US' Carter's Q4 FY25 growth signals improving momentum in retail

On a preliminary and unaudited basis, its US retail segment delivered high single-digit growth in the quarter, with comparable sales rising in the mid-single-digits, driven mainly by strong demand through its e-commerce channel. Brick-and-mortar stores also recorded positive comparable sales, while average unit retail pricing increased in the mid-single-digits as Carter’s reduced promotional activity.

The US wholesale segment posted low single-digit growth during the quarter, while the international business achieved high single-digit growth compared with the same period a year earlier, Carter’s said in a press release.

For the full FY25, consolidated net sales increased in the low single-digits year on year. US retail sales grew in the low single-digits, supported by continued online momentum, while store-based comparable sales were broadly flat. Average unit retail pricing was broadly unchanged from the previous year. In contrast, US wholesale revenue declined in the low single-digits, while international sales advanced in the mid-single-digits.

“As we consistently focus on business stabilisation and returning to growth, I am pleased to see the impact our many actions are having, especially considering the highly competitive holiday sales period,” said Douglas C Palladini, chief executive officer (CEO) and president at Carter’s. “Fourth quarter comparable retail sales grew for the third consecutive quarter, reflecting strong consumer response to product and marketing initiatives, both in store and online. We also continue to grow average unit retail pricing as we price up, including less promotional activity, an important element of ongoing efforts to offset the impact of higher tariffs and improve profitability.”

Carter’s noted that fiscal 2025 included an extra trading week, which it estimates added around $33 million to consolidated net sales.

The company also announced the appointment of David B Tichiaz as chief brand officer, reporting to Palladini Tichiaz will lead Carter’s product design and merchandising teams and brings nearly two decades of global lifestyle brand experience.

ALCHEMPro News Desk (SG)