Carter's Inc

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.