Carters Inc 8-K, filed Oct 30, 2026

Carters Inc (CRI)

8-K 2026-10-30 For: 2026-10-26

Added on October 30, 2026

About this 8-K

Carters Inc filed this 8-K on October 30, 2026, reporting on events of October 26, 2026.

Carter’s, Inc. reported Q3 fiscal 2026 net sales of $752 million, adjusted operating income of $57 million and adjusted diluted EPS of $1.03, while announcing a leadership restructuring and Richard F. Westenberger’s departure as Chief Operating Officer. AI summary

Items reported

Item 2.02: Financial results
Item 5.02: Director or officer change, or executive pay
Item 8.01: Other events

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☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




Exhibit Number			Description

99.1			Press release dated October 30, 2026
99.2			Leadership press release dated October 30, 2026
104			The cover page from this Current Report on Form 8-K, formatted as Inline XBRL


October 30, 2026	CARTER’S, INC.

	By:	/s/ Antonio D. Robinson
	Name:	Antonio D. Robinson
	Title:	Chief Administrative & Compliance Officer, Corporate Secretary


			Contact:
			T.C. Robillard
			Vice President, Investor Relations
			tc.robillard@carters.com


	Third Fiscal Quarter
	2026								2025
(In millions, except earnings per share)	Operating Income		% Net Sales		Net Income		Diluted EPS		Operating Income		% Net Sales		Net Income		Diluted EPS
As reported (GAAP)	$	55.8	7.4	%	$	36.6	$	1.00	$	29.1	3.8	%	$	11.6	$	0.32

IP litigation	1.2				0.9		0.02		—				—		—
Organizational restructuring	—				—		—		6.1				4.6		0.13
Operating model improvement costs	—				—		—		3.7				2.8		0.08
Leadership transition costs	—				—		—		0.5				0.4		0.01
Pension plan settlement	—				—		—		—				6.7		0.18
Deferred compensation plan termination	—				—		—		—				0.8		0.02
As adjusted	$	56.9	7.6	%	$	37.5	$	1.03	$	39.4	5.2	%	$	26.8	$	0.74


Carter’s, Inc.
(Exact name of Registrant as specified in its charter)


	First Three Quarters
	2026								2025
(In millions, except earnings per share)	Operating Income		% Net Sales		Net Income		Diluted EPS		Operating Income		% Net Sales		Net Income		Diluted EPS
As reported (GAAP)	$	224.0	10.9	%	$	155.9	$	4.27	$	59.2	3.0	%	$	27.6	$	0.75
Tariff refund recovery	(127.7)				(100.1)		(2.74)		—				—		—
Leadership transition costs	4.7				3.6		0.10		7.7				7.0		0.19
IP litigation	2.4				1.8		0.05		—				—		—
Organizational restructuring	—				—		—		6.1				4.6		0.13
Operating model improvement costs	—				—		—		13.5				10.2		0.29
Pension plan settlement	—				—		—		—				6.7		0.19
Deferred compensation plan termination	—				—		—		—				0.8		0.02
As adjusted	$	103.5	5.0	%	$	61.2	$	1.68	$	86.5	4.4	%	$	56.9	$	1.57


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	October 3, 2026		September 27, 2025		October 3, 2026		September 27, 2025
Net sales	$	752,456	$	757,836	$	2,049,060	$	1,972,975
Cost of goods sold	397,690		416,208		987,822		1,058,497

Gross profit	354,766		341,628		1,061,238		914,478
Royalty income, net	5,176		5,428		13,158		14,008
Selling, general, and administrative expenses	304,172		317,963		850,357		869,246


Operating income	55,770		29,093		224,039		59,240
Interest expense	11,826		7,173		34,895		22,849
Interest income	(4,797)		(2,573)		(16,536)		(10,007)
Other expense (income), net	329		882		766		(265)
Pension plan settlement	—		8,777		—		8,777
Income before income taxes	48,412		14,834		204,914		37,886
Income tax provision	11,801		3,241		49,009		10,308
Net income	$	36,611	$	11,593	$	155,905	$	27,578

