Overview

• Apparel company's Q4 net sales rose 8% yr/yr

• Adjusted EPS for Q4 beat analyst expectations

• Fiscal 2025 net sales grew 2% yr/yr

Outlook

• Carter's projects low single-digit to mid-single-digit growth in net sales for fiscal year 2026

• Company expects low double-digit to mid-teens decline in adjusted diluted EPS for 2026

• Carter's anticipates low single-digit to mid-single-digit growth in adjusted operating income in 2026

Result Drivers

• ADDITIONAL WEEK IMPACT - The extra week in Q4 fiscal 2025 contributed approximately $37 mln to net sales

• TARIFF COSTS - Incremental tariff costs impacted operating margins, despite higher pricing and lower corporate expenses

• CUSTOMER ACQUISITION - Improved customer acquisition and pricing strategies drove sales growth

Company press release: ID:nBw5tyNsNa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 3 "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 $30.00, about 28.7% below its February 26 closing price of $42.07

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 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.)