Carter’s (NYSE:CRI) Releases Q2 2026 Earnings Guidance

Carter’s (NYSE:CRI) issued an update on its second quarter 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 0.020-0.060 for the period, compared to the consensus estimate of -0.090. The company issued revenue guidance of -.

Carter’s Trading Down 2.6%

CRI stock traded down $0.97 during trading on Thursday, reaching $36.27. 586,628 shares of the stock were exchanged, compared to its average volume of 1,268,463. The company has a current ratio of 2.51, a quick ratio of 1.44 and a debt-to-equity ratio of 0.61. The business has a 50 day moving average price of $36.03 and a 200-day moving average price of $34.60. Carter’s has a 1 year low of $23.38 and a 1 year high of $44.44. The firm has a market capitalization of $1.34 billion, a price-to-earnings ratio of 14.39, a P/E/G ratio of 4.96 and a beta of 0.86.

Carter’s (NYSE:CRI) last released its quarterly earnings results on Wednesday, May 6th. The textile maker reported $0.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.13 by $0.26. The business had revenue of $681.11 million for the quarter, compared to the consensus estimate of $660.59 million. Carter’s had a net margin of 3.17% and a return on equity of 14.45%. The business’s revenue was up 8.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.66 EPS. Carter’s has set its Q2 2026 guidance at 0.020-0.060 EPS. On average, research analysts predict that Carter’s will post 2.99 earnings per share for the current year.

Carter’s Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 27th. Stockholders of record on Friday, March 13th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend was Friday, March 13th. Carter’s’s payout ratio is 39.68%.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on CRI. Wall Street Zen raised shares of Carter’s from a “hold” rating to a “buy” rating in a research note on Saturday, April 18th. UBS Group boosted their price target on shares of Carter’s from $33.00 to $40.00 and gave the company a “neutral” rating in a research note on Thursday, February 19th. Weiss Ratings downgraded shares of Carter’s from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday. Zacks Research raised shares of Carter’s from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 19th. Finally, The Goldman Sachs Group raised shares of Carter’s from a “neutral” rating to a “buy” rating and set a $38.00 price target on the stock in a research note on Thursday, April 9th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $39.50.

Key Carter’s News

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

• Positive Sentiment: Q1 beat: Carter’s reported EPS of $0.39 and revenue of $681.1M, ahead of consensus, with revenue up ~8.1% year‑over‑year — the core reason investors pushed the stock higher after results. BusinessWire: Q1 Results
• Positive Sentiment: Raised Q2 guidance: management set Q2 EPS at $0.02–$0.06 versus a negative consensus (~‑$0.09), signaling better near‑term profitability than modeled and supporting the stock. Slide Deck / Press Release
• Positive Sentiment: Analyst upgrade: Monness Crespi & Hardt raised its price target from $45 to $50 and reiterated a “buy” rating — a meaningful catalyst given the ~37% upside to the then‑current price.
• Positive Sentiment: Retail strength: U.S. Retail (and international) sales were highlighted as strong drivers — Zacks notes retail segment sales rose ~12.8%, which supports durable top‑line momentum. Zacks: Retail Sales Rise
• Neutral Sentiment: Earnings call / disclosure: The full Q1 earnings call transcript and slide deck are available for investors who want detail on category trends, inventory and margin drivers. Seeking Alpha: Call Transcript
• Neutral Sentiment: Press coverage: Multiple outlets ran earnings snapshots and takeaways (e.g., Yahoo/MSN), helping volume but offering little new fundamental information. Yahoo: Q1 Coverage
• Negative Sentiment: Margin pressure: analysts and coverage flagged tariffs and inflationary cost pressure that could weigh on margins and the profit outlook despite top‑line strength. Zacks: Margin Headwinds
• Negative Sentiment: Store closures: reporting that Carter’s will close multiple California stores signals a cost‑cutting/realignment that may reflect retail challenges in certain markets and could concern investors about brick‑and‑mortar performance. NYPost: Store Closures

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. UMB Bank n.a. grew its holdings in shares of Carter’s by 445.8% in the fourth quarter. UMB Bank n.a. now owns 775 shares of the textile maker’s stock valued at $25,000 after purchasing an additional 633 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its holdings in Carter’s by 555.9% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,115 shares of the textile maker’s stock worth $31,000 after acquiring an additional 945 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in Carter’s by 202.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,486 shares of the textile maker’s stock worth $45,000 after acquiring an additional 995 shares in the last quarter. State of Wyoming grew its holdings in Carter’s by 1,380.6% during the 4th quarter. State of Wyoming now owns 2,132 shares of the textile maker’s stock worth $69,000 after acquiring an additional 1,988 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd grew its holdings in Carter’s by 612.9% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 2,659 shares of the textile maker’s stock worth $86,000 after acquiring an additional 2,286 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.