Carter's Closes 29 Stores: Children's Apparel Giant's Restructuring Strategy

Carter's, a 161-year-old children's apparel giant, is closing 29 stores in the U.S. as part of its strategic restructuring. The company opened 4 stores and closed 29 in the first half of 2026. In its Q4 report, Carter's announced plans to close 150 stores by 2028. This follows 35 closures in 2025 due to lease expirations, with a total of 100 expected for the year. To mitigate customer loss, Carter's has expanded its exclusive collections in Target and Walmart. Despite a 5.1% sales growth in Q2 2026, the company's operating income surged to $139.8 million, largely due to a $128 million tariff refund, offsetting new tariff costs. An EY-Parthenon survey revealed consumer spending intent for apparel dropped to -24, with 72% of consumers cutting back. Carter's decision to close high-rent standalone stores aligns with this trend. The company reported $2.898 billion in net sales in 2025, up 2% from 2024. CEO Douglas C. Palladini stated, '2025 was a year of meaningful progress in stabilizing our business while navigating significant new tariffs.' > Carter's strategic moves reflect shifting U.S. consumer behavior. Its partnerships with retail giants like Target and Walmart help sustain demand, but the restructuring raises questions about long-term growth potential. Markets will closely watch the company's share price performance and assess its execution in this dynamic environment.