Filing Flows › Carter's (CRI) › Q2 2025
Carter's (CRI) Q2 2025 earnings results (second quarter 2025)
10-Q filed Jul 25, 2025
Carter's (CRI) reported revenue of $585M for the second quarter 2025 (Q2 2025), +4% from a year earlier and -7% from the quarter before. Operating margin was 0.7%, net earnings $446K (0.1% of revenue).
Carter's, Q2 2025: revenue $585M (+4% year over year), operating margin 0.7%, net earnings $446K, operating cash flow $40.3M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $585M | -7% | +4% |
| Gross profit | $282M | -3% | -0.4% |
| Operating profit | $4.0M | -85% | -90% |
| Net earnings | $446K | -97% | -98% |
| Operating cash flow | $40.3M | — | -66% |
| Free cash flow | $24.1M | — | -77% |
What changed
Revenue was $585.3M in Q2 2025, up 4% year over year and down 7% from the previous quarter. U.S. Retail was the largest line at 51% of revenue. International added $11.5M year over year (up 14%), 55% of the total change.
Gross margin was 48.1%, down 2.0 points from a year earlier. Operating profit was $4.0M, a 0.7% margin (down 6.3 points year over year). Operating profit fell $35.4M even though revenue rose $20.9M versus a year earlier, so costs grew faster than sales. Operating expenses grew 14% against revenue growth of 4%. Net earnings were $446K, down 98% year over year. The effective tax rate was 73.8%.
Operating cash flow was $40.3M (down 66% year over year), 9037% of net earnings. Non-cash charges added back $12.6M of depreciation and amortization and $5.2M of share-based compensation. Working capital and other items added $22.0M. Capital expenditures of $16.2M left free cash flow of $24.1M.
Questions
What was Carter's revenue in the second quarter 2025?
Carter's (CRI) reported revenue of $585M for the second quarter 2025 (Q2 2025), +4% from a year earlier and -7% from the quarter before.
Was Carter's profitable in the second quarter 2025?
Operating profit was $4.0M (0.7% of revenue) and net earnings $446K.
Source: Carter's 10-Q on SEC EDGAR.