Carter's (CRI) reported earnings 30 days ago. What's next for the stock?
Carter's (CRI) came out with quarterly earnings of $0.74 per share, missing the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $1.64 per share a year ago.
Carter's shares have halved amid weak consumer spending, tariff headwinds, and demographic challenges limiting baby apparel growth. Margins are under severe pressure from tariffs and limited pricing power, with structural costs unlikely to be fully offset by price hikes. The recent poison pill adoption signals corporate intrigue after Roseman Wagner Wealth Management acquired a 17% stake, raising potential for activist involvement.
Dividend cuts are rising as companies face persistent high interest rates, inflation, and changing consumer behavior, impacting even long-standing dividend payers. Carter's slashed its dividend by 69% due to deteriorating financials, tariff uncertainty, and a challenging macro environment, despite a strong balance sheet. Pepsi, a Dividend King, is experiencing cash flow issues; while recent acquisitions are promising, a dividend cut is possible if headwinds persist or a recession hits.
CRI's shares tumble after Q2 earnings miss as tariff concerns weigh on outlook despite stronger sales trends.
Carter's posted positive comp sales and unit growth, signaling market share gains despite a declining US baby population. Profitability sharply deteriorated, with adjusted operating income down 75% and GAAP profits nearly breakeven due to price cuts, off-price sales, and rising SG&A. Upcoming tariffs pose major cost headwinds, and planned price increases may not be fully absorbed by consumers, risking further volume and profit declines.
Carter's, Inc. has reported consistent sales declines over the past few years. Competition from Temu and Shein has pressured Carter's competitive positioning. Tariff changes have deteriorated Temu's and Shein's business model in the U.S. Carter's Q2 report underlines the change's benefit, as U.S. sales growth suddenly turned positive. The Q2 report did come with negatives as profitability faltered. Tariffs add pressure to upcoming quarters, although Carter's should manage to increasingly mitigate tariffs.
Carter's, Inc. (NYSE:CRI ) Q2 2025 Earnings Call July 25, 2025 8:30 AM ET Executives Douglas C. Palladini – CEO, President & Director Richard F.
Carter's (CRI) came out with quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.76 per share a year ago.
CRI's Q2 revenues are expected to have climbed on baby and global gains, but pricing and costs are likely to have weighed on the bottom line.
The U.S. stock market may be at a fresh all-time high, with the S&P 500 closing in on 6,300, but, as they say, the stock market is a market of stocks.
On 6/2/25, Nike, Carter's, and Wendy's will all trade ex-dividend for their respective upcoming dividends. Nike will pay its quarterly dividend of $0.40 on 7/1/25, Carter's will pay its quarterly dividend of $0.25 on 6/20/25, and Wendy's will pay its quarterly dividend of $0.14 on 6/16/25.