Equity Profile

CRI

Carter's, Inc.

Consumer DiscretionaryApparel, Accessories & Luxury Goods$1.4B

Jul24Fri

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

Carter's, Inc. (CRI) is a leading retailer of children's apparel and accessories, primarily known for its quality and value....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a crucial indicator of the company's profitability and financial health, which investors will closely monitor this quarter.

N/A

Revenue Growth

Revenue growth reflects the company's ability to attract customers and increase sales, which is vital in the competitive retail environment.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

CRI Q2-2026 Earnings Preview

Context

Company Snapshot

Carter's, Inc. (CRI) is a leading retailer of children's apparel and accessories, primarily known for its quality and value. As a key player in the consumer discretionary sector, the company benefits from trends in family spending and the demand for children's clothing.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

75%

Avg EPS Surprise

+76.00%

Avg Stock Reaction

-8.93%

Last Quarter Recap

In Q1-2026, Carter's reported an EPS of $0.39, significantly beating expectations of $0.07, which led to an 11.67% increase in stock price the following day. However, revenue figures were not disclosed, leaving some uncertainty.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations for Carter's upcoming earnings are mixed, with investors hoping for continued strong performance following last quarter's surprise. However, the lack of guidance and historical volatility raises concerns.

Bull Case

If Carter's can replicate or exceed last quarter's EPS surprise, it could signal strong underlying demand and operational efficiency, boosting investor confidence.

Bear Case

Conversely, if the company fails to meet expectations or provides weak guidance, it could lead to a significant drop in stock price, especially given the historical trend of negative reactions after earnings misses.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026?

Given the significant surprise last quarter, investors will be keen to see if Carter's can maintain this momentum or if it was a one-time event.

What are the same-store sales figures for this quarter?

Same-store sales growth is critical for understanding ongoing consumer demand and the effectiveness of Carter's marketing strategies.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Carter's ability to leverage its brand strength and customer loyalty, especially in a recovering consumer spending environment.

Supporting Evidence

Carter's has a strong track record of beating EPS estimates, with a 75% beat rate over the last eight quarters.

The significant implied move of 22.74% suggests that the market is anticipating a larger reaction than historical averages would indicate.

The company's recent performance indicates a potential for continued growth despite broader economic challenges.

Key Risk

If same-store sales growth exceeds expectations, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will hinge on whether Carter's can sustain its recent earnings surprise and show growth in same-store sales.

Bull Confirmed If

An EPS of $0.50 or higher would confirm strong operational performance and consumer demand.

Bear Confirmed If

An EPS below $0.20 would indicate significant challenges and could lead to a sharp decline in stock price.

Pre-Earnings Positioning

Options Market

Implied Move

±22.74%

Historical Avg

±12.3%

Pricing rich

The options market is pricing in a significant potential move, suggesting that investors expect volatility around the earnings announcement.

Options are pricing ±22.7% while CRI has averaged ±12.3% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

58.2%

Calls (31K)P/C Ratio: 4.17Puts (3K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Consumer Discretionary

n=30

Fade rate: 8 of 21 (38%)

This setup has occurred 30 times across Consumer Discretionary in the last 2 years. 13 of 21 (62%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 4.9%, with a raw directional average of +2.2% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Carter's beats expectations, history suggests a potential average one-day move of +11.67%, confirming strong demand and operational efficiency.

In-Line / Cautious

If results are in line with expectations, the stock may see muted movement as investors digest the news, reflecting uncertainty.

Miss

Should the company miss expectations, history suggests a potential average one-day move of -8.87%, indicating a negative market reaction.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on same-store sales growth and customer traffic trends.
2Details on inventory levels and supply chain management.
3Insights into marketing strategies and new product launches.
4Management's outlook on consumer spending trends for the remainder of the year.
5Any commentary on competitive pressures and market positioning.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

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Company Snapshot

Carter's, Inc. (CRI) is a leading retailer of children's apparel and accessories, primarily known for its quality and value....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a crucial indicator of the company's profitability and financial health, which investors will closely monitor this quarter.

N/A

Revenue Growth

Revenue growth reflects the company's ability to attract customers and increase sales, which is vital in the competitive retail environment.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

CRI Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

75%

Avg EPS Surprise

+76.00%

Avg Stock Reaction

-8.93%

Last Quarter Recap

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

If Carter's can replicate or exceed last quarter's EPS surprise, it could signal strong underlying demand and operational efficiency, boosting investor confidence.

Bear Case

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026?

Given the significant surprise last quarter, investors will be keen to see if Carter's can maintain this momentum or if it was a one-time event.

What are the same-store sales figures for this quarter?

Same-store sales growth is critical for understanding ongoing consumer demand and the effectiveness of Carter's marketing strategies.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Carter's ability to leverage its brand strength and customer loyalty, especially in a recovering consumer spending environment.

Supporting Evidence

Carter's has a strong track record of beating EPS estimates, with a 75% beat rate over the last eight quarters.

The significant implied move of 22.74% suggests that the market is anticipating a larger reaction than historical averages would indicate.

The company's recent performance indicates a potential for continued growth despite broader economic challenges.

Key Risk

If same-store sales growth exceeds expectations, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will hinge on whether Carter's can sustain its recent earnings surprise and show growth in same-store sales.

Bull Confirmed If

An EPS of $0.50 or higher would confirm strong operational performance and consumer demand.

Bear Confirmed If

An EPS below $0.20 would indicate significant challenges and could lead to a sharp decline in stock price.

Pre-Earnings Positioning

Options Market

Implied Move

±22.74%

Historical Avg

±12.3%

Pricing rich

The options market is pricing in a significant potential move, suggesting that investors expect volatility around the earnings announcement.

Options are pricing ±22.7% while CRI has averaged ±12.3% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

58.2%

Calls (31K)P/C Ratio: 4.17Puts (3K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Consumer Discretionary

n=30

Fade rate: 8 of 21 (38%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Carter's beats expectations, history suggests a potential average one-day move of +11.67%, confirming strong demand and operational efficiency.

In-Line / Cautious

If results are in line with expectations, the stock may see muted movement as investors digest the news, reflecting uncertainty.

Miss

Should the company miss expectations, history suggests a potential average one-day move of -8.87%, indicating a negative market reaction.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on same-store sales growth and customer traffic trends.
2Details on inventory levels and supply chain management.
3Insights into marketing strategies and new product launches.
4Management's outlook on consumer spending trends for the remainder of the year.
5Any commentary on competitive pressures and market positioning.