Children’s apparel manufacturer Carter’s (NYSE:CRI) will be reporting results tomorrow before market hours. Here’s what to expect.
Carter's beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $859.7 million, flat year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ same-store sales estimates but full-year EPS guidance missing analysts’ expectations significantly.
Is Carter's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Carter’s revenue to decline 5.7% year on year to $623.9 million, in line with the 4.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Carter's has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Carter’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Levi's delivered year-on-year revenue growth of 3.1%, missing analysts’ expectations by 0.8%, and Nike reported a revenue decline of 9.3%, topping estimates by 2.3%. Levi's traded down 8.2% following the results while Nike was also down 5.4%.
Read our full analysis of Levi’s results here and Nike’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 10.3% on average over the last month. Carter's is down 10.7% during the same time and is heading into earnings with an average analyst price target of $39.75 (compared to the current share price of $37.27).
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