ATLANTA--(BUSINESS WIRE)--Carter's, Inc. ("Carter's†) (NYSE: CRI) today announced that its wholly-owned subsidiary, The William Carter Company (the "Company†), has priced an offering of $575 million aggregate principal amount of 7.375% senior notes due 2031 (the "notes†), representing an increase of $75 million in aggregate principal amount from the initially proposed offering size. The notes were priced at par. The offering is expected to close on November 13, 2025, subject to customary closin. ...

Core Insights - Carter's is experiencing significant turmoil due to tariffs, with expectations of continued challenges into 2026 [1] - The company reported a drastic decline in net income, down approximately 80% year-on-year to $11.6 million for Q3 2024, compared to $58.3 million in 2023 [1] Cost-Saving Measures - As part of its transformation under CEO Douglas Palladini, Carter's plans to save about $45 million annually starting in 2026, primarily by eliminating 15% of corporate roles [2] - Approximately 300 employees will be laid off by the end of the year, expected to save the company $35 million annually [3] Store Closures - Carter's plans to close 150 stores across North America by 2026, increasing from an earlier plan to close 100 stores, which accounted for about $110 million in revenue over the past year [4] - The company will halt further store expansion as part of its cost-saving strategy [4] Long-Term Strategy - CEO Palladini emphasized that while store closures will lead to short-term revenue loss, there will be long-term benefits through digital platforms and existing stores [5] - Carter's aims to reduce its overall product assortment by 20 to 30% to enhance agility in responding to market challenges [6]

Core Insights - A significant percentage of parents are facing financial difficulties, with 59% going into debt to meet their children's needs and 42% carrying credit card debt averaging $14,556 [1][2]. Company Overview - Carter's, a well-known children's clothing retailer, is planning to close 150 stores following disappointing financial results [4][5]. - The company operates over 1,000 retail locations across North America and Mexico and owns several popular brands, including OshKosh B'gosh [4]. Financial Performance - In the third fiscal quarter, Carter's net sales decreased by 0.1% to $757.8 million compared to $758.5 million the previous year [5]. - Net income fell sharply to $11.6 million, down from $58.3 million year-over-year [5]. - Diluted EPS dropped to $0.32 from $1.62 in Q3 2024, while adjusted diluted EPS was $0.74 compared to $1.64 in Q3 2024 [7]. Store Closures and Restructuring - The majority of the store closures will occur in the U.S., with some in Canada and Mexico, and approximately 100 stores are expected to close during fiscal years 2025 and 2026 [6]. - The company is also undergoing a corporate restructuring that will result in 300 office employees losing their jobs [5][6]. - Carter's CEO emphasized the need to refine the physical store fleet [6].

Carter's, the children's clothing retailer that also the popular OshKosh B’gosh brand, will be closing 150 stores and cutting 300 jobs over the next three years. Carter's announced plans to shutter "low-margin" stores in its fiscal third-quarter report and during a call on Oct. 27, saying that roughly 100 of the stores will be shuttered by 2026. The brand also suspended new openings of U.S. locations that use its current store model, along with plans to reduce its product offerings by 20-30%. Tariffs wer ...

This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Dive Brief: Carter’s, which runs its namesake and OshKosh B’gosh brands, will lay off about 300 corporate employees, or 15% of that workforce, by the end of the year, the company said Monday. This is expected to garner annualized savings of about $35 million, starting next year. The children’s apparel retailer also plans to close about 150 North American stores ov ...

Core Viewpoint - Carter's, Inc. announced a proposed offering of $500 million in senior notes due 2031 to refinance existing debt and cover related expenses [1][2]. Group 1: Offering Details - The offering will consist of $500 million aggregate principal amount of senior notes due 2031 [1]. - The net proceeds will be used to redeem all outstanding 5.625% senior notes due 2027 and to pay related fees and expenses [2]. - The notes are being offered to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States under Regulation S [3]. Group 2: Company Overview - Carter's, Inc. is North America's largest apparel company exclusively for babies and young children, with core brands including Carter's and OshKosh B'gosh [5]. - The company operates over 1,000 stores across the U.S., Canada, and Mexico, and sells online through multiple platforms [5]. - Carter's is also the largest supplier of baby and young children's apparel to major North American retailers [5].

