TacticScaleWhat Carter's Does & How It Makes Money (CRI)
Updated October 2026 · reflects Carter's's latest reported financials
Leading U.S. maker and retailer of baby and young children's clothing. It sources branded childrenswear and baby products and sells them at retail through its own stores and e-commerce channels, and at wholesale to department stores, national chains, and specialty retailers in the U.S.
How Carter's makes money
It sources branded childrenswear and baby products and sells them at retail through its own stores and e-commerce channels, and at wholesale to department stores, national chains, and specialty retailers in the U.S. and abroad. It also sells exclusive brands such as Child of Mine, Just One You, and Simple Joys.
What Carter's does
Carter's, Inc., founded in 1865 and based in Atlanta, is a branded childrenswear company focused on babies and young children. Its range covers everyday essentials such as bodysuits, layette items, sleep-and-play sets, and sleepwear, plus playclothes like denim, overalls, and knit tops. It also sells swimwear, outerwear, bedding, accessories, toys, licensed character tees, and baby gear for mealtime, bath time, travel, and home. The company reports three segments: U.S. Retail, U.S. Wholesale, and International. It sells directly through its own stores, websites, and mobile app, and wholesales to department stores, national chains, and specialty retailers. Its brands include Carter's, OshKosh B'gosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Little Planet, and Otter Avenue.
Products & services
- Carter's baby and toddler apparel
- OshKosh B'gosh playclothes and denim
- Skip Hop baby gear and diaper bags
- Child of Mine
- Simple Joys
- Little Planet
What is Carter's worth?
On an owner-earnings DCF, Carter's's most-likely value is about $91 versus a recent price near $32 (180% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$71) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.
On the financials alone, $32 is below even the no-growth floor ($71); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -13.0%/yr. A bargain only if that pessimism is overdone.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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