From Yahoo Finance: 2025-04-07 09:31:00

Palm Valley Capital Management released the Q1 2025 investor letter for the Palm Valley Capital Fund, with a 0.57% appreciation, outperforming the S&P SmallCap 600 and Morningstar Small Cap Total Return Index. Cash was 77.6% of Fund assets at the start of the quarter and 76.5% at the end. Download the letter for the top five holdings.

In the investor letter, Palm Valley Capital Fund highlighted Carter’s, Inc. (NYSE:CRI), a childrenswear company. Carter’s, Inc. (NYSE:CRI) had a one-month return of -15.42% and shares lost 51.69% over 52 weeks, closing at $37.18 per share with a $1.347 billion market capitalization on April 4, 2025.

Palm Valley Capital Fund’s Q1 2025 letter noted Carter’s, Inc. (NYSE:CRI) as one of the positions negatively impacting the Fund. Carter’s is expected to see a decline in profits due to promotional pricing and rising costs. The company’s balance sheet improved in 2024, with over $400 million in cash. Operating environment remains challenging due to consumer spending and promotions.

Read more: Here’s Why Carter’s (CRI) Fell In Q1