Carter's Q2 sales rise 4% to $585 million; profit falls and guidance suspended
Carter's reported fiscal second-quarter 2025 net sales of $585.3 million, up 3.7% from a year earlier, but GAAP operating income fell to $4.0 million from $39.5 million and diluted EPS was $0.01 versus $0.76. The company suspended its fiscal 2025 guidance, citing its April 2025 leadership transition and uncertainty over proposed new tariffs, which matters to shareholders because it removes the company's current full-year earnings outlook.
Key points
- Net sales of $585.3 million, up 3.7% from $564.4 million; U.S. Retail comparable net sales rose 2.2%.
- GAAP diluted EPS of $0.01 vs. $0.76 a year earlier; adjusted diluted EPS of $0.17, excluding $6.6 million in operating model improvement costs and $1.1 million in leadership transition costs.
- Fiscal 2025 guidance suspended; the company expects about $35 million in net additional baseline tariff impact to pre-tax earnings in the second half.
- Paid a $0.25 per share dividend ($9.1 million) in the quarter; no shares repurchased in the first half; net cash used in operations was $8.3 million for the first half.
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 6:59 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on July 25, 2025.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.