Carter's Hires H&M's Maria Gemzell as Chief Product Officer

Carter's named H&M veteran Maria Gemzell its new chief product officer and cut its fiscal 2026 sales outlook to 1% growth, down from a prior forecast of up to 3% growth. The company announced both moves alongside Q3 earnings showing net sales down slightly under 1% year over year at $752 million.

The leadership changes, described in a press release as a "strategic evolution of its corporate leadership," include a newly created chief commercial officer role and a stand-alone chief operating officer position.

Gemzell spent more than 20 years at H&M. There she most recently helped build the brand, develop products and lead innovation through sustainability and circular design, per her LinkedIn. She joins Carter's in early 2027 and will lead design, merchandising, licensing and product development.

What does the new structure change?

Allison Peterson has been promoted to the consolidated chief commercial officer role, overseeing the North American retail and wholesale business. Emily Evert's remit as chief strategy and business development officer now expands to cover global consumer insights and international business. Sarah Crockett becomes chief brand officer; she joined the company in 2025.

Chief sales officer Julie D'Emilio is retiring and will advise through year-end. She spent over two decades at Carter's after arriving from Calvin Klein Jeans, per her LinkedIn.

What spooked the analysts?

Q3 results were "volatile," according to Needham senior research analyst Tom Nikic. U.S. wholesale sales fell 3.8% to $273 million, a decline BMO Capital Markets senior analyst Kelly Crago said raises questions about whether Carter's is losing shelf space to private label.

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."

Carter's now expects fiscal 2026 net sales between $2.91 billion and $2.93 billion. CEO Sharon Price John said the updated guidance reflects "the continued pressure on our consumers from the ongoing economic and geopolitical uncertainty."

A rebrand behind the reorg

During the quarter, Carter's refreshed its brand with a new logo and a revamped social media strategy. The effort rests on a promise to "let every child's light shine."

That line is more than a tagline, Price John told analysts on a call. 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."

U.S. retail comparable sales rose less than 1% in the quarter. With wholesale shrinking and guidance trimmed, the Gemzell hire and the rebrand now carry most of the weight of proving the growth story into 2027.