Carter's, Inc. (CRI) is trading at a discount to its historical and industry benchmarks. The CRI stock trades at a forward 12-month price-to-earnings (P/E) ratio of 11.15, below its median level of 11.49X in the past year and significantly lower than the industry’s average of 26.32X. This suggests that CRI is undervalued relative to its earnings potential, presenting an attractive opportunity for investors.CRI Stock's P/E Performance Image Source: Zacks Investment ResearchFactors Contributing to CRI’s Growt ...

Los Angeles, Jan. 06, 2025 (GLOBE NEWSWIRE) -- Habitat for Humanity of Greater Los Angeles (Habitat LA) hosted a heartfelt event at its headquarters on Friday to celebrate the life and legacy of President Jimmy Carter. Known as Habitat for Humanity’s most famous volunteer, President Carter, alongside Mrs. Rosalynn Carter, dedicated nearly 40 years to building affordable homes worldwide and inspiring millions through their service. The event featured tributes from key speakers, including Supervisor Janice Ha ...

Six days of funeral events are under way for the former US president Jimmy Carter.The 100-year-old Democrat, who served one term in office from 1977 to 1981, died at his home in Plains, Georgia, surrounded by his family on 29 December. He was the oldest living former US president.A motorcade with his flag-draped coffin set off from the Phoebe Sumter Medical Centre in Americus, where ex-Secret Service agents who protected him served as pallbearers and walked alongside the hearse as it left the campus. Image ...

Carter's, Inc. (CRI) has been capitalizing from its pricing strategy, efficient inventory management and enhanced product offerings. By focusing on competitively priced, essential core products, Carter's has positioned itself as a value-driven option for budget-conscious consumers, particularly during inflationary times.Investments in pricing and marketing of nearly $60 million for the second half of 2024 further underscore its commitment to driving demand and market relevance. These efforts, coupled with i ...

Investors in Carter's, Inc. (CRI) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 20, 2024 $45.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also me ...

Carter's, Inc. (CRI) has faced a challenging period in 2024, with its shares dropping 21.5% over the past month. This decline contrasts with the broader performance of the Zacks Shoes and Retail Apparel industry, which saw a moderate decrease of 3.7%. The company's dismal performance is due to the curtailed consumer discretionary spending, owing to rising inflation and higher interest rates.Image Source: Zacks Investment ResearchCarter’s current stock price of $52.84 reflects a 40% discount from its 52-week ...

Normally, we would expect to see a boost in stock price after such a large earnings beat, but the reality is that the details play a much more important role than what we see in the Seeking **Effective 8/20/2023 the in-depth retirement article series for John & Jane will be available in video format on YouTube. Please consider watching, commenting, and subscribing as I expand on my analysis. I am trying to keep the videos about 30 minutes or less but hope they will be even more interesting for those who hav ...

Carter's, Inc. (NYSE: CRI ) presented Q3 2024 results last week, with sales falling 4%, arresting what seemed like a looming crisis with comparable sales falling double digits in July 2024. The price paid for that recovery was Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the co ...

Carter's, Inc. (CRI) announced its third-quarter 2024 results, wherein the top and the bottom line beat the Zacks Consensus Estimate, while both decreased from the year-ago period's actuals. The top line remained soft on weak sales across the U.S. Retail, International and U.S. Wholesale segments. Also, the impacts of inflation, which led to reduced spending and currency headwinds, hurt the performance. Carter's adjusted earnings per share (EPS) of $1.64 surpassed the Zacks Consensus Estimate of $1.29. Howe ...

