📊 CRI Key Takeaways
Investment Thesis
Carter's demonstrates solid financial health with strong liquidity (2.51x current ratio) and reasonable leverage (0.61x debt/equity), but growth is stalling with only 1.9% revenue growth and a concerning 50.6% decline in diluted EPS. The company generates adequate free cash flow ($68.6M) but profitability margins remain compressed in a competitive apparel sector.
CRI Strengths
- Strong liquidity position with 2.51x current ratio and $487.1M cash
- Healthy gross margin of 45.4% indicates pricing power and cost control
- Manageable leverage with 0.61x debt/equity and 4.2x interest coverage
- Positive free cash flow generation of $68.6M supports sustainability
CRI Risks
- Severe EPS deterioration of -50.6% YoY despite flat net income growth signals share dilution or buyback reduction
- Minimal revenue growth of 1.9% indicates mature/declining market demand for apparel
- Low operating margin of 5.0% and net margin of 3.2% provide limited buffer for headwinds
- Elevated insider activity (22 Form 4 filings in 90 days) may indicate uncertainty or potential equity compensation issues
Key Metrics to Watch
- Revenue growth acceleration - must exceed 3-5% to indicate market recovery
- Operating margin expansion - compression below 4.5% signals deteriorating profitability
- Free cash flow sustainability - watch for decline below $60M indicating cash generation challenges
- Return on equity trend - currently at 9.9% is below cost of capital expectations
CRI Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.4% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.51x current ratio provides a solid financial cushion.
CRI Profitability Ratios
CRI vs Default Sector
How CARTERS INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CRI Balance Sheet & Liquidity
CRI 5-Year Financial Trend
5-Year Trend Summary: CARTERS INC's revenue has declined by 16% over the 5-year period, indicating business contraction. The most recent EPS of $6.24 reflects profitable operations.
CRI Growth Metrics (YoY)
CRI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $757.8M | $11.6M | $0.32 |
| Q2 2025 | $564.4M | $446.0K | $0.01 |
| Q1 2025 | $629.8M | $15.5M | $0.43 |
| Q3 2024 | $758.5M | $58.3M | $1.62 |
| Q2 2024 | $564.4M | $23.9M | $0.64 |
| Q1 2024 | $661.5M | $36.0M | $0.95 |
| Q3 2023 | $791.7M | $65.0M | $1.67 |
| Q2 2023 | $600.2M | $23.9M | $0.64 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CRI Capital Allocation
CRI SEC Filings
Access official SEC EDGAR filings for CARTERS INC (CIK: 0001060822)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772660342.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772660208.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772660106.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772660021.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772659928.xml | View → |
❓ Frequently Asked Questions about CRI
What is the AI rating for CRI?
CARTERS INC (CRI) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRI's key strengths?
Strong liquidity position with 2.51x current ratio and $487.1M cash. Healthy gross margin of 45.4% indicates pricing power and cost control.
What are the risks of investing in CRI?
Severe EPS deterioration of -50.6% YoY despite flat net income growth signals share dilution or buyback reduction. Minimal revenue growth of 1.9% indicates mature/declining market demand for apparel.
What is CRI's revenue and growth?
CARTERS INC reported revenue of $2.9B.
Does CRI pay dividends?
CARTERS INC pays dividends, with $56.4M distributed to shareholders in the trailing twelve months.
Where can I find CRI SEC filings?
Official SEC filings for CARTERS INC (CIK: 0001060822) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CRI's EPS?
CARTERS INC has a diluted EPS of $2.53.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.