Carter's Reports Q3 2026 Profit Growth Amidst Softening Consumer Demand
Carter's, Inc. (CRI) reported third-quarter results for 2026 characterized by significant bottom-line growth despite a slight decline in net sales to $752.5 million. The company achieved a 39% increase in adjusted diluted EPS to $1.03, driven by effective productivity initiatives and higher realized pricing which expanded adjusted operating margins to 7.6%. While international segments showed strength with 4.5% revenue growth, U.S. wholesale saw a decline due to shifting shipment timing. Despite the profitability beat, management issued a cautious outlook, adjusting full-year net sales guidance downward to $2.91 billion - $2.93 billion. Executives noted a moderation in consumer demand and potential headwinds from inflation and geopolitical uncertainty affecting supply chains. While September saw a recovery in comparable sales, the company remains wary of shifting consumer behavior regarding seasonal purchases.
Tickers: $CRI
Topics: adjusted eps guidance net sales operating margin retail sales