Carter's Growth Story Gains Strength: Is More Upside Ahead?

Carter's Inc. (CRI) delivered strong Q2 fiscal 2026 results with 5% year-over-year sales growth and 54% adjusted operating profit growth. U.S. Retail comparable sales rose 5% with double-digit e-commerce growth, while U.S. Wholesale sales increased 12%. The company trades at a forward P/E of 10.13X versus industry average of 18.41X and holds a Zacks Rank #1 (Strong Buy). However, challenges include tariff uncertainty and cautious consumer spending.