Carter's, Inc. (CRI) is finding that sometimes the best way to deal with tariffs is to simply charge more and stop discounting so aggressively. The children's apparel company released preliminary fourth quarter and fiscal 2025 results on Friday that suggest this strategy is actually working.
The numbers tell an interesting story. Fourth quarter consolidated net sales jumped by a high single-digit percentage year over year. Analyst consensus had been expecting $884.47 million, and while the company didn't provide exact figures yet, that growth rate implies they likely came in around or above expectations.
The real action happened in U.S. Retail, where net sales climbed by high single digits thanks largely to robust online demand. Even brick-and-mortar stores saw comparable sales improve during the quarter. Here's the kicker: average unit retail pricing increased by mid-single digits. Translation? Carter's charged more per item and customers kept buying.
The wholesale business in the U.S. posted more modest low single-digit growth, while the international segment delivered high single-digit gains.
How the Full Year Played Out
Zooming out to the complete fiscal year, Carter's reported preliminary consolidated net sales growth in the low single digits. The U.S. Retail segment mirrored that performance with low single-digit increases, as did comparable U.S. Retail sales. Interestingly, retail store comparable sales stayed essentially flat compared to last year, while average unit retail pricing for the full year remained similar to the prior period.
U.S. Wholesale was the weak spot, declining by a low single-digit rate year over year. International sales picked up some slack with mid-single-digit growth. One technical note: the fiscal year included an extra operating week that added roughly $33 million in sales, so keep that in mind when looking at the numbers.
Carter's plans to release complete audited results in late February 2026.