Carter's Top Line Resists At The Expense Of Margins, Not Worth 15x Earnings

Group 1 - Carter's, Inc. reported Q3 '25 results indicating resilience in revenues, supported by Average Unit Retail (AUR), despite a decline in volumes [1] - The company experienced a significant impact on operating margins and profits, which were reported to be down [1] Group 2 - The analysis emphasizes a long-only investment approach, focusing on operational aspects and long-term earnings power of companies rather than market-driven dynamics [1] - The investment strategy suggests that only a small fraction of companies should be considered for buying at any given time, with most recommendations being holds [1]