# Carter's bets a rebrand can win over Gen Z parents

> A 161-year-old baby clothing giant is redrawing its logo and its idea of who buys the clothes.
- Title: Carter's bets a rebrand can win over Gen Z parents · CNBC
- Summary: A 161-year-old baby clothing giant is redrawing its logo and its idea of who buys the clothes. Carter's is treating a generational shift in parents, not just…
- Keywords: retail, branding, gen z, kids clothing, turnaround, business, finance, Carter's, bets, rebrand, win, Gen
- Source: CNBC — https://cnbc.com/2026/09/15/carters-kids-clothing-retailer-rebrands.html
- Author: Laya Neelakandan
- Published: 2026-09-15T10:00:01+00:00
- Read time: 2 min
- Topics: retail, branding, gen z, kids clothing, turnaround, business, finance
## 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.
## Key takeaway

Carter's is treating a generational shift in parents, not just a sales slump, as the thing it has to solve.