Overview
- Roughly 100 closures are slated for fiscal 2025–2026, with stores shuttering as leases expire across the U.S., Canada and Mexico.
- Q3 net income fell more than 80% to about $11.6 million as operating margin slid to 3.8% from 10.2% a year earlier.
- The company forecasts about $35 million in annualized savings starting in 2026 and plans fourth-quarter severance and outplacement charges of $4 million to $5 million.
- Carter’s is shifting sourcing toward Vietnam, Cambodia, Bangladesh and India, with China’s share falling to under 3% of spend in fiscal 2025.
- To offset higher costs, the retailer will raise prices, narrow assortments, share costs with vendors and has suspended fiscal 2025 guidance due to tariff uncertainty.