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CRI News
CRI Events
Carter's Q2 Revenue $615.5M Exceeds Expectations
Reports Q2 revenue $615.5M, consensus $ 606.14M. "Demonstrating continued momentum, the Company posted positive results for the second quarter as net sales increased 5% and adjusted operating profit increased 54%, exceeding the prior outlook. While there were a number of moving parts in the quarter, we believe these results are largely reflective of improved marketing efforts, the early benefit of productivity initiatives, and continued progress in the critical Baby segment," said Sharon Price John, CEO & President. "Separately, having recently joined the organization, I look forward to leading this historic company into its next exciting chapter. Carter's is the market share leader in its category fueled by a well-established, diversified business model and powerful assets including its iconic brands, providing a wealth of opportunity to unlock value, drive profitable growth and deliver meaningful shareholder returns."
Company Sees Q3 Revenue at $750M
Sees Q3 revenue $750M, consensus $799.06M. Sees Q3 operating income $50M. The company said, "The Company's outlook for Q3 assumes: Higher gross margin rate, reflecting a greater mix of U.S. Retail sales and the anniversary of higher incremental tariff costs, which began in Q3 of 2025; Comparable SG&A expense, reflecting organizational restructuring savings offset by investments in demand creation and other cost inflation across the business; Net interest expense of approximately $9M, reflecting higher principal amount and coupon rate associated with the refinancing of its senior notes in Q4 2025; Average number of shares outstanding of approximately 36M."
Company Projects 2%-3% Growth in Net Sales for FY26
The company said, "The Company's FY25 included a 53rd week, which contributed approximately $37M in consolidated net sales. For fiscal year 2026 (a 52 week fiscal year), the Company projects approximately: 2%-3% growth in net sales, vs. $2.898B in FY25; Low single-digit to mid-single-digit percentage growth in adjusted operating income vs. $176M in FY25); High single-digit to low double-digit percentage decline in adjusted diluted earnings per share $3.47 in FY25; Operating cash flow of $230M-$240M; and Capital expenditures $50M. The Company's outlook for FY26 assumes earnings contributions weighted to the second half due to greater projected net impact of tariffs and investment spending in the first half relative to the second half; Lower gross margin rate, reflecting incremental tariff costs partially offset by higher pricing, tariff mitigation actions, and productivity savings; Low-single digit increase in SG&A, reflecting organizational restructuring and store fleet rationalization savings offset by investments in demand creation, information technology, and other cost inflation across the business; Net interest expense of approximately $35M, reflecting higher principal amount and coupon rate associated with the refinancing of its senior notes in Q4 2025; Effective tax rate of approximately 23%; and Average number of shares outstanding of approximately 36M."
Carter's Partners with Atlanta Dream for Multi-Season Deal
Carter's and the Atlanta Dream announced a multi-season partnership in women's basketball. Through the 2026 and 2027 WNBA seasons, the partnership will create immersive experiences rooted in childhood, sport and community. The partnership will include in-arena experiences, co-branded community activations, exclusive family-focused content, retail integrations and storytelling. Throughout the season, Carter's branding and activations will appear across Atlanta Dream home games through courtside signage, digital media integrations and family-focused in-game experiences including the Carter's Simba Cam, Baby Crawl Races and additional family entertainment moments. Carter's will also host special retail events and celebrations at its Atlanta retail locations. The partnership will also feature a long-form content series spotlighting Atlanta Dream players live across Dream and Carter's digital and social platforms.
Federal Reserve Keeps Rates Unchanged, Markets Close Lower
The major averages closed lower after the Federal Reserve, now under new chair Kevin Warsh, voted 12-0 to keep the target range for the federal funds rate unchanged at 3.5%-3.75%. Of note, in the committee's quarterly summary of economic projections, half of the respondents indicated they expect at least one rate hike this year, with some committee members projecting two or three. In a dramatically shorter post-meeting statement, the Fed said that inflation remains elevated, but committed that the committee will "deliver price stability."Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Jabilprovided areport for Q3La-Z-Boyreportedand announced a new $300M share repurchase programCarMaxreportedDiana Shippingraised itsGenco Shippingto $27.34 per shareThe U.S. Federal Reserve kept the target for theat 3.50%-3.75%2. WALL STREET CALLS:RothschildLyftto Buy on autonomous vehicle upsideLeidosto Neutral at BofA on increasing healthcare pressureCiti highlights AI ramp incoverage of Figmawith a BuyCarter'sto Equal Weight from Underweight at Wells FargoResMedto Equal Weight at Morgan Stanley3. AROUND THE WEB:Activist investor Toms Capital is targeting Devon Energy, FT reportsNew DiageoCEO Dave Lewis has launched a "significant" restructuring efforts, FT saysMetaCTO Andrew Bosworth acknowledged that the company handled its recent AI reorganization poorly, describing the rollout as "atrocious" in an internal memo, Wired saysPayPalis winding down its decade-old venture investing arm as part of a broader corporate restructuring, with the team shrinking from more than 10 employees in late 2025 to just two and public visibility into the unit's staff largely removed, Fortune reportsOraclesaid on Tuesday that details in a Business Insider report on the collapse of its discussions with Microsoftover a potential leasing deal were inaccurate, according to Reuters4. MOVERS:uniQuregained in New York after announcingfor AMT-130SharonAIwas higher afterBitGoincreased after announcing aLionsgate Studioswas lower in New York afterNetflixhas no plans to pursue a takeover of the companyCME Groupfell after announcingand Lynne Fitzpatrick will succeed5. EARNINGS/GUIDANCE:Deswell Industries, with EPS lower year-over-yearSmith & Wesson Brandson June 17, 2026Accentureon June 18, 2026Krogeron June 18, 2026Safe Bulkerson June 18, 2026INDEXES:The Dow fell 507.12, or 0.98%, to 51,492.55, the Nasdaq lost 354.69, or 1.34%, to 26,021.66, and the S&P 500 declined 91.25, or 1.21%, to 7,420.10.
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