CRI

Does Carter's (CRI) have what it takes to be a top stock pick for momentum investors? Let's find out.

CRI Q2 beat estimates as retail, e-commerce and international growth gained momentum, while tariffs remain a key risk to margins.

Carter's Q2 momentum and raised outlook strengthen its recovery case, but tariff uncertainty, pricing pressure and consumer risks remain key concerns.

Carter's Q2 beat estimates on retail, wholesale and productivity gains, but tariff recoveries and softer demand cloud the recovery outlook.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

CRI's Q2 earnings and sales top estimates as wholesale and retail gains offset tariff-driven gross-margin pressure.

Carter's NYSE: CRI reported second-quarter fiscal 2026 results that exceeded its prior outlook, with net sales rising 5% from a year earlier to $615 million and adjusted operating income increasing 54% to $18 million. The company also narrowed its full-year sales outlook while maintaining its forecast for low- to mid-single-digit adjusted operating-income growth.

Carter's, Inc. (CRI) Q2 2026 Earnings Call Transcript

Carter's (CRI) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.17 per share a year ago.

CRI's Q2 sales are likely to rise as retail traffic, new customers and collaborations gain traction, but tariffs and higher costs could pressure earnings.