Carter's Inc.

CRI: Is Carter's Inc. Halal?

Carter's Inc.

NYSEConsumer CyclicalUS

$40.65

-1.19%

Market Cap: 1.5B

Compliance Status

Not Halal

Screened on Jul 18, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Carter's Inc. (CRI) halal? Not Halal. Based on AAOIFI screening, Carter's Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

35.5% of 30.0% limit

What this means for you

Most scholars advise not holding CRI

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Carter's Inc.

Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded childrenswear in the United States and internationally. It operates through three segments: U.S. Retail, U.S. Wholesale, and International. The company’s products include babies and young children’s products, such as bodysuits, layette essentials, sleep and play, pants, tops and t-shirts, multipiece sets, dresses, and sleepwear; and playclothes, such as denim jeans, overalls, core bottoms, knit tops, t-shirts, and layering pieces. It also provides products for playtime, travel, mealtime, bath time, and home gear, as well as kid’s and diaper bags, as well as range of licensed sports and character t-shirts. In addition, the company offers sleepwear, swimwear, outerwear, bedding, accessories, and toys; and toddler apparel and accessories. It sells its products through its retail stores, websites, and mobile app, as well as its wholesale distribution; and distributes its products to wholesale customers, including department stores, national chains, and specialty retailers. The company markets its products under the Carter’s, OshKosh B’gosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Little Planet, Otter Avenue, and other brands. Carter's, Inc. was founded in 1865 and is headquartered in Atlanta, Georgia.

Sector: Consumer Cyclical · Industry: Specialty Retail

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 18, 2026

Compliance History

  1. Not Halalnow

    since Jun 2026

  2. Halal

    until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q1 2026Data source: EDGAR

Halal Alternatives in Consumer Cyclical

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Frequently Asked Questions

Is Carter's Inc. (CRI) halal to invest in?
Carter's Inc. (CRI) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Carter's Inc. get a F compliance rating?
Carter's Inc. (CRI) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 35.5% (limit 30%); interest-bearing deposits of 22.8% (limit 30%); prohibited income of 0.50% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Carter's Inc.'s Shariah verdict?
Carter's Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Carter's Inc. re-screened for Shariah compliance?
Carter's Inc. (CRI) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.