Carter’s (NYSE:CRI) Updates Q1 2026 Earnings Guidance

Carter’s (NYSE:CRI) issued an update on its first quarter 2026 earnings guidance on Friday morning. The company provided earnings per share (EPS) guidance of 0.020-0.080 for the period, compared to the consensus estimate of 0.360. The company issued revenue guidance of -.

Carter’s Price Performance

CRI traded down $8.55 on Friday, hitting $33.52. 4,817,136 shares of the stock were exchanged, compared to its average volume of 1,327,401. The firm has a market capitalization of $1.22 billion, a price-to-earnings ratio of 13.57 and a beta of 1.06. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.26 and a quick ratio of 0.95. Carter’s has a 12 month low of $23.38 and a 12 month high of $44.44. The business has a 50-day moving average of $36.39 and a two-hundred day moving average of $32.21.

Carter’s (NYSE:CRI) last issued its earnings results on Friday, February 27th. The textile maker reported $1.90 EPS for the quarter, beating the consensus estimate of $1.70 by $0.20. The company had revenue of $925.45 million during the quarter, compared to analysts’ expectations of $912.36 million. Carter’s had a net margin of 3.15% and a return on equity of 16.71%. The business’s revenue for the quarter was up 7.7% compared to the same quarter last year. During the same period in the previous year, the company earned $2.39 EPS. Carter’s has set its Q1 2026 guidance at 0.020-0.080 EPS. Sell-side analysts forecast that Carter’s will post 5.15 EPS for the current fiscal year.

Analyst Ratings Changes

CRI has been the topic of a number of recent analyst reports. Citigroup upgraded Carter’s from a “neutral” rating to a “buy” rating and lifted their target price for the company from $34.00 to $50.00 in a research report on Wednesday, January 21st. The Goldman Sachs Group increased their price objective on shares of Carter’s from $26.00 to $29.00 and gave the company a “sell” rating in a research note on Tuesday, January 13th. UBS Group boosted their target price 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. Wall Street Zen upgraded Carter’s from a “sell” rating to a “hold” rating in a research note on Sunday, January 11th. Finally, Zacks Research raised Carter’s from a “hold” rating to a “strong-buy” rating in a report on Monday, January 19th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, Carter’s has a consensus rating of “Hold” and a consensus price target of $34.00.

Carter’s News Roundup

Here are the key news stories impacting Carter’s this week:

• Positive Sentiment: Q4 beat on top and bottom lines — Carter’s posted $1.90 EPS vs. $1.70 expected and revenue of $925.45M (up ~7.6% year-over-year), showing sales momentum across segments. This is the primary fundamental upside in the print. Carter’s (CRI) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management cites improving traffic, new customer acquisition and sequential momentum in product demand in the press release and slide deck — evidence company-level initiatives are working even as margins are challenged. Business Wire: Carter’s Reports Fourth Quarter and Fiscal Year 2025 Results
• Neutral Sentiment: Industry context: analysts note Carter’s sits within apparel players leaning into premiumization and digital, a tailwind for growth but one that also brings higher costs and promotional risk — relevant but mixed for near-term earnings. 5 Shoes & Retail Apparel Stocks Capitalizing on Premiumization Trends
• Negative Sentiment: Soft forward guidance drove the sell-off — management lowered Q1 and FY26 EPS expectations (despite guiding to higher sales), signaling margin compression and lower profitability ahead; that outlook is the principal reason the stock is down. Carter’s Q4 Earnings Beat Estimates, Shares Fall on Soft EPS View
• Negative Sentiment: Margin pressure, tariff headwinds and weakening cash generation are being called out by commentators as structural near-term risks; these items amplify fears that higher sales won’t translate into proportional EPS growth. Carter’s (CRI) Shares Plunge on Margin Pressure, Tariff Headwinds, and Weakening Cash Generation
• Negative Sentiment: Gross-margin and pricing-power concerns highlighted by analysts could force more promotional activity or higher costs, pressuring near-term margins and investor expectations. Carter’s Gross Margins Show Challenges With Pricing Power

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC increased its stake in shares of Carter’s by 113.7% in the second quarter. AQR Capital Management LLC now owns 2,564,457 shares of the textile maker’s stock valued at $77,267,000 after buying an additional 1,364,698 shares during the period. Morgan Stanley increased its position in shares of Carter’s by 15.7% during the fourth quarter. Morgan Stanley now owns 1,762,036 shares of the textile maker’s stock worth $57,143,000 after buying an additional 239,469 shares during the period. Charles Schwab Investment Management Inc. raised its stake in Carter’s by 5.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,597,901 shares of the textile maker’s stock worth $51,820,000 after buying an additional 82,498 shares during the last quarter. Geode Capital Management LLC boosted its position in Carter’s by 7.7% during the fourth quarter. Geode Capital Management LLC now owns 856,803 shares of the textile maker’s stock valued at $27,791,000 after acquiring an additional 61,348 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its position in shares of Carter’s by 69.5% in the 4th quarter. Goldman Sachs Group Inc. now owns 738,067 shares of the textile maker’s stock worth $23,936,000 after acquiring an additional 302,751 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.