Carter’s (NYSE:CRI) reported a boost in fourth-quarter sales on Friday, as North America’s largest baby-apparel retailer successfully leveraged higher pricing and strong e-commerce demand to navigate a complex macroeconomic landscape.
The Atlanta-based company posted net sales of $925 million, an 8% increase over the $860 million recorded in the final quarter of 2024.
The top-line performance surpassed the Zacks Consensus Estimate of $916.4 million.
Diluted earnings per share (EPS) for the quarter came in at $1.76, compared to $1.71 a year earlier.
However, on an adjusted basis, diluted EPS fell to $1.90 from $2.39, reflecting the impact of significant new tariffs and higher store-based expenses.
Operating margins also faced pressure, with the adjusted operating margin contracting to 9.7% from 13.4% year-over-year.
For the full year 2025, Carter’s reported total revenue of $2.898 billion.
Despite the profit headwinds, the company returned $56 million to shareholders via dividends and reaffirmed its commitment to capital returns by declaring a quarterly dividend of $0.25 per share.