November 26, 2019 – Yahoo Finance – Carter’s Inc. is a beautiful retail business with strong brand names, proven success in mutli-channel distribution and stable management. It is also trading at reasonable price.
I regard the stock as a long-term buy, but it has broken out after trading between $80 and $110 for quite some time. As the market has just hit a new record, I recommend not chasing performance right now, but wait for about the $90 level and the true breakout of retail industry business fundamentals.
What does Carter’s do?
Carter’s sells children’s clothes. The 150-year-old company started when Abraham Lincoln was the president. The company also owns Oshkosh, which was founded in 1895. These two brands are the best-known children’s apparel companies for newborns to 10-year olds.
It is the dominant baby apparel brand with a market share five times that of its nearest competitor. Oshkosh focuses on toddlers with a market share two times larger than the next competitor. The company also uses other brands when it wholesales to other channels, such as Just One For You for Target, Child of Mine for Walmart and Simple Joys for Amazon. Carter’s brand is dominant in both sales and earnings, and baby apparel accounts about 50% of the total. The average ticket per item is under $10. In summary, Carter’s sells high-quality, affordable and cute clothes for kids.
Read more at Yahoo Finance.