US children's apparel retailer Carter's Q1 adjusted EPS beats, sales rise 8%

Carters

06/05/2026 11:18

Overview

US children's apparel retailer's fiscal Q1 net sales rose 8%, with growth in all segments

Adjusted EPS for fiscal Q1 beat analyst expectations

Company's profitability pressured by higher tariffs, investment spending, and inflationary costs

Outlook

Carter's sees 2026 net sales growing low to mid-single-digit percentages from $2.898 bln in 2025

Company expects 2026 adjusted diluted EPS to decline low double-digit to mid-teens percentages

For Q2 2026, Carter's projects adjusted EPS of $0.02 to $0.06 and net sales up low-single digits

Result Drivers

STRONG RETAIL DEMAND - Co said strong demand across U.S. Retail, U.S. Wholesale, and International channels drove sales growth

EASTER TIMING - Earlier Easter holiday boosted sales during the quarter

TARIFFS AND INFLATION - Profitability was negatively affected by higher tariffs, investment spending, and inflationary cost pressures

Company press release: ID:nBw8SmhN4a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
$681 mln
Q1 Adjusted EPS
Beat
$0.39
$0.13 (7 Analysts)
Q1 EPS
$0.39
Q1 Adjusted Operating Margin
4.20%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

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 $39.00, about 17% above its May 5 closing price of $33.34

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)