Revenue: As of FY2027 Q1, the actual value is USD 681.11 M, beating the estimate of USD 661.53 M.EPS: As of FY2027 Q1, the actual value is USD 0.39.EBIT: As of FY2027 Q1, the actual value is USD 36.94 M.<h4>Consolidated Financial Performance</h4><ul><li>Net Sales: Consolidated net sales increased by $51.3 million, or 8.1%, to $681.1 million for the fiscal quarter ended April 4, 2026, compared to $629.8 million in the prior year period. </li><li>Gross Profit: Consolidated gross profit increased by $2.8 million, or 1.0%, to $293.9 million, compared to $291.1 million. </li><li>Gross Margin: Consolidated gross margin decreased by 310 basis points (bps) to 43.1%, down from 46.2%. </li><li>Selling, General, and Administrative (SG&amp;A) Expenses: Consolidated SG&amp;A expenses decreased by $0.3 million, or 0.1%, to $270.0 million, with the SG&amp;A rate decreasing by 330 bps to 39.6%. </li><li>Operating Income: Consolidated operating income increased by $2.3 million, or 9.0%, to $28.4 million. </li><li>Operating Margin: Consolidated operating margin increased by 10 bps to 4.2%. </li><li>Net Income: Consolidated net income decreased by $1.2 million, or 7.7%, to $14.3 million. </li><li>Interest Expense: Increased by $3.9 million, or 50.4%, to $11.8 million. </li><li>Income Tax Provision: Decreased by $0.3 million, or 5.0%, to $5.5 million. </li><li>Effective Tax Rate: Increased by 60 bps to 27.8%. </li></ul><h4>Segment Performance</h4><h5>U.S. Retail Segment</h5><ul><li>Net Sales: Increased by $37.8 million, or 12.8%, to $332.2 million. </li><li>Comparable Net Sales: Increased by 10.5%. </li><li>Operating Income: Increased by $6.7 million, or 291.6%, to $9.0 million. </li><li>Operating Margin: Increased by 190 bps to 2.7%. </li><li>Operational Details: Average unit retail (AUR) increased by a low-single digit percentage, and unit volume increased by a double-digit percentage. </li></ul><h5>U.S. Wholesale Segment</h5><ul><li>Net Sales: Increased by $1.3 million, or 0.5%, to $251.4 million. </li><li>Operating Income: Decreased by $18.5 million, or 33.5%, to $36.8 million. </li><li>Operating Margin: Decreased by 750 bps to 14.6%. </li><li>Operational Details: AUR increased by a high-single digit percentage, while unit volume decreased by a mid-single digit percentage, and average unit cost (AUC) increased by a high-teen digit percentage. </li></ul><h5>International Segment</h5><ul><li>Net Sales: Increased by $12.2 million, or 14.3%, to $97.5 million, including a $5.6 million favorable effect from foreign currency exchange rates. </li><li>Comparable Net Sales (Canada): Increased by 4.0%. </li><li>Operating Income: Was $4.2 million, compared to an operating loss of - $0.2 million in the prior year. </li><li>Operating Margin: Increased by 460 bps to 4.3%. </li><li>Operational Details: AUR increased by a high-single digit percentage, and unit volume increased by a mid-single digit percentage. </li></ul><h5>Unallocated Corporate Expenses</h5><ul><li>Expenses: Decreased by $0.5 million, or 2.2%, to $21.5 million. </li><li>As a Percentage of Consolidated Net Sales: Decreased by 30 bps to 3.2%. </li></ul><h4>Cash Flow</h4><ul><li>Net Cash Provided by Operating Activities: Was $6.4 million for the fiscal quarter ended April 4, 2026, compared to net cash used in operating activities of - $48.6 million in the prior year. </li><li>Net Cash Used in Investing Activities: Was - $7.0 million, compared to - $10.3 million in the prior year, with capital expenditures being - $7.0 million. </li><li>Net Cash Used in Financing Activities: Was - $12.2 million, compared to - $33.6 million in the prior year, including - $9.2 million in dividends paid. </li></ul><h4>Liquidity and Capital Resources</h4><ul><li>Cash and Cash Equivalents: Totaled $473.4 million as of April 4, 2026. </li><li>ABL Facility Availability: Approximately $605.2 million was available for future borrowing as of April 4, 2026. </li><li>Share Repurchases: No open market share repurchases were made, with approximately $599.0 million remaining under outstanding repurchase authorizations. </li></ul><h4>Future Outlook and Strategy</h4>Carter’s, Inc. plans to invest approximately $55 million in capital expenditures in fiscal 2026, primarily for its retail store fleet, distribution facilities, and strategic information technology initiatives. Claims seeking approximately $130 million in refunds for previously paid IEEPA tariffs have been submitted, though no gain has been recognized due to remaining uncertainties. Sharon Price John has been appointed Chief Executive Officer &amp; President, effective June 15, 2026.

Carters | 10-Q: FY2027 Q1 Revenue Beats Estimate at USD 681.11 M