Carter's, Inc.
- Open
- 38.02
- Day high
- 38.47
- Day low
- 37.40
- Prev close
- 38.10
- Volume
- 660K
- Mkt cap
- $1.4B
- P/E (TTM)
- 14.9
- EPS (TTM)
- $2.54
- P/B
- 1.5
- P/S
- 0.5
- Yield
- 2.65%
- Per share
- $1.00
Carter's, Inc. (CRI) is a Consumer Cyclical company listed on NYSE. The stock is up 21% over the past year.
Carter's, Inc. (CRI) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CRI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $0.13 | $0.39 | +212.0% | $681M | +3.1% |
| Jul 25, 2025 | $0.43 | $0.17 | -60.5% | $585M | -21.2% |
| Apr 25, 2025 | $0.53 | $0.66 | +24.5% | $630M | +13.5% |
| Feb 25, 2025 | $1.87 | $2.39 | +27.8% | $860M | +2.9% |
| Oct 25, 2024 | $1.40 | $1.62 | +15.7% | $758M | -9.1% |
| Jul 26, 2024 | $0.49 | $0.76 | +55.1% | $564M | -0.7% |
| Apr 26, 2024 | $0.77 | $1.04 | +35.1% | $661M | +3.3% |
| Feb 27, 2024 | $2.61 | $2.76 | +5.7% | $858M | -1.1% |
| Oct 27, 2023 | $1.54 | $1.84 | +19.5% | $792M | +0.7% |
| Jul 28, 2023 | $0.54 | $0.64 | +18.5% | $600M | -0.5% |
| Apr 28, 2023 | $0.59 | $0.98 | +66.1% | $696M | +7.3% |
| Feb 24, 2023 | $1.71 | $2.29 | +33.9% | $912M | +5.6% |
CRI insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 17, 2026 | John Sharon Pricedirector, officer: CEO & President | Grant | 93,302 | — |
| Jun 17, 2026 | John Sharon Pricedirector, officer: CEO & President | Grant | 62,204 | — |
| Jun 8, 2026 | Eagle Jevindirector | Grant | 12 | — |
| May 15, 2026 | Hipp Markdirector | Grant | 4,266 | — |
| May 15, 2026 | Westenberger Richard F.officer: Interim CEO & PRES., CFO & COO | Grant | 4,710 | — |
| May 15, 2026 | Stahl Stephaniedirector | Grant | 4,266 | — |
| May 15, 2026 | Anderson Rochester Jr.director | Grant | 4,266 | — |
| May 15, 2026 | PRICE GRETCHEN Wdirector | Grant | 4,266 | — |
| May 15, 2026 | RAUCH STACEYdirector | Grant | 4,266 | — |
| May 15, 2026 | Robinson Antonioofficer: Chf Admin & Comp Ofc Corp Sec | Grant | 4,444 | — |
| May 15, 2026 | Borgen Luisdirector | Grant | 4,266 | — |
| May 15, 2026 | Eagle Jevindirector | Grant | 4,266 | — |
| May 15, 2026 | Black Jeffrey Harrydirector | Grant | 4,266 | — |
| Apr 6, 2026 | Palladini Douglas Cdirector, officer: CEO & President | Tax | 10,957 | $35.91 |
| Apr 2, 2026 | Robinson Antonioofficer: Chf Admin & Comp Ofc Corp Sec | Tax | 543 | $35.59 |
Source: CRI SEC Form 4 filings, latest Jun 17, 2026. For informational purposes only — not investment advice.
See the full CRI insider & 13F page →Carter's, Inc. company profile
Overview
Carter's, Inc. (NYSE:CRI) is a leading American children's apparel company founded in 1865 and headquartered in Atlanta, Georgia. The company went public in 2003 and has grown to become one of the most recognized names in children's clothing in North America. Carter's operates through multiple well-known brands including Carter's, OshKosh B'gosh, Skip Hop, and several private label brands, serving infants, toddlers, and children up to age 14. The company distributes its products through a multi-channel approach including its own retail stores, wholesale partnerships with major retailers, and e-commerce platforms across the United States, Canada, Mexico, and other international markets.
