CartersNYSE: CRI

CRI battles various uncertainties, such as a tough macroeconomic environment, inflation, generational high interest rates and a slowdown in consumer spending.

Carter's strategy includes closing low-margin stores, opening high-margin ones, and leveraging omni-channel sales, boosting customer growth and e-commerce. Strong relationships with Target, Walmart, and Amazon expand CRI's customer base, countering domestic sales declines and emphasizing the importance of emotional marketing. Current valuation at a P/E ratio of 10.5x and a 5.6% dividend yield offer a compelling entry point with significant upside potential.

Carter's, Inc.'s Q3 2024 results showed a 4% sales decline, with aggressive pricing strategies impacting margins; a challenging Q4 is expected with further sales declines. Despite a 15% stock drop post-earnings, I maintain a Hold rating due to ongoing challenges and an insufficient yield to entice investment. Wholesale volumes grew, driven by Amazon and Walmart, but retail remains pressured; discounting risks long-term margin deterioration.

CRI experiences soft sales results in the third quarter of 2024, largely driven by weak sales in segments, impacts of inflation and currency headwinds.

Carter's, Inc. (NYSE:CRI ) Q3 2024 Results Conference Call October 25, 2024 8:30 AM ET Company Participants Sean McHugh - Vice President and Treasurer Michael Casey - Chairman, President and Chief Executive Officer Richard Westenberger - Senior EVP, Chief Financial Officer and Chief Operating Officer Kendra Krugman - Senior Executive Vice President, Chief Creative and Growth Officer Conference Call Participants Ike Boruchow - Wells Fargo Jay Sole - UBS Chris Nardone - Bank of America Paul Lejuez - Citi William Reuter - Bank of America Jim Chartier - Monness, Crespi and Hardt Carla Casella - JPMorgan Operator Welcome to Carter's Third Quarter Fiscal 2024 Earnings Conference Call. On the call are Michael Casey, Chairman and Chief Executive Officer; Richard Westenberger, Chief Financial Officer and Chief Operating Officer; Kendra Krugman, Chief Creative and Growth Officer; and Sean McHugh, Treasurer.

ATLANTA--(BUSINESS WIRE)--Carter's, Inc. (NYSE:CRI), the largest branded marketer in North America of apparel exclusively for babies and young children, today reported its third quarter fiscal 2024 results. “We exceeded our third quarter sales and earnings objectives,” said Michael D. Casey, Chairman and Chief Executive Officer. “Our U.S. Retail sales were better than planned and driven by the strength of our product offerings, and effectiveness of our pricing and brand marketing strategies. “I.

Challenging macroeconomic conditions, wavering consumer confidence, rising inflation and increased promotional activity are likely to hurt CRI's Q3 results.

ATLANTA--(BUSINESS WIRE)--Carter's, Inc. (NYSE:CRI), the largest branded marketer in North America of apparel exclusively for babies and young children, will report its third quarter fiscal 2024 results before the market opens on Friday, October 25, 2024. The Company will host a conference call to discuss its results and business outlook on this date at 8:30 a.m. Eastern Daylight Time. To listen to a live webcast and view the accompanying presentation materials, please visit ir.carters.com and.

Shares of Carter's, Inc. have been under pressure amid weak sales. The company remains profitable, with fundamentals supported by a strong balance sheet. We see value in the stock's 5.1% dividend yield.