Carter’s Reports Sales Growth Amid Leadership Changes and Tariffs

Carter’s, Inc. (NYSE:CRI) announced significant developments on Friday, including preliminary net sales figures for the fourth quarter of fiscal 2025, a leadership appointment, and plans for an upcoming investor event. The company reported that its consolidated net sales for the fourth quarter increased by a high single-digit percentage compared to the previous year, surpassing the analyst consensus estimate of approximately $884.4718 million.

The U.S. Retail segment was a key driver of this growth, with net sales rising in the high single digits, largely due to robust online demand. Comparable retail sales in U.S. stores also showed improvement. Additionally, Carter’s noted a mid-single-digit increase in average unit retail pricing, while U.S. Wholesale net sales rose by a low single-digit percentage. The international segment experienced high single-digit growth, reflecting the brand’s expanding global presence.

Fiscal Year Performance and Future Outlook

For the entire fiscal year, Carter’s reported preliminary consolidated net sales growth in the low single digits. The U.S. Retail segment’s net sales mirrored this trend, with increases in comparable sales remaining close to last year’s levels. Despite facing challenges, the company maintained consistent average unit retail pricing throughout the fiscal year. U.S. Wholesale net sales exhibited a slight decline, dropping by a low single-digit percentage year over year, while international sales rose by mid-single digits.

Carter’s highlighted that the fiscal year included an extra operating week, which contributed approximately $33 million in sales. The company plans to release its full audited results in late February 2026, offering further insights into its performance.

Leadership Changes and Investor Engagement

In a notable leadership move, Carter’s appointed David B. Tichiaz as chief brand officer, reporting directly to CEO and President Douglas C. Palladini. Tichiaz will oversee the product design and merchandising teams, strengthening the company’s focus on innovation and market responsiveness.

Carter’s will participate in a fireside chat at the ICR Conference on January 12, 2026, providing a platform for investors to engage with the company’s strategic direction. The session will be live-streamed from the company’s investor relations site.

Palladini expressed optimism regarding the company’s performance, stating, “Fourth quarter comparable retail sales grew for the third consecutive quarter, reflecting strong consumer response to product and marketing initiatives, both in store and online.” He emphasized that the combination of higher average unit pricing and reduced promotional activity helped mitigate tariff pressures and supported overall margins, contributing to the year-over-year revenue growth observed in 2025.

Despite ongoing challenges in execution, management views these results as an early validation of its strategy to return to growth. Following the announcement, Carter’s shares rose by 3.81% to $35.96 in premarket trading, according to data from Benzinga Pro.

Carter’s continues to navigate a competitive retail landscape while aiming to strengthen its brand and enhance shareholder value through strategic initiatives and effective leadership.