<div id="readability-page-1">Carter's (NYSE:CRI) reported stronger-than-expected first-quarter fiscal 2026 sales and earnings, with growth across its retail, wholesale and international businesses, but management said tariffs, higher spending and interest costs continued to weigh on profitability. Interim Chief Executive Officer and President, Chief Financial Officer and Chief Operating Officer Richard Westenberger said the year was &#34;off to a good start,&#34; with first-quarter...</div>

<p>Carter's (NYSE: CRI) reported stronger-than-expected Q1 fiscal 2026 sales of $681 million, up 8% year-over-year, but earnings per share declined to $0.39 from $0.43. The company faced profitability pressures from tariffs and higher costs. Interim CEO Richard Westenberger noted a leadership transition with Sharon Price John set to join as CEO next month. U.S. retail sales rose nearly 13%, driven by strong demand, while international sales grew 14%. Despite challenges, productivity initiatives helped reduce costs by $6 million during the quarter.</p>

Carter's Q1 earnings call highlights