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.
CRI's Q1 results show a mixed performance, beating estimates but declining year over year amid macro pressures, leadership transition and tariff uncertainties.
Carter's, Inc. (NYSE:CRI ) Q1 2025 Earnings Conference Call April 25, 2025 8:30 AM ET Company Participants Douglas Palladini - Chief Executive Officer & President, Director Richard Westenberger - Senior Executive Vice President, Chief Financial Officer & Chief Operating Officer Kendra Krugman - Senior Executive Vice President, Chief Creative & Growth Officer Sean McHugh - Vice President & Treasurer Conference Call Participants Jay Sole - UBS Ike Boruchow - Wells Fargo Paul Lejuez - Citi Christopher Nardone - Bank of America William Reuter - Bank of America Operator Welcome to Carter's First Quarter Fiscal 2025 Earnings Conference Call. On the call are Doug Palladini, Chief Executive Officer and President; Richard Westenberger, Chief Financial Officer and Chief Operating Officer; Kendra Krugman, Chief Creative and Growth Officer; and Sean McHugh, Treasurer.
Carter's (CRI) came out with quarterly earnings of $0.66 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $1.02 per share a year ago.
CRI's first-quarter results are likely to reflect the ongoing effects of a tough macroeconomic backdrop, rising inflation and increased promotional activity.
CRI witnesses inflation and other macroeconomic headwinds. Higher costs also remain deterrents.