Stock Story -
What Happened: Shares of children’s apparel manufacturer Carter’s (NYSE:CRI) fell 11.3% in the morning session after the company reported second quarter earnings results. Its full-year revenue guidance was lowered, and it now sits below expectations. Also its full-year earnings guidance fell short of Wall Street's estimates, so the outlook is worrisome for the retailer. Management highlighted a host of challenges. Firstly, CRI called out weaker market conditions due to declining consumer confidence and inflation, which hasn't moderated to expected levels. In addition, the company noted that "The quarter got off to a slow start in April with the earlier Easter holiday and late arrival of warmer weather." Overall, this was a bad quarter.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Carter's? Find out by reading the original article on StockStory, it's free.
What is the market telling us: Carter's's shares are not very volatile than the market average and over the last year have had only one move greater than 5%. But moves this big are very rare even for Carter's and that is indicating to us that this news had a significant impact on the market's perception of the business.
Carter's is down 23.1% since the beginning of the year, and at $58.00 per share it is trading 34% below its 52-week high of $87.92 from March 2024. Investors who bought $1,000 worth of Carter's's shares 5 years ago would now be looking at an investment worth $607.91.
