GPS - Why Carter's Will Win Even in a Recession
With the country likely plunging into a recession, many U.S. apparel retailers are struggling. Most of their brick-and-mortar stores are closed, and consumers are cutting back on some discretionary spending. However, revenue in the baby and young children's clothing category tends to be more stable than in other categories, even in recessionary times.
During the period from 2007 to 2010, which bracketed the Great Recession, Carter's (NYSE: CRI) net sales increased each fiscal year. It was performing well prior to last quarter, too, boosted by market share gains and strong wholesale relationships with Target, Walmart, and Amazon. The children's apparel marketer will likely continue to be a good performer among apparel names.
Image Source: Carters.com