Form 4: Carters Officer Sells Shares for Tax Obligations

Karen Marie Smith, Chief Supply Chain Officer at Carters Inc., disposed of common stock to cover tax withholding obligations related to restricted stock vesting.

Summary

• Karen Marie Smith, Chief Supply Chain Officer of Carters Inc. (CRI), reported two transactions involving the disposition of common stock.
• On February 27, 2026, 602 shares of common stock were disposed of at a price of $33.55 per share.
• On February 28, 2026, an additional 442 shares of common stock were disposed of at the same price of $33.55 per share.
• These dispositions were explicitly for satisfying tax withholding obligations arising from the vesting of restricted stock.
• Following these transactions, Ms. Smith beneficially owns 38,410 shares of Carters Inc. common stock, some of which are restricted and subject to either time-vesting or performance-based restrictions.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event. The transactions are routine tax-related dispositions following restricted stock vesting and do not indicate a change in company fundamentals or executive sentiment.

Positives

• The transactions are routine tax-related dispositions, indicating the vesting of restricted stock awards, which is a positive for the executive's compensation.

Negatives

• No inherent negatives; the transactions are standard tax-related dispositions.

Risks

• No specific risks are mentioned in this Form 4 filing.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance.

Management Comments

• The transaction reported in this Form 4 reflects withholding of shares of common stock to satisfy tax withholding obligations resulting from the vesting of restricted stock.

Industry Context

StockSavvy.ai notes that routine tax-related dispositions by executives are common occurrences in publicly traded companies, particularly when restricted stock units or other equity awards vest. These transactions typically do not reflect a change in management's outlook on the company's performance but rather a standard compensation and tax planning event.

Comparison to Industry Standards

• These transactions are standard practice for executives receiving equity compensation and are consistent with how similar executives at companies like Nike (NKE), Gap Inc. (GPS), or Lululemon Athletica Inc. (LULU) manage their vested restricted stock awards to cover tax liabilities. There are no specific comparable projects or results to detail beyond the routine nature of the event.

Management Changes

Corporate Governance

Legal Proceedings

• No legal or regulatory matters are mentioned in this Form 4 filing.

Related Party Transactions

• The reported transactions are insider transactions, which are a form of related party dealing, specifically the disposition of shares by an officer to cover tax obligations related to their compensation.

Stakeholder Impact

• Shareholders: Minimal direct impact as these are routine tax-related dispositions and do not signal a change in company performance or executive confidence. The number of shares is small relative to total outstanding shares.
• Employees: No direct impact mentioned.
• Customers: No direct impact mentioned.
• Suppliers: No direct impact mentioned.
• Creditors: No direct impact mentioned.

Next Steps

• No specific future actions or milestones are mentioned in this Form 4 filing.

Key Dates

Keywords

Carters Inc., CRI, Form 4, Insider Trading, Stock Sale, Tax Withholding, Restricted Stock, Karen Marie Smith, Chief Supply Chain Officer