Carter’s Inc. reported second-quarter 2026 net sales of $615.49 million and net income of $104.96 million, while a tariff recovery left it holding more than $650 million in cash. The company delivered its fifth straight quarter of comparable retail sales growth and a very large increase in adjusted operating profit, but tightened its full-year outlook to a modest 2% to 3% net sales increase. Management’s new guidance contrasts with the strong quarter, highlighting the debate over Carter’s growth ceiling and margin resilience amid investments in product, marketing, and supply chain. The tariff recovery amounted to $132 million, and the company’s narrative projects $3.1 billion in revenue and $134.4 million in earnings by 2029, requiring 1.9% yearly revenue growth and a roughly $46 million earnings increase from $88.2 million today.
Carter’s IncStrong Q2 results with net sales and income beat, plus tariff recovery boosting cash.