluted EPS of $1.00, and operating margin of 7.4%, while operating income rose 91.7% to $55.8 million. However, fiscal 2026 revenue…
Read full summary
Carter’s delivered a strong third quarter, with revenue of $752.5 million, diluted EPS of $1.00, and operating margin of 7.4%, while operating income rose 91.7% to $55.8 million. However, fiscal 2026 revenue expectations were moderated to $2.91-$2.93 billion and adjusted EPS guidance of $3.05-$3.23 remains below the $3.47 reported in fiscal 2025. The filing also highlights newly elevated geopolitical risk related to the United States-Israel-Iran conflict and several senior leadership transitions.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.0
- Operating margin
- 7.4%
What stood out
-
Revenue and EPS beat estimates
Third-quarter revenue was $752.5 million and diluted EPS was $1.00, exceeding consensus estimates of $748.5 million and $0.85, respectively.
-
Operating profitability improved
Operating income increased 91.7% to $55.8 million, lifting operating margin to 7.4% from 3.8% in the third quarter of fiscal 2025.
-
Currency translation aided sales
Foreign-currency translation provided a $0.9 million favorable effect on third-quarter consolidated net sales and an $8.9 million favorable effect for the first three quarters of fiscal 2026.
-
No ABL borrowings outstanding
There were no variable-rate borrowings outstanding under the ABL facility as of October 3, 2026, limiting near-term exposure to higher interest rates.
-
Repurchase capacity preserved
The company did not conduct open-market share repurchases in the quarter and retained $598.97 million of authorization as of October 3, 2026.
-
Leadership team refreshed
The company announced four leadership appointments on October 30, 2026, including a Chief Product Officer expected to join in early 2027 and new commercial, strategy, and brand leaders.
What to watch
-
Geopolitical disruption risk added
The filing added exposure to the conflict between the United States, Israel, and Iran, noting coordinated strikes in late February 2026 and potential disruption to energy supplies, transportation routes, supply chains, and customer spending.
-
Supply chain and cost inflation
Management states that geopolitical escalation could increase input costs and inflationary pressure; the company expects the conflict's effects to continue but cannot predict their extent or nature. The company has no material Middle East operations, but global exposure remains.
-
Multiple leadership transitions
The CFO is stepping down as Chief Operating Officer once a replacement is appointed, the Chief Sales Officer's last day is October 30, 2026, and the Chief Supply Chain Officer is scheduled to retire in March 2027.
Management's outlook
Fiscal 2026 adjusted diluted EPS outlook is $3.05-$3.23 versus $3.47 in fiscal 2025. Revenue outlook is $2.91-$2.93 billion; fourth-quarter outlook is $860-$880 million of revenue and $1.37-$1.55 of adjusted diluted EPS.
Earlier filings 4
10-K · February 27, 2026
Carter’s 2025 10-K emphasizes its #1 position in U.S. children’s apparel (Carter’s brands ~9% share as of December 2025) and a multi-channel footprint (1,068 company-operated stores in North America and ~19,500…
10-Q · October 27, 2025
Carter’s reported Q3 net sales essentially flat at $757.8M (down $0.6M, -0.1% vs. Q3 2024), but profits compressed sharply: gross margin fell 180 bps to 45.1% and diluted EPS dropped to $0.32 (down $1.30, -80.2% YoY).…
10-K · February 25, 2025
Carter’s 2024 10-K shows a business executing a three-part strategy (elevate product style/value, improve marketing, leverage multichannel) while facing a modest sales decline: consolidated net sales fell $101.5 million…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.
See every CRI trade live.
The free pages stop at the last full session. Trader shows every trade as it prints.
Start tracking No card needed.