Carter's (NYSE:CRI) Posts Quarterly Earnings Results, Beats Expectations By $0.26 EPS

Carter's (NYSE:CRI - Get Free Report) announced its earnings results on Wednesday. The textile maker reported $0.39 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.26, FiscalAI reports. The business had revenue of $681.11 million for the quarter, compared to the consensus estimate of $660.59 million. Carter's had a net margin of 3.07% and a return on equity of 13.06%. The business's revenue for the quarter was up 8.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.66 earnings per share. Carter's updated its Q2 2026 guidance to 0.020-0.060 EPS.

Here are the key takeaways from Carter's' conference call:

• Q1 net sales were $681 million (up 8% YoY) with U.S. Retail comps up ~10% (fourth consecutive quarter) driven by higher traffic across stores and e‑commerce.
• Q1 gross margin declined by roughly 300 basis points, largely from about $50 million of incremental tariffs, and adjusted EPS fell to $0.39 from $0.66 a year ago.
• Management reiterated full‑year guidance (low‑ to mid‑single digit sales growth; operating income up low‑mid single digits; EPS down low double‑digits to mid‑teens) but emphasized continued tariff uncertainty and that any tariff relief might be partially reinvested into pricing competitiveness.
• Company is stepping up demand creation (≈$20M incremental marketing) while delivering productivity savings (~$6M in Q1) and cites successful collaborations and Gen Z traction as drivers for planned H2 operating income growth.

Carter's Trading Down 1.2%

CRI opened at $35.34 on Monday. The firm has a market cap of $1.30 billion, a price-to-earnings ratio of 14.25 and a beta of 0.86. The business's 50 day moving average is $35.90 and its two-hundred day moving average is $34.64. Carter's has a 52 week low of $23.38 and a 52 week high of $44.44. The company has a quick ratio of 1.72, a current ratio of 2.80 and a debt-to-equity ratio of 0.61.

Carter's Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 27th. Stockholders of record on Friday, March 13th were issued a $0.25 dividend. The ex-dividend date was Friday, March 13th. This represents a $1.00 annualized dividend and a dividend yield of 2.8%. Carter's's dividend payout ratio is presently 40.32%.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on CRI shares. Zacks Research raised shares of Carter's from a "hold" rating to a "strong-buy" rating in a research note on Monday, January 19th. UBS Group raised their price target on shares of Carter's from $33.00 to $40.00 and gave the stock a "neutral" rating in a research note on Thursday, February 19th. Monness Crespi & Hardt upped their price objective on shares of Carter's from $45.00 to $50.00 and gave the company a "buy" rating in a research note on Thursday. The Goldman Sachs Group upgraded Carter's from a "neutral" rating to a "buy" rating and set a $38.00 target price on the stock in a report on Thursday, April 9th. Finally, Wells Fargo & Company increased their price target on Carter's from $28.00 to $33.00 and gave the company an "underweight" rating in a report on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $39.50.

Institutional Trading of Carter's

Several hedge funds have recently made changes to their positions in CRI. UMB Bank n.a. lifted its position in Carter's by 445.8% in the 4th quarter. UMB Bank n.a. now owns 775 shares of the textile maker's stock worth $25,000 after buying an additional 633 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its stake in Carter's by 555.9% in the third quarter. Caitong International Asset Management Co. Ltd now owns 1,115 shares of the textile maker's stock valued at $31,000 after purchasing an additional 945 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in Carter's by 202.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,486 shares of the textile maker's stock valued at $45,000 after purchasing an additional 995 shares in the last quarter. State of Wyoming increased its position in Carter's by 1,380.6% in the 4th quarter. State of Wyoming now owns 2,132 shares of the textile maker's stock worth $69,000 after purchasing an additional 1,988 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd raised its stake in shares of Carter's by 612.9% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 2,659 shares of the textile maker's stock worth $86,000 after purchasing an additional 2,286 shares in the last quarter.

Carter's Company Profile

Carter's, Inc NYSE: CRI is a leading designer and marketer of infant and young children's apparel in North America. Headquartered in Atlanta, Georgia, the company's core business focuses on creating clothing and accessories for babies and children, including bodysuits, sleepwear, layette, outerwear and accessories that blend comfort, safety and style. Carter's flagship brand is complemented by its OshKosh B'gosh line, which offers heritage-inspired designs and durable fabrics for toddlers and young kids.

The company distributes its products through a diversified platform that includes wholesale partnerships with major department stores and mass merchandisers, direct‐to‐consumer e-commerce sites, and an extensive network of company-operated retail stores.