LOUISVILLE, Ky., March 25, 2026 (GLOBE NEWSWIRE) -- Creative Realities, Inc. (“Creative Realities,” “CRI,” or the “Company”) (NASDAQ: CREX), a leading provider of digital signage, media and AdTech solutions, today announced that it has hired Jackie Walker as Chief Experience Officer (“CXO”) effective March 30, 2026. Ms. Walker is a veteran digital transformation leader with more than 15 years of experience designing, operating, and scaling enterprise digital platforms at the intersection of customer experie ...

Key Takeaways Carter's Retail sales rose 9% with comps up 4.7%, driven by strong e-commerce traffic.CRI faces margin pressure from tariffs and higher product costs despite pricing actions.Carter's expects 2026 sales growth in low to mid-single digits and plans store closures to boost efficiency.Carter’s, Inc. (CRI) witnessed a strong performance in the U.S. Retail segment in the fourth quarter of 2025. Growth was fueled by robust e-commerce performance, supported by a double-digit increase in traffic. Retai ...

Core Insights - Carter's, Inc. (CRI) is experiencing positive momentum in its retail business, driven by improving consumer demand and enhanced engagement across physical and digital platforms [1][4] - The company's strategy focuses on strengthening brand appeal, introducing new products, and investing in demand creation initiatives to attract new customers [1][4] Retail Performance - In Q4 2025, Carter's retail segment saw net sales increase by 9.4% year over year, with comparable sales rising by 4.7%, marking the third consecutive quarter of positive comps [2][9] - The growth was fueled by strong e-commerce traffic, broad demand across baby, toddler, and kids' categories, and higher average unit retail prices [2][9] - The baby category continued to show strength, achieving its sixth consecutive quarter of growth, indicating resilient demand for core products [2] Digital and Omnichannel Strategy - Carter's is enhancing its digital and omnichannel capabilities, which are crucial for retail momentum [3] - Investments are being made to connect physical stores with the e-commerce platform, allowing for a seamless shopping experience [3] - The company is improving its website experience, utilizing targeted digital marketing, and integrating store and online inventory to create a more connected shopping journey [3] Future Outlook - Carter's anticipates its retail business will remain a key growth driver, supported by ongoing investments in marketing, product innovation, and digital capabilities [4] - Management aims to attract higher-income consumers and reduce promotional activities to enhance pricing power [4] - Despite challenges such as tariffs and cost pressures, sustained traffic growth and an improved product mix could help maintain positive comparable sales [4] Valuation and Market Performance - Carter's shares have increased by 7.5% over the past three months, contrasting with a 17.6% decline in the industry [7] - The company trades at a forward price-to-earnings ratio of 11.69X, significantly lower than the industry average of 22.39X [10]

Core Insights - Carter's, Inc. (CRI) shares have increased approximately 5% following the release of its fourth-quarter 2025 earnings, which exceeded expectations in both sales and earnings [1] - Consolidated net sales grew by 7.6% year over year, with contributions from U.S. Retail, International, and U.S. Wholesale segments, and an additional week in the quarter added about $37 million to sales [1][3] Sales Performance - Strong e-commerce demand and improved store traffic contributed to the company's performance, with notable growth in the baby and toddler categories [2] - U.S. Retail segment sales rose by 9.4% year over year, while U.S. Wholesale and International segments saw increases of 3.4% and 10.2%, respectively [3] Pricing and Consumer Base - The company benefited from improved pricing power, with average unit retail prices increasing due to reduced promotional activity and a higher mix of premium products [4] - Carter's is successfully attracting Gen Z and millennial families, expanding its active consumer base and supporting long-term demand [4] 2026 Outlook - For 2026, Carter's anticipates net sales growth in the low to mid-single-digit percentage range compared to $2.898 billion in 2025, with adjusted operating income expected to rise similarly from $176 million [4] - Adjusted earnings per share are projected to decline in the low double-digit to mid-teens from $3.47 reported in fiscal 2025 [4] Operational Challenges - The outlook for 2026 includes earnings contributions weighted towards the second half of the year due to anticipated net tariff impacts and investment spending in the first half [5] - Incremental tariff costs may negatively affect margins, although some of these costs will be offset by increased pricing and productivity savings [5] Strategic Initiatives - The company is enhancing its omnichannel strategy by integrating digital and physical retail experiences to align with evolving consumer preferences [6] - Carter's is focusing on consumer-led and brand-focused growth, strengthening connections with consumers through improved brand storytelling and higher-quality product offerings [6]

