Carter’s, Inc. announced that Sharon Price John will become the company’s Chief Executive Officer and President, effective June 15, 2026. The appointment follows the departure of former CEO Douglas C. Palladini, who left the company earlier this month after a brief tenure that began in March 2025.
John brings 13 years of experience from Build‑A‑Bear Workshop, where she led a turnaround that expanded e‑commerce, diversified the brand portfolio, and achieved record sales. Her track record of revitalizing retail brands and driving growth is expected to help Carter’s navigate the challenges of a shifting retail landscape and tariff‑heavy supply chain costs.
Carter’s reported its Q4 2025 results on February 27, 2026, showing net sales of $925 million, an 8% increase from $860 million in Q4 2024. Operating margin fell to 9.2% from 9.7% the prior year, and adjusted diluted EPS dropped to $1.90 from $2.39. The decline in margin and earnings was driven by higher product costs, tariff impacts, and investments in product quality and supply‑chain resilience.
The company reaffirmed its outlook for fiscal 2026, projecting low single‑digit to mid‑single‑digit growth in net sales and adjusted operating income, while anticipating a low double‑digit to mid‑teens decline in adjusted diluted EPS. The guidance reflects ongoing margin compression and the need to manage cost pressures while pursuing growth initiatives.
The leadership change signals a strategic shift toward leveraging John’s e‑commerce expertise and brand revitalization experience to strengthen Carter’s position in a competitive retail environment. The appointment is expected to influence the company’s long‑term growth trajectory and operational focus.
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