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Get filing alertsCarter's Q3 adjusted EPS jumps 39% to $1.03; leadership restructured with new CPO and CCO
Filed October 30, 2026 · Period ending October 26, 2026 · ~1 min read
Key Changes
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Adjusted EPS rose 39% to $1.03 from $0.74, driven by a 44.6% increase in adjusted operating income to $56.9 million.
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Operating income nearly doubled to $55.8 million from $29.1 million, with operating margin expanding to 7.4% from 3.8%.
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FY2026 outlook: net sales of $2.91–2.93 billion, adjusted operating income of $178–187 million, and adjusted diluted EPS of $3.05–3.23.
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Maria Gemzell is expected to join as Chief Product Officer in early 2027, and Allison Peterson has been appointed Chief Commercial Officer.
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Richard Westenberger will step down as COO upon appointment of a successor but will continue as CFO.
Item 5.02 verify on EDGAR →
Summary
Carter's reported a strong third quarter with adjusted EPS up 39% to $1.03, driven by a near-doubling of operating income to $55.8 million. Net sales dipped 0.7% to $752.5 million, but margin expansion and productivity gains more than offset the slight revenue decline.
The company also updated its full-year outlook, projecting adjusted EPS of $3.05–3.23, which reflects a high-single digit to low-double digit percentage decline from fiscal 2025 due in part to the prior year's extra 53rd week. Alongside earnings, Carter's announced a strategic evolution of its leadership structure.
Maria Gemzell is expected to join as Chief Product Officer in early 2027, and Allison Peterson has been appointed to the newly created Chief Commercial Officer role. The company is also separating the COO role from the CFO role; Richard Westenberger will step down as COO once a successor is named but will remain CFO. Chief Sales Officer Julie D'Emilio is retiring and will serve as an advisor through year-end, while Chief Supply Chain Officer Karen Smith will retire in March 2027. The leadership changes are designed to align product, commercial operations, and brand with the company's growth strategy. For retail investors, the combination of strong earnings and a planned executive transition suggests a deliberate effort to position the company for future growth, though the full impact of the restructuring will depend on the successful onboarding of new leaders and the appointment of a standalone COO.
Section-by-Section Diff
Event · Item 8.01 — Other Events
Carter's announced an evolution of its leadership structure via press release.
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On October 30, 2026, the Company issued a press release announcing the evolution of its leadership structure.
The company disclosed a change to its leadership structure through a press release dated October 30, 2026. The 8-K itself does not provide details on the specific roles or individuals involved; those are contained in Exhibit 99.2, which is incorporated by reference.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Net sales decreased $5.4 million, or 0.7%, to $752.5 million, compared to $757.8 million in the third quarter of fiscal 2025.
Third quarter net sales declined slightly year over year, driven by a 3.8% decrease in U.S. Wholesale, partially offset by 4.5% growth in International and flat U.S. Retail. U.S. Retail comparable sales increased 0.4%.
Added in current filing · view on EDGAR →
$860 million to $880 million in net sales ($925 million in Q4 fiscal 2025, a 14 week fiscal quarter);
Fourth quarter net sales are projected at $860–880 million, down from $925 million in the prior-year quarter, which included an extra week. Adjusted operating income is projected at $74–83 million and adjusted diluted EPS at $1.37–1.55.
Event · Exhibit 99.2
Carter's announces leadership restructuring: new Chief Product Officer, new Chief Commercial Officer, standalone COO search, and two retirements.
Added in current filing · view on EDGAR →
today announced the strategic evolution of its corporate leadership structure designed to advance its growth strategy
Carter's is reorganizing its executive team to better align product, sales, brand, and operations with its growth strategy. The new structure organizes leadership across product, commercial operations, strategy and consumer insights, and brand.
Added in current filing · view on EDGAR →
Maria Gemzell is expected to join Carter’s as Chief Product Officer in early 2027, leading design, merchandising, licensing, and product development.
Maria Gemzell joins from H&M's headquarters in Stockholm, Sweden, where she oversaw strategic and new product initiatives. She will lead design, merchandising, licensing, and product development.
Added in current filing · view on EDGAR →
Allison Peterson, who joined Carter’s in 2024, has been appointed to the newly created role of Chief Commercial Officer, where she will oversee the North American Retail and Wholesale businesses.
The new Chief Commercial Officer role consolidates management of retail and wholesale businesses across the U.S., Canada, and Mexico under Allison Peterson. This simplifies the commercial structure and strengthens go-to-market coordination.
Added in current filing · view on EDGAR →
Carter’s is creating a standalone Chief Operating Officer role to provide dedicated leadership and clear accountability for the operations that bring its products to the families it serves.
The company is separating the COO role from the CFO role. Richard Westenberger, currently Chief Financial Officer and Chief Operating Officer, will continue as CFO while the company searches for a standalone COO.
Added in current filing · view on EDGAR →
Julie D’Emilio, currently Carter’s Chief Sales Officer, has decided to retire from the Company and will serve as an advisor through year-end to ensure a seamless transition.
Chief Sales Officer Julie D'Emilio is retiring and will serve as an advisor through year-end. Chief Supply Chain Officer Karen Smith will retire in March 2027 after informing the company of her decision in February 2026.
Event · Item 2.02 — Results of Operations and Financial Condition
Carter's issued a press release announcing Q3 fiscal 2026 financial results for the quarter ended October 3, 2026.
Added in current filing · verify on EDGAR →
On October 30, 2026, Carter’s, Inc. (the "Company") issued a press release announcing its financial results for its fiscal quarter ended October 3, 2026.
The 8-K discloses that Carter's issued a press release on October 30, 2026, announcing financial results for the fiscal quarter ended October 3, 2026. The press release is attached as Exhibit 99.1. The 8-K body itself does not include the quantitative results; those figures are in the exhibit.
Event · Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Compensation
Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Compensation filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
On October 26, 2026, Richard F. Westenberger gave notice of his decision to step down as Chief Operating Officer, which will be effective upon the Company's appointment of a new Chief Operating Officer. Mr. Westenberger will continue to serve as the Company's Chief Financial Officer.
Richard Westenberger, who currently serves as both COO and CFO, has decided to step down from the COO role. The change takes effect only when a new COO is appointed, and he will remain as CFO. This is a planned leadership transition, not a departure from the company.
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