jmdrake
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Major clothing chain closing 150 stores, cutting jobs amid tariffs
Carter’s is closing 150 stores and cutting 300 corporate jobs as import tariffs drive up costs, the retailer announced.
Children’s clothing retailer Carter’s announced plans to close approximately 150 stores and eliminate 300 office-based positions as part of a restructuring plan aimed at addressing financial challenges caused largely by rising import tariffs, Parade reports.
The company will target “low-margin” locations for closure over the next three years as leases expire, with 100 stores scheduled to close between 2025 and 2026, the company said in its news release.
Carter’s has not yet specified which locations will be affected. The restructuring also includes reductions in board member salaries.
“There’s still meaningful work to do for Carter’s to unlock its full potential in terms of exceeding both consumer and shareholder expectations,” Douglas C. Palladini, the company’s CEO and president, said in a statement. “Our team is acting decisively to improve the company’s financial performance.”
The changes were announced during Carter’s third-quarter results call on Monday, when the company revealed the significant impact of import tariffs on its operations, Parade said.
Carter’s reported paying approximately $110 million in import fees last year, with those costs expected to increase by an additional $200 million to $250 million this year.
To mitigate these rising costs, the company plans to adjust its manufacturing locations, share costs with suppliers, modify its product mix and potentially raise prices, Parade noted. Most of Carter’s products currently come from Vietnam, Cambodia, Bangladesh and India.
