Carter's, Inc. CRI continues to focus on strengthening its portfolio of trusted brands and expanding its presence in the children's apparel market through product innovation and customer-centric initiatives. The company is investing in new assortments, trend-right designs and product enhancements to keep its Carter's and OshKosh brands relevant and appealing to consumers.
Carter’s continues to rely on strategic pricing actions, product innovation and productivity initiatives to help offset tariff-related cost pressures and boost profitability. The company continues to balance pricing actions with value-oriented offerings to navigate a tough consumer landscape. Its strong brand equity and broad product range help attract both value-conscious and premium shoppers.
Carter's is also expanding its global presence through wholesale partnerships, licensing arrangements and digital channels in select international markets, creating additional avenues for long-term revenue growth. The company is strengthening its e-commerce and omnichannel capabilities to offer a seamless shopping experience. Investments in digital marketing, personalization and mobile commerce are helping the company deepen customer relationships and drive direct-to-consumer sales.
The company is pursuing productivity initiatives across sourcing, logistics and other operations. Supply-chain efficiency and productivity initiatives remain central to Carter's long-term strategy. The company continues to implement cost-saving measures, strategic pricing actions and operational improvements to mitigate inflationary and tariff-related pressures. Investments in sourcing, logistics and productivity programs are helping enhance efficiency and support margin expansion in a challenging environment.
All such aforesaid endeavors are likely to bolster growth. Carter’s delivered strong momentum across its U.S. Retail and International businesses in first-quarter 2026, reflecting healthy consumer demand and improving brand engagement. U.S. Retail net sales increased nearly 13%, driven by comparable sales growth of more than 10%, with strength across stores and e-commerce channels. The Baby assortment remained the primary growth driver, while the Toddler and Kid categories also reflecting gains.
CRI’s Price Performance, Valuation and Estimates
Carter’s shares have gained 17.1% year to date against the industry’s 26.2% decline.
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From a valuation standpoint, CRI trades at a forward price-to-earnings ratio of 11.97X compared with the industry’s average of 20.65X.
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The Zacks Consensus Estimate for CRI’s 2026 earnings per share (EPS) indicates year-over-year drop of 11% while that of 2027 shows growth of 5.3%. The company’s EPS estimate for 2026 and 2027 has been stable in the past 30 days.
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Carter’s currently carries a Zacks Rank #2 (Buy).
More Key Picks in the Consumer Discretionary Space
Duluth Holdings Inc. DLTH, which deals in casual wear, workwear and accessories for men and women, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Duluth Holdings delivered a trailing four-quarter earnings surprise of 107.5%, on average. The Zacks Consensus Estimate for DLTH’s current financial-year EPS indicates growth of 39.5% from the year-ago number.
Columbia Sportswear COLM engages in marketing and distribution of outdoor and active lifestyle apparel, footwear and accessories, and currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for COLM’s current financial-year EPS is expected to rise 4.6% from the corresponding year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average.
Ralph Lauren Corporation RL, which is a designer and marketer of premium lifestyle products, currently carries a Zacks Rank of 2.
RL delivered a trailing four-quarter earnings surprise of 9.1%, on average. The Zacks Consensus Estimate for Ralph Lauren’s current financial-year EPS indicates growth of 10.5% from the year-ago number.
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Carter's, Inc. (CRI): Free Stock Analysis Report
Columbia Sportswear Company (COLM): Free Stock Analysis Report
Ralph Lauren Corporation (RL): Free Stock Analysis Report
Duluth Holdings Inc. (DLTH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).