DA Davidson analyst John Morris lowered his price target on Carter's to $91 and kept his Neutral rating as part of his broader Davidson Datamining Dashboards report, saying the company is faced with a merchandise margin risk in Q2 based on his findings of its deeper promotional activity. The analyst notes that the average depth of markdowns at Carter's has accelerated in Q2, trending "meaningfully above" last year's levels. With the average price of SKU's on the company's markdowns declining by about 15%, Morris lowers his Q2 gross margin outlook by 40bps and also cuts his Q2 earnings view by 2c to 78c.

Sees FY24 revenue $2.95B-$3B, consensus $2.96B.