January 9, 2026
Finance

Carter’s Reports Solid Sales Growth and Leadership Update, Shares Gain

Preliminary Quarterly and Fiscal Year 2025 Results Highlight Strength in Retail and International Segments

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Summary

Carter’s, Inc. revealed initial sales metrics for the fourth quarter and fiscal 2025, showing notable gains in consolidated net sales, particularly in U.S. retail and international markets. The company also announced a key executive appointment and upcoming investor engagement, reflecting confidence in its ongoing strategic turnaround.

Key Points

Carter’s reported a high single-digit percentage increase in consolidated net sales for Q4 compared to last year.
U.S. Retail net sales growth was driven mainly by strong performance in online sales and improved comparable store sales.
For fiscal year 2025, consolidated net sales increased in the low single digits, with international sales rising mid-single digits.
David B. Tichiaz was appointed chief brand officer to lead product design and merchandising, reporting to the CEO.

Carter’s, Inc. (NYSE: CRI) disclosed preliminary financial results on Friday, highlighting an encouraging uptick in net sales for both the fourth quarter and the full fiscal year 2025. The retailer also revealed the appointment of a new chief brand officer and confirmed participation in a prominent investor conference event scheduled for early 2026.


Fourth Quarter Sales Highlights

For the quarter ended recently, Carter’s reported a consolidated net sales increase in the high single-digit percentage range compared to the same period last year. This performance aligns with an analyst consensus sales estimate of approximately $884.47 million. The improvement was chiefly driven by robust demand in the U.S. Retail segment, with net sales advancing by a similarly strong high single-digit percentage.

The growth within U.S. Retail came predominantly from online sales channels, which experienced heightened consumer interest. Additionally, comparable retail store sales in the U.S. also saw positive movement during the quarter, marking a continuation of favorable trends. The company indicated that average unit retail prices rose by a mid-single-digit percentage, contributing to revenue gains.

In the wholesale channel within the U.S., net sales climbed by a low single-digit percentage, signaling some recovery or growth in that segment. International operations added to the company’s overall sales strength, posting net sales growth at a high single-digit rate, according to Carter’s.


Fiscal Year 2025 Overview

Looking at the full fiscal year, preliminary consolidated net sales rose by a low single-digit percentage. The U.S. Retail segment also experienced a low single-digit increase in net sales, with comparable store sales holding steady compared to the previous year, reflecting stability in customer engagement across physical locations.

Average unit retail pricing for the entire year stayed in line with the prior year’s levels, suggesting a consistent pricing strategy without significant inflationary adjustments. Contrastingly, the U.S. Wholesale segment saw a slight decline in net sales, decreasing by a low single-digit percentage, which could indicate challenges or shifts in that channel.

International sales contributed positively with a mid-single-digit increase, supporting the company’s global growth ambitions. It is important to note that the fiscal year included an additional operating week, which supplied an estimated $33 million in sales, impacting overall yearly results.

The company announced plans to publish its fully audited fiscal 2025 results in late February 2026, offering more detailed financial statements and analysis.


Leadership and Investor Relations

In corporate developments, Carter’s named David B. Tichiaz as its new chief brand officer. Reporting directly to CEO and President Douglas C. Palladini, Tichiaz assumes leadership over product design and merchandising, pivotal areas expected to drive innovation and customer engagement.

Additionally, Carter’s confirmed its upcoming participation in a fireside chat at the ICR Conference on January 12, 2026. The event will be available for live viewing through the company’s investor relations website, providing shareholders and interested parties an opportunity to hear directly from management on company progress and strategy.

CEO Palladini remarked on the positive sales trends, stating that for the third quarter in a row, comparable retail sales have risen. This growth reflects favorable consumer reception to new product introductions and marketing efforts across both physical and digital retail platforms during a highly competitive holiday season.

He emphasized that the company’s increased average unit pricing and decreased promotional discounting have helped counterbalance tariff-related cost pressures, thereby supporting margin stability. While acknowledging ongoing execution challenges, the management team views the recent sales performance as an early confirmation of the effectiveness of its return-to-growth strategy.


Stock Market Response

Following the announcements, Carter’s shares saw a significant uptick, rising approximately 3.81% to $35.96 in premarket trading on that Friday, as reported by market data services, signaling investor optimism in response to the company’s operational and strategic updates.


Summary

Carter’s latest preliminary financial results reveal solid sales growth in core retail and international markets despite some softness in wholesale operations. The company’s strategic initiatives, including leadership enhancements and marketing efforts, appear to be yielding positive outcomes, reflected in the upward trend of comparable sales and pricing strategies. Upcoming investor engagement events and full-year audited financial disclosures will provide further transparency as the company navigates its competitive environment and seeks sustainable growth.

Risks
  • The U.S. Wholesale segment experienced a decline in net sales during the fiscal year, indicating potential challenges in that channel.
  • Execution challenges remain for the company despite ongoing improvements, as noted by management.
  • The fiscal year sales included an extra operating week which contributed $33 million, possibly distorting year-over-year comparisons.
  • Tariff pressures continue to impact cost structures, requiring pricing and promotional adjustments to maintain margins.
Disclosure
Education only / not financial advice
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