Carter's, Inc. (NYSE:CRI) is a well-known name in the children's apparel industry, offering a wide range of clothing and accessories. The company operates in the competitive Zacks Shoes and Retail Apparel industry, where it faces competition from other major brands. On October 27, 2025, Carter's reported its earnings, revealing a revenue of approximately $758 million, which was below the estimated $866 million.
During the Q3 2025 earnings call, Carter's key executives, including CEO Douglas Palladini and CFO Richard Westenberger, discussed the company's financial performance. The earnings per share (EPS) for the quarter was $0.74, missing the Zacks Consensus Estimate of $0.78. This represents a significant drop from the $1.64 per share reported in the same quarter last year, highlighting a negative surprise of 5.13%.
Despite the earnings miss, Carter's managed to post revenues of $758 million for the quarter ending September 2025, slightly exceeding the Zacks Consensus Estimate by 0.91%. This revenue figure is nearly unchanged from the $758.46 million reported a year ago, demonstrating consistency in sales performance. Carter's has consistently exceeded consensus revenue estimates in the past four quarters.
Carter's financial metrics provide insight into its market valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 13.32, indicating how the market values its earnings. The price-to-sales ratio of about 0.43 suggests a relatively low market valuation compared to its revenue. Additionally, the enterprise value to sales ratio is 0.61, reflecting a modest valuation in relation to sales.
The company's financial stability is further supported by its debt-to-equity ratio of 0.79, indicating a balanced approach to leveraging debt. Carter's current ratio of 2.26 suggests strong liquidity, ensuring the company is well-positioned to cover its short-term liabilities. With an earnings yield of approximately 7.51%, Carter's offers a reasonable return on investment, appealing to investors seeking stable returns.
