Carter's Ex-Dividend Date and Dividend Impact Analysis

Introduction

Carter’s Inc. (CRI) has a consistent and reliable dividend policy, reflecting its maturity and stability in the retail and children's apparel sector. The company has maintained a strong financial position, with earnings and cash flow supporting its dividend payments. As a well-established name in the industry, Carter’s dividend strategy aligns with that of its peers, with a moderate payout relative to its earnings. The current market environment remains stable, with consumer goods stocks benefiting from seasonal demand and continued retail spending resilience.

Dividend Overview and Context

On November 24, 2025, Carter’s will go ex-dividend, meaning that shareholders on record as of that date will be eligible to receive a cash dividend of $0.25 per share. This payout is consistent with the company’s historical pattern and is supported by its recent earnings report. The ex-dividend date typically results in a small decline in the stock price equal to the dividend amount, as the value of the stock adjusts to reflect the payout. Investors should be aware that while the price may drop slightly on this date, historical trends suggest a quick rebound in Carter’s stock.

Backtest Analysis

The backtest results indicate that Carter’s stock has historically shown a strong and consistent price rebound after its dividend payments. Over the past 12 dividend events, the stock has an average dividend recovery duration of 1.91 days, and there is a 92% probability of recovery within 15 days of the ex-dividend date. This suggests that the market adjusts swiftly to the dividend distribution, and the impact on the stock’s price is typically short-lived.

Driver Analysis and Implications

The most recent financial report highlights strong performance across key metrics. Carter’s reported total revenue of $1.98 billion, with operating income of $157.0 million and net income of $124.0 million. The company's basic and diluted EPS from continuing operations stands at $3.41, supporting the sustainability of its $0.25 dividend payout.

The dividend payout ratio is approximately 7.3%, which is well within the healthy range and indicates the company has ample capacity to maintain or even grow its dividend. This conservative approach reflects a balance between returning capital to shareholders and preserving financial flexibility. The company’s net interest expense and operating expenses remain manageable, further supporting its ability to sustain dividends during periods of market fluctuation.

The broader macroeconomic environment remains supportive for consumer goods companies. Rising consumer confidence and a strong holiday shopping season bode well for Carter’s business outlook.

Investment Strategies and Recommendations

For short-term investors, the backtested performance suggests a strategic opportunity to monitor the stock around the ex-dividend date, with potential entry points emerging in the days following the payout. The high recovery probability makes this an attractive option for those seeking short-term price rebounds.

Long-term investors may consider dividend reinvestment strategies to benefit from compounding returns. Carter’s consistent dividend history and strong financials make it a compelling addition to a diversified income portfolio.

Conclusion & Outlook

Carter’s ex-dividend date on November 24, 2025, marks another step in its disciplined approach to shareholder returns. The company’s financials and historical price performance support the sustainability of its dividend and a quick rebound in stock price following the ex-dividend adjustment. With the next earnings report expected in the coming months, investors should remain attentive to how Carter’s navigates the evolving retail landscape.