J.P. Morgan Remains On The Sidelines Regarding Carter's (CRI)

In a recent report, J.P. Morgan remains on the sideline regarding Carter's

. In the report, J.P. Morgan said, "In addition to facing some of the largest impact from sourcing inflation in our space, higher inventories (up 52% at the end of 1Q), lower-margin sales to the off-price channel, and weakness in its OshKosh segment are the new worries on the CRI story. We continue to remain on the sidelines given what we think could be difficult promotional backdrop in the kids' space and concerns about demand elasticity." CRI closed at $29.70 yesterday.