Carter's, Inc. (CRI) Stock

Carter's, Inc. (CRI) is a Consumer Discretionary stock trading at $33.93 (as of 2026-08-25), with a market capitalization of $1.25B and a trailing P/E of 6.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded childrenswear under the Carter's, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter's My First Love, little planet, and other brands in the United States and internationally. The company operates through three segments: U.S. Retail, U.S. Wholesale, and International. Its Carter's products include babies and young children products, such as bodysuits, pants, dresses, knit sets, blankets, layette essentials, bibs, booties, sleep and play products, rompers, and jumpers; and OshKosh brand products comprise playclothes, such as denim apparel products with multiple wash treatments and coordinating garments, overalls, woven bottoms, knit tops, and bodysuits. The company also provides products for playtime, travel, mealtime, bathtime, and homegear, as well as kid's bags and diaper bags under the Skip Hop brand. In addition, it offers bedding, cribs, diaper bags, footwear, gift sets, hair accessories, jewelry, outerwear, paper goods, socks, shoes, swimwear, and toys. The company operates 18,800 wholesale locations, including department stores, national chain stores, and specialty stores. As of December 31, 2021, it operated 980 retail stores. The company also sells its products through its eCommerce websites, such as carters.com, oshkoshbgosh.com, oshkosh.com, and skiphop.com, as well as other international wholesale accounts and licensees. Carter's, Inc. was founded in 1865 and is headquartered in Atlanta, Georgia.

Understand Carter's, Inc.: how it makes money

Carter's designs and sells branded childrenswear across labels like Carter's, OshKosh, and Skip Hop through its own stores, wholesale partners, and e-commerce in the U.S. and abroad. U.S. Retail carries nearly half of sales, Wholesale adds about 37%, and International is a modest tail, so the P&L leans on American baby and toddler demand.

Brand ownership on childrenswear supports a 67% gross margin, but offshore sourcing means that margin is one tariff tightening away from meaningful compression.

Revenue by segment (latest quarter)
U.S. Retail$0.3B
U.S. Wholesale$0.2B
International$0.1B

Business quality (Solid): Solid: a recognized childrenswear brand with 67% gross margins, 23% operating margin, and 19% ROE, though tariff exposure and price resistance introduce cyclical risk to the earnings base.

Valuation: At 6× earnings, CRI trades 59% below the Apparel average (16×). Note: the low multiple may reflect one-time earnings items.

Bull case

  • Profitable digital momentum: E-commerce comparable sales grew double digits for a fourth consecutive quarter while remaining profitable, showing the digital channel is scaling without the typical unprofitable-growth drag on margins.
  • Priced like a fading label: At 6.5x earnings versus the 16x apparel-industry average, the stock trades at a 59% discount, implying the market prices Carter's as a shrinking brand rather than a stable, cash-generative consumer franchise with 23% operating margins.
  • Wholesale pipeline already contracted: Fall, winter, and early-spring wholesale bookings all ran above prior-year levels, giving visibility into the next two quarters of revenue before they hit the income statement.

Bear case

  • Tariffs hit the margin base: Tariffs added $28 million of incremental gross-margin drag in Q2 on $600 million of revenue, and management flagged continued exposure to potential increases, putting the 67% gross margin at risk if trade policy tightens further.
  • Price resistance at the shelf: Management noted market price resistance accompanied by lower unit velocity, a signal that the brand is losing share to private label or value-oriented competitors among budget-conscious parents.
  • Pull-forward hollows out Q3: Wholesale demand is expected to soften after Q2 sales pull-forward and conservative customer commitments, so near-term revenue growth may underwhelm even with above-year bookings already in place.
Valuation — source: SEC EDGAR (first-party)
Price$33.93
Market Cap$1.25B
P/E Ratio6.4
EV / EBITDA3.5
Price / Book1.21
Price / Sales0.42
FCF Yield23.5%
DCF Value (model)$46.98
DCF Upside vs Price38.5%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$2.90B
Net Margin3.2%
Revenue Growth (YoY)5.2%
EPS Growth (YoY)28600.0%
FCF Growth (YoY)688.4%
Financial Health — source: SEC EDGAR
Altman Z-Score2.63 (grey)
Valuation vs Sector & Industry
Stock P/E6.4
Sector P/E (Consumer Discretionary)20.8
Industry P/E (Apparel)15.3
vs Sector-69.3%
vs Industry-58.1%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($195.79M)
Institutional Holders Tracked10
Company
SectorConsumer Discretionary
IndustryApparel
CEODouglas C. Palladini
Employees15,350
CountryUS
IPO Date2003-10-28

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CRI earnings history · CRI institutional & insider holders · CRI KPIs & operating metrics · CRI financials · CRI investor presentations & press releases · CRI SEC filings · CRI peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-25.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.