Children’s clothing store chain Carter’s announced it will be closing about 150 stores. The announcement was made as part of the company’s third-quarter report on Monday.
CEO and President Douglas Palladini told investors, “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. However, elevated product costs, in part due to the impact of higher tariffs, as well as additional investment, weighed meaningfully on our profitability.”
He said that there was still “work to do” to “unlock its full potential.”
To do so, the company will close about 150 “low-margin retail stores, right-sizing our organization, and honing product choices” to help increase profit. The board of directors and Palladini also will reduce their compensation next year, he said.
The locations that will be closed will cease operations at lease expiration over the next three years. Initially, the company planned on closing 100 stores, which will close during the 2025 and 2026 fiscal years.
Carter’s will also cut about 300 jobs at the offices by the end of the year, accounting for about 15% of office positions.
The company is known for brands such as Carter’s, OshKosh B’gosh, Otter Avenue and Skip Hop.
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