Carter's, Inc. · NYSE:CRI
Carter's — Q1 2026 Earnings Presentation
24 slides from Carter's's earnings presentation, May 6, 2026
Slide 1: First Quarter Business Update
FIRST QUARTER BUSINESS UPDATE MAY 6, 2026
Slide 2: First Quarter 2026 Results
FIRST QUARTER 2026 RESULTS GAAP BASIS $ in millions, except EPS % of % of Q1 2026 Net Sales Q1 2025 Net Sales Change Net sales $681 $630 8% Gross profit 294 43.1% 291 46.2% 1% Royalty income, net 5 0.7% 5 0.8% (13%) SG&A 270 39.6% 270 42.9% - Operating income 28 4.2% 26 4.1% 9% Interest expense and
Slide 3: Non-GAAP Adjustments
NON-GAAP ADJUSTMENTS1 $ in millions, except EPS First Quarter 2026 2025 Operating % Net Diluted Operating % Net Diluted Net Income Net Income Income Sales EPS Income Sales EPS As reported (GAAP) $28.4 4.2% $14.3 $0.39 $26.1 4.1% $15.5 $0.43 Operating model improvement costs - - - 3.2 2.4 0.07 Leader
Slide 4: Adjusted First Quarter 2026 Results
ADJUSTED FIRST QUARTER 2026 RESULTS1 $ in millions, except EPS % of % of Q1 2026 Net Sales Q1 2025 Net Sales Change Net sales $681 $630 8% Gross profit 294 43.1% 291 46.2% 1% Royalty income, net 5 0.7% 5 0.8% (13%) Adjusted SG&A 270 39.6% 261 41.4% 3% Adjusted operating income 28 4.2% 35 5.6% (20%)
Slide 5: First Quarter 2026 Segment Results
FIRST QUARTER 2026 SEGMENT RESULTS $ in millions Net Sales Operating Income Operating Margin 2026 2025 $ Change 2026 2025 $ Change 2026 2025 U.S. Retail $332 $294 $38 $9 $2 $7 2.7% 0.8% U.S. Wholesale 251 250 1 37 55 (19) 14.6% 22.1% International 97 85 12 4 (0) 4 4.3% (0.3%) Total before 681 630 51
Slide 6: First Quarter 2026 Performance – U.S. Retail
FIRST QUARTER 2026 PERFORMANCE – U.S. RETAIL 2026 vs. 2025 • Net sales +13% vs. LY − Demand creation investments driving increased consumer engagement − Significant traffic growth in both stores and eCommerce − Earlier and stronger Easter performance − AUR +LSD, Units +LDD • Positive year-over-year
Slide 7: OshKosh
OSHKOSH Bgost Celebrate 100 years of the Hundred Acre Wood, with timeless OshKosh style and the storybook ‘charm of Disney's Winnie the Pooh, &) deborah_n_decker Bee P This is giving storybook baby eneray @® : the vint Winnie the Pooh x Oshkosh gosh ne the vintage Disney details are everything. Two
Slide 8: motleybree Your Easter collection is so cute. We don't know
motleybree Your Easter collection is so cute. We don't know what we want to buy yet. Too many cute options Tw Reply ow Reply & nailcamasmr Wait these sets are so adorable! Reply @ taylorgrace @ My mom just got me a couple for baby girl & ay they're so cute! theabbeybunch We sure do love our carters
Slide 9: First Quarter Segment Performance
FIRST QUARTER SEGMENT PERFORMANCE 2026 vs. 2025 U.S. WHOLESALE INTERNATIONAL • Net sales +1% vs. LY (units -MSD) • Net sales: +14% (units +MSD); +8% constant currency ― Exclusive Brands growth ― Mexico total sales +42% ― Little Planet growth ― +21% retail comp • Operating margin 14.6% (-750 bps vs.
