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Carter’s (NYSE:CRI) Inc stock reached a new 52-week low, touching 25.55 USD. This marks a significant downturn for the children’s apparel company, which has seen its stock decline by 42.8% over the past year. Despite the decline, InvestingPro analysis shows the company maintains a GOOD financial health score, with a P/E ratio of 7.27 and an attractive dividend yield of 3.05%. The drop reflects ongoing challenges in the retail sector, including shifting consumer preferences and economic uncertainties. Carter’s, known for its popular children’s clothing lines, faces a challenging market environment as it navigates these headwinds. Investors are closely watching how the company plans to adapt and recover from this low point. According to InvestingPro data, the stock appears undervalued, with strong fundamentals including a 19% free cash flow yield and a 13-year track record of consistent dividend payments. Get the full analysis and 6 additional ProTips with an InvestingPro subscription.
In other recent news, Carter’s Inc. has announced a significant reduction in its quarterly dividend, decreasing it from $0.80 to $0.25 per share, marking a 68.8% decline. This change is part of a broader strategic plan under the leadership of new CEO Doug Palladini, who aims to return the company to profitable growth. As part of these efforts, Carter’s has revised its dividend policy and is planning to present a comprehensive strategy during the second quarter earnings call. S&P Global Ratings recently revised its outlook for Carter’s to negative from stable, highlighting declining profitability and increased pressure on revenue and EBITDA due to lower demand and higher product costs. Despite these challenges, the issuer credit rating of ’BB+’ remains affirmed. Additionally, Barclays (LON:BARC) has initiated coverage on Carter’s with an Underweight rating and a price target of $25, citing structural challenges in the children’s apparel sector. In another development, board member Hali Borenstein announced she will not stand for re-election at the 2026 annual meeting, choosing to focus more on her role as CEO of Reformation LLC.
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