Carter's

CRI

Specialty Retail · Consumer Cyclical

Price

$35.77

-0.47 (-1.30%)

Market Cap

$1.32B

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jul 4, 2026

How the score breaks down

Quality

Strong

Growth

Mixed

Cash Flow

Good

Stability

Good

Valuation

Good

Dividends

Mixed

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Share count falling — buybacks

−17.6% over 5y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 43.0M (2021) → 35.4M (2026)

Winston Score History

The full picture

Carter's makes clothing for babies and young children. Its main brands are Carter's and OshKosh B'gosh, which sell items like onesies, pajamas, and playwear. It is one of the largest branded sellers of young children's apparel in the United States.

The company makes money by selling clothes through its own retail stores, its website, and wholesale partnerships with large retailers like Target and Walmart. Carter's operates mostly in the United States but also has stores in Canada and sells internationally through partners. Its brand recognition among parents of newborns gives it a steady customer base, but the business faces real pressure from declining U.S. birth rates, which shrinks the pool of potential customers over time.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

YoY Growth Rate

Revenue data limited

EPS Growth

YoY Growth Rate

EPS data limited

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

5.4%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~10 months

$487M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Carter's has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

67.0%

Premium pricing power — 67.0% gross margin

Profit after running costs

Operating Margin

22.7%

Excellent — 22.7% operating margin

Return on the money invested

ROCE

16.9%

Strong — 16.9% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+5.2%

Slow sales growth (+5.2% YoY)

Profit growth

EPS YoY

+45.8%

Earnings growing fast (+45.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

91%

Modest — 91% of profit becomes cash

Spare cash per sale

FCF Margin

4.3%

Thin free cash flow (4.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.60

Moderate — manageable debt (0.60)

Covers its interest

Interest Cover

6.67x

Adequate interest coverage (6.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

6.5x

Attractive valuation — P/E 6.5

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

-5.7

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend

Dividend Yield

2.50%

Moderate income — 2.50% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

-62.3%

Dividend cut (-62.3% YoY) — warning sign

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