Filing Flows › Carter's (CRI) › Q1 2026
Carter's (CRI) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 6, 2026
Carter's (CRI) reported revenue of $681M for the first quarter 2026 (Q1 2026), +8% from a year earlier and -26% from the quarter before. Operating margin was 4.2%, net earnings $14.3M (2.1% of revenue).
Carter's, Q1 2026: revenue $681M (+8% year over year), operating margin 4.2%, net earnings $14.3M, operating cash flow $6.4M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $681M | -26% | +8% |
| Gross profit | $294M | -27% | +1% |
| Operating profit | $28.4M | -66% | +9% |
| Net earnings | $14.3M | -78% | -8% |
| Operating cash flow | $6.4M | -98% | — |
What changed
Revenue was $681.1M in Q1 2026, up 8% year over year and down 26% from the previous quarter. U.S. Retail was the largest line at 49% of revenue. U.S. Retail added $37.8M year over year (up 13%), 74% of the total change.
Gross margin was 43.1%, down 3.1 points from Q1 2025. Operating profit was $28.4M, a 4.2% margin (unchanged year over year). Of the extra revenue versus Q1 2025, 5% reached operating profit, above the 4% margin then. Operating expenses grew 0% against revenue growth of 8%. Net earnings were $14.3M, down 8% year over year. The effective tax rate was 27.8%.
Operating cash flow was $6.4M, 45% of net earnings. Non-cash charges added back $12.7M of depreciation and amortization and $3.7M of share-based compensation. Working capital and other items used $24.3M. Capital expenditures of $7.0M exceeded it, leaving free cash flow of −$543K.
Questions
What was Carter's revenue in the first quarter 2026?
Carter's (CRI) reported revenue of $681M for the first quarter 2026 (Q1 2026), +8% from a year earlier and -26% from the quarter before.
Was Carter's profitable in the first quarter 2026?
Operating profit was $28.4M (4.2% of revenue) and net earnings $14.3M.
Source: Carter's 10-Q on SEC EDGAR.