A 161-year-old brand restarts

Carter's announced a rebrand Tuesday with a new logo and marketing campaign, aimed at parents who look nothing like the ones it built its business on.

The pitch from the CMO

Chief Marketing Officer Sarah Crockett said the company saw room to connect with the values parents now bring home with them.

“We had an opportunity to really tap into the values that parents are bringing into the household.”

The stock tells the story

Carter's shares have fallen more than 50% over three years, leaving a market cap near $1 billion as baby and kids clothing got more crowded.

Profit cut nearly in half

Adjusted net income for fiscal 2025 landed at $126.1 million, down from $210.7 million. Then-CEO Douglas Palladini blamed product costs, tariffs and heavy investment.

Cutting to survive

Last October the company eliminated 15% of its corporate workforce and began closing 150 North American stores as leases ran out.

Signs of a floor

First quarter 2026 brought a 10.5% rise in U.S. comparable sales and 8.1% higher net sales. Build-A-Bear veteran Sharon Price John took over as CEO in May.

The new CEO shrugs

Price John calls the retrenchment ordinary business, not a break with customers. Wells Fargo upgraded the stock to hold in June, citing real improvement.

“That is just running a business.”

Gen Z is the whole point

Carter's says its customer base is shifting harder than it has in 25 years, with Gen Z about to make up a big share of new parents. New customers rose by a mid-teens percentage.

Kids pick their own clothes now

Crockett says Gen Z parents let children choose what they wear and crowdsource from social media. The rebrand rolls out across channels in 2026, with stores and packaging in 2027.

“If they don't evolve, they're left behind.”