--- title: "Carters | 8-K: FY2027 Q1 Revenue Beats Estimate at USD 681.11 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285354591.md" datetime: "2026-05-06T10:19:34.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285354591.md) - [en](https://longbridge.com/en/news/285354591.md) - [zh-HK](https://longbridge.com/zh-HK/news/285354591.md) --- # Carters | 8-K: FY2027 Q1 Revenue Beats Estimate at USD 681.11 M Revenue: As of FY2027 Q1, the actual value is USD 681.11 M, beating the estimate of USD 661.53 M. EPS: As of FY2027 Q1, the actual value is USD 0.39. EBIT: As of FY2027 Q1, the actual value is USD 36.94 M. ### First Quarter Fiscal 2026 Financial Highlights (vs. First Quarter Fiscal 2025) #### Consolidated Results - **Net Sales**: Carter’s, Inc. reported net sales of $681.1 million, an increase of 8.1% from $629.8 million, with changes in foreign currency exchange rates having a favorable effect of approximately $5.6 million, or 0.9%, on consolidated net sales . - **Operating Income (GAAP)**: Operating income increased by 9.0% to $28.4 million, compared to $26.1 million . - **Operating Margin (GAAP)**: The operating margin increased to 4.2% from 4.1% . - **Adjusted Operating Income (non-GAAP)**: Adjusted operating income decreased by 19.6% to $28.4 million, from $35.4 million . - **Adjusted Operating Margin (non-GAAP)**: The adjusted operating margin decreased to 4.2% from 5.6% . - **Net Income (GAAP)**: Net income decreased by $1.2 million to $14.3 million, compared to $15.5 million . - **Adjusted Net Income (non-GAAP)**: Adjusted net income decreased by $9.4 million to $14.3 million, compared to $23.8 million . - **Gross Profit**: Gross profit was $293.873 million, up from $291.090 million . - **Selling, General, and Administrative Expenses**: SG&A expenses were $270.049 million, slightly down from $270.320 million . - **Interest Expense**: Interest expense increased to $11.757 million from $7.819 million . - **Interest Income**: Interest income was $3.256 million, compared to $3.142 million . - **Income Before Income Taxes**: Income before income taxes was $19.856 million, down from $21.349 million . - **Income Tax Provision**: The income tax provision was $5.520 million, compared to $5.810 million . #### Segment Revenue and Operating Income - **U.S. Retail Net Sales**: Increased by 12.8% to $332.248 million . - **U.S. Wholesale Net Sales**: Increased by 0.5% to $251.406 million . - **International Net Sales**: Increased by 14.3% to $97.459 million . - **U.S. Retail Comparable Sales**: Increased by 10.5% . - **U.S. Retail Segment Operating Income**: Was $9.037 million, with a segment operating margin of 2.7%, up from $2.308 million and 0.8% margin . - **U.S. Wholesale Segment Operating Income**: Was $36.784 million, with a segment operating margin of 14.6%, down from $55.309 million and 22.1% margin . - **International Segment Operating Income**: Was $4.159 million, with a segment operating margin of 4.3%, up from -$0.215 million and -0.3% margin . - **Total Segment Operating Income**: Was $49.980 million, with a consolidated operating margin of 7.3%, compared to $57.402 million and 9.1% margin . #### Cash Flow - **Net Cash Provided by Operations**: Was $6.4 million, compared to net cash used in operations of -$48.6 million in the prior year period . - **Capital Expenditures**: Were -$6.960 million, compared to -$10.346 million . - **Dividends Paid**: Were -$9.220 million, compared to -$28.999 million . #### Return of Capital - Carter’s, Inc. returned $9 million to shareholders through dividends, with a cash dividend of $0.25 per common share totaling $9.2 million paid . No shares were repurchased . ### 2026 Business Outlook Carter’s, Inc. reiterates its outlook for the full fiscal year 2026, projecting low single-digit to mid-single-digit percentage growth in both net sales and adjusted operating income, alongside a low double-digit to mid-teens percentage decline in adjusted diluted earnings per share . The company expects operating cash flow between $110 million and $120 million, with capital expenditures of $55 million . For the second quarter of fiscal 2026, Carter’s, Inc. forecasts low-single-digit percentage growth in net sales, adjusted operating income between $11 million and $13 million, and adjusted diluted earnings per share of $0.02 to $0.06 . ### Related Stocks - [CRI.US](https://longbridge.com/en/quote/CRI.US.md) ## Related News & Research - [Carter’s, Inc. 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