Business
Carter's operates in the children's apparel and accessories industry, which encompasses clothing, footwear, and related products specifically designed for babies, toddlers, and children. The children's apparel market is characterized by frequent sizing changes as children grow, seasonal purchasing patterns, and strong emotional connections between parents and trusted brands. The company's core business revolves around several key brand portfolios. Carter's is the flagship brand focusing on essential baby and toddler clothing including bodysuits, sleepwear, everyday wear, and layette items for newborns. OshKosh B'gosh specializes in durable playclothes, particularly known for its denim overalls and coordinated outfits with multiple wash treatments. Skip Hop provides lifestyle products beyond clothing, including diaper bags, feeding accessories, toys, and nursery items for parents' daily routines. The company also operates several exclusive brands developed for major retail partners, including Child of Mine and Just One You for Walmart and Target respectively, as well as Simple Joys for Amazon. Additionally, Carter's has been developing newer brands like Little Planet focusing on sustainable materials and PurelySoft emphasizing comfort fabrics. Carter's business is organized into three main segments: 1. **U.S. Retail** (operating approximately 980 company-owned stores) represents roughly 40-45% of total revenue, 2. **U.S. Wholesale** (selling to about 18,800 retail locations including department stores, mass retailers, and specialty stores) accounts for approximately 35-40% of revenue, and 3. **International** operations (primarily Canada and Mexico) contribute about 15-20% of total revenue. The company's product mix is heavily weighted toward the baby and toddler segments, which represent over 80% of their apparel business.
Revenue model
Carter's generates revenue through multiple business models across its three operating segments. The **U.S. Retail** segment operates on a traditional retail model, selling products directly to consumers through company-owned stores and e-commerce websites at full retail margins. This segment benefits from higher profit margins but faces challenges from changing consumer shopping patterns and the need for significant real estate investments. The **U.S. Wholesale** segment operates on a business-to-business model, selling products to major retailers like Target, Walmart, Costco, and Amazon, as well as smaller specialty stores and department stores. This segment includes both Carter's branded products and exclusive private-label brands developed specifically for retail partners. Wholesale typically operates at lower margins than retail but provides volume scale and reduced inventory risk since retailers handle the final consumer sale. The **International** segment combines both retail and wholesale models, operating company stores in Canada while also working with wholesale partners and licensees in Mexico and other markets. Currency fluctuations significantly impact this segment's performance. Several factors influence Carter's profitability margins. **Positive margin drivers** include the company's strong brand recognition allowing for premium pricing over generic alternatives, operational efficiencies from scale in sourcing and distribution, successful exclusive brand partnerships that provide steady wholesale volume, and the essential nature of children's clothing creating relatively inelastic demand. **Negative margin pressures** come from commodity cost inflation particularly in cotton and other raw materials, rising labor costs in manufacturing regions, freight and logistics cost volatility, competitive pricing pressure from private label alternatives, promotional activity during weak consumer spending periods, and currency headwinds in international operations. The company has been implementing strategic pricing investments, essentially accepting lower margins in the short term to drive market share gains and customer acquisition, particularly in opening price point products where consumers are most price-sensitive.
