Carter's: In Fairly Valued Territory, But There Will Be Better Opportunities Later

ArtMarie/E+ via Getty Images Positive margin tailwinds turning: On the margin front, the picture improved thanks to hard comparisons in FY23. During 2022 and early 2023, supply chain disruptions and commodity prices exploding led to lower margins. This cost pressure is declining, and therefore, Carter's can post higher gross margins despite falling total sales and the higher weight of the lower-margin wholesale channel. However, comparisons will be more challenging against the more normalized 2H23 period, a ...