Carter's vs Warby Parker
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KIRA’s take AI analyst
I put Carter's and Warby Parker side by side, using each one’s latest annual report. Here is what stands out:
- Carter's is the larger business, with $2.9B of revenue in fiscal 2025 against $872M for Warby Parker, about 3.3 times as much.
- Warby Parker grew revenue faster (13.0%, against 1.9%).
- Carter's kept more of each dollar of sales as operating profit (5.0% operating margin, against −0.6%).
- Warby Parker turned more of its sales into free cash flow (5.0% FCF margin, against 2.4%).
- Carter's earned a higher return on the capital invested in it (11.9%, against −3.4%).
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Carter's
CRI
6/11
Operating marginNet marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
Warby Parker
WRBY
5/11
Revenue growth5-year growthGross marginFCF marginNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | CRI FY25 | WRBY FY25 |
|---|---|---|
| Size | ||
| Market cap | $1.1B | $3.3B |
| Revenue | $2.9B | $872M |
| Free cash flow | $68.6M | $43.7M |
| Net income | $91.8M | $1.6M |
| Growth | ||
| Revenue growth | 1.9% | 13.0% |
| 5-year growth | −0.9% | 17.2% |
| Share count change | −0.3% | 3.9% |
| Profitability | ||
| Gross margin | 45.4% | 54.0% |
| Operating margin | 5.0% | −0.6% |
| Net margin | 3.2% | 0.2% |
| FCF margin | 2.4% | 5.0% |
| Return on capital | 11.9% | −3.4% |
| Return on equity | 10.3% | 0.5% |
| Balance sheet | ||
| Net debt | $80.1M | −$286M |
| Net debt / EBITDA | 0.4x | −6.4x |
| Dividends and buybacks | $56.4M | $0.0M |
| Valuation & quality | ||
| P/E | 5.9x | — |
| Piotroski F-score | 5 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.