Core Insights - Carter's Inc. shares fell over 14% in pre-market trading after reporting third-quarter results that missed revenue expectations and suspended its 2025 guidance due to tariff-related uncertainty [1] - The company reported adjusted earnings per share of $0.74, slightly above analyst expectations of $0.72, but revenue of $758 million fell short of the consensus forecast of $771.17 million and remained flat compared to the prior-year quarter [1] Financial Performance - Adjusted operating income decreased by 48.9% to $39.4 million, with operating margin dropping to 5.2% from 10.2% a year earlier [2] - Management attributed the decline in profitability to higher tariff costs, investments in product quality, and expenditures on new store openings [2] Cost-Saving Initiatives - The company announced cost-saving measures aimed at improving efficiency, including the reduction of approximately 300 office-based positions, representing 15% of its corporate workforce, by the end of 2025 [3] - Carter's plans to close around 150 North American stores over the next three years, with these actions expected to generate $35 million in annual savings starting in 2026 [3]

Core Insights - Carter's, Inc. reported Q3 2025 earnings with a revenue of approximately $758 million, which was below the estimated $866 million, indicating a revenue miss [1][6] - The earnings per share (EPS) for the quarter was $0.74, missing the Zacks Consensus Estimate of $0.78, and showing a significant drop from $1.64 per share reported in the same quarter last year [2][6] - Despite the earnings miss, Carter's revenue figure is nearly unchanged from the $758.46 million reported a year ago, demonstrating consistency in sales performance [3] Financial Metrics - The company has a price-to-earnings (P/E) ratio of approximately 13.32, indicating how the market values its earnings [4] - The price-to-sales ratio is about 0.43, suggesting a relatively low market valuation compared to its revenue [4] - The enterprise value to sales ratio is 0.61, reflecting a modest valuation in relation to sales [4] Financial Stability - Carter's has a debt-to-equity ratio of 0.79, indicating a balanced approach to leveraging debt [5] - The current ratio of 2.26 suggests strong liquidity, ensuring the company is well-positioned to cover its short-term liabilities [5] - With an earnings yield of approximately 7.51%, Carter's offers a reasonable return on investment, appealing to investors seeking stable returns [5]

Carter's, Inc. (NYSE: CRI ) reported Q3 '25 results , showing a similar trend to the rest of the fiscal year: resilience in revenues (helped by AUR, down in volumes), but a significant impact on operating margins and profits (downLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the ...

Core Insights - Carter's, Inc. (CRI) reported mixed third-quarter 2025 results, with net sales exceeding estimates but earnings per share (EPS) falling short and declining significantly year-over-year [1][2][3] Financial Performance - Consolidated net sales reached $757.8 million, surpassing the Zacks Consensus Estimate of $751 million, remaining stable year-over-year despite lower U.S. Wholesale sales [3] - Adjusted EPS was 74 cents, missing the Zacks Consensus Estimate of 78 cents, and down 54.9% from $1.64 in the prior-year quarter [2][9] - U.S. Retail segment sales increased by 2.6% year-over-year to $299.6 million, while U.S. Wholesale sales decreased by 5.1% to $192.9 million [4][9] - International segment sales grew by 4.9% year-over-year to $92.8 million [5] Margins and Costs - Gross profit fell by 4% year-over-year to $341.6 million, with gross margin contracting by 180 basis points to 45.1% [6] - Adjusted operating income decreased by 48.9% to $39.4 million, with adjusted operating margin down 500 basis points to 5.2% due to increased costs [6] - Adjusted SG&A expenses rose by 8.1% year-over-year to $307.7 million, accounting for 40.6% of net sales, an increase of 310 basis points [7] Strategic Initiatives - The company plans to cut approximately 300 roles and close 150 stores, targeting $35 million in annual savings starting in 2026 [9][11][12] - Carter's aims for over $10 million in annual spending reductions across various categories, with