Carter's Inc (CRI)
NYSE:CRI
Want to see CRI full AI Analyst Report?
Top Page
Carter's
(NYSE:CRI)
Select Model
Select Model
Rating:54Neutral
Price Target:
$34.00
▼(-11.71% Downside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by sustained profitability compression and weak technical momentum (price below key moving averages with negative MACD). Offsetting factors include improved TTM leverage and a recent cash-flow rebound, while valuation is only moderately supportive (P/E ~22 with ~3% yield). Earnings call signals resilient sales but meaningful tariff/interest-driven margin headwinds and lower EPS guidance, with recovery weighted to the second half.
Positive Factors
Brand & Market Leadership
Carter’s entrenched brand portfolio (Carter’s, OshKosh) and management focus on reinforcing leadership create durable competitive advantage. Strong brand recognition supports consistent demand, allows premium collaborations, and helps retain wholesale and retail partners across economic cycles, aiding multi‑period revenue resilience.
Negative Factors
Sustained Profitability Compression
A sharp, multi‑year drop in operating and net margins materially reduces earnings quality and return on capital. Even with stable gross margins, higher operating costs and discounting compress profits, limiting the company's ability to self‑fund growth, absorb shocks, or sustainably increase shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Brand & Market Leadership
Carter’s entrenched brand portfolio (Carter’s, OshKosh) and management focus on reinforcing leadership create durable competitive advantage. Strong brand recognition supports consistent demand, allows premium collaborations, and helps retain wholesale and retail partners across economic cycles, aiding multi‑period revenue resilience.
Read all positive factors
Carter's Key Performance Indicators (KPIs)
Any
Net Sales By Segment
Shows revenue performance across various segments, indicating which product lines or services are most successful and where there might be potential for growth or need for strategic adjustments.
Shows revenue performance across various segments, indicating which product lines or services are most successful and where there might be potential for growth or need for strategic adjustments.
Data provided by:
The Fly
The FlyCarter's (CRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.23B
Dividend Yield4.89%
Average Volume (3M)1.22M
Price to Earnings (P/E)22.2
Beta (1Y)0.80
Revenue Growth4.88%
EPS Growth-45.12%
CountryUS
Employees15,350
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)2.54
Shares Outstanding36,850,117
10 Day Avg. Volume1,317,824
30 Day Avg. Volume1,220,005
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)1.27
Price to Sales (P/S)0.41
P/FCF Ratio17.15
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit1.11
Enterprise Value/Ebitda7.38
Forecast
1Y Price Target
$39.75Price Target Upside3.22% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)3.19
Revenue Forecast (FY)$3.02B
Carter's Business Overview & Revenue Model
Company Description
Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded childrenswear under the Carter's, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter's My First Love, little planet, and other brands in the Uni...
How the Company Makes Money
Carter’s makes money primarily by selling children’s apparel and related products through two main channels: (1) direct-to-consumer and (2) wholesale. In its direct-to-consumer business, revenue is generated from sales made in Carter’s- and OshKos...
Carter's Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Neutral
The call presents mixed but resilient operational performance: top-line momentum was clear (8% consolidated sales growth, strong U.S. Retail comps, double-digit unit growth in Retail, and robust international results) and productivity and cash flow improved. However, substantial margin and earnings pressure driven by higher tariffs, increased interest expense, and near-term SG&A increases constrain profitability and EPS, and policy uncertainty around tariffs remains a material risk. Management reiterated guidance and emphasized plans for second-half profit recovery, but near-term risks keep the tone cautious.Positive Updates
Net Sales Growth
First quarter net sales of $681 million, representing growth of 8% year-over-year.
Negative Updates
Gross Margin Pressure from Tariffs
Q1 gross margin was 43.1%, down slightly more than 300 basis points year-over-year. Tariffs produced a gross incremental impact of roughly $50 million in the quarter; remaining inventory value attributable to incremental tariffs was $26 million at quarter end.
Read all updates
Q1-2026 Updates
Positive
Negative
Net Sales Growth
First quarter net sales of $681 million, representing growth of 8% year-over-year.
