Filing Flows › Carter's (CRI) › Q4 2025
Carter's (CRI) Q4 2025 earnings results (fourth quarter 2025)
10-K filed Feb 27, 2026
Carter's (CRI) reported revenue of $925M for the fourth quarter 2025 (Q4 2025), +8% from a year earlier and +22% from the quarter before. Operating margin was 9.2%, net earnings $64.2M (6.9% of revenue).
Carter's, Q4 2025: revenue $925M (+8% year over year), operating margin 9.2%, net earnings $64.2M, operating cash flow $259M. The chart follows the revenue to costs, profit and cash.
| Q4 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $925M | +22% | +8% |
| Gross profit | $400M | +17% | -3% |
| Operating profit | $84.7M | +191% | +2% |
| Net earnings | $64.2M | +454% | +4% |
| Operating cash flow | $259M | — | -10% |
| Free cash flow | $248M | — | -9% |
What changed
Revenue was $925.5M in Q4 2025, up 8% year over year and up 22% from the previous quarter. U.S. Retail was the largest line at 55% of revenue.
Gross margin was 43.2%, down 4.6 points from a year earlier. Operating profit was $84.7M, a 9.2% margin (down 0.5 points year over year). Of the extra revenue versus a year earlier, 2% reached operating profit, below the 10% margin then. Operating expenses fell 4% while revenue rose 8%. Net earnings were $64.2M, up 4% year over year. The effective tax rate was 15.4%.
Operating cash flow was $258.6M (down 10% year over year), 403% of net earnings. Non-cash charges added back $13.7M of depreciation and amortization and $1.6M of share-based compensation. Working capital and other items added $179.1M. Capital expenditures of $11.0M left free cash flow of $247.6M.
Questions
What was Carter's revenue in the fourth quarter 2025?
Carter's (CRI) reported revenue of $925M for the fourth quarter 2025 (Q4 2025), +8% from a year earlier and +22% from the quarter before.
Was Carter's profitable in the fourth quarter 2025?
Operating profit was $84.7M (9.2% of revenue) and net earnings $64.2M.
Source: Carter's 10-K on SEC EDGAR.