Carter’s reported nearly flat third-quarter sales but sharply higher operating profit and earnings, with U.S. retail comparable sales edging up. The children’s apparel company also announced a leadership transition: Richard F. Westenberger will leave the chief operating officer role when a successor is appointed, while continuing as chief financial officer.
Third-quarter results
- Net sales were $752 million, down 0.7% from $758 million a year earlier.
- U.S. retail comparable sales increased 0.4%.
- Operating income rose to $56 million from $29 million. On an adjusted basis, operating income was $57 million, up 45% from $39 million.
- Diluted earnings per share were $1.00, compared with $0.32 a year earlier. Adjusted diluted earnings per share were $1.03, up 39% from $0.74.
- Carter’s said it had returned $27 million to shareholders through dividends during the first three quarters of fiscal 2026.
- The company said it updated its full-year 2026 outlook; revised guidance figures were not included in the material provided.
Leadership
- Westenberger gave notice on October 26 that he intends to step down as COO. His departure from that role takes effect when Carter’s appoints a new COO; he will remain CFO.
- Carter’s also announced an evolution of its leadership structure, but the details beyond Westenberger’s role change were not provided here.
What changes
The quarter’s headline pattern was modestly lower sales alongside stronger profitability and earnings. The leadership change separates the COO responsibilities from Westenberger’s continuing CFO role once a successor is in place.