CRI earnings analysis
What we found in CRI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Carter's, Inc. reported Q1 2026 revenue of $681 million, exceeding consensus estimates of $661 million, with a diluted EPS of $0.39, higher than expected. Management anticipates low single-digit to mid-single-digit percentage growth in net sales and adjusted operating income for the fiscal year, citing strong U.S. Retail comparable sales as a key driver despite facing risks from tariffs and inflation.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Exceeds Estimates
- Total revenue reached $681 million, surpassing the consensus estimate of $661 million.
- Strong EPS Performance
- Reported diluted EPS of $0.39, significantly exceeding prior estimates of $0.11.
- U.S. Retail Growth
- U.S. Retail comparable sales increased by 10.5%.
- Improved Operating Cash Flow
- Operating cash flow showed a positive trend, reflecting better cash management.
- No Impairment Charges
- Management reported no impairment charges, which supports asset valuations.
- Solid Guidance Reiteration
- Management reaffirms low to mid single-digit growth expectations for fiscal 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Rising Tariff and Inflation Costs
- Tariff pressures and inflation are expected to impact costs, affecting margins.
- Geopolitical Instability Risks
- Ongoing geopolitical tensions could adversely affect financial performance.
- Potential Margin Compression
- Economic uncertainty may lead to decreased consumer spending and margin pressures.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.39
What they said about what is next.
Management expects low single-digit to mid-single-digit percentage growth in net sales and adjusted operating income for fiscal 2026.
The filing reads better than the one before it.
What came before.
- 10-K · February 27, 2026
- Carter’s 2025 10-K emphasizes its #1 position in U.S. children’s apparel (Carter’s brands ~9% share as of December 2025) and a multi-channel footprint (1,068 company-operated stores in North America and ~19,500…
- 10-Q · October 27, 2025
- Carter’s reported Q3 net sales essentially flat at $757.8M (down $0.6M, -0.1% vs. Q3 2024), but profits compressed sharply: gross margin fell 180 bps to 45.1% and diluted EPS dropped to $0.32 (down $1.30, -80.2% YoY).…
- 10-K · February 25, 2025
- Carter’s 2024 10-K shows a business executing a three-part strategy (elevate product style/value, improve marketing, leverage multichannel) while facing a modest sales decline: consolidated net sales fell $101.5 million…
- 10-Q · July 26, 2024
- Carter’s reported consolidated net sales of $564,434,000 in Q2 (down $35.8M or 6.0% vs. prior-year quarter) with diluted EPS of $0.76 (up $0.12 vs. prior year). Gross margin expanded to 50.1% (+150 bps) and operating…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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