Carter's Q3 profit tops estimates on higher pricing
CRI•CRI•CRI•CRI•Carter's Q3 sales fell 0.7% year over year to $752 million, while adjusted EPS rose 39% to $1.03, beating the $0.85 estimate. The company expects fiscal 2026 net sales of $2.91 billion to $2.93 billion and adjusted diluted EPS of $3.05 to $3.23.
Carter's reported Q3 adjusted EPS of $1.03, above the $0.85 analyst consensus, while sales declined 0.7% year over year to $752 million. Q3 EPS was $1 and adjusted operating margin was 7.60%.
The company said higher realized pricing and productivity initiatives improved profitability and offset cost inflation and increased marketing investments. International sales grew and U.S. Retail comparable sales rose slightly, while U.S. Wholesale sales declined. For fiscal 2026, Carter's expects net sales of $2.91 billion to $2.93 billion, adjusted operating income of $178 million to $187 million, and adjusted diluted EPS of $3.05 to $3.23.
