Carter’s Reports Sales Growth Driven by Higher Prices and Fewer Discounts

Carter’s, Inc. (NYSE:CRI) has announced preliminary net sales figures for the fourth quarter and fiscal year 2025, revealing a notable rise in sales attributed to higher prices and fewer promotional discounts. The company reported that its fourth quarter consolidated net sales grew by a high single-digit percentage year over year, surpassing analyst expectations, which had estimated sales at approximately $884.47 million.

Sales in the U.S. Retail sector were particularly strong, increasing in the high single digits. This growth was largely fueled by robust online demand, which also contributed to improved comparable retail sales in U.S. stores during the quarter. Additionally, average unit retail pricing rose by mid-single digits, reflecting a strategic shift towards higher-value offerings. In the U.S. Wholesale segment, net sales experienced a low single-digit increase, while the international market achieved high single-digit growth.

Fiscal Year Performance Insights

For the entirety of fiscal year 2025, Carter’s preliminary figures indicate a consolidated net sales growth in low single digits. The U.S. Retail segment mirrored this trend, with net sales increasing by a low single-digit percentage. Comparable retail sales in U.S. stores remained stable, closely aligning with the previous year’s performance. The average unit retail pricing throughout the year was consistent with prior periods, signaling a strategic focus on maintaining pricing power.

The U.S. Wholesale segment faced challenges, reporting a low single-digit decline in net sales year over year. However, international sales displayed resilience, rising by mid-single digits during the same period. Carter’s noted that the fiscal year benefited from an additional operational week, contributing approximately $33 million to sales figures.

The company plans to release its complete audited results in late February 2026, providing further insights into its financial performance.

Leadership Changes and Future Outlook

In addition to its sales announcement, Carter’s has appointed David B. Tichiaz as the new chief brand officer. Tichiaz will report directly to Douglas C. Palladini, CEO and president, and will oversee product design and merchandising teams. This leadership change comes as Carter’s prepares to participate in a fireside chat at the upcoming ICR Conference on January 12, 2026, which will be available for live streaming on the company’s investor relations website.

Palladini expressed optimism about the company’s trajectory, noting that the fourth quarter marked the third consecutive quarter of growth in comparable retail sales. He attributed this positive trend to effective product and marketing initiatives, both online and in-store, which resonated with consumers. The combination of higher average unit pricing and reduced promotional activity has helped mitigate the impact of tariff pressures, thereby supporting margins and contributing to year-over-year revenue growth.

Despite ongoing execution challenges, management interprets these results as an early validation of Carter’s strategy to return to growth. The company’s proactive approach during a competitive holiday season underscores its commitment to navigating market dynamics effectively.

As of premarket trading on Friday, Carter’s shares saw an increase of 3.81%, reaching $35.96, according to data from Benzinga Pro. This upward movement reflects investor confidence in Carter’s strategic direction and its ability to adapt to changing market conditions.