Children’s apparel manufacturer Carter’s (NYSE:CRI) will be reporting earnings this Wednesday morning. Here’s what to look for.
Carter's beat analysts’ revenue expectations last quarter, reporting revenues of $925.5 million, up 7.6% year on year. It was a slower quarter for the company, with EPS guidance for next quarter missing analysts’ expectations significantly and a slight miss of analysts’ adjusted operating income estimates.
Is Carter's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Carter’s revenue to grow 4.8% year on year, a reversal from the 4.8% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Carter's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Carter’s peers in the consumer discretionary - apparel and accessories segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Columbia Sportswear posted flat year-on-year revenue, beating analysts’ expectations by 2.6%, and Levi's reported revenues up 14.1%, topping estimates by 5.6%. Columbia Sportswear traded up 2.3% following the results while Levi's was also up 10.7%.
Read our full analysis of Columbia Sportswear’s results here and Levi’s results here.
There has been positive sentiment among investors in the consumer discretionary - apparel and accessories segment, with share prices up 4.4% on average over the last month. Carter's is down 7.7% during the same time and is heading into earnings with an average analyst price target of $39.33 (compared to the current share price of $33.17).
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