Margin work drove the quarter: gross margin expanded to 47.1% from 45.1%. Management still trimmed the full-year sales outlook and guided adjusted EPS to $3.05 to $3.23, below last year's $3.47. The guidance says the consumer has not come back.
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Carter's reports before the open at 6:02 AM ET with three straight EPS beats behind it, including a $0.17 result last quarter against a $0.02 estimate. Consensus this time is $0.852 on $748.13 million in revenue, a far higher bar for a $1.2 billion market cap that has little room for a stumble.
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