Filing Flows › Carter's (CRI) › Q3 2025
Carter's (CRI) Q3 2025 earnings results (third quarter 2025)
10-Q filed Oct 27, 2025
Carter's (CRI) reported revenue of $758M for the third quarter 2025 (Q3 2025), -0.1% from a year earlier and +29% from the quarter before. Operating margin was 3.8%, net earnings $11.6M (1.5% of revenue).
Carter's, Q3 2025: revenue $758M (-0.1% year over year), operating margin 3.8%, net earnings $11.6M, operating cash flow −$128M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $758M | +29% | -0.1% |
| Gross profit | $342M | +21% | -4% |
| Operating profit | $29.1M | +619% | -62% |
| Net earnings | $11.6M | 26× | -80% |
| Operating cash flow | −$128M | -418% | — |
What changed
Revenue was $757.8M in Q3 2025, roughly flat year over year and up 29% from the previous quarter. U.S. Retail was the largest line at 48% of revenue. U.S. Wholesale lost $15.2M year over year (down 5%), 2416% of the total change.
Gross margin was 45.1%, down 1.9 points from a year earlier. Operating profit was $29.1M, a 3.8% margin (down 6.3 points year over year). Operating expenses grew 12% against flat revenue. Net earnings were $11.6M, down 80% year over year. The effective tax rate was 21.8%.
Operating cash flow was −$128.0M. Non-cash charges added back $12.8M of depreciation and amortization and $3.7M of share-based compensation. Working capital and other items used $156.1M. Capital expenditures of $16.1M exceeded it, leaving free cash flow of −$144.1M.
Questions
What was Carter's revenue in the third quarter 2025?
Carter's (CRI) reported revenue of $758M for the third quarter 2025 (Q3 2025), -0.1% from a year earlier and +29% from the quarter before.
Was Carter's profitable in the third quarter 2025?
Operating profit was $29.1M (3.8% of revenue) and net earnings $11.6M.
Source: Carter's 10-Q on SEC EDGAR.