Summary
Carter's, a major U.S. baby clothes company, announced plans to close 150 stores in North America over the next three years to enhance profitability. The company also plans to cut 300 office jobs and expects to save around $35 million annually from these changes.
Key Facts
- Carter's will close 150 stores in North America by the end of 2026.
- The company will lay off around 300 office workers by the end of the year.
- Carter's reported $757.8 million in net sales in the recent quarter, slightly down from the same period last year.
- Operating income fell by 62% compared to the previous year.
- CEO Douglas Palladini mentioned higher tariffs and elevated product costs affected profitability.
- The store closures are expected to save the company approximately $35 million annually.
- Carter's plans to reinvest some savings into initiatives that drive growth.
- Of the 150 stores closing, 100 will close during the fiscal years 2025 and 2026.
