Just caught CRI's latest earnings report and the numbers are interesting. Carter's beat expectations with $1.9 EPS versus the $1.7 consensus, though down from $2.39 a year ago. Revenue hit $925.45M, slightly above estimates. That's about a 12% earnings surprise, which is solid for a children's apparel maker in this market.

What caught my eye is CRI's stock performance this year - up 29.7% while the S&P 500 only gained 0.9%. Pretty significant outperformance for a retail apparel company. The company has been beating revenue expectations consistently too, hitting consensus four times in the last year.

That said, the industry itself is struggling. Shoes and Retail Apparel ranks in the bottom 39% of sectors right now, which is a headwind. Another name in the same space, CAL, is expected to post losses next quarter. So CRI's outperformance looks even more impressive against that backdrop, but it also reminds you that sector weakness can drag on stocks pretty quickly. Management's guidance on the call will probably matter more than the beat itself.