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/CRI
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Carter's Inc

Carter's Inc

CRI
$38.10USD↓-4.08%-1.62 today

MARKET CAP

1.4B

P/E (TTM)

11.9x

FWD P/E

11.1x

DAY RANGE

$38 – $40

52W RANGE

$23
$44

AI Summary

Stalk
Sell NowMedium

CRI is in a Stage 3 distribution phase with a sideways long-term trend. The recent support failure on elevated volume confirms committed selling, and price now trades below declining short-term EMAs. With bearish distribution context and medium-term bearish bias, execution favors selling into minor rallies up into the broken support around the mid-38 to low-39 area.

  • ↑Q1 net sales of $681M (+8% YoY) exceeded forecasts.
  • ↑Digital marketing and DTC focus drove stronger channel engagement.
  • ↓Adjusted EPS dropped from $0.66 to $0.39 YoY, hurting profits.
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The case for & against

Bull & Bear analysis

Bearish

Carter's, Inc. (NYSE: CRI) is a leading player in the children's apparel market, specializing in clothing for infants and toddlers. The company has established a strong brand presence with a portfolio that includes trusted names such as Carter’s and OshKosh B’gosh. Positioned within the consumer cyclical theme, Carter’s aims to target emerging consumer demographics, particularly among Gen Z families. The company is undergoing strategic initiatives under new leadership to enhance profitability while navigating challenges posed by tariffs and shifts in consumer behavior.

Bull says

  • ↑Q1 net sales of $681M (+8% YoY) exceeded forecasts.
  • ↑Digital marketing and DTC focus drove stronger channel engagement.
  • ↑Marketing spend up $20M in 2026 to grow traffic and loyalty.
  • ↑Anticipated tariff relief late 2026 should ease margin pressures.
  • ↑Strong liquidity (1.08) and QS Score of 3.06 support stability.
  • ↑High dividend yield (1.6%) and low volatility bolster returns.

Bear says

  • ↓Adjusted EPS dropped from $0.66 to $0.39 YoY, hurting profits.
  • ↓Gross margin slid to 43.1% (-300bps YoY) due to tariff impacts.
  • ↓Over $200M in additional 2026 tariffs will compress margins.
  • ↓Wholesale segment sales projected to decline low single digits.
  • ↓Profitability factor -1.5 and growth factor -2.63 signal weakness.
  • ↓Rising private-label competition and leadership transition add execution risk.

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-12-2026neutral

Transcript signals

Bull points

  • Our US retail business delivered strong performance for us in the first quarter, continuing to build on momentum we've seen over the past several quarters.
  • Comparable retail sales increased over 10% versus last year, and nearly 5% on a two-year basis.
  • This was our fourth consecutive quarter of comp growth, and we continue to improve our comp trend on a two-year basis.

Bear points

  • We are seeing some increased penetration of our opening price point product and clearance sales were up in the quarter.
  • higher gas prices and volatile consumer confidence, likely in part due to continued persistent inflation across the economy and the unsettled global situation.
  • our reported earnings per share were 39 cents compared to 43 cents in first quarter last year.
Read full transcript analysis ›