$CRI

CARTERS INC

AlphAI earnings readQ2 FY2026 · JUL 31Carter’s, Inc. Reports Second Quarter Fiscal 2026 ResultsVerdict: solid

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Needham holds Carter’s stock rating, lowers estimates on demand

Needham maintained a Hold rating on Carter's (NYSE:CRI) but lowered its earnings estimates for fiscal 2026 and 2027, citing demand challenges, inflation, and weather. The firm reduced Q3 2026 EPS estimate to $0.80 from $0.85. Carter's trades at a P/E of 6.08, with analysts divided on its outlook. UBS lowered its price target to $38, while BMO initiated coverage with a $40 target and an Outperform rating.

UBS cuts Carter’s stock price target to $38 on margin concerns

UBS reduced its price target for Carter's (NYSE:CRI) to $38 from $41, citing margin concerns due to higher oil and cotton prices. The firm maintained a Neutral rating, noting the stock's low P/E ratio and high short interest. Carter's recently reported Q2 2026 earnings of $0.26 per share on $615M revenue, beating estimates, but shares fell due to margin pressure concerns. BMO Capital initiated coverage with an Outperform rating and $40 price target.

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News on $CRI

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$CRIMed

Needham holds Carter’s stock rating, lowers estimates on demand

Needham maintained a Hold rating on Carter's (NYSE:CRI) but lowered its earnings estimates for fiscal 2026 and 2027, citing demand challenges, inflation, and weather. The firm reduced Q3 2026 EPS estimate to $0.80 from $0.85. Carter's trades at a P/E of 6.08, with analysts divided on its outlook. UBS lowered its price target to $38, while BMO initiated coverage with a $40 target and an Outperform rating.

$CRIMed

UBS cuts Carter’s stock price target to $38 on margin concerns

UBS reduced its price target for Carter's (NYSE:CRI) to $38 from $41, citing margin concerns due to higher oil and cotton prices. The firm maintained a Neutral rating, noting the stock's low P/E ratio and high short interest. Carter's recently reported Q2 2026 earnings of $0.26 per share on $615M revenue, beating estimates, but shares fell due to margin pressure concerns. BMO Capital initiated coverage with an Outperform rating and $40 price target.

Why a 161-year-old brand thinks it has to reinvent itself

Carter's, a 161-year-old children's clothing brand, is undergoing its most significant rebranding in 26 years to remain relevant. The company reported $2.898 billion in net sales for fiscal 2025, with a declining operating margin. It faces economic pressures and changing parenting trends, aiming to balance heritage with modern needs.

Why Carter's Stock Slipped Today

Carter's (CRI) stock fell 1% after Wells Fargo analyst Ike Boruchow cut his price target to $30 from $42, maintaining an equal weight rating. The move follows Q2 earnings that beat estimates but included a $132M one-time government payment, and missed Q3 guidance. The company has seen declining sales and thin profitability in recent years.

Consumer Discretionary - Apparel and Accessories Stocks Q2 Recap: Benchmarking G-III (NASDAQ:GIII)

G-III (GIII) raised full-year guidance but underperformed estimates, with shares down 16.2%. Figs (FIGS) reported 28.8% revenue growth, beating estimates, and shares rose 24.3%. Stitch Fix (SFIX) missed EBITDA estimates, with shares down 4.3%. Carter's (CRI) beat revenue expectations but missed guidance, shares down 14.6%. Under Armour (UAA) reported a 3.2% revenue decline, shares down 24.4%.

Consumer Discretionary - Apparel and Accessories Stocks Q2 Results: Benchmarking Carter's (NYSE:CRI)

Carter's (CRI) stock fell 15.4% post-earnings, trading at $31.98. Figs (FIGS) reported 28.8% revenue growth, beating estimates, with stock up 21.2% at $13.62. Stitch Fix (SFIX) missed EBITDA estimates, stock down 5.9% at $2.66. ThredUp (TDUP) met revenue expectations but missed guidance, stock down 65.8% at $2.15. Oxford Industries (OXM) reported a 2.2% revenue decline, stock down 30.7% at $25.39.

BMO Capital initiates Carter’s stock coverage with outperform rating

BMO Capital initiated coverage on Carter’s Inc. (NYSE:CRI) with an outperform rating and a $40.00 price target. The firm expects benefits from new leadership, improved wholesale mix, and lower tariffs. CRI trades at $32.28, with a P/E ratio of 6.06, and analysts anticipate earnings growth. The company recently reported Q2 2026 earnings of $0.26 per share, beating estimates, but faces wholesale demand challenges and margin pressures.

$CRIMedAI 8/10

Carter's Growth Story Gains Strength: Is More Upside Ahead?

Carter's Inc. (CRI) reported a 5% year-over-year increase in net sales and a 54% jump in adjusted operating profit for Q2 fiscal 2026. The company's U.S. Retail business saw a 5% rise in comparable sales, driven by strong demand in baby products and e-commerce growth. Management highlighted strategic investments and improved execution, while noting challenges like tariff uncertainty and cautious consumer spending. CRI shares have risen 21.2% in the past year, trading at a forward P/E of 10.13X.

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