Carter's stock surged 6.48% in pre-market trading on Wednesday, following the release of its first-quarter fiscal 2026 results that significantly exceeded analyst expectations.

The children's apparel retailer reported adjusted earnings per share of $0.39 for the quarter, beating the consensus estimate of $0.13 by 200%. Quarterly sales reached $681.1 million, surpassing expectations of $660.6 million and representing an 8.1% increase from the same period last year. Strong retail demand across all segments and an earlier Easter holiday were cited as key drivers for the sales growth.

While the company noted profitability was pressured by higher tariffs, investment spending, and inflationary costs, the substantial earnings and revenue beat prompted positive investor sentiment. Carter's also reiterated its full-year outlook, projecting low to mid-single-digit percentage growth in net sales for 2026.