Carter's sees 2026 net sales up 2% to 3% from $2.898 billion in 2025.
The company expects a high single-digit to low double-digit percentage decline in 2026 adjusted diluted EPS.
Carter's expects 2026 operating cash flow of $230 million to $240 million.
Drivers and segment performance
Improved marketing and early benefits from productivity initiatives were key drivers of Q2 results.
Net sales grew in U.S. Wholesale, U.S. Retail and International segments, with U.S. Retail comparable sales up 5.1%.
Adjusted operating income increased principally due to benefits from productivity and supply chain initiatives, offsetting tariff and inflation pressures.
Key details and analyst coverage
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
$615 million
Q2 Adjusted EPS
Beat
$0.26
$0.06 (7 analysts)
Q2 EPS
$2.87
The current average analyst rating on the shares is "hold", with 2 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell" recommendations.
The average consensus recommendation for the apparel & accessories retailers peer group is "buy."
Wall Street's median 12-month price target for Carter's Inc is $41.50, about 9.8% above its July 30 closing price of $37.79.
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