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Carter's (CRI) investor relations material
Carter's Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q4 net sales rose 8% year-over-year to $925 million, with all business segments growing and momentum in product and demand initiatives; the extra week in fiscal 2025 contributed $37 million to net sales.
Fiscal 2025 net sales increased 2% to $2.9 billion, driven by U.S. Retail and International growth, partially offset by U.S. Wholesale decline.
Operating income and margins declined due to higher tariffs, increased product costs, investments, and restructuring, despite higher pricing and productivity initiatives.
Leadership transition, significant transformation initiatives, and organizational restructuring were executed during the year.
New consumer acquisition, especially among Gen Z and millennial families, is driving higher lifetime value and increased sales of higher-priced products.
Financial highlights
Q4 adjusted operating income was $89 million (margin nearly 10%), and adjusted EPS was $1.90, down from $2.39 last year; Q4 adjusted EBITDA was $105 million, down 18% year-over-year.
FY25 adjusted operating margin was 6.1% (down from 10.1%); adjusted EBITDA was $232 million, down 32% year-over-year.
Q4 gross margin was 43.2%, down 460 basis points year-over-year, mainly due to tariffs and higher product costs.
Operating cash flow for FY25 was $122 million, down from $299 million in FY24; year-end liquidity over $1 billion, with $500 million cash and strong credit facility access.
FY25 dividend payments totaled $56 million; share repurchases $51 million.
Outlook and guidance
FY26 net sales expected to grow low to mid-single digits, with growth in all business segments; adjusted operating income also projected to grow low to mid-single digits.
Adjusted EPS expected to be down low double digits to mid-teens due to higher interest and tax rates; FY26 operating cash flow projected at $110–$120 million, capex at $55 million.
Q1 2026 net sales expected to rise mid-single digits; adjusted EPS guidance of $0.02–$0.08, down sharply from $0.66 in Q1 2025.
Guidance does not reflect potential impacts from recent U.S. Supreme Court and global tariff developments.
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