Carter's (CRI) crushes Q2 2026 EPS by 320%, buoyed by new CEO's early wins
As seen on the 24/7 Wall St. homepage on July 31, 2026.
Carter's obliterated the $0.06 EPS consensus with adjusted earnings of $0.26 while new CEO Sharon Price John showed early wins from marketing investments, driving a 5.1% jump in U.S. Retail comparable sales. The quarter also benefited from a $132 million recovery of previously paid import duties, though the underlying business momentum was genuine, with adjusted operating income rocketing 54% year over year.
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Carter's reported adjusted earnings of $0.26 per share for Q2 2026, blowing past the $0.06 consensus estimate by more than 320%. Revenue came in at $615.49 million, edging above the $606.14 million estimate. A notable tailwind was a $132 million recovery of previously paid import duties, but the card facts are clear that the underlying business showed genuine momentum too.
New CEO Sharon Price John appears to be making an early mark, with marketing investments credited for a 5.1% jump in U.S. Retail comparable sales. Adjusted operating income rocketed 54% year over year, a striking acceleration that goes well beyond what a one-time duty recovery alone could explain.
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The recent earnings history adds context: Carter's missed badly in Q2 2025, reporting $0.17 against a $0.37 estimate, making the Q2 2026 turnaround all the more notable. Investors will be watching whether the comparable-sales momentum and operating leverage can hold as the company moves into the back half of the fiscal year.
Mentioned: CRI