Carter's to Report Q3 Results Friday With Analysts Expecting Revenue to Fall 1.1%

Carter's will report third-quarter earnings Friday morning, with analysts expecting revenue to decline 1.1% year on year, according to the FinancialContent Business Page. The children's apparel maker reported revenue of $615.5 million last quarter, up 5.2% year on year. Carter's is North America's largest branded apparel retailer exclusively for babies and young children, operating more than 1,000 company-operated stores and e-commerce across the US, Canada, Mexico and Argentina under the Carter's, OshKosh B'gosh, Little Planet, Skip Hop and Otter Avenue brands.

Carter's Q3 Expectations and Q2 Results

Carter's beat analysts' revenue expectations last quarter, and the quarter included a beat of analysts' EPS estimates, though revenue guidance for the next quarter missed analysts' expectations. The market now expects a 1.1% year-on-year revenue decline this quarter, a deceleration from flat revenue in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days. Carter's rarely misses Wall Street's revenue estimates, according to the report.

Among consumer discretionary peers that have already reported, VF Corp delivered year-on-year revenue growth of 1.2%, beating analysts' expectations by 1.1%, and Levi's reported revenues up 4.3%, in line with consensus estimates. Levi's traded down 2.4% following its results. Carter's stock was unchanged over the past month, and analysts have an average price target of $38.

Carter's Store Expansion and Leadership Records

Carter's announced an approximately $10 million investment to open 30 retail stores across Argentina over five years, beginning with a first location at Galerías Pacífico shopping center in May 2026, according to akta.pro company records. The company appointed Sharon Price John, former Build-A-Bear CEO for 13 years, as Chief Executive Officer and President effective June 15, 2026, succeeding Douglas C. Palladini, who departed immediately. Carter's recorded FY2025 net sales of $2.898 billion, up 1.9% year over year, and Q1 FY2026 net sales of $681 million, up 8% year over year.

Carter's Rebrand and Dividend History

Carter's announced a rebrand to appeal to Gen Z parents, including a new logo and marketing campaign, CNBC reported in September 2026. The company's stock had fallen over 50% in three years at that point, and Q1 2026 saw a 10.5% rise in U.S. comparable sales. In October 2026, Carter's was highlighted as a dividend-quality pick with a 4.43% yield and 16.75% annual dividend growth, though earnings had declined 35.49% over the past year, Chartmill reported.

Carter's Earnings Call Friday

Carter's will announce its Q3 results Friday morning.