Basic net income per common share	$	1.00	$	0.32	$	4.27	$	0.75
Diluted net income per common share	$	1.00	$	0.32	$	4.27	$	0.75
Dividend declared and paid per common share	$	0.25	$	0.25	$	0.75	$	1.30


	October 3, 2026		January 3, 2026		September 27, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	450,957	$	487,075	$	184,190
Short-term investments	75,000		—		—
Accounts receivable, net of allowance for credit losses of $11,231, $7,587, and $12,026, respectively	228,858		178,566		237,866
Finished goods inventories, net of inventory reserves of $15,394, $8,897, and $12,347, respectively	587,035		544,624		656,149
Prepaid expenses and other current assets	74,497		60,508		55,576
Total current assets	1,416,347		1,270,773		1,133,781
Property, plant, and equipment, net of accumulated depreciation of $581,338, $609,059, and $599,467, respectively	177,632		186,307		189,012
Operating lease assets	562,384		591,806		611,569
Tradenames, net	268,483		268,659		268,718
Goodwill	207,559		208,994		208,351
Customer relationships, net	17,483		20,128		20,993
Other assets	19,389		18,803		37,015
Total assets	$	2,669,277	$	2,565,470	$	2,469,439

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	254,353	$	235,700	$	240,235
Current operating lease liabilities	131,492		136,488		150,548
Other current liabilities	123,781		133,809		110,907
Total current liabilities	509,626		505,997		501,690
Long-term debt, net	568,135		567,173		498,738
Deferred income taxes	43,340		39,380		41,200
Long-term operating lease liabilities	479,181		508,461		529,139
Other long-term liabilities	14,767		19,411		34,030
Total liabilities	$	1,615,049	$	1,640,422	$	1,604,797

Commitments and contingencies

Shareholders’ equity:
Preferred stock; par value $0.01 per share; 100,000 shares authorized; none issued or outstanding	$	—	$	—	$	—
Common stock, voting; par value $0.01 per share; 150,000,000 shares authorized; 36,692,152, 36,425,877, and 36,518,637 shares issued and outstanding, respectively	367		364		365
Additional paid-in capital	26,751		19,584		18,029
Accumulated other comprehensive loss	(30,719)		(24,361)		(28,107)
Retained earnings	1,057,829		929,461		874,355
Total shareholders’ equity	1,054,228		925,048		864,642
Total liabilities and shareholders’ equity	$	2,669,277	$	2,565,470	$	2,469,439


	Fiscal Quarter Ended October 3, 2026
	Cost of Goods Sold		Gross Profit		% Net Sales		SG&A Expenses		% Net Sales		Operating Income		% Net Sales		Interest Income		Income Taxes		Net Income		Diluted EPS
As reported (GAAP)	$	397.7	$	354.8	47.1	%	$	304.2	40.4	%	$	55.8	7.4	%	$	4.8	$	11.8	$	36.6	$	1.00


IP litigation (b)	—		—				(1.2)				1.2				—		0.3		0.9		0.02
As adjusted (a)	$	397.7	$	354.8	47.1	%	$	303.0	40.3	%	$	56.9	7.6	%	$	4.8	$	12.1	$	37.5	$	1.03


			Three Fiscal Quarters Ended October 3, 2026
	Cost of Goods Sold		Gross Profit		% Net Sales		SG&A Expenses		% Net Sales		Operating Income		% Net Sales		Interest Income		Income Taxes		Net Income		Diluted EPS
As reported (GAAP)	$	987.8	$	1,061.2	51.8	%	$	850.4	41.5	%	$	224.0	10.9	%	$	16.5	$	49.0	$	155.9	$	4.27
Tariff refund recovery (d)	127.7		(127.7)				—				(127.7)				(4.0)		(31.6)		(100.1)		(2.74)
Leadership transition costs (c)	—		—				(4.7)				4.7				—		1.1		3.6		0.10
IP litigation (b)	—		—				(2.4)				2.4				—		0.6		1.8		0.05
As adjusted (a)	$	1,115.5	$	933.6	45.6	%	$	843.2	41.2	%	$	103.5	5.0	%	$	12.5	$	19.1	$	61.2	$	1.68


