Carter’s (NYSE:CRI) Shares Gap Down – Here’s Why

Carter’s, Inc. (NYSE:CRI)’s stock price gapped down prior to trading on Friday . The stock had previously closed at $42.07, but opened at $36.42. Carter’s shares last traded at $35.1220, with a volume of 1,348,396 shares trading hands.

Trending Headlines about Carter’s

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

• Positive Sentiment: Q4 earnings and revenue beat consensus — Carter’s reported $1.90 EPS vs. $1.70 expected and revenue of $925.45M vs. $912.36M estimated; revenue rose ~7.7% year-over-year, showing underlying sales strength. Carter’s (CRI) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: All business segments posted sales growth and management cited momentum in traffic and new-customer acquisition — evidence that demand initiatives are working even as margins are challenged. Carter’s, Inc. Reports Fourth Quarter and Fiscal Year 2025 Results
• Neutral Sentiment: Analysts revised expectations ahead of the print and attention was high going into the quarter — further revisions could follow depending on management’s FY26 detail. Top Wall Street Forecasters Revamp Carter’s Expectations Ahead Of Q4 Earnings
• Neutral Sentiment: Management materials and the conference call/slides are available for investors who want the granular detail on margin drivers and cash flow assumptions. Press Release / Slide Deck Conference Call Slides
• Negative Sentiment: Guidance disappointed — company projected higher sales for FY26 but lower EPS, signaling margin pressure ahead and reducing near-term earnings visibility. Carter’s shares fall despite earnings beat on weak outlook
• Negative Sentiment: Investors flagged margin compression, tariff-related cost headwinds and weakening cash generation as the primary reasons behind the selloff despite the beat — these issues are the most immediate risks to valuation. Carter’s (CRI) Shares Plunge on Margin Pressure, Tariff Headwinds, and Weakening Cash Generation

Wall Street Analyst Weigh In

A number of analysts recently issued reports on CRI shares. Wall Street Zen raised Carter’s from a “sell” rating to a “hold” rating in a research report on Sunday, January 11th. The Goldman Sachs Group increased their target price on shares of Carter’s from $26.00 to $29.00 and gave the stock a “sell” rating in a research note on Tuesday, January 13th. UBS Group lifted their price target on shares of Carter’s from $33.00 to $40.00 and gave the company a “neutral” rating in a research report on Thursday, February 19th. Zacks Research upgraded shares of Carter’s from a “hold” rating to a “strong-buy” rating in a report on Monday, January 19th. Finally, Weiss Ratings raised shares of Carter’s from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, February 19th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, Carter’s currently has a consensus rating of “Hold” and an average target price of $34.00.

Carter’s Trading Down 20.2%

The business’s 50 day simple moving average is $36.39 and its 200 day simple moving average is $32.21. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.26 and a quick ratio of 0.95. The company has a market capitalization of $1.22 billion, a price-to-earnings ratio of 13.59 and a beta of 1.06.

Carter’s (NYSE:CRI) last released its quarterly earnings results on Friday, February 27th. The textile maker reported $1.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.70 by $0.20. The firm had revenue of $925.45 million for the quarter, compared to analyst estimates of $912.36 million. Carter’s had a return on equity of 16.71% and a net margin of 3.15%.The business’s revenue was up 7.7% on a year-over-year basis. During the same quarter last year, the company posted $2.39 earnings per share. Research analysts anticipate that Carter’s, Inc. will post 5.15 EPS for the current year.

Institutional Investors Weigh In On Carter’s

Several large investors have recently modified their holdings of the stock. UMB Bank n.a. increased its stake in shares of Carter’s by 445.8% during the fourth quarter. UMB Bank n.a. now owns 775 shares of the textile maker’s stock worth $25,000 after acquiring an additional 633 shares during the period. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Carter’s by 555.9% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,115 shares of the textile maker’s stock valued at $31,000 after buying an additional 945 shares during the period. Hantz Financial Services Inc. boosted its stake in shares of Carter’s by 1,208.1% in the third quarter. Hantz Financial Services Inc. now owns 1,295 shares of the textile maker’s stock valued at $37,000 after buying an additional 1,196 shares in the last quarter. Versant Capital Management Inc raised its position in Carter’s by 135.4% in the third quarter. Versant Capital Management Inc now owns 1,415 shares of the textile maker’s stock worth $40,000 after acquiring an additional 814 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its position in Carter’s by 202.6% in the second 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.

About Carter’s

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.