Shares of children’s apparel manufacturer Carter’s (NYSE:CRI)
fell 11.5% in the afternoon session after the company reported weak first-quarter 2025 results, as a narrow beat on adjusted EPS and stronger-than-expected same-store sales were overshadowed by its suspension of forward guidance amid a CEO transition and tariff uncertainty.
Children’s apparel manufacturer Carter’s (NYSE:CRI) reported revenue ahead of Wall Street’s expectations in Q1 CY2025, but sales fell by 4.8% year on year to $629.8 million. Its non-GAAP profit of $0.66 per share was 27.9% above analysts’ consensus estimates.
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Guess (NYSE:GES) and its peers.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how apparel and accessories stocks fared in Q4, starting with Oxford Industries (NYSE:OXM).
A number of stocks fell in the afternoon session after stocks gave back some of the gains from the previous day as the White House clarified the tariffs on imports from China would add up to 145%, while the baseline 10% tariffs remained in place for all countries. This reminded markets that the global trade environment remained volatile, limiting the potential for sustained gains.
A number of stocks fell in the afternoon session after markets gave up early gains with optimism over progress in US-China trade talks quickly fading as the Trump administration announced plans to raise tariffs on all Chinese imports to well above 100%.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Carter's (NYSE:CRI) and the best and worst performers in the apparel and accessories industry.
Shares of children’s apparel manufacturer Carter’s (NYSE:CRI)
fell 15.7% in the afternoon session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%.
Shareholders of Carter's would probably like to forget the past six months even happened. The stock dropped 40.3% and now trades at $40.01. This might have investors contemplating their next move.
Shares of children’s apparel manufacturer Carter’s (NYSE:CRI)
fell 18.1% in the morning session after the company reported disappointing Q4 2024 results. Its full-year EPS guidance missed significantly and its EPS guidance for next quarter also fell short of Wall Street's estimates. Revenue was flat, as growth in U.S. Wholesale was offset by declines in U.S. Retail and International segments. Adjusted EBITDA took a hit, with margins shrinking due to higher freight costs and increased promotional spending, which hurt profitability. Management pointed to macroeconomic pressures, high interest rates, and planned pricing investments as ongoing challenges.
Children’s apparel manufacturer Carter’s (NYSE:CRI) reported revenue ahead of Wall Street’s expectations in Q4 CY2024, but sales were flat year on year at $859.7 million. On the other hand, next quarter’s revenue guidance of $620 million was less impressive, coming in 5.3% below analysts’ estimates. Its non-GAAP profit of $2.39 per share was 24.6% above analysts’ consensus estimates.
Carter's Q4 earnings beat expectations, but the CEO warns that lower pricing, higher product costs, and normalized compensation will impact profitability in the first half of FY25.