Financial Data and Key Metrics - Q3 2024 net sales were $758 million, down 4% YoY, with U.S. retail sales declining 6% and international sales down 9% [22][28] - Operating income was $77 million, with an operating margin of 10.2%, down from 13% YoY [22][30] - Adjusted EPS was $1.64, down 11% YoY, driven by lower sales and higher marketing investments [22][26] - Inventory levels improved, with a 2% decline YoY, and the company ended the quarter with over $1 billion in liquidity [34] - Full-year sales guidance is reaffirmed at $2.785 billion to $2.825 billion, with U.S. retail sales expected to decline 8% [46] Business Segment Performance - U.S. retail sales declined 6%, with eCommerce comps improving from -14% in H1 to -5% in Q3 [28][29] - U.S. wholesale sales were flat YoY, with strong growth in exclusive brands offsetting declines in department store and off-price sales [31] - International sales declined 9%, with Canada seeing a high single-digit decrease due to warmer weather and economic pressures, while Mexico grew 9% [32] - Baby apparel sales grew 2% YoY, contributing over 50% of total apparel sales, while toddler sales were slightly lower [5] Market and Competitive Trends - The company observed a "barbell-shaped" trend in U.S. retail sales, with strong growth in opening price point and premium products, but a 10% decline in mid-tier offerings [6] - Competitive pricing strategies, including $40 million in price reductions and $10 million in marketing, helped improve U.S. retail trends, with comps improving from -13% in July to -5% in August and September [7][8] - The company gained market share in baby and toddler apparel, which represents over 80% of its business [72] Strategic Initiatives and Outlook - The company is shifting its product assortment to increase penetration of opening price point and premium products by 10 points each, while reducing mid-tier offerings [38][39] - Investments in technology, including AI-driven marketing personalization and a new inventory allocation system, are expected to improve customer acquisition and retention [14][44] - The company plans to open 40 high-margin stores and close 30 low-margin stores in 2024, with 98% of stores cash flow positive over the past 12 months [13] - Full-year adjusted operating income is expected to be $240 million to $260 million, with adjusted EPS raised to $4.70 to $5.15 due to a lower tax rate and reduced interest expenses [46] Management Commentary on Market Conditions - Management noted that inflation and higher interest rates continue to weigh on demand from families with young children, particularly in the U.S. and Canada [28][32] - The company believes its value proposition, with average retail price points under $11, positions it well in an inflationary environment [19] - Weather trends, particularly cooler temperatures, have improved holiday-related apparel sales in recent weeks [6][81] Q&A Session Highlights Question: Gross Margin Pressure and Pricing Strategy - Gross margin declined 60 bps in Q3, with a 170 bps impact from pricing investments, and is expected to decline 200 bps in Q4 due to mix shifts and continued pricing actions [50][51] - The company focused on reducing prior season inventory in Q3, with prices on prior season goods down 10%, while in-season goods saw only a 3% price reduction [52] Question: U.S. Retail Trends and ROI of Pricing Investments - U.S. retail comps improved from -13% in July to -5% in August and September, with October comps running down less than 5% [47][54] - The ROI of pricing investments is measured through unit volume growth, transaction increases, and improved conversion rates [55][58] Question: Wholesale Business and Spring/Summer 2025 Orders - Wholesale demand for spring/summer 2025 is showing modest growth, with exclusive brands expected to outperform non-exclusive partners [62] - Off-price sales are forecasted to decline nearly 50% in 2024, with low single-digit growth expected in U.S. wholesale sales excluding off-price [16] Question: Share Repurchase Pause and Capital Allocation - The company has paused share repurchases due to a reduction in free cash flow forecasts, with plans to revisit capital allocation in 2025 [70][71] Question: Assortment Shift and Gross Margin Impact - The shift towards opening price point and premium products is not expected to significantly impact gross margins, as the mid-tier segment has been underperforming [77][78] Question: Weather Impact and Inventory Management - Warmer weather in late Q3 slowed sales, but the company made significant progress in clearing spring and summer inventory, improving the inventory position heading into Q4 [80][81] Question: Tariff Risks and Sourcing Strategy - Less than 5% of the company's finished goods are sourced from China, with diversification into countries like Vietnam, Cambodia, and India reducing exposure to potential tariffs [82]