Dive Brief:
- Carter’s announced a number of C-suite updates, including the creation of a chief commercial officer position and a stand-alone chief operating officer role. The retailer also named a new chief product officer, Maria Gemzell, who is joining the company from H&M.
- This “strategic evolution of its corporate leadership” is meant to advance the company’s growth strategy, per a press release.
- Meanwhile, the company reported its Q3 earnings, which saw net sales decrease under 1% year over year to $752 million. U.S. retail comparable sales increased less than 1%.
Dive Insight:
Carter’s is ready to elevate its product offering and is bringing on a fast-fashion leader to support its vision.
Gemzell was with H&M for over 20 years, where she most recently helped build the brand, develop products and lead innovation efforts via sustainability and circular design, per her LinkedIn. She will join Carter’s in early 2027 and will lead design, merchandising, licensing and product development.
Meanwhile, Allison Peterson has been promoted to the newly created and consolidated role of chief commercial officer. She will oversee the North American retail and wholesale business.
The company is expanding Emily Evert’s role as chief strategy and business development officer. She will oversee the retailer’s global consumer insights and international business. Additionally, Sarah Crockett has been named as the company’s chief brand officer. She has been with the company since 2025.
The retailer’s chief sales officer, Julie D’Emilio, is retiring and will work as an adviser through the end of the year. She has been with Carter’s for over two decades and came to the company from Calvin Klein Jeans, per her LinkedIn.
The company’s Q3 earnings, though, were "volatile,” according to Needham senior research analyst Tom Nikic.
U.S. wholesale decreased 3.8% to $273 million, which raises questions on if Carter’s is losing shelf space in its wholesale channel to private labels, according to BMO Capital Markets senior analyst Kelly Crago.
Last quarter, executives “sounded very positive on wholesale reception to new product/pricing,” Crago wrote in a Friday note. “However, since then there are concerns around whether pricing dynamics are driving share losses at key retail partners, which has implications on FY27.”
The company also lowered its outlook. It now expects between $2.91 billion and $2.93 billion in net sales for fiscal year 2026, or growth of 1%, versus the previous expectation of up to 3% growth.
Carter’s guidance was updated “to reflect the continued pressure on our consumers from the ongoing economic and geopolitical uncertainty,” CEO Sharon Price John said in a statement.
During the quarter, Carter’s refreshed its brand, which included the addition of a new logo and a revamped social media strategy.
The effort is rooted in a promise to “let every child’s light shine.” That isn’t just a tagline, Price John said on a call with analysts. Instead, it “shifts Carter's positioning to more purposely be about a broadened, rightful opportunity for us to be seen as a trusted partner for parents as they navigate the beautiful, sometimes precarious journey of childhood versus just being seen as an apparel brand or based on the consumer feedback, a brand that has slowly lost some of its emotional connection and relevancy with today's moms.”