Competitive moat
Carter's possesses a moderate but meaningful competitive moat built primarily around brand equity and distribution advantages, though this moat faces ongoing challenges in the evolving retail landscape. The company's strongest competitive advantage lies in its **brand recognition and emotional connection** with parents, particularly for the Carter's brand which has become synonymous with baby essentials for many American families. This brand equity allows Carter's to command premium pricing over generic alternatives and creates customer loyalty that spans generations. The company's **distribution scale** provides another layer of competitive protection. With presence in approximately 18,800 wholesale locations and nearly 1,000 company-owned stores, Carter's has achieved distribution breadth that would be difficult for new entrants to replicate. The exclusive brand partnerships with major retailers like Target and Walmart create additional barriers, as these relationships took years to develop and provide mutual benefits that make switching costs high for both parties. However, Carter's moat faces significant **competitive pressures and disruption risks**. The rise of private label alternatives from major retailers poses an ongoing threat, as these products can offer similar quality at lower prices without the brand premium. Fast-fashion retailers and online-native brands are increasingly targeting the children's segment with trendy, affordable options that appeal to style-conscious parents. E-commerce platforms enable smaller, specialized children's brands to reach customers directly without needing extensive physical distribution networks. The **commoditized nature** of basic children's clothing also limits Carter's moat strength. While the company has strong positions in essential items like bodysuits and sleepwear, these products are relatively simple to manufacture and design, making differentiation challenging. Consumer behavior shifts toward value-seeking during economic uncertainty further pressure the sustainability of premium pricing. The company's dependence on physical retail locations also creates vulnerability as consumer shopping patterns increasingly favor online channels and off-price retailers.
Risks & safety
Carter's presents a mixed margin of safety profile with solid balance sheet strength but concerning operational cash flow trends and valuation challenges. **Cash and Solvency Position:** - Strong liquidity with $321 million in cash and short-term investments as of Q1 2025 - Current ratio of 2.56 indicates solid short-term debt coverage ability - Total debt-to-equity ratio of 1.32 shows moderate leverage levels - However, negative free cash flow of -$59 million in Q1 2025 raises concerns about cash generation - Operating cash flow turned negative at -$49 million in Q1, a significant deterioration from positive $287 million in Q4 2024 **Valuation Metrics:** - Price-to-earnings ratio of 23.0 appears elevated given current growth challenges - EV/EBITDA of 13.1 suggests the stock is not particularly cheap - Price-to-book ratio of 1.69 is reasonable but not compelling for a struggling retailer - Graham number of 15.4 suggests the stock may be overvalued from a traditional value perspective **Other Considerations:** - Suspended forward guidance due to economic uncertainty signals management's lack of visibility - Potential tariff impacts could significantly pressure margins given import dependence - Market share gains in baby/toddler segments provide some operational bright spots - Strong April sales trends (up 13% in U.S. retail) offer recent positive momentum but need sustained improvement
Recent development
Over the past few years, Carter's has undergone significant strategic shifts in response to challenging market conditions and changing consumer behavior. The company implemented substantial **pricing and marketing investments** totaling approximately $50 million, representing a strategic pivot toward competing more aggressively on price rather than relying solely on brand premium. This included targeted price reductions on about 20% of the product assortment, particularly in opening price point products where consumers show highest price sensitivity. The company has been **modernizing its product portfolio** through several initiatives. Carter's launched new brands including Little Planet focused on sustainable materials and PurelySoft emphasizing comfort fabrics, responding to evolving consumer preferences. The company has also been expanding its kids segment (ages 4-14) which historically represented a smaller portion of business, investing in categories like fashion denim, active wear, and licensed properties to capture older children's market opportunities. **Retail format innovation** has been another key development, with Carter's experimenting with new store concepts including "Best of Baby" formats and flagship locations. The company opened its first flagship store in Atlanta while continuing its strategy of opening stores in strong locations and closing underperforming ones. Store redesigns focus on organizing merchandise by age segments rather than traditional departmental layouts. Carter's has been **strengthening its wholesale relationships** through exclusive brand development, achieving record sales in exclusive brands during 2024. The company has also been investing heavily in **digital capabilities and personalization**, enhancing its e-commerce platforms, loyalty programs, and social media marketing to better compete in the evolving retail landscape. Supply chain diversification away from China-based production has been ongoing, with Chinese production now representing less than 4% of total production, positioning the company to better manage potential tariff impacts.
CRI company profile · for informational purposes only — not investment advice.
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