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

Carter’s, Inc. (NYSE:CRI) gapped down before the market opened 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 traded.

Key Carter’s News

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

CRI has been the subject of several recent analyst reports. Zacks Research upgraded shares of Carter’s from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 19th. UBS Group increased their target price on shares of Carter’s from $33.00 to $40.00 and gave the company a “neutral” rating in a report on Thursday, February 19th. The Goldman Sachs Group lifted their price target on shares of Carter’s from $26.00 to $29.00 and gave the company a “sell” rating in a research report on Tuesday, January 13th. Weiss Ratings upgraded Carter’s from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, February 19th. Finally, Citigroup raised Carter’s from a “neutral” rating to a “buy” rating and raised their price objective for the company from $34.00 to $50.00 in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $34.00.

Carter’s Price Performance

The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.95 and a current ratio of 2.26. The company has a 50-day moving average of $36.39 and a 200-day moving average of $32.21. The stock 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 for the quarter, topping the consensus estimate of $1.70 by $0.20. Carter’s had a return on equity of 16.71% and a net margin of 3.15%.The company had revenue of $925.45 million during the quarter, compared to the consensus estimate of $912.36 million. During the same quarter last year, the business posted $2.39 earnings per share. Carter’s’s revenue was up 7.7% compared to the same quarter last year. As a group, equities research analysts expect that Carter’s, Inc. will post 5.15 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Carter’s

Several hedge funds have recently modified their holdings of the company. RWWM Inc. lifted its stake in shares of Carter’s by 86.1% during the second quarter. RWWM Inc. now owns 4,075,791 shares of the textile maker’s stock valued at $122,804,000 after buying an additional 1,885,309 shares during the period. AQR Capital Management LLC lifted its stake in shares of Carter’s by 113.7% during the 2nd quarter. AQR Capital Management LLC now owns 2,564,457 shares of the textile maker’s stock worth $77,267,000 after purchasing an additional 1,364,698 shares during the period. Rubric Capital Management LP acquired a new stake in shares of Carter’s during the fourth quarter worth $14,918,000. Allianz Asset Management GmbH grew its position in shares of Carter’s by 43.7% in the third quarter. Allianz Asset Management GmbH now owns 1,201,996 shares of the textile maker’s stock valued at $33,920,000 after purchasing an additional 365,501 shares during the period. Finally, Quantinno Capital Management LP increased its stake in Carter’s by 1,679.7% in the second quarter. Quantinno Capital Management LP now owns 370,791 shares of the textile maker’s stock valued at $11,172,000 after purchasing an additional 349,957 shares during 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.