Carter's (CRI) Q4 Results Exceed Forecasts for Earnings and Revenue

Carter's Quarterly Earnings Exceed Expectations

Carter's (CRI) reported earnings of $1.90 per share for the quarter, surpassing the Zacks Consensus Estimate of $1.70 per share. This result is adjusted for one-time items and compares to last year's earnings of $2.39 per share.

The company delivered a positive earnings surprise of 12.09%. In the previous quarter, Carter's was anticipated to earn $0.78 per share but actually posted $0.74, resulting in a negative surprise of 5.13%.

Over the past four quarters, Carter's has exceeded consensus EPS forecasts twice.

Revenue Performance

Operating within the Zacks Shoes and Retail Apparel sector, Carter's generated $925.45 million in revenue for the quarter ending December 2025, beating the consensus estimate by nearly 1%. This marks an increase from $859.71 million in the same period last year. The company has outperformed revenue expectations in each of the last four quarters.

Stock Movement and Outlook

The immediate direction of Carter's stock price will largely depend on management's comments during the earnings call and future earnings projections.

Since the start of the year, Carter's shares have risen approximately 29.7%, compared to the S&P 500's modest gain of 0.9%.

Future Prospects for Carter's

Although Carter's has outpaced the broader market this year, investors are now considering what lies ahead for the stock.

One useful indicator is the company's earnings outlook, which includes both current consensus estimates for upcoming quarters and recent changes to those forecasts.

Research indicates that short-term stock price movements are closely linked to trends in earnings estimate revisions. Investors can monitor these changes themselves or use tools such as the Zacks Rank, which has a strong history of leveraging earnings estimate revisions.

Prior to this earnings announcement, Carter's estimate revisions were trending positively. Although these may shift following the latest report, the stock currently holds a Zacks Rank #2 (Buy), suggesting it is likely to outperform the market in the near term.

It will be important to observe how estimates for upcoming quarters and the current fiscal year evolve. Presently, the consensus EPS estimate stands at $0.52 on $649.78 million in revenue for the next quarter, and $2.35 on $3.02 billion in revenue for the fiscal year.

Investors should also consider the broader industry outlook, as it can significantly influence stock performance. The Shoes and Retail Apparel industry is currently ranked in the bottom 39% among over 250 Zacks industries. Historically, the top half of Zacks-ranked industries outperform the lower half by more than two to one.

Industry Comparison: Caleres Inc.

Another company in the same sector, Caleres Inc. (CAL), has yet to release its results for the quarter ending January 2026.

Caleres is projected to report a quarterly loss of $0.38 per share, reflecting a year-over-year decline of 215.2%. The consensus EPS estimate for Caleres has remained unchanged over the past month.

Revenue for Caleres is expected to reach $688.43 million, representing a 7.7% increase from the prior year.

Investment Considerations for Carter's, Inc. (CRI)

If you're considering investing in Carter's, Inc. (CRI), you may want to explore Zacks Investment Research's free report on the 7 top stocks to buy over the next month.

Since 1978, Zacks Investment Research has provided investors with independent analysis and tools. Over more than 25 years, the Zacks Rank stock-rating system has delivered average annual gains of 24.08%, more than doubling the S&P 500 from January 1, 1988 through May 6, 2024.

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