Carter’s, a leading children’s apparel brand, has announced significant changes to its business structure following challenging Q3 2025 results. The company will cut 15 percent of its office jobs and close several retail locations. These moves come as elevated product costs and tariffs have negatively impacted both operating and net income, despite net sales remaining nearly flat for the quarter.
Key Reasons Behind Carter’s Strategic Cuts
The company attributes its drastic measures to increased tariffs and higher product costs. These economic pressures have squeezed profit margins, forcing Carter’s to streamline its operations. Carter’s decision to reduce its workforce by 15 percent at the corporate level reflects a push to remain agile in a tough retail environment. Store closures are also part of this realignment strategy, aimed at maintaining financial health.
What’s Next for Carter’s?
Carter’s seeks to stabilize its business by focusing on core markets and optimizing expenses. These changes underscore the challenges that many retailers face as global trade policies and inflation affect the bottom line. Customers may notice fewer stores but can expect the brand to continue offering quality children’s apparel through other channels.
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