Carter's delivered adjusted EPS of $1.90 in the fourth quarter, surpassing analyst expectations of $1.56. Revenue reached $925 million, up 8% from a year earlier, with an extra week adding approximately $37 million and comparable-week net sales up 3.4%.

The company forecast fiscal 2026 EPS to decline in the low-double to mid-teens range from $3.47 and projected first-quarter EPS of $0.02 to $0.08 versus $0.66 a year ago. Management cited tariff increases squeezing gross margins, partially offset by higher pricing and productivity savings, and anticipates low- to mid-single-digit net sales and operating income growth.

Carter's board declared a quarterly dividend of $0.25 per share, payable on March 27, 2026. Executive leadership highlighted improved traffic, customer acquisition and pricing initiatives as drivers of recent momentum in product penetration and demand creation.