Stock events for Carter's, Inc. (CRI)
Carter's, Inc. stock price was significantly impacted by its Q4 fiscal 2025 earnings report and subsequent guidance. On February 27, 2026, the company reported Q4 2025 adjusted EPS of $1.90 and revenue of $925.45 million, exceeding expectations, marking the first annual revenue growth since 2021. However, the stock declined over 20% due to a weaker-than-expected Q1 2026 and full-year 2026 earnings outlook. Management projected a decline in adjusted EPS for fiscal year 2026, citing headwinds from elevated tariff costs, higher product costs, and increased interest expenses. Despite the negative guidance, some analysts upgraded the stock, and it saw positive movement in early March 2026, driven by growth across all segments and strong e-commerce demand.
Demand Seasonality affecting Carter's, Inc.’s stock price
Demand for Carter's, Inc. products exhibits seasonality, aligning with typical retail patterns for children's apparel. The company experiences strong sell-through of seasonal spring and summer products, and the newborn to 24-month baby business consistently shows good momentum. The children's apparel category is generally considered relatively non-discretionary for parents. The company's Q4 2025 results indicated broad-based demand across its business during the holiday season.
Overview of Carter's, Inc.’s business
Carter's, Inc. is an American designer, marketer, and retailer of apparel for babies and young children, founded in 1865. The company operates in the Consumer Cyclicals sector, specifically in the Specialty Retailers and Apparel Retail industries. Carter's manages a multi-channel business model with its own retail stores, e-commerce platforms, and wholesale distribution. Its major brands include Carter's, OshKosh B'gosh, Skip Hop, Little Planet, and Otter Avenue, and it produces exclusive lines for retailers like Walmart, Target, and Amazon. The company's product offerings include bodysuits, layette essentials, sleepwear, playclothes, swimwear, outerwear, bedding, accessories, and toys.
CRI’s Geographic footprint
Carter's, Inc. has a significant geographic footprint across North America, segmented into U.S. Retail, U.S. Wholesale, and International. As of January 2026, it operated 1,068 company-owned retail stores in the United States, Canada, and Mexico, with e-commerce websites for these regions. Its wholesale network extends to approximately 19,500 locations in North America. Internationally, Carter's engages with wholesale customers and licensees in over 90 countries, with distribution centers in the U.S., Canada, and Asia. The company's global supply chain relies on third-party suppliers, predominantly in Asia, with sourcing operations in Hong Kong and support in countries like Vietnam, Cambodia, India, and Bangladesh.
CRI Corporate Image Assessment
Carter's, Inc. has maintained a strong brand reputation, built on its dominant brand equity and market leadership in the children's apparel sector. The Carter's and OshKosh B'gosh brands are considered iconic and trusted, recognized for quality and value. The company has focused on consumer-led product innovation and strengthening connections with consumers. Carter's has also been successful in attracting new consumers, particularly among Gen Z and Millennial families. No specific negative events significantly impacted Carter's brand reputation in the past year.
Ownership
Carter's, Inc. exhibits an ownership structure primarily dominated by institutional investors, owning approximately 84.44% of the stock. Insiders hold 2.52%, and public companies/individual investors hold 13.04%. Major institutional shareholders include BlackRock, Inc., RWWM, Inc., The Vanguard Group, Inc., Morgan Stanley, Charles Schwab Investment Management Inc, Allianz Asset Management GmbH, State Street Corp, American Century Companies Inc, and UBS Group AG. Vanguard and BlackRock collectively held over 40% of the company's shares as of early 2024. Insider ownership remains a modest 1.7% of total outstanding shares.
