Carter's Q1 Earnings Call Highlights
Key takeaways
- Carter's Q1 Earnings Call Highlights Market Beat Sun, May 10, 2026 at 5:06 AM GMT+7 8 min read CRI Carter's logo Key Points Interested in Carter s, Inc.?
- Q1 results beat expectations as Carter’s reported $681 million in net sales, up 8%, with stronger demand across retail, wholesale and international channels.
- Tariffs remain the biggest headwind, with management saying incremental tariff costs hurt gross margin and wholesale profitability.
Carter's Q1 Earnings Call Highlights Market Beat Sun, May 10, 2026 at 5:06 AM GMT+7 8 min read CRI Carter's logo Key Points Interested in Carter s, Inc.? Here are five stocks we like better.
Q1 results beat expectations as Carter’s reported $681 million in net sales, up 8%, with stronger demand across retail, wholesale and international channels. However, profitability was pressured, with adjusted EPS down to $0.39 from $0.66 a year ago and gross margin falling more than 300 basis points.
Tariffs remain the biggest headwind, with management saying incremental tariff costs hurt gross margin and wholesale profitability. Carter’s has filed for about $130 million in tariff refunds, but it is not recognizing them yet because cash has not been received and the outlook remains uncertain.