Zacks Investment Research·5 days ago
Are You Looking for a Top Momentum Pick? Why Carter's (CRI) is a Great ChoiceDoes Carter's (CRI) have what it takes to be a top stock pick for momentum investors? Let's find out.
Carter's, Inc.(CRI)Earnings, Financials & Key Ratios
CRI•NYSE
$39.82
15.4× P/E·Price updated Jul 7, 2026
AboutCarter'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 United States and internationally. The company operates through three segments: U.S. Retail, U.S. Wholesale, and International. Its Carter's products include babies and young children products, such as bodysuits, pants, dresses, knit sets, blankets, layette essentials, bibs, booties, sleep and play products, rompers, and jumpers; and OshKosh brand products comprise playclothes, such as denim apparel products with multiple wash treatments and coordinating garments, overalls, woven bottoms, knit tops, and bodysuits. The company also provides products for playtime, travel, mealtime, bathtime, and homegear, as well as kid's bags and diaper bags under the Skip Hop brand. In addition, it offers bedding, cribs, diaper bags, footwear, gift sets, hair accessories, jewelry, outerwear, paper goods, socks, shoes, swimwear, and toys. The company operates 18,800 wholesale locations, including department stores, national chain stores, and specialty stores. As of December 31, 2021, it operated 980 retail stores. The company also sells its products through its eCommerce websites, such as carters.com, oshkoshbgosh.com, oshkosh.com, and skiphop.com, as well as other international wholesale accounts and licensees. Carter's, Inc. was founded in 1865 and is headquartered in Atlanta, Georgia.Show more
- Revenue$2.9B+1.9%
- EBITDA$199M-36.3%
- Net Income$92M-50.5%
- EPS (Diluted)2.59-49.4%
- Gross Margin45.36%-5.5%
- EBITDA Margin6.87%-37.5%
- Operating Margin4.97%-44.6%
- Net Margin3.17%-51.4%
- ROE10.32%-52.7%
CRI Price & Volume
Carter's, Inc. (CRI) stock price & volume — 10-year historical chart
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Persistent Margin Compression Challenges Carter's Operational Resilience
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Mixed
Profitability:Strained
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Operating margin compression
Key Thesis Takeaways
- Carter's faces a challenging outlook as structural margin erosion and volatile revenue growth hinder consistent bottom-line expansion.
- While the company has proactively reduced total debt from $1.2 billion in 2025Q4 to $628.8 million in 2026Q1, the reliance on promotional activity to drive sales continues to pressure profitability.
- Investors should monitor whether the company can stabilize its operating margins, which have deteriorated from 15.9% in 2023Q4 to 4.2% in 2026Q1, before committing capital to this cyclical retail play.
Verdict Logic
while the company has successfully reduced debt to $628.8 million, the sharp decline in net income margins to 2.1% in 2026Q1 warrants caution regarding future profitability.
CRI Growth Metrics
Carter's, Inc. (CRI) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-0.39%
5 Years-0.85%
3 Years-3.37%
TTM4.88%
Profit CAGR
10 Years-9.08%
5 Years-3.5%
3 Years-28.4%
TTM-44.43%
EPS CAGR
10 Years-5.37%
5 Years0.71%
3 Years-25.8%
TTM-43.89%
Return on Capital
10 Years17.32%
5 Years14.94%
3 Years12.6%
Last Year7.23%
CRI Recent Earnings
Carter's, Inc. (CRI) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 10/12 qtrs (83%)●Beat Revenue 6/12 qtrs (50%)
Q2 2026Latest
May 6, 2026Metric
Actual
Est
EPS
$0.39+212.0%
$0.13
Rev
$681M+3.1%
$661M
Q1 2026
Feb 27, 2026Metric
Actual
Est
EPS
$1.90+11.8%
$1.70
Rev
$925M+0.3%
$922M
Q4 2025
Oct 27, 2025Metric
Actual
Est
EPS
$0.74-5.1%
$0.78
Rev
$758M-16.9%
$912M
Q3 2025
Jul 25, 2025Metric
Actual
Est
EPS
$0.17-60.5%
$0.43
Rev
$585M-21.2%
$743M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 6, 2026 | $0.39vs $0.13+212.0% | $681Mvs $661M+3.1% |
| Q1 2026 | Feb 27, 2026 | $1.90vs $1.70+11.8% | $925Mvs $922M+0.3% |
| Q4 2025 | Oct 27, 2025 | $0.74vs $0.78-5.1% | $758Mvs $912M-16.9% |
| Q3 2025 | Jul 25, 2025 | $0.17vs $0.43-60.5% | $585Mvs $743M-21.2% |
Based on last 12 quarters of dataView full earnings history →
Latest CRI News
Recent stock market news and headlines for Carter's, Inc. (CRI)
Zacks Investment Research·Jun 29, 2026
Can Carter's Brand Strength and Omnichannel Strategy Sustain Growth?CRI leverages brand strength, product innovation and digital investments to drive growth while offsetting tariff pressures through pricing and productivity.
