CARTER'S INC (NYSE:CRI) offers an 8.82% dividend yield, strong profitability, and solid financial health, making it a potential pick for income-focused investors.
Shares of children’s apparel manufacturer Carter’s (NYSE:CRI) fell 9.8% in the afternoon session after the company slashed its quarterly dividend to $0.25 from $0.80 in the previous quarter. Management acknowledged that the prior dividend level was unsustainable given current profitability. While painful for investors, the cut was intended to preserve cash and maintain financial flexibility in response to growing macroeconomic uncertainty and the risk of rising costs from potential tariffs.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Children’s apparel manufacturer Carter’s (NYSE:CRI) announced better-than-expected revenue in Q1 CY2025, but sales fell by 4.8% year on year to $629.8 million. Its non-GAAP profit of $0.66 per share was 27.8% above analysts’ consensus estimates.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
Rock-bottom prices don't always mean rock-bottom businesses.
The stocks we're examining today have all touched their 52-week lows, creating a classic investor's dilemma: bargain opportunity or value trap?
Barclays analyst Paul Kearney initiated coverage on Gildan Activewear, Macy's, Columbia Sportswear, Carter's and Kohl's, with mixed ratings and price forecasts. Despite strong U.S. consumer trends, Kearney remains cautious, citing market volatility and tariff risks impacting apparel sales into 2026.
Shares of children’s apparel manufacturer Carter’s (NYSE:CRI)
fell 11.5% in the afternoon session after the company reported weak first-quarter 2025 results, as a narrow beat on adjusted EPS and stronger-than-expected same-store sales were overshadowed by its suspension of forward guidance amid a CEO transition and tariff uncertainty.
Children’s apparel manufacturer Carter’s (NYSE:CRI) reported revenue ahead of Wall Street’s expectations in Q1 CY2025, but sales fell by 4.8% year on year to $629.8 million. Its non-GAAP profit of $0.66 per share was 27.9% above analysts’ consensus estimates.
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Guess (NYSE:GES) and its peers.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how apparel and accessories stocks fared in Q4, starting with Oxford Industries (NYSE:OXM).
A number of stocks fell in the afternoon session after stocks gave back some of the gains from the previous day as the White House clarified the tariffs on imports from China would add up to 145%, while the baseline 10% tariffs remained in place for all countries. This reminded markets that the global trade environment remained volatile, limiting the potential for sustained gains.
A number of stocks fell in the afternoon session after markets gave up early gains with optimism over progress in US-China trade talks quickly fading as the Trump administration announced plans to raise tariffs on all Chinese imports to well above 100%.
