Carter’s Q4 Sales Up 7.6% to $925.5M, Adjusted EPS $1.90

CRICRI

Carter’s Q4 fiscal 2025 net sales climbed 7.6% to $925.5M, with comparable sales up 3.4% on a constant-week basis, driving adjusted EPS to $1.90. The company refinanced its long-term debt, established a new asset-based revolving credit facility, and expects net sales and operating income growth in 2026 despite tariff changes.

1. Fourth Quarter Fiscal 2025 Performance

In Q4 fiscal 2025, net sales rose 7.6% year-over-year to $925.5 million, including a 14th week that added roughly $37 million. On a constant-week basis, comparable sales increased 3.4% as U.S. Retail comps grew 4.7%, International comps rose 10.2% and U.S. Wholesale comps climbed 3.4%. GAAP EPS was $1.76, and adjusted EPS reached $1.90 after excluding restructuring, operating-model and leadership transition costs plus a debt extinguishment loss.

2. Fiscal Year 2025 Highlights and Balance Sheet Actions

Over the 53-week fiscal year, the company right-sized its cost structure through organizational restructuring and merchandise productivity initiatives, while also enhancing its store fleet efficiency. Management strengthened liquidity by refinancing its long-term debt and putting in place a new asset-based revolving credit facility to support ongoing operations and strategic investments.

3. 2026 Guidance and Tariff Considerations

For fiscal 2026, Carter’s plans net sales and operating income growth on the strength of product and demand initiatives, excluding recent tariff developments. The company will remain disciplined in spending and expects productivity measures to contribute meaningfully, noting it will take time to fully assess the broader marketplace impact of the new tariffs.

Sources

BF