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, focusing on providing quality clothing for infants and young children....

Key Metrics to Watch

Revenue Growth

Understanding revenue growth is crucial as it indicates how well Carter's is performing in a competitive retail environment.

N/A

Earnings Per Share (EPS)

EPS is a key measure of profitability and will help gauge how effectively the company is managing costs and generating profits.

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, focusing on providing quality clothing for infants and young children. As a part of the consumer discretionary sector, the company's performance is closely tied to consumer spending trends, particularly in the family and children's market.

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 exceeding expectations of $0.07, which resulted in an 11.67% stock increase the following day. However, revenue figures were not disclosed, leaving some uncertainty about overall sales performance.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, investors are cautiously optimistic about Carter's upcoming earnings, given the strong EPS surprise last quarter. However, concerns remain about revenue growth and consumer spending trends in the retail sector.

Bull Case

If Carter's continues to beat EPS expectations and shows strong revenue growth, it could signal a robust recovery in consumer spending, potentially driving the stock higher.

Bear Case

On the other hand, if the company fails to meet revenue expectations or shows signs of declining same-store sales, it could lead to a negative reaction from investors.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the reported revenue growth for Q2-2026?

Revenue growth is essential to understand the company's market position and consumer demand, especially in a challenging retail environment.

How did same-store sales perform in the last quarter?

Same-store sales provide insight into the company's operational efficiency and customer retention, which are critical for future growth.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the impact of recent consumer spending trends, which suggest a stronger recovery in the children's apparel market than anticipated.

Supporting Evidence

Carter's has a history of beating EPS estimates, which could indicate stronger underlying performance than analysts expect.

The options market is pricing in a larger move than historical averages, suggesting that investors are bracing for significant news.

Recent trends in consumer spending on children's products have shown resilience, which could positively impact Carter's sales.

Key Risk

If revenue growth comes in below expectations, it could undermine the bullish sentiment surrounding the stock.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will hinge on revenue growth and same-store sales, which are key indicators of consumer demand and operational success.

Bull Confirmed If

Revenue growth of 10% or more year-over-year would confirm the bull case.

Bear Confirmed If

A decline in same-store sales 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 potential move in either direction, indicating heightened uncertainty 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 and raises guidance, history suggests the stock could see a positive reaction, averaging a 12.33% move.

In-Line / Cautious

If results are in line but management provides cautious commentary, the stock may experience muted movement as investors reassess future growth.

Miss

If the company misses expectations, history suggests a potential downside of around 8.87%, reflecting investor disappointment.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on revenue growth compared to last year.
2Details on same-store sales performance and trends.
3Management's outlook on consumer spending in the children's apparel market.
4Insights into inventory levels and supply chain management.
5Any commentary on new product launches or marketing strategies.

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Company Snapshot

Carter's, Inc. (CRI) is a leading retailer of children's apparel and accessories, focusing on providing quality clothing for infants and young children....

Key Metrics to Watch

Revenue Growth

Understanding revenue growth is crucial as it indicates how well Carter's is performing in a competitive retail environment.

N/A

Earnings Per Share (EPS)

EPS is a key measure of profitability and will help gauge how effectively the company is managing costs and generating profits.

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 continues to beat EPS expectations and shows strong revenue growth, it could signal a robust recovery in consumer spending, potentially driving the stock higher.

Bear Case

On the other hand, if the company fails to meet revenue expectations or shows signs of declining same-store sales, it could lead to a negative reaction from investors.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the reported revenue growth for Q2-2026?

Revenue growth is essential to understand the company's market position and consumer demand, especially in a challenging retail environment.

How did same-store sales perform in the last quarter?

Same-store sales provide insight into the company's operational efficiency and customer retention, which are critical for future growth.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the impact of recent consumer spending trends, which suggest a stronger recovery in the children's apparel market than anticipated.

Supporting Evidence

Carter's has a history of beating EPS estimates, which could indicate stronger underlying performance than analysts expect.

The options market is pricing in a larger move than historical averages, suggesting that investors are bracing for significant news.

Recent trends in consumer spending on children's products have shown resilience, which could positively impact Carter's sales.

Key Risk

If revenue growth comes in below expectations, it could undermine the bullish sentiment surrounding the stock.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will hinge on revenue growth and same-store sales, which are key indicators of consumer demand and operational success.

Bull Confirmed If

Revenue growth of 10% or more year-over-year would confirm the bull case.

Bear Confirmed If

A decline in same-store sales 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 potential move in either direction, indicating heightened uncertainty 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 and raises guidance, history suggests the stock could see a positive reaction, averaging a 12.33% move.

In-Line / Cautious

If results are in line but management provides cautious commentary, the stock may experience muted movement as investors reassess future growth.

Miss

If the company misses expectations, history suggests a potential downside of around 8.87%, reflecting investor disappointment.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on revenue growth compared to last year.
2Details on same-store sales performance and trends.
3Management's outlook on consumer spending in the children's apparel market.
4Insights into inventory levels and supply chain management.
5Any commentary on new product launches or marketing strategies.