Quick Facts

• Carter’s launched its first rebrand in more than 25 years, including a new logo and a campaign called ‘Watch Them Glow’ airing on Disney+, Hulu, and Roku through December.
• The company posted a 5% net sales increase and 54% adjusted operating profit increase in Q2 2026, with Gen Z customers growing mid-teens in the same quarter.
• Carter’s holds roughly 9% of the $29 billion U.S. children’s apparel market, the largest share of any single company.

Carter’s is rebranding for the first time since 2000. The 161-year-old childrenswear company is rolling out a new logo, revamped social media presence, and a 60-second marketing film called ‘Watch Them Glow’ as it works to connect with Gen Z and millennial parents replacing older consumer cohorts.

The new logo swaps the apostrophe in Carter’s name for a shooting star. The updated script draws on earlier versions of the company’s branding. Additional retail and packaging elements tied to the refresh will arrive in 2027.

‘Watch Them Glow’ will run on Disney+, Hulu, and Roku through December. The campaign is built around the promise to ‘let every child’s light shine’ and targets parents who, according to Carter’s CMO Sarah Crockett, are raising children differently than previous generations did.

‘We recognize that the market difference of our parents in the communities that we’re serving is significant,’ Crockett said. ‘We had an opportunity to really tap into the values that parents are bringing into the household.’

The company anticipates two-thirds of expecting and new parents will be Gen Z by 2025. Crockett noted that Gen Z parents tend to let children make their own clothing decisions and rely heavily on social media when shopping. Carter’s is building a creator program and multiyear partnerships with organizations focused on children and families as part of the broader effort.

Pew Research Center data cited by the company found that nearly half of U.S. parents say they are raising children differently than they were raised, with accepting children as they are and encouraging independent paths emerging as key themes. Mintel analyst Marisa Ortega confirmed the direction. ‘When we see the interest in more inclusive clothing options, like gender neutral, I think that also speaks to self-expression,’ Ortega said.

The rebrand comes during a period of financial recovery. Carter’s reported a 10.5% rise in U.S. comparable sales in Q1 2026 and a 5.1% comparable sales increase in Q2 2026, marking five consecutive quarters of growth. E-commerce comparable sales rose by double digits for the fourth straight quarter.

Despite recent momentum, the company faces headwinds. In fiscal year 2025, adjusted net income fell to $126.1 million from $210.7 million the prior year. Carter’s stock has lost more than half its value over the past three years, leaving its market capitalization near $1 billion.

Sharon Price John, who joined as CEO in June 2026 after leading Build-A-Bear Workshop, called the current parent demographic shift the biggest the company has seen in 25 years. ‘If they don’t evolve, they’re left behind,’ she said.

Carter’s sells through 779 U.S. stores, down from 798 at the end of Q1. It also operates three exclusive labels for mass retailers: Child of Mine at Walmart, Just One You at Target, and Simple Joys on Amazon.

Crockett described the rebrand as a multi-year effort. ‘This is a job to be done over multiple years,’ she said. Whether Carter’s can close the gap between its legacy positioning and where younger parents shop will determine how much of that $29 billion market it can hold.

Read more: How Carter’s is refreshing its brand to reach Gen Z, millennial parents