			Fiscal Quarter Ended September 27, 2025
	Cost of Goods Sold		Gross Profit		% Net Sales		SG&A Expenses		% Net Sales		Operating Income		% Net Sales		Interest Income		Income Taxes		Net Income		Diluted EPS
As reported (GAAP)	$	416.2	$	341.6	45.1	%	$	318.0	42.0	%	$	29.1	3.8	%	$	2.6	$	3.2	$	11.6	$	0.32
Organizational restructuring (e)	—		—				(6.1)				6.1				—		1.5		4.6		0.13
Operating model improvement costs (f)	—		—				(3.7)				3.7				—		0.9		2.8		0.08
Leadership transition costs (c)	—		—				(0.5)				0.5				—		0.1		0.4		0.01
Pension plan settlement (g)	—		—				—				—				—		2.1		6.7		0.18
Deferred compensation plan termination (h)	—		—				—				—				—		(0.8)		0.8		0.02
As adjusted (a)	$	416.2	$	341.6	45.1	%	$	307.7	40.6	%	$	39.4	5.2	%	$	2.6	$	7.1	$	26.8	$	0.74


			Three Fiscal Quarters Ended September 27, 2025
	Cost of Goods Sold		Gross Profit		% Net Sales		SG&A Expenses		% Net Sales		Operating Income		% Net Sales		Interest Income		Income Taxes		Net Income		Diluted EPS
As reported (GAAP)	$	1,058.5	$	914.5	46.4	%	$	869.2	44.1	%	$	59.2	3.0	%	$	10.0	$	10.3	$	27.6	$	0.75
Operating model improvement costs (f)	—		—				(13.5)				13.5				—		3.2		10.2		0.29
Leadership transition costs (c)	—		—				(7.7)				7.7				—		0.7		7.0		0.19
Organizational restructuring (e)	—		—				(6.1)				6.1				—		1.5		4.6		0.13
Pension plan settlement (g)	—		—				—				—				—		2.1		6.7		0.19
Deferred compensation plan termination (h)	—		—				—				—				—		(0.8)		0.8		0.02
As adjusted (a)	$	1,058.5	$	914.5	46.4	%	$	842.0	42.7	%	$	86.5	4.4	%	$	10.0	$	17.0	$	56.9	$	1.57


	Fiscal quarter ended January 3, 2026 (14 weeks)
		SG&A Expenses		% Net Sales		Operating Income		% Net Sales		Income Taxes		Net Income		Diluted EPS
As reported (GAAP)		$	319.6	34.5	%	$	84.7	9.2	%	$	11.7	$	64.2	$	1.76
Organizational restructuring (e)		(3.7)				3.7				0.9		2.8		0.08
Operating model improvement costs (f)		(0.7)				0.7				0.2		0.5		0.01
Leadership transition costs (c)		(0.4)				0.4				—		0.3		0.01
Loss on extinguishment of debt (i)		—				—				0.4		1.3		0.03
As adjusted (a)		$	314.8	34.0	%	$	89.5	9.7	%	$	13.2	$	69.2	$	1.90


	Fiscal Year Ended January 3, 2026 (53 weeks)
		SG&A Expenses		% Net Sales		Operating Income		% Net Sales		Income Taxes		Net Income		Diluted EPS
As reported (GAAP)		$	1,188.8	41.0	%	$	143.9	5.0	%	$	22.0	$	91.8	$	2.53
Operating model improvement costs (f)		(14.2)				14.2				3.4		10.8		0.30
Organizational restructuring (e)		(9.8)				9.8				2.4		7.5		0.20
Leadership transition costs (c)		(8.1)				8.1				0.7		7.3		0.20
Pension plan settlement (g)		—				—				2.1		6.7		0.18
Loss on extinguishment of debt (i)		—				—				0.4		1.3		0.03
Deferred compensation plan termination (h)		—				—				(0.8)		0.8		0.03
As adjusted (a)		$	1,156.7	39.9	%	$	176.0	6.1	%	$	30.3	$	126.1	$	3.47


