A Collapsing House of Carter's

by Beth Gaston Moon (bgmoon@sir-inc.com) 2/14/2007 11:10 AM


Keywords:

CRI

Carter's (CRI: sentiment, chart, options) shareholders may be liable to throw a temper-tantrum today. The children's clothing concern reduced its first-quarter and full-year guidance Tuesday evening on the heels of fourth-quarter weakness. CRI officials also say they do not expect any same-store sales growth in 2007. A Morgan Keegan analyst opined that "At this point, we cant' see a reason for a growth oriented investor to be involved" but added that "We also can't find a reason why a long-term, value-oriented investor wouldn't at least take a long look."

In preliminary findings, the firm said fourth-quarter earnings reached 45 cents per share, a penny below the Street estimate. Net sales rose 7.7 percent to $377.5 million. CRI will issue its full fourth-quarter earnings report on February 20.

In midday action, CRI has lost 14 percent of its value and is flirting with annual-low territory. The move has ushered the shares below their 160-week moving average for the first time on record.

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