Slide 10: Continued Growth in Mexico
Continued Growth in Mexico 10
Slide 11: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW $ in millions Balance Sheet (Q1 End) Cash Flow (Q1) 2026 2025 2026 2025 Operating cash flow $6 ($49) Cash $473 $321 Capital expenditures (7) (10) Accounts receivable, net 197 204 Free cash flow2 ($1) ($59) Inventory, net 466 474 Accounts payable 189 199 Dividends $9 $29 Lon
Slide 12: U.S. Tariff Summary
U.S. TARIFF SUMMARY Historical • Import duties paid: ~$110 million Context • Effective tariff rate: ~13% • 2026 Plan assumed full year impact and continuation of IEEPA tariff rates 2026 Original 2026 Plan Incremental Y/Y Planning Gross incremental tariffs (IEEPA) ~$210M impact of ~$150M Assumptions
Slide 13: Outlook
2026 OUTLOOK 13
Slide 14: Fiscal Year 2026 Outlook
FISCAL YEAR 2026 OUTLOOK 52 WEEKS vs. 53 WEEKS 2025 NET SALES • Net sales: low single-digit to mid single-digit percentage growth (FY2025: $2.898 billion) U.S. Retail U.S. Wholesale International Low single-digit growth Mid single-digit growth Mid single-digit growth Comp sales up mid-single-digits
Slide 15: Second Quarter 2026 Outlook
SECOND QUARTER 2026 OUTLOOK NET SALES • Net sales: low single-digit percentage growth (Q2 2025: $585 million) U.S. Retail U.S. Wholesale International Low single-digit growth Mid to high single-digit Comparable Comp sales up mid-single-digits growth year-over-year PROFITABILITY1 Adjusted Operating I
Slide 16: Thank You
THANK YOU 16
Slide 17: Supplemental Information
SUPPLEMENTAL INFORMATION 17
Slide 18: Reconciliation of Reported to Adjusted Earnings
RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS $ in millions, except EPS % of Operating % of Income Net Diluted First Quarter Fiscal 2026 SG&A net sales Income net sales Tax Provision Income EPS As reported (GAAP) $270.0 39.6% $28.4 4.2% $5.5 $14.3 $0.39 Operating model improvement costs (b) - - -
Slide 19: Reconciliation of Total Segment Operating Income to Consolidated Operating Income
RECONCILIATION OF TOTAL SEGMENT OPERATING INCOME TO CONSOLIDATED OPERATING INCOME $ in millions Fiscal Quarter Ended April 4, 2026 March 29, 2025 % of % of net sales net sales Total segment operating income (a) $50.0 7.3% $57.4 9.1% Unallocated corporate expenses (b) (21.5) (22.0) Subtotal $28.4 4.2
Slide 20: Reconciliation of Net Income to Adjusted EBITDA
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA $ in millions Four Fiscal Fiscal Quarter Ended Quarters Ended April 4, 2026 March 29, 2025 April 4, 2026 Net income $14.3 $15.5 $90.6 Interest expense 11.8 7.8 38.2 Interest income (3.3) (3.1) (13.6) Tax expense 5.5 5.8 21.7 Depreciation and amortizati
Slide 21: First Quarter Reconciliation of Adjusted Net Income Allocable to Common Shareholders
FIRST QUARTER RECONCILIATION OF ADJUSTED NET INCOME ALLOCABLE TO COMMON SHAREHOLDERS Fiscal Quarter Ended Weighted-average number of common and common equivalent shares outstanding: April 4, 2026 March 29, 2025 Basic number of common shares outstanding 35,493,430 35,312,090 Dilutive effect of equity
Slide 22: Net Sales Constant Currency Reconciliation
NET SALES CONSTANT CURRENCY RECONCILIATION $ in millions Fiscal Quarter Ended Impact of Constant- Constant- Reported Net Foreign Currency Net Reported Net Reported Currency Sales Currency Sales Sales Net Sales Net Sales % April 4, 2026 Translation April 4, 2026 March 29, 2025 % Change Change Consoli
Slide 23: Store Count Reconciliation
STORE COUNT RECONCILIATION U.S Canada Mexico Total Store count at March 29, 2025 802 191 64 1,057 Openings 23 5 10 38 Closings (21) (4) (2) (27) Store count at January 3, 2026 804 192 72 1,068 Openings 3 0 1 4 Closings (9) (1) 0 (10) Store count at April 4, 2026 798 191 73 1,062 23
Slide 24: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION Statements in this presentation that are not historical fact and use predictive words such as “estimates”, “outlook”, “guidance”, “expect”, “believe”, “intend”, “designed”, “target”, “plans”, “may”, “will”, “are confident” and similar words are forward-