	Fiscal Quarter Ended								Three Fiscal Quarters Ended
	October 3, 2026		% of Total Net Sales		September 27, 2025		% of Total Net Sales		October 3, 2026		% of Total Net Sales		September 27, 2025		% of Total Net Sales
Net sales:
U.S. Retail	$	362,624	48.2	%	$	362,307	47.8	%	$	999,549	48.8	%	$	956,288	48.5	%
U.S. Wholesale	273,110		36.3	%	283,805		37.4	%	740,069		36.1	%	726,899		36.8	%

International	116,722		15.5	%	111,724		14.8	%	309,442		15.1	%	289,788		14.7	%
Total consolidated net sales	$	752,456	100.0	%	$	757,836	100.0	%	$	2,049,060	100.0	%	$	1,972,975	100.0	%

Segment operating income:			Segment operating margin				Segment operating margin				Segment operating margin				Segment operating margin
U.S. Retail	$	19,307	5.3	%	$	9,976	2.8	%	$	32,597	3.3	%	$	16,052	1.7	%
U.S. Wholesale	48,715		17.8	%	43,998		15.5	%	115,240		15.6	%	126,369		17.4	%

International	11,705		10.0	%	9,172		8.2	%	21,273		6.9	%	12,564		4.3	%

Total segment operating income	$	79,727	10.6	%	$	63,146	8.3	%	$	169,110	8.3	%	$	154,985	7.9	%

Items not included in segment operating income:			Consolida-ted operating margin				Consolida-ted operating margin				Consolida-ted operating margin				Consolida-ted operating margin
Tariff refund recovery (a)	$	—	n/a		$	—	n/a		$	127,669	n/a		$	—	n/a
Unallocated corporate expenses (b)	(22,794)		n/a		(23,767)		n/a		(65,635)		n/a		(68,465)		n/a
IP litigation (c)	(1,163)		n/a		—		n/a		(2,379)		n/a		—		n/a
Leadership transition costs (d)	—		n/a		(500)		n/a		(4,726)		n/a		(7,694)		n/a
Operating model improvement costs (e)	—		n/a		(3,669)		n/a		—		n/a		(13,469)		n/a
Organizational restructuring (f)	—		n/a		(6,117)		n/a		—		n/a		(6,117)		n/a
Consolidated operating income	$	55,770	7.4	%	$	29,093	3.8	%	$	224,039	10.9	%	$	59,240	3.0	%


	Three Fiscal Quarters Ended
	October 3, 2026		September 27, 2025
Cash flows from operating activities:
Net income	$	155,905	$	27,578
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation of property, plant, and equipment	36,698		37,797
Amortization of intangible assets	2,825		2,781
Provision for excess and obsolete inventory, net	6,581		3,912




Amortization of debt issuance costs	1,723		1,253
Stock-based compensation expense	10,951		18,667
Unrealized foreign currency exchange loss (gain), net	394		(393)
Provision for credit losses	3,657		6,864
Unrealized gain on investments	(1,589)		(1,477)
Pension plan settlement	—		8,777
Deferred income taxes expense	4,317		879
Other operating items, net	(620)		21
Effect of changes in operating assets and liabilities:
Accounts receivable	(54,436)		(48,893)
Finished goods inventories	(51,836)		(153,621)
Prepaid expenses and other assets	(14,448)		(25,509)
Accounts payable and other liabilities	1,689		(14,946)
Net cash provided by (used in) operating activities	$	101,811	$	(136,310)

Cash flows from investing activities:
Capital expenditures	$	(29,663)	$	(42,662)
Purchases of short-term investments	(75,000)		—

Net cash used in investing activities	$	(104,663)	$	(42,662)

Cash flows from financing activities:


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	October 3, 2026		September 27, 2025		October 3, 2026		September 27, 2025
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding	35,623,722		35,443,712		35,569,482		35,388,596
Dilutive effect of equity awards	12,505		146		7,957		348
Diluted number of common and common equivalent shares outstanding	35,636,227		35,443,858		35,577,439		35,388,944
As reported on a GAAP Basis:
(dollars in thousands, except per share data)
Basic net income per common share:
Net income	$	36,611	$	11,593	$	155,905	$	27,578
Income allocated to participating securities	(842)		(305)		(4,103)		(1,118)
Net income available to common shareholders	$	35,769	$	11,288	$	151,802	$	26,460
Basic net income per common share	$	1.00	$	0.32	$	4.27	$	0.75
Diluted net income per common share:
Net income	$	36,611	$	11,593	$	155,905	$	27,578
Income allocated to participating securities	(842)		(305)		(4,102)		(1,118)
Net income available to common shareholders	$	35,769	$	11,288	$	151,803	$	26,460
Diluted net income per common share	$	1.00	$	0.32	$	4.27	$	0.75
As adjusted (a):
Basic net income per common share:
Net income	$	37,491	$	26,846	$	61,238	$	56,898
Income allocated to participating securities	(863)		(743)		(1,561)		(1,377)
Net income available to common shareholders	$	36,628	$	26,103	$	59,677	$	55,521
Basic net income per common share	$	1.03	$	0.74	$	1.68	$	1.57
Diluted net income per common share:
Net income	$	37,491	$	26,846	$	61,238	$	56,898
Income allocated to participating securities	(863)		(743)		(1,561)		(1,377)
Net income available to common shareholders	$	36,628	$	26,103	$	59,677	$	55,521
Diluted net income per common share	$	1.03	$	0.74	$	1.68	$	1.57


	Fiscal Quarter Ended				Three Fiscal Quarters Ended				Four Fiscal Quarters Ended
	October 3, 2026		September 27, 2025		October 3, 2026		September 27, 2025		October 3, 2026
Net income	$	36.6	$	11.6	$	155.9	$	27.6	$	220.1
Interest expense	11.8		7.2		34.9		22.8		46.3
Interest income	(4.8)		(2.6)		(16.5)		(10.0)		(20.0)
Income tax expense	11.8		3.2		49.0		10.3		60.7
Depreciation and amortization	12.9		13.8		39.5		40.6		54.2
EBITDA	$	68.3	$	33.2	$	262.8	$	91.3	$	361.3

Adjustments to EBITDA
Tariff refund recovery (a)	$	—	$	—	$	(127.7)	$	—	$	(127.7)
IP litigation (b)	1.2		—		2.4		—		2.4
Leadership transition costs (c)	—		0.5		4.7		7.7		5.1
Operating model improvement costs (d)	—		3.7		—		13.5		0.7
Organizational restructuring (e)	—		6.1		—		6.1		3.7
Loss on extinguishment of debt (f)	—		—		—		—		1.7
Pension plan settlement (g)	—		8.8		—		8.8		—
Total adjustments	1.2		19.1		(120.6)		36.1		(114.1)
Adjusted EBITDA	$	69.5	$	52.3	$	142.2	$	127.4	$	247.2


	Fiscal Quarter Ended
	Reported Net Sales October 3, 2026		Impact of Foreign Currency Translation		Constant-Currency Net Sales October 3, 2026		Reported Net Sales September 27, 2025		Reported Net Sales % Change		Constant-Currency Net Sales % Change

Consolidated net sales	$	752.5	$	0.9	$	751.5	$	757.8	(0.7)	%	(0.8)	%
International segment net sales	$	116.7	$	0.9	$	115.8	$	111.7	4.5	%	3.6	%