Carter’s Inc. will shutter about 150 “low-margin” stores across North America and reduce its corporate workforce as part of a wider cost-cutting initiative aimed at improving efficiency and offsetting tariff-related headwinds.
The children’s apparel retailer said around 100 stores will close through 2025 and 2026, representing roughly $110 million in annual sales. The closures mark an increase from its earlier plan to shut 100 locations.
Carter’s, which operates more than 1,000 company-owned stores across the US, Canada, and Mexico, also plans to eliminate around 300 office-based roles, or 15% of its workforce, by the end of 2025, generating about $35 million in annual savings from 2026.
Additional SG&A reductions of over $10 million annually are also targeted.
For the third quarter, net sales dipped 0.1% to $757.8 million, as US wholesale revenue declined 5.1%. U.S. retail sales grew 2.6%, and international sales rose 4.9%. Comparable sales increased 2%.
Net income dropped to $11.6 million, or $0.32 per share, from $58.3 million a year earlier. Adjusted earnings were $0.74 per share, compared with $1.64 in Q3 2024.
CEO Douglas C. Palladini said retail demand and pricing improved for a second consecutive quarter but noted that higher product costs and tariffs weighed heavily on profitability.
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