Core Viewpoint - Carter's (CRI) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook for its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - For the fiscal year ending December 2026, Carter's is expected to earn $2.35 per share, with a notable increase of 42.1% in the Zacks Consensus Estimate over the past three months [8]. Investment Implications - The upgrade to Zacks Rank 1 suggests that Carter's is positioned in the top 5% of stocks covered by Zacks, indicating a strong potential for price appreciation in the near term [10]. - Rising earnings estimates and the corresponding rating upgrade signal an improvement in Carter's underlying business, likely leading to increased investor interest and stock price growth [5][10].

Group 1: Encore Capital Group (ECPG) - Encore Capital Group is an international specialty finance company providing debt recovery solutions and related services for consumers across various financial assets [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 27.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Encore Capital has a price-to-earnings (P/E) ratio of 5.70, significantly lower than the industry average of 11.30, and possesses a Value Score of A [2] Group 2: Universal Insurance Holdings (UVE) - Universal Insurance Holdings is engaged in insurance underwriting, distribution, and claims [2] - The company also carries a Zacks Rank of 1 and has experienced a 19.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Universal Insurance has a P/E ratio of 8.79 compared to the industry average of 12.60, and it holds a Value Score of A [3] Group 3: Carter's (CRI) - Carter's is the largest marketer of branded apparel and related products for babies and young children in North America [3] - The company has a Zacks Rank of 1 and has seen a 10.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Carter's has a P/E ratio of 14.31, which is lower than the industry average of 20.10, and it also possesses a Value Score of A [4]

Group 1: Citizens & Northern Corp (CZNC) - Citizens & Northern Corp is a bank holding company providing various banking and related services to individual and corporate customers [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7.2% over the last 60 days [1] - The company has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 5%, compared to the industry average of 2.3% [1] Group 2: United Community Banks (UCB) - United Community Banks is a community-focused bank holding company offering a range of retail and corporate banking services [2] - The Zacks Consensus Estimate for its current year earnings has increased by 4.8% over the last 60 days [2] - The company has a Zacks Rank of 1 and a dividend yield of 3.1%, compared to the industry average of 2% [2] Group 3: Carter's (CRI) - Carter's is the largest marketer of branded apparel and related products for babies and young children in North America [3] - The Zacks Consensus Estimate for its current year earnings has increased by 10.3% over the last 60 days [3] - The company has a Zacks Rank of 1 and a dividend yield of 3%, compared to the industry average of 2.1% [3]

