Earnings Outlook For Carter's

Carter's CRI will release its quarterly earnings report on Friday, 2025-04-25. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Carter's to report an earnings per share (EPS) of $0.54.

Anticipation surrounds Carter's's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

Last quarter the company beat EPS by $0.47, which was followed by a 3.09% drop in the share price the next day.

Here's a look at Carter's's past performance and the resulting price change:

Carter's Share Price Analysis

Shares of Carter's were trading at $37.27 as of April 23. Over the last 52-week period, shares are down 45.89%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analyst Opinions on Carter's

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Carter's.

The consensus rating for Carter's is Neutral, based on 3 analyst ratings. With an average one-year price target of $47.33, there's a potential 26.99% upside.

Analyzing Analyst Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of G-III Apparel Group, Hanesbrands and Capri Holdings, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for G-III Apparel Group, with an average 1-year price target of $29.25, suggesting a potential 21.52% downside.
• Analysts currently favor an Neutral trajectory for Hanesbrands, with an average 1-year price target of $6.67, suggesting a potential 82.1% downside.
• Analysts currently favor an Neutral trajectory for Capri Holdings, with an average 1-year price target of $22.31, suggesting a potential 40.14% downside.

Insights: Peer Analysis

The peer analysis summary presents essential metrics for G-III Apparel Group, Hanesbrands and Capri Holdings, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Carter's has the highest revenue growth among its peers. It also leads in gross profit margin. However, its return on equity is lower compared to others. Overall, Carter's is positioned favorably compared to its peers in terms of revenue growth and gross profit.

All You Need to Know About Carter's

Carter's Inc makes apparel for babies and children under brand names including Carter's and OshKosh B'gosh. It sells its products through a multi-channel business model, which includes retail stores, eCommerce, and wholesale sales channels, as well as retail omnichannel capabilities in the United States and Canada, which enables it to reach a broad range of consumers around the world. The company operates in three segments; U.S. Retail, U.S. Wholesale, and International. The majority of revenue is derived from U.S. Wholesale segment. The company predominantly sources products through contract manufacturers in Asia. It has multiple distribution centers in the U.S., in addition to distribution centers in Canada and Asia that serve international customers.

Understanding the Numbers: Carter's's Finances

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Carter's displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 0.22%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Carter's's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.01% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Carter's's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.15%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.5%, the company showcases effective utilization of assets.

Debt Management: Carter's's debt-to-equity ratio is below the industry average at 1.32, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Carter's visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.