Carter's achieves high single-digit net sales increase in Q4

US-based childrenswear specialist Carter’s, Inc. has announced preliminary net sales results for the fourth quarter and fiscal year 2025, signaling a return to growth following a period of strategic repositioning. On an unaudited basis, consolidated net sales for the quarter increased by a high single-digit percentage compared to the prior year.

The performance was bolstered by a 14th week in the fiscal calendar, which the company estimates contributed approximately 33 million dollars to the total. For the full fiscal year 2025, which included 53 weeks, consolidated net sales rose by a low single-digit percentage.

Strong e-commerce demand fuels retail segment

The US retail segment emerged as a primary driver of growth during the quarter, with net sales increasing by a high single-digit percentage. Comparable sales (comp sales) in the US retail division rose in the mid-single-digits, supported by robust demand in the e-commerce channel. Brick and mortar stores also maintained positive momentum, achieving positive comp sales during the holiday period.

Douglas C. Palladini, chief executive officer (CEO) and president of Carter’s, stated that the results provide a proof point of the company's forward momentum. He noted that the quarter marked the third consecutive quarter of comp retail sales growth, reflecting a positive consumer response to refreshed marketing and product initiatives.

Strategic pricing and leadership appointments

In an effort to improve profitability and mitigate the impact of higher tariffs, Carter’s has successfully increased its average unit retail (AUR) pricing by a mid-single-digit percentage. This shift was supported by a reduction in promotional activity during the peak selling weeks. While the US wholesale segment saw a decline in the low single-digits for the full year, the international segment grew in the mid-single-digits.

To further support its design and merchandising capabilities, Carter’s has appointed David B. Tichiaz as chief brand officer (CBO), reporting directly to Palladini. Tichiaz, who previously served as CEO of footwear brand Stance, Inc. and held senior roles at Vans, a subsidiary of VF Corporation (VF Corp), will oversee the company's global product strategy and brand positioning.

Upcoming investor engagement

The company is scheduled to participate in a fireside chat at the ICR Conference 2026 on January 12, 2026. During this session, executives are expected to provide further detail on the preliminary results and the company's outlook for the coming year.

Carter’s anticipates releasing its audited financial statements and full results for the fourth quarter and fiscal year 2025 in late February 2026.