--- title: "Carters | 10-Q: FY2027 Q1 Revenue Beats Estimate at USD 681.11 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285409096.md" datetime: "2026-05-06T16:10:07.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285409096.md) - [en](https://longbridge.com/en/news/285409096.md) - [zh-HK](https://longbridge.com/zh-HK/news/285409096.md) --- # Carters | 10-Q: 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. #### Consolidated Financial Performance - **Net Sales**: Consolidated net sales increased by $51.3 million, or 8.1%, to $681.1 million for the fiscal quarter ended April 4, 2026, compared to $629.8 million in the prior year period. - **Gross Profit**: Consolidated gross profit increased by $2.8 million, or 1.0%, to $293.9 million, compared to $291.1 million. - **Gross Margin**: Consolidated gross margin decreased by 310 basis points (bps) to 43.1%, down from 46.2%. - **Selling, General, and Administrative (SG&A) Expenses**: Consolidated SG&A expenses decreased by $0.3 million, or 0.1%, to $270.0 million, with the SG&A rate decreasing by 330 bps to 39.6%. - **Operating Income**: Consolidated operating income increased by $2.3 million, or 9.0%, to $28.4 million. - **Operating Margin**: Consolidated operating margin increased by 10 bps to 4.2%. - **Net Income**: Consolidated net income decreased by $1.2 million, or 7.7%, to $14.3 million. - **Interest Expense**: Increased by $3.9 million, or 50.4%, to $11.8 million. - **Income Tax Provision**: Decreased by $0.3 million, or 5.0%, to $5.5 million. - **Effective Tax Rate**: Increased by 60 bps to 27.8%. #### Segment Performance ##### U.S. Retail Segment - **Net Sales**: Increased by $37.8 million, or 12.8%, to $332.2 million. - **Comparable Net Sales**: Increased by 10.5%. - **Operating Income**: Increased by $6.7 million, or 291.6%, to $9.0 million. - **Operating Margin**: Increased by 190 bps to 2.7%. - **Operational Details**: Average unit retail (AUR) increased by a low-single digit percentage, and unit volume increased by a double-digit percentage. ##### U.S. Wholesale Segment - **Net Sales**: Increased by $1.3 million, or 0.5%, to $251.4 million. - **Operating Income**: Decreased by $18.5 million, or 33.5%, to $36.8 million. - **Operating Margin**: Decreased by 750 bps to 14.6%. - **Operational Details**: AUR increased by a high-single digit percentage, while unit volume decreased by a mid-single digit percentage, and average unit cost (AUC) increased by a high-teen digit percentage. ##### International Segment - **Net Sales**: Increased by $12.2 million, or 14.3%, to $97.5 million, including a $5.6 million favorable effect from foreign currency exchange rates. - **Comparable Net Sales (Canada)**: Increased by 4.0%. - **Operating Income**: Was $4.2 million, compared to an operating loss of - $0.2 million in the prior year. - **Operating Margin**: Increased by 460 bps to 4.3%. - **Operational Details**: AUR increased by a high-single digit percentage, and unit volume increased by a mid-single digit percentage. ##### Unallocated Corporate Expenses - **Expenses**: Decreased by $0.5 million, or 2.2%, to $21.5 million. - **As a Percentage of Consolidated Net Sales**: Decreased by 30 bps to 3.2%. #### Cash Flow - **Net Cash Provided by Operating Activities**: Was $6.4 million for the fiscal quarter ended April 4, 2026, compared to net cash used in operating activities of - $48.6 million in the prior year. - **Net Cash Used in Investing Activities**: Was - $7.0 million, compared to - $10.3 million in the prior year, with capital expenditures being - $7.0 million. - **Net Cash Used in Financing Activities**: Was - $12.2 million, compared to - $33.6 million in the prior year, including - $9.2 million in dividends paid. #### Liquidity and Capital Resources - **Cash and Cash Equivalents**: Totaled $473.4 million as of April 4, 2026. - **ABL Facility Availability**: Approximately $605.2 million was available for future borrowing as of April 4, 2026. - **Share Repurchases**: No open market share repurchases were made, with approximately $599.0 million remaining under outstanding repurchase authorizations. #### Future Outlook and Strategy Carter’s, Inc. plans to invest approximately $55 million in capital expenditures in fiscal 2026, primarily for its retail store fleet, distribution facilities, and strategic information technology initiatives. 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