Carters Rebrand Targets Modern Parents

Children's clothing brand Carter's is undergoing a significant revamp to better align with a new generation of parents as its namesake company tries to recover from sluggish performance in recent years. The rebrand, announced Tuesday, Sept. 15, 2026, includes a new logo and marketing campaign that chief marketing officer Sarah Crockett told CNBC aims to keep the 161-year-old company relevant with its core customer.

"We recognize that the market difference of our parents in the communities that we're serving is significant," Crockett told the publication, adding that the Children's clothing retailer Carter's launches rebrand targeting modern parents initiative gives the firm an opportunity to tap into new household values. Carter's largest brands include its namesake banner and OshKosh B'gosh, which are sold in standalone stores around the United States and in retailers including Walmart, Target, and Amazon. The rebrand comes as the overall company has shrunk its store footprint and laid off some employees over the past year to try to reposition itself for growth in a increasingly competitive baby and kids clothing market.

Financial Headwinds and Leadership Changes

Wall Street has taken note of the company's issues. Over the past three years, Carter's stock has plunged more than 50%, bringing its market cap to around $1 billion. For the full 2025 fiscal year, Carter's reported adjusted net income of $126.1 million, down sharply from $210.7 million the year before. Last year, then-CEO Douglas Palladini said elevated product costs, higher tariffs, and additional investments weighed meaningfully on profitability. Last October, Palladini said Carter's was eliminating 15% of its corporate workforce and shuttering 150 North American stores as leases expired in an effort to rightsize the company.

Since then, Carter's has started to show more bright spots, and the rebrand aims in part to capitalize on that momentum. In the first quarter of 2026, the company reported a 10.5% increase in U.S. comparable sales and an 8.1% jump in net sales. Shortly before reporting those results in May, Carter's announced it was hiring Sharon Price John, formerly the CEO of Build-A-Bear Workshop, to lead the company. In June, Wells Fargo analysts upgraded Carter's from underweight to hold, saying that while the retailer's performance is not perfect, the changes instituted were driving fundamental improvements. Similar to how Cat owners are spending more and boosting pet retailers across separate consumer segments, shifting demographics are creating localized retail tailwinds. Price John told CNBC that the prior struggles were a natural evolution of running a business of that scale.

Catering to Generation Z Parents

Positive signs appeared to continue during the retailer's second quarter. During its most recent earnings call, Carter's said it grew its new customers, including Generation Z shoppers, which it said rose by a mid-teens percentage. For the full fiscal year, the company expects net sales to climb between 2% and 3%. It also reported receiving roughly $128 million in tariff refunds, following cost pressures from duties in the prior year. Still, Price John noted on a late July call with analysts that there was more work to be done.

With the new rebrand, Price John told CNBC that the company is tracking an evolution of its core customer base that is more dramatic than in the past 25 years. Gen Z is expected to account for a major portion of new parents over the next few years, making the demographic crucial to the brand's business. Crockett noted that Gen Z parents often encourage their children to make their own clothing decisions rather than mirroring their own fashion choices, with both parents and children heavily influenced by social media.

The rebrand will roll out across Carter's channels in 2026, with additional retail and packaging elements following in 2027. Crockett and Price John emphasized that the revamp aims to lift the performance of the broader Carter's Inc. as the company works to ensure long-term relevance.