Carter's, Inc. (CRI) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary indicates a decline in key financial metrics, including revenue, gross margin, operating income, net income, and EPS. Despite strategic initiatives and a positive outlook for digital growth, the immediate financial performance is weak, with a 5% revenue decrease and declining margins. Additionally, the lack of discussion on risks and shareholder returns, along with unclear management responses in the Q&A, adds uncertainty. The market cap suggests a moderate reaction, leading to a 'Negative' sentiment prediction for the stock price.
Key Financial Performance
Revenue Revenue for Q1 2026 was $700 million, a 5% decrease year-over-year, primarily due to lower consumer demand and unfavorable weather conditions impacting seasonal sales.
Gross Margin Gross margin was 40%, down from 42% in Q1 2025, reflecting higher input costs and increased promotional activity.
Operating Income Operating income was $70 million, a 12% decline year-over-year, driven by lower sales and higher operating expenses.
Net Income Net income was $50 million, a 15% decrease compared to Q1 2025, attributed to reduced revenue and increased costs.
Earnings Per Share (EPS) Earnings per share were $1.20, down from $1.40 in Q1 2025, reflecting the decline in net income.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Strategic Initiatives: The company is focusing on enhancing its digital capabilities and expanding its online presence to capture a larger market share. Additionally, there are plans to optimize the supply chain to improve efficiency and reduce costs.
Revenue Expectations: The company expects a mid-single-digit percentage increase in revenue for the fiscal year 2026, driven by growth in both the retail and digital segments.
Margin Projections: Operating margins are anticipated to improve by approximately 50 basis points, supported by cost-saving initiatives and operational efficiencies.
Capital Expenditures: Capital expenditures for the year are projected to be in the range of $75 million to $85 million, focusing on digital infrastructure and store renovations.
Market Trends: The company anticipates a gradual recovery in consumer demand, particularly in the children's apparel segment, as market conditions stabilize.
Business Segment Performance: The retail segment is expected to see steady growth, while the digital segment is projected to experience double-digit growth, reflecting the ongoing shift towards online shopping.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Review of Unclear Management Responses
A:
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
BofA Securities
Brandon Cheatham
CEO CFO
COO Chief
Cheatham Citigroup
Chief Retail
Conference Interim
Digital Officer
Division EDT
Division Jay
Division Jonathan
Division Kendall
Division Reuter
Division Tom
EDT Conference
Inc Research
Interim Chief
Interim President
Irwin Boruchow
Jay Sole
Jonathan Keypour
Kendall Toscano
Keypour Goldman
LLC Research
Needham
President Investor
Research Division
Retail Digital
Robillard Vice
Securities Research
TC Robillard
Vice President
CRI Transcript
Carter's, Inc. (CRI) Q1 2026 Earnings Call Transcript
Unknown5-6
The earnings call summary indicates a decline in key financial metrics, including revenue, gross margin, operating income, net income, and EPS. Despite strategic initiatives and a positive outlook for digital growth, the immediate financial performance is weak, with a 5% revenue decrease and declining margins. Additionally, the lack of discussion on risks and shareholder returns, along with unclear management responses in the Q&A, adds uncertainty. The market cap suggests a moderate reaction, leading to a 'Negative' sentiment prediction for the stock price.
Carter's, Inc. (CRI) Q4 2025 Earnings Call Transcript
Unknown2-27
The earnings call presents a mixed picture: strong growth in emerging brands and e-commerce, but challenges with tariffs and wholesale pricing. Despite optimistic guidance and strategic initiatives like cost reduction and marketing investments, the lack of clarity on tariff impacts and weak wholesale performance weigh on sentiment. The Q&A reveals cautious optimism but also uncertainty, particularly regarding tariffs. Given the market cap of $2.26 billion, the stock is likely to remain stable, with minor fluctuations, resulting in a neutral prediction (-2% to 2%).
Carter's, Inc. (CRI) Q3 2025 Earnings Call Transcript
Positive10-27
The earnings call reveals a mix of positive and cautious elements. The company is experiencing strong U.S. retail and international growth, and consumer acceptance of price increases is healthy. While gross margins are pressured, strategic initiatives like store closures are expected to improve profitability. The Q&A section highlights confidence in earnings growth and operational efficiency. Despite some uncertainties in pricing and SG&A details, the overall sentiment is positive, with market expansion and strategic brand initiatives supporting a favorable outlook.
Carter's, Inc. (CRI) Q2 2025 Earnings Conference Call Transcript
Unknown7-26
The earnings call summary and Q&A reveal several concerns: sales decline, suspended guidance, and tariff-related uncertainties. Despite some positive elements like product development and strategic focus, the lack of guidance and continued market challenges overshadow these. The market cap suggests a moderate reaction, leading to a negative sentiment prediction.
CRI Slides
CRI Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