Core Insights - Carter's reported fourth-quarter net sales of $925 million, an 8% increase year over year, with a 3% increase on a comparable 13-week basis [2][5] - The company faced a gross margin decline of 460 basis points to 43.2%, primarily due to tariffs and higher product costs [2][5] - Adjusted EPS for the quarter was $1.90, down from $2.39 in the prior year [5][6] Financial Performance - The fourth-quarter results exceeded internal forecasts, marking the first year-over-year revenue increase since 2021 [2] - Adjusted SG&A expenses rose 5% to $315 million, influenced by costs associated with the 53rd week, demand-creation spending, and increased wage and rent expenses [6] - The company ended the fiscal year with over $1 billion in liquidity, including approximately $500 million in cash [3][14] Fiscal 2026 Outlook - For fiscal 2026, Carter's expects net sales and adjusted operating income to grow low- to mid-single digits, while adjusted EPS is projected to decline low double digits to mid-teens [4][17] - The company anticipates a gross tariff impact exceeding $200 million in 2026, with pricing expected to offset some of this impact [4][17] - First-quarter 2026 guidance includes mid-single-digit net sales growth and adjusted operating income of $12 million to $15 million [19] Retail and Consumer Trends - U.S. retail net sales increased 9% in the quarter, with comparable sales up 4.7%, marking the third consecutive quarter of positive retail comps [7] - The company is focusing on a growth strategy centered on "quality growth," reducing promotions, and enhancing brand storytelling [8] - Carter's active consumer count is growing, particularly among Gen Z and millennial families, with a higher mix of "better and best" products [10] Wholesale and International Performance - U.S. wholesale net sales increased 3%, but profitability was pressured by tariffs, with approximately $20 million of the quarter's tariff impact affecting this segment [11][12] - International net sales grew 10%, driven by strong performance in Canada and Mexico, with operating profit increasing slightly year over year [13] Inventory and Capital Allocation - Year-end inventory was $545 million, up 8% in dollars but down 4% in units, with tariffs increasing inventory value by $50 million [15] - The company refinanced its debt, issuing $575 million in new 5-year senior notes at a 7.375% coupon [14]

Core Insights - Carter's, Inc. (CRI) reported fourth-quarter 2025 results with both top and bottom lines exceeding Zacks Consensus Estimates, although earnings declined year-over-year while sales increased [1][3][10] Financial Performance - Adjusted earnings per share (EPS) for the fourth quarter were $1.90, surpassing the Zacks Consensus Estimate of $1.70, but down 20.5% from $2.39 in the prior-year quarter [1][3] - Consolidated net sales reached $925.5 million, exceeding the Zacks Consensus Estimate of $916 million, marking a 7.6% year-over-year increase, driven by growth in U.S. Retail, International, and U.S. Wholesale segments [2][10] - The U.S. Retail segment sales increased 9.4% year-over-year to $509.8 million, while the U.S. Wholesale segment saw a 3.4% increase to $274.4 million, and the International segment recorded a 10.2% rise to $141.2 million [4][5] Margin and Cost Analysis - Gross profit fell 2.6% year-over-year to $400.2 million, with gross margin contracting 460 basis points to 43.2% from 47.8% in the fourth quarter of 2024 [6] - Adjusted operating income decreased 22.2% to $89.5 million, with the adjusted operating margin down 370 basis points to 9.7% due to elevated tariff costs and increased performance-based compensation [6][15] - Adjusted selling, general and administrative (SG&A) expenses rose 4.8% year-over-year to $314.8 million, but as a percentage of net sales, SG&A expenses decreased 90 basis points to 34% [7] Financial Position - At the end of fiscal 2025, Carter's had cash and cash equivalents of $487.1 million, net long-term debt of $567.2 million, and shareholders' equity of $925 million [8] - The company ended 2025 with total liquidity of $1.2 billion, including $744 million in available borrowing capacity under its secured asset-based revolving credit facility [11] Dividend and Shareholder Returns - In the fourth quarter of 2025, Carter's paid a cash dividend of 25 cents per share, totaling $9.1 million, with total cash dividends for the year amounting to $56.4 million [9] Future Outlook - For 2026, Carter's projects net sales growth in the low single-digit to mid-single-digit percentage range compared to $2.898 billion in 2025, with adjusted EPS expected to decline in the low double-digit to mid-teens from $3.47 reported in fiscal 2025 [14][16] - The company anticipates net sales growth in the mid-single-digit percentage for the first quarter of 2026, with adjusted operating income projected between $12 million and $15 million, significantly down from $35 million in Q1 2025 [16]

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - Most recommendations will be holds, indicating that only a small fraction of companies are considered a buy at any given time [1] Group 2 - The approach aims to provide important information for future investors and introduce skepticism in a generally bullish market [1] - The articles are written on an "as is" basis, reflecting the author's opinions without any warranty [1]