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. is a leading retailer of children's apparel, known for its quality and affordability....

Key Metrics to Watch

EPS (Earnings Per Share)

EPS is a critical measure of profitability, and investors will be looking for signs of growth or stability.

N/A

Revenue Growth

Revenue growth indicates how well the company is performing in a competitive market, especially in the apparel sector.

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. is a leading retailer of children's apparel, known for its quality and affordability. As a key player in the consumer discretionary sector, the company benefits from trends in family spending and the ongoing 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 impressive EPS of $0.39, significantly beating expectations. However, revenue figures were not disclosed, leaving some uncertainty about overall performance.

Management Promises & Guidance

Focus on expanding product lines to attract more customers.
Enhance online shopping experience to boost sales.
Commitment to maintaining quality while managing costs.

Expectations

Wall Street Expectations

Overall, expectations are mixed as Carter's has shown strong EPS performance but lacks revenue guidance. Investors are cautious about future growth amid economic uncertainties.

Bull Case

If Carter's continues to beat EPS expectations and shows strong revenue growth, it could signal a robust recovery in consumer spending on children's apparel.

Bear Case

Conversely, if the company fails to meet revenue expectations or shows signs of declining same-store sales, it could lead to a significant drop in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the same-store sales growth be for Q2-2026?

This metric will provide insight into customer demand and the effectiveness of Carter's marketing strategies.

How does management plan to address rising costs and maintain profitability?

Understanding management's strategy for cost control will be crucial for assessing future earnings potential.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Carter's ability to leverage its brand strength and expand online sales, despite economic headwinds.

Supporting Evidence

Carter's has a strong track record of beating EPS estimates, indicating potential for continued profitability.

Options pricing suggests a larger-than-average move, indicating that traders expect significant news that could surprise the market.

The recent strong performance in Q1-2026 may indicate a trend that could continue into Q2.

Key Risk

If same-store sales exceed expectations, it could challenge the current cautious outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around consumer spending trends and Carter's ability to navigate cost pressures while maintaining profitability.

Bull Confirmed If

A same-store sales growth of +5% or better would confirm the bull case.

Bear Confirmed If

A decline in same-store sales or negative revenue growth would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±22.74%

Historical Avg

±12.3%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings report.

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)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Carter's beats expectations, history suggests a potential stock increase of around 11.67%, confirming positive market sentiment.

In-Line / Cautious

If results are in line but cautious commentary is provided, the stock may experience muted movement as investors reassess growth prospects.

Miss

A miss could lead to a decline of about 8.87%, reflecting investor disappointment and concerns over future performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on same-store sales growth and overall revenue performance.
2Management's strategy for addressing rising costs and maintaining margins.
3Insights into consumer trends and how they are impacting sales.
4Any new initiatives aimed at enhancing the online shopping experience.
5Future guidance on product line expansions and marketing strategies.

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Company Snapshot

Carter's, Inc. is a leading retailer of children's apparel, known for its quality and affordability....

Key Metrics to Watch

EPS (Earnings Per Share)

EPS is a critical measure of profitability, and investors will be looking for signs of growth or stability.

N/A

Revenue Growth

Revenue growth indicates how well the company is performing in a competitive market, especially in the apparel sector.

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

In Q1-2026, Carter's reported an impressive EPS of $0.39, significantly beating expectations. However, revenue figures were not disclosed, leaving some uncertainty about overall performance.

Management Promises & Guidance

Focus on expanding product lines to attract more customers.
Enhance online shopping experience to boost sales.
Commitment to maintaining quality while managing costs.

Expectations

Wall Street Expectations

Overall, expectations are mixed as Carter's has shown strong EPS performance but lacks revenue guidance. Investors are cautious about future growth amid economic uncertainties.

Bull Case

If Carter's continues to beat EPS expectations and shows strong revenue growth, it could signal a robust recovery in consumer spending on children's apparel.

Bear Case

Conversely, if the company fails to meet revenue expectations or shows signs of declining same-store sales, it could lead to a significant drop in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the same-store sales growth be for Q2-2026?

This metric will provide insight into customer demand and the effectiveness of Carter's marketing strategies.

How does management plan to address rising costs and maintain profitability?

Understanding management's strategy for cost control will be crucial for assessing future earnings potential.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Carter's ability to leverage its brand strength and expand online sales, despite economic headwinds.

Supporting Evidence

Carter's has a strong track record of beating EPS estimates, indicating potential for continued profitability.

Options pricing suggests a larger-than-average move, indicating that traders expect significant news that could surprise the market.

The recent strong performance in Q1-2026 may indicate a trend that could continue into Q2.

Key Risk

If same-store sales exceed expectations, it could challenge the current cautious outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around consumer spending trends and Carter's ability to navigate cost pressures while maintaining profitability.

Bull Confirmed If

A same-store sales growth of +5% or better would confirm the bull case.

Bear Confirmed If

A decline in same-store sales or negative revenue growth would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±22.74%

Historical Avg

±12.3%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings report.

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)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Carter's beats expectations, history suggests a potential stock increase of around 11.67%, confirming positive market sentiment.

In-Line / Cautious

If results are in line but cautious commentary is provided, the stock may experience muted movement as investors reassess growth prospects.

Miss

A miss could lead to a decline of about 8.87%, reflecting investor disappointment and concerns over future performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on same-store sales growth and overall revenue performance.
2Management's strategy for addressing rising costs and maintaining margins.
3Insights into consumer trends and how they are impacting sales.
4Any new initiatives aimed at enhancing the online shopping experience.
5Future guidance on product line expansions and marketing strategies.