# Carter's, Inc. (CRI)

> Source: Nexqual · https://nexqual.com/CRI · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Carter's, Inc. (CRI), nexqual.com/CRI" · informational, not investment advice.

**Price:** USD 33.93 (+4.46% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 32.48 · day 32.5–33.98 · 52w 27.86–44.44 · market cap $1.25B · NYQ

## Key facts
- Last four reported quarters (through Jul 4, 2026): revenue $2.98B, net income $195M (6.5% margin), free cash flow $293M (SEC filings).
- Valuation: P/E 6.4x (avg 11.8x at the last 3 fiscal year-ends), EV/EBITDA 3.5x, net cash $85.8M.
- Analysts: Hold (mean 3.00 on a 1–5 scale) (7 analysts), mean target USD 38 (range 30–50).
- Total return with dividends: 1Y +10.0% vs S&P 500 +14.9%; 5Y -59.6% vs S&P 500 +80.3%.
- Next earnings: 2026-11-02, EPS estimate USD 0.85, revenue estimate $748M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $3.49B | $3.21B | $2.95B | $2.84B | $2.90B | $2.98B |
| Gross profit | $1.66B | $1.47B | $1.40B | $1.37B | $1.31B | — |
| Operating income | $497M | $379M | $323M | $255M | $144M | $282M |
| Net income | $340M | $250M | $233M | $186M | $91.8M | $195M |
| EPS (diluted) | $7.81 | $6.34 | $6.24 | $5.12 | $2.53 | — |
| Free cash flow | $231M | $48.0M | $469M | $243M | $68.6M | $293M |
| Gross margin | 47.7% | 45.8% | 47.4% | 48.0% | 45.4% | — |
| Operating margin | 14.3% | 11.8% | 11.0% | 9.0% | 5.0% | 9.5% |
| Net margin | 9.7% | 7.8% | 7.9% | 6.5% | 3.2% | 6.5% |
| Revenue growth | +15.3% | -7.9% | -8.3% | -3.4% | +1.9% | — |
| Cash + short-term investments | $984M | $212M | $351M | $413M | $487M | — |
| Total debt | $991M | $617M | $497M | $498M | $567M | — |
Fiscal years end Jan. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jul 4, 2026)
P/E 6.4x · P/S 0.4x · EV/EBITDA 3.5x · EV/Sales 0.4x · P/FCF 4.3x · P/B 1.2x · FCF yield 23.52% · Earnings yield 15.66% · Dividend yield (paid, TTM) 2.94% · Net cash $85.8M · EV $1.16B
P/E at fiscal year-ends: Jan 2026 13.3x, Dec 2024 10.4x, Dec 2023 11.8x.

## Analysts
Consensus Hold (mean 3.00 on a 1–5 scale), 7 analysts; mean target USD 38 (low 30, high 50).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-19 | UBS | Target lowered | Neutral | $41 → $38 |
| 2026-10-12 | Wells Fargo | Target lowered | Equal-Weight | $42 → $30 |
| 2026-09-09 | BMO Capital | Initiated | Outperform | $40 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +10.0% | -59.6% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +10.1% | -16.6% |
| Volatility (annualized) | 49.0% | 38.4% |
| Max drawdown | -33.1% (Feb 2026→Sep 2026) | -74.5% (Nov 2021→Jul 2025) |

## Peers (Apparel Retail)
REF (Reformation Inc.) USD 15.03 +7.43% · BKE (Buckle, Inc. (The)) USD 47.48 +3.17% · AEO (American Eagle Outfitters, Inc.) USD 17.89 +2.93% · CAL (Caleres, Inc.) USD 13.35 +4.95% · BOOT (Boot Barn Holdings, Inc.) USD 119.76 +3.16% · GCO (Genesco Inc.) USD 37.39 +3.20%

## More
Full page: https://nexqual.com/CRI · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in CRI's own 10-K filed 2026-02-27 (https://www.sec.gov/Archives/edgar/data/1060822/000106082226000016/cri-20260103.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Supplier | Xinjiang Production and Construction | "Even if we were not subject to penalties, fines, or sanctions, if products we source are associated in any way to XPCC or the XUAR, our reputation could be damaged." |
| Customer | Amazon (AMZN) | "Our OshKosh brand wholesale customers in the United States include major retailers, such as Amazon and Target." |
| Customer | Walmart (WMT) | "Our Skip Hop brand wholesale customers in the United States include major retailers, such as Amazon, Target, and Walmart." |
| Customer | Costco (COST) | "Our Carter's brand wholesale customers in the United States include major retailers, such as Costco, JCPenney, Kohl's, Macy's, Marshalls, Ross Stores, Sam's Club, and T.J." |

## Revenue by business segment (quarter ended 2026-07-04)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| U.S. Retail | $304.7M | 49.5% | +1.7% |
| U.S. Wholesale | $215.6M | 35.0% | +11.7% |
| International | $95.3M | 15.5% | +2.7% |
| Total revenue | $615.5M | 100% | — |

## Revenue by product line (fiscal year ended 2026-01-03)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Baby | $1.26B | 43.5% | +10.7% |
| Playclothes | $914.7M | 31.6% | -3.6% |
| Other Products | $371.5M | 12.8% | -3.0% |
| Sleepwear | $351.6M | 12.1% | -5.8% |
| Total revenue | $2.90B | 100% | — |

## Customer concentration

Period ended 2026-01-03: 11%, 10.3% of revenue from unnamed direct customers (10-K, filed 2026-02-27).

## Company outlook (8-K filed 2026-07-31)

- "The Company's outlook (and related assumptions) for the third quarter 2026 include an anticipated non-GAAP adjustment related to IP litigation costs of approximately $1 million."
- "The Company's full-year fiscal 2026 outlook (and related assumptions) includes an anticipated non-GAAP adjustment related to leadership transition costs and IP litigation costs of approximately $8 million and a recovery of previously paid import duties of $132 million."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.85 | $0.89 | -4.1% | $748.1M | 7 |
| Next quarter (ends 2026-12-31) | $1.66 | $1.94 | -14.1% | $921.6M | 6 |
| Current fiscal year (ends 2026-12-31) | $3.17 | $3.26 | -3.0% | $2.97B | 7 |
| Next fiscal year (ends 2027-12-31) | $3.46 | $3.65 | -5.4% | $3.01B | 7 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-11-02): ±15.2%; last 8 reports averaged ±9.5%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 65.7% | ±15.2% |
| 2026-12-18 | 56 | 57.5% | ±18.5% |
| 2027-03-19 | 147 | 56.6% | ±28.8% |
| 2027-06-17 | 237 | 54.7% | ±34.6% |