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Jan 03
Carter's Q4 2025 Earnings Report
Carter's reported higher fourth quarter fiscal 2025 net sales and modestly improved GAAP earnings, with operating margin slightly lower year over year.
Key Takeaways
Carter’s delivered 7.6% net sales growth in Q4 fiscal 2025, driven by growth across U.S. Retail, U.S. Wholesale, and International segments, while operating margin declined and adjusted earnings decreased year over year.
Net sales increased to 925451000, up 7.6% year over year.
Operating income rose to 84694000, with operating margin of 9.2%.
Net income increased to 64218000, with diluted EPS of 1.76.
All three segments posted sales growth in the quarter.
Revenue by Segment
Forward Guidance
For fiscal year 2026, Carter’s expects low single-digit to mid-single-digit net sales growth and adjusted operating income growth, with a low double-digit to mid-teens decline in adjusted diluted EPS.
Positive Outlook
- Low single-digit to mid-single-digit net sales growth expected.
- Low single-digit to mid-single-digit growth in adjusted operating income.
- Operating cash flow projected between 110000000 and 120000000.
- Capital expenditures projected at 55000000.
- Earnings weighted to the second half of fiscal 2026.
Challenges Ahead
- Low double-digit to mid-teens decline in adjusted diluted EPS expected.
- Lower gross margin rate anticipated due to incremental tariff costs.
- Comparable SG&A with ongoing investment and inflationary pressures.
- Net interest expense projected at approximately 40000000.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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