Carter's (NYSE:CRI) Inc., a renowned name in the children's apparel industry, has recently hit a 52-week low, with its share price plummeting to $59.865. This marks a significant downturn for the company, which has been grappling with a challenging market environment. Over the past year, Carter's Inc. has seen a substantial decrease in its stock value, with a 1-year change data showing a decline of -19.52%. This downward trend reflects the ongoing struggles faced by the company, and the broader retail sector, amidst shifting consumer behaviors and economic uncertainties.
In other recent news, Carter's, a leading retailer in children's apparel, has been the subject of recent analysis and developments. Citi has revised its outlook on Carter's, lowering the price target to $55 from $60 and maintaining a Sell rating. This adjustment reflects expectations of a mixed financial performance due to market trends. Citi also anticipates that Carter's will surpass the consensus earnings per share (EPS) estimate for the second quarter of 2024, projecting an EPS of $0.62 compared to the consensus of $0.49. This projection is based on stronger wholesale sales and gross margins.
However, Citi also predicts weaker direct-to-consumer (DTC) sales in the U.S. retail sector than what the consensus suggests. The firm expects Carter's to revise the full-year 2024 EPS guidance downwards to approximately $6.00, due to weaker sales in the second half of the year. In other developments, Carter's reported a stronger-than-expected performance in the first quarter of 2024, with earnings and sales surpassing market expectations. The company's U.S. wholesale business experienced a boost due to early seasonal demand, while international sales met forecasts with strength in Mexico and Brazil offsetting weaker performance in Canada.
InvestingPro Insights
In light of Carter's Inc.'s recent stock performance, InvestingPro data provides a broader perspective on the company's financial health. With a market capitalization of $2.21 billion and a P/E ratio that stands at a modest 9.54, Carter's appears to be trading at a low price relative to near-term earnings growth. Additionally, the company shows a strong free cash flow yield, as suggested by the PEG ratio of 0.77, indicating potential for investor returns.
InvestingPro Tips highlight that Carter's Inc. not only pays a significant dividend to shareholders but has also maintained these payments for 12 consecutive years. Currently, the dividend yield is an attractive 5.3%, coupled with a dividend growth of 6.67% in the last twelve months as of Q1 2023. This could signal a robust income-generating investment for dividend-seeking shareholders.
For investors considering a deeper analysis, Carter's Inc. has more to offer. There are additional InvestingPro Tips available that could provide further insights into the company’s performance and potential. For instance, Carter's liquid assets exceed its short-term obligations, which is a positive indicator of the company's liquidity. Moreover, analysts predict the company will be profitable this year, and it has been profitable over the last twelve months. To discover more about these insights and to access a comprehensive list of tips, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
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