Carter’s Inc ( (CRI) ) has released its Q3 earnings. Here is a breakdown of the information Carter’s Inc presented to its investors.
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Carter’s, Inc. is North America’s largest apparel company specializing in clothing for babies and young children, known for its iconic brands such as Carter’s and OshKosh B’gosh. The company operates over 1,000 stores across the U.S., Canada, and Mexico, and sells its products online and through major retailers.
Carter’s Inc. recently released its third-quarter fiscal 2025 earnings report, highlighting steady net sales of $758 million, comparable to the previous year. However, the company faced a significant decline in profitability, with diluted earnings per share dropping to $0.32 from $1.62 in the same quarter last year. The company also announced a series of productivity improvement actions aimed at enhancing financial performance.
Key financial metrics revealed a slight decrease in net sales by 0.1% compared to the previous year, primarily due to a decline in U.S. Wholesale segment sales, despite growth in U.S. Retail and International segments. Operating income fell significantly by 62.2% to $29.1 million, impacted by higher tariff costs and investments. Adjusted net income also saw a decline, with adjusted earnings per share dropping to $0.74 from $1.64 in the prior year.
Carter’s is taking decisive steps to improve its financial health by closing low-margin retail stores, restructuring its organization, and refining product offerings. These measures are expected to generate significant savings and improve the cost structure, providing the company with the capacity to reinvest in growth initiatives.
Looking ahead, Carter’s management remains focused on stabilizing the business and returning to profitable growth. The company is confident that its strategic initiatives, including new product and marketing efforts, will strengthen its market position despite the challenges posed by elevated product costs and tariffs.