Carter's Shares Plunge After Earnings Miss

Textile maker's stock drops 20% as Q4 results disappoint Wall Street

Feb. 27, 2026 at 5:51pm

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Shares of Carter's, Inc. (NYSE:CRI) fell sharply on Friday after the children's apparel company reported weaker-than-expected fourth-quarter financial results. The stock opened 13% lower and continued to slide, closing the day down over 20% at $35.12.

Why it matters

Carter's is one of the leading designers and marketers of infant and young children's clothing in North America. The company's disappointing Q4 performance raises concerns about the broader demand for its products and the challenges it may be facing in the current retail environment.

The details

Carter's reported Q4 earnings of $1.90 per share, topping analysts' estimates of $1.70 per share. However, revenue of $925.45 million fell short of the $912.36 million expected by Wall Street. The company cited a challenging macroeconomic backdrop and increased promotional activity as factors weighing on its results.

  • Carter's reported its Q4 2025 financial results on February 27, 2026.

The players

Carter's, Inc.

A leading designer and marketer of infant and young children's apparel in North America, with flagship brands including Carter's and OshKosh B'gosh.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

Carter's disappointing Q4 results highlight the challenges facing the children's apparel industry, as the company grapples with a difficult macroeconomic environment and increased promotional activity. Investors will be closely watching the company's efforts to navigate these headwinds and regain momentum in the coming quarters.