Carter's, Inc. Reports Strong Q2 Performance with AI-Driven Growth
Carter's, Inc. reported a revenue growth of 23% in the second quarter of 2026, driven by broad-based performance across business lines and prior investments in technology and artificial intelligence (AI). Organic growth improved to 5%, up from 1% in the previous year, with management aiming for double-digit organic growth in the remainder of 2026 through expanded cross-selling. The company's Enterprise Payroll Tax platform reached a milestone by serving two million employees via Vensure Employer Solutions. The firm is transitioning its sales force to a consultative 'full solution' model focused on multi-product adoption, moving away from transactional point-solution selling. Additionally, the AsureCentral platform now hosts most of Carter's 30,000 direct clients, providing a foundation for increased attach rates and automated cross-selling. The AI agent 'Luna' contributed to a 30% increase in platform adoption by analyzing intent data. For full-year 2026 revenue guidance, the company expects $159 million-$163 million assuming flat headcount growth within its existing client base. Management anticipates a shift in revenue mix as it transitions from traditional models to Hardware-as-a-Service (HaaS), which will create short-term challenges but improve long-term recurring value.
Topics: AI_integration organic_growth platform_expansion revenue_growth sales_strategy_shift technology_investment