Carters stock hits 52-week low at 29.62 USD

Carters Inc (NYSE:CRI), a prominent name in children’s apparel, has seen its stock reach a 52-week low, trading at 29.62 USD. According to InvestingPro analysis, the company appears undervalued, trading at an attractive P/E ratio of 6.6x and maintaining strong liquidity with a current ratio of 2.56. This milestone reflects a significant downturn for the company, as it marks a 54.49% decrease over the past year. The decline in stock value highlights the challenges faced by Carters Inc in the current market environment, as it navigates through various economic pressures affecting consumer spending and retail dynamics. Despite these challenges, the company has maintained dividend payments for 13 consecutive years and remains profitable with an EBITDA of $313 million. The company’s stock performance will be closely watched by investors seeking signs of recovery or further decline in the coming months. InvestingPro subscribers can access 12 additional key insights about Carter’s current position and future prospects.

In other recent news, Carter’s Inc. reported its first-quarter 2025 earnings, with an earnings per share (EPS) of $0.66, surpassing analysts’ expectations of $0.62. However, the company experienced a 5% year-over-year revenue decline, reaching $630 million, and has suspended forward guidance due to leadership changes and uncertainties surrounding tariffs. The company’s Board of Directors declared a reduced quarterly dividend of $0.25 per share, down from $0.80, reflecting a strategic shift amid challenging market conditions. S&P Global Ratings has revised its outlook for Carter’s to negative from stable, citing declining profitability and increased pressure on revenue and EBITDA, driven by lower demand and higher product costs.

Barclays (LON:BARC) initiated coverage on Carter’s shares with an Underweight rating, setting a price target of $25, due to significant structural challenges in the children’s apparel sector. The firm’s analysis highlights concerns such as declining birth rates, pricing pressure, and potential negative impacts from tariffs on Chinese imports. Despite these challenges, Carter’s CEO Doug Palladini is expected to present a comprehensive strategic plan aimed at returning the company to profitable growth during the second quarter earnings call. Carter’s maintains a robust cash position and liquidity, but the dividend realignment suggests a cautious approach given anticipated strategic investments and current profitability levels.

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