Carter's Q2 operating income rises to $140 million on $132 million tariff refund
Carter's reported second-quarter fiscal 2026 net sales up 5.2% to $615.5 million, and GAAP operating income of $139.8 million and diluted EPS of $2.87 were boosted by a $132 million recovery of previously paid import duties and interest. The company's full-year outlook projects adjusted diluted EPS to fall by a high single-digit to low double-digit percentage from $3.47, so the quarter's gains do not carry through to the full year.
Key points
- Net sales were $615.5 million, up 5.2% from $585.3 million; U.S. Retail comparable sales rose 5.1%.
- GAAP diluted EPS was $2.87 versus $0.01, including a $127.7 million tariff refund recovery; adjusted diluted EPS was $0.26 versus $0.17.
- Fiscal 2026 outlook projects net sales growth of 2% to 3% and adjusted diluted EPS down high single-digit to low double-digit percent from $3.47.
- Third-quarter outlook projects adjusted diluted EPS of about $0.85, compared with $0.74 in the third quarter of fiscal 2025.
The filing
Written by AI on Nov 8, 2026, 6:59 AM ET, from this filing 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 31, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.