Carter's Declares $0.25 Quarterly Dividend, Maintains Payment After Challenging Year
Carter's Inc., the largest North American children's apparel company, will pay a quarterly dividend of $0.25 per share on March 27. The board approved the payment on February 19, holding the rate steady from the prior quarter.
Carter's Inc. (NYSE: CRI), North America's largest apparel company exclusively for babies and young children, will pay a quarterly cash dividend of $0.25 per share on March 27, 2026, to shareholders of record at the close of business on March 13. The company's board of directors approved the payment on February 19. Read more dividend announcements.
The dividend matches the $0.25 per share paid in the prior quarter. Carter's paid total cash dividends of $56.4 million in fiscal 2025, with the fourth quarter payment totaling $9.1 million.
| Dividend Details | Date |
|---|---|
| Amount per Share | $0.25 |
| Record Date | March 13, 2026 |
| Payment Date | March 27, 2026 |
| Declaration Date | February 19, 2026 |
The company said future dividend declarations and payment dates will remain at the discretion of the board based on business conditions, financial performance, investment priorities, and other considerations.
Fiscal 2025 Financial Performance
Carter's reported fiscal 2025 net sales of $2.898 billion, up 2% from $2.844 billion in fiscal 2024. Fourth quarter sales reached $925 million, an 8% increase from $860 million in the prior-year period.
Operating margin for the full year declined to 5.0% from 9.0% in fiscal 2024. Adjusted operating margin was 6.1% compared to 10.1% in the prior year. Diluted earnings per share fell to $2.53 from $5.12, while adjusted diluted EPS dropped to $3.47 from $5.81.
Operating cash flow for fiscal 2025 was $122.3 million, down from $298.8 million in fiscal 2024. The company attributed the decline to lower earnings and higher inventory levels.
Capital Position
Carter's ended fiscal 2025 with total liquidity of $1.2 billion, including $487 million in cash and cash equivalents and $744 million in available borrowing capacity under its $750 million secured asset-based revolving credit facility. The company had no outstanding borrowings under the facility at year-end.
In the fourth quarter, Carter's completed the sale of $575 million in 7.375% senior unsecured notes due 2031. Proceeds were used to redeem $500 million principal amount of its 5.625% senior notes due in 2027. The company also entered into a new five-year secured ABL facility of up to $750 million maturing in November 2030, replacing an existing $850 million facility.
Carter's did not repurchase any shares in fiscal 2025.
Fiscal 2026 Outlook
The company projects low single-digit to mid-single-digit percentage growth in net sales for fiscal 2026. Adjusted operating income is expected to grow at a similar rate, while adjusted diluted EPS is forecast to decline in the low double-digit to mid-teens range.
The outlook does not reflect potential impacts from recent U.S. Supreme Court decisions regarding tariffs or recently-announced global tariffs.