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 guidance: net sales up low‑ to mid‑single digits versus 2025, with U.S. Retail sales up low single‑digits (comps up mid‑single digits), U.S. Wholesale sales up mid‑single digits and International sales up mid‑single digits; adjusted operating income expected to grow low‑ to mid‑single digits (with more profit in H2), adjusted EPS expected down low‑double‑digits to down mid‑teens versus 2025 adjusted EPS of $3.47, operating cash flow $110–$120M, CapEx ~ $55M and a full‑year effective tax rate of ~22%. For Q2 they expect net sales up low single‑digits (U.S. Retail comps mid‑single digits, U.S. Wholesale up mid‑to‑high single‑digits, International roughly flat), gross margin down ~100 bps, adjusted operating income $11–$13M and adjusted EPS $0.02–$0.06. Guidance assumes the lower 10% incremental tariff through Q2 (management notes roughly a $30M potential benefit) but assumes higher IEEPA‑level tariffs could resume midyear.Carter's Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
58
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.95B | 2.90B | 2.84B | 2.95B | 3.21B | 3.49B |
| Gross Profit | 1.32B | 1.31B | 1.37B | 1.40B | 1.47B | 1.66B |
| EBITDA | 198.39M | 203.32M | 343.49M | 400.35M | 424.79M | 592.69M |
| Net Income | 90.59M | 91.80M | 185.51M | 232.50M | 250.04M | 339.75M |
Balance Sheet | ||||||
| Total Assets | 2.48B | 2.57B | 2.43B | 2.38B | 2.44B | 3.19B |
| Cash, Cash Equivalents and Short-Term Investments | 473.44M | 487.07M | 412.93M | 351.21M | 211.75M | 984.29M |
| Total Debt | 628.83M | 1.21B | 1.13B | 1.08B | 1.18B | 1.57B |
| Total Liabilities | 1.56B | 1.64B | 1.58B | 1.53B | 1.64B | 2.24B |
| Stockholders Equity | 928.46M | 925.05M | 854.56M | 845.25M | 796.41M | 950.19M |
Cash Flow | ||||||
| Free Cash Flow | 127.08M | 68.63M | 242.62M | 469.27M | 48.00M | 230.82M |
| Operating Cash Flow | 177.40M | 122.33M | 298.79M | 529.13M | 88.36M | 268.26M |
| Investing Cash Flow | -50.32M | -53.70M | -56.16M | -59.86M | -40.36M | -32.44M |
| Financing Cash Flow | 23.40M | 2.04M | -174.82M | -332.64M | -819.27M | -352.71M |
Carter's Technical Analysis
Positive
38.51
Price Trends
36.49
Positive
34.90
Positive
31.89
Positive
Market Momentum
0.30
Negative
63.09
Neutral
74.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRI, the sentiment is Positive. The current price of 38.51 is above the 20-day moving average (MA) of 35.45, above the 50-day MA of 36.49, and above the 200-day MA of 31.89, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 63.09 is Neutral, neither overbought nor oversold. The STOCH value of 74.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRI.
Carter's Risk Analysis
Carter's disclosed 42 risk factors in its most recent earnings report. Carter's reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Carter's Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $358.97M | 1.57 | 2.52% | ― | 4.78% | ― | |
60 Neutral | $417.76M | -60.75 | -12.23% | ― | 3.65% | 66.88% | |
54 Neutral | $1.23B | 22.20 | 10.14% | 4.89% | 4.88% | -45.12% | |
54 Neutral | $3.65B | 6.37 | 22.70% | ― | 5.22% | -4.06% | |
42 Neutral | $71.97M | -0.50 | 532.94% | ― | -12.80% | 11.78% |
* Consumer Cyclical Sector Average
CRI
Carter's
35.51
0.30
0.85%
GCO
Genesco
32.20
9.11
39.45%
PLCE
Children's Place
3.36
-2.65
-44.09%
SFIX
Stitch Fix
3.07
-1.16
-27.42%
VSCO
Victoria's Secret
44.83
22.04
96.71%
Carter's Corporate Events
DividendsShareholder Meetings
Carter’s Declares Quarterly Dividend, Affirming Capital Return Strategy
Positive
May 14, 2026
At its May 13, 2026 annual meeting, Carter’s shareholders elected eight directors to one-year terms and gave advisory approval to 2025 executive compensation, signaling continued support for current leadership and pay practices. Investors al...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Carter’s Names Sharon Price John as New CEO
Positive
May 1, 2026
On May 1, 2026, Carter’s announced that Sharon Price John, a veteran children’s consumer and retail executive, will become Chief Executive Officer and President and join the board effective June 15, 2026, following her 13-year tenure l...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.