Carter's Incorporated (CRI)

In Q4 2025, Carter's reported adjusted EPS of $1.90 and revenue of $925 million, surpassing expectations, but the stock fell due to concerns over declining gross margins and a soft outlook for fiscal year 2026. In Q1 2026, the company reported net sales of $681.1 million and adjusted diluted EPS of $0.39, beating estimates, but profitability was affected by higher tariffs and investment spending. Sharon Price John was appointed as the new CEO and President, effective June 15, 2026. Carter's plans to close approximately 150 low-margin retail stores by 2028, with about 60 North American stores slated for closure in 2026.

Demand for Carter's, Inc. products exhibits seasonality, influenced by factors such as holidays and consumer purchasing patterns. The company's Q1 2026 results saw strong demand partly attributed to an earlier Easter holiday. Historically, the second quarter is typically the smallest in terms of sales and operating income for Carter's. The company's merchandising strategies align seasonal collections with retail calendars and consumer demand patterns.

Carter's, Inc. operates in the Consumer Cyclical sector, specifically in Apparel Retail. Its core business revolves around brands like Carter's and OshKosh B'gosh, along with retailer brands like Child of Mine, Just One You, and Simple Joys. Emerging brands like Little Planet and Skip Hop are also part of its portfolio. The company's product range includes everyday basics for infants, toddlers, and young children up to age 14, emphasizing durable items that parents frequently replace.

Carter's maintains a significant geographic footprint across North America, operating over 1,000 company-operated stores in the United States, Canada, and Mexico. Its products are sold online through e-commerce sites for Carter's and OshKosh B'gosh, with regional sites serving Canada and Mexico. Carter's is a major supplier to North American retailers, with its brands available in over 20,000 points of distribution in over 90 countries. The company has multiple distribution centers in the United States, as well as in Canada and Asia.

Carter's has a strong brand reputation in the children's apparel market. The company's brands, Carter's and OshKosh B'gosh, are considered iconic and trusted. The company emphasizes a strong emotional connection with consumers, built on high quality, modern design, and exceptional value. Carter's leads the children's apparel market in social media engagement and has a highly-rated loyalty program.

Carter's, Inc. has a significant institutional ownership presence, with 255 institutional owners and shareholders holding a total of 39,972,352 shares. Major institutional shareholders include BlackRock, Inc., The Vanguard Group, Inc., and Morgan Stanley. Institutional investors hold a substantial portion of the company's shares, with mutual funds and ETFs holding approximately 48.40% and other institutional investors holding 51.60% of shares outstanding. Berkshire Partners LLC is a notable individual shareholder.