Carter's 3Q 2026: Revenue $752.46M, Net income $36.61M, EPS $1— 10-Q Summary

What happened

Carter's reported third-quarter 2026 revenue of $752.46M, down 0.7% from a year earlier. Net income rose to $36.61M and diluted earnings per share increased to $1. U.S. Retail was nearly flat, Wholesale declined, and International sales grew.

Confirmed

Global impact / market context

Profit jumped even as sales slipped, meaning Carter's kept more of each dollar through better pricing and cost control. The company also faces tariff uncertainty and higher import costs, which could pressure future costs and profit per sale if vendor cost concessions fail.

Analyst inference

The article flags tariff uncertainty and higher import costs as risks for a clothing retailer that relies on imported goods. Carter's is monitoring its exposure and seeking vendor cost concessions. This matters for investors weighing current profit strength against potential future cost pressure.

Analyst inference

What to watch

1. Carter's reported a 0.4% rise in third-quarter U.S. comparable sales, which measures sales at stores open at least a year. Year-to-date comparable sales increased 5.0%, supported by higher pricing despite lower traffic and store closures. Confirmed
2. Carter's said it is pursuing vendor cost concessions to offset higher import costs. Watch whether those concessions materialize, because lower buying costs would help protect profit per sale as tariff uncertainty persists. Proposed
3. Watch international growth and store expansion, especially Mexico, where Carter's operated 77 stores versus 65 a year earlier. International sales rose 4.5% in the quarter and 6.8% year to date, led by Mexico and Canada. Analyst inference

Evidence

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