Carter's to Reduce Office Workforce by 15% as Tariffs Hit Earnings — Update

By Nicholas G. Miller

Carter's said it would close about 150 stores in North America and reduce its office workforce by about 15%, cutting roughly 300 positions as tariffs drag down its earnings.

Carter's on Monday said it expects to incur a pretax earnings impact from additional tariffs imposed by the Trump administration of about $200 million to $250 million a year.

The baby-apparel company said it would close about 150 stores in North America after their leases expire over the next three years, up from its previous target of some 100 stores. The stores collectively represent about $110 million in annual sales over the last 12 months, Carter's said.

For the third quarter, Carter's reported net income of $11.6 million, or 32 cents a share, down from $58.3 million, or $1.62 a share, the year prior.

Net sales fell 0.1% to $757.8 million.

The company said it expected the workforce reduction to create $35 million in annual savings beginning next year. Carter's also said it would reduce selling, general and administrative expenses by $10 million.

Carter's said it is evaluating opportunities to refinance its existing $500 million in senior notes that mature in March 2027, and said it has obtained commitments for a new revolving-credit facility of at least $750 million.

The Atlanta-based company said its full-year guidance would remain suspended, "given the ongoing and significant uncertainty surrounding incremental tariffs."

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

October 27, 2025 07:31 ET (11:31 GMT)