Zacks Investment Research·Jun 29, 2026
Can Higher Traffic Offset Carter's Consumer Spending Pressures?CRI is leaning on higher store and online traffic, stronger marketing and Gen Z parent gains to offset value-focused consumer spending pressures.
Business Wire·Jun 25, 2026
Carter's and the Atlanta Dream Launch First-of-Its-Kind Partnership to Redefine Family Fandom in AtlantaATLANTA--(BUSINESS WIRE)--Carter's, Inc. (NYSE: CRI) and the Atlanta Dream today announced a first-of-its-kind, multi-season partnership designed to celebrate modern families, hometown pride and the growing cultural impact of women's basketball. Through the 2026 and 2027 WNBA seasons, the partnership will create immersive experiences rooted in childhood, sport and community — redefining what it means to be a fan from the very first moments. As two Atlanta-rooted organizations, Carter's and the.
Zacks Investment Research·Jun 17, 2026
Are Investors Undervaluing Carter's (CRI) Right Now?Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Peers Comparison
Key metrics vs top competitors for Carter's, Inc. (CRI)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $39.82 | $1.47B | 15.37 | 1.91% | 3.17% | 10.32% | 3.99% | |
| $16.81 | $876.67M | 21.83 | 7.88% | 2.56% | 14.19% | — | |
| $77.05 | $3.55B | 145.38 | 3.44% | 0.25% | 0.45% | — | |
| $6.47 | $2.29B | -7.11 | -3.63% | 9.59% | 73.92% | — | |
| $395.31 | $24.11B | 26.16 | 14.63% | 11.6% | 34.77% | — | |
| $16.45 | $6.44B | 25.70 | 1.06% | 2.65% | 15.92% | — |
Compare CRI vs Peers
Carter's, Inc. (CRI) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
CRI SEC Filings & Documents
Carter's, Inc. (CRI) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 6, 2026·SEC
Material company update
May 1, 2026·SEC
Material company update
Feb 27, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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CRI Frequently Asked Questions
Carter's, Inc. (CRI) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Carter's, Inc.'s revenue?
Carter's, Inc. (CRI) reported $2.95B in revenue for fiscal year 2025. This represents a 623% increase from $408.2M in 1998.
How fast is Carter's, Inc. growing?
Carter's, Inc. (CRI) grew revenue by 1.9% over the past year. Growth has been modest.
Is CRI profitable?
Yes, Carter's, Inc. (CRI) is profitable, generating $90.6M in net income for fiscal year 2025 (3.2% net margin).
Dividend & Returns
Does CRI pay dividends?
Yes, Carter's, Inc. (CRI) pays a dividend with a yield of 3.99%. This makes it attractive for income-focused investors.
What is CRI's return on equity?
Carter's, Inc. (CRI) has a return on equity (ROE) of 10.3%. This is reasonable for most industries.
What is Carter's, Inc.'s free cash flow?
Carter's, Inc. (CRI) generated $127.1M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.