Carter’s Q2 revenue reaches $615 million

• Carter's reported second-quarter 2026 net sales of $615 million, representing a 5% year-over-year increase.
• The company posted a diluted earnings per share of $2.87 and an adjusted diluted earnings per share of $0.26, which represented 53% growth.
• Management stated that the company expects a high single-digit to low double-digit percentage decline in full-year adjusted diluted EPS while expecting net sales growth of 2% to 3%.

Carter's (NYSE:CRI) announced its second-quarter 2026 financial results, posting a 5% net sales increase to $615 million driven by a 5.1% rise in U.S. retail comparable sales.

The quarterly adjusted diluted earnings per share reached $0.26, growing 53% from the $0.17 reported in the same quarter last year.

"Demonstrating continued momentum, the Company posted positive results for the second quarter as net sales increased 5% and adjusted operating profit increased 54%, exceeding the prior outlook," said Carter's Chief Executive Officer and President Sharon Price John.

During the quarter, the business also received a $132 million recovery, or $100 million after-tax, of previously paid import duties and related interest.

Following the announcement, Carter's share price was down at $37.

Management also updated its full-year 2026 outlook, projecting a high single-digit to low double-digit percentage decline in adjusted diluted EPS from fiscal 2025's $3.47.

The organization further stated that it expects full-year net sales growth of 2% to 3% alongside low single-digit to mid-single-digit percentage growth in adjusted operating income.