ATLANTA — Atlanta-based children’s clothing company Carters, Inc. announced Monday that the company planned to close 150 stores nationwide.
The company is known for brands such as OshKosh B’Gosh, Little Planet and Skip Hop, among others.
The closures will be spread out over roughly three years, with the first 100 stores to close over the fiscal year 2025 and 2026 periods, the company said.
Additionally, 15% of staff at the company will be laid off. Carter’s said that it will cut 300 jobs in its office-based roles by the end of the year.
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“Our third quarter performance reflected continued improvement in U.S. Retail business demand as we achieved positive comparable sales and improved pricing for the second consecutive quarter,” Douglas C. Palladini, Chief Executive Officer & President, said in a statement. “However, elevated product costs, in part due to the impact of higher tariffs, as well as additional investment, weighed meaningfully on our profitability.”
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The news came during the company’s third quarter earnings call.
In a release shared along with the investor call, the company said the 150 stores being closed had earned a net revenue of $110 million.
In 2025, the company said it estimates additional tariffs and other import duties to be between $200 million to $250 million for the year.
Palladini added that “while we are steadying our business in 2025, there’s still meaningful work to do for Carter’s to unlock its full potential in terms of exceeding both consumer and shareholder expectations.”
The company said it had suspended its financial guidance due to “ongoing and significant uncertainty surrounding incremental tariffs and potential related impact on the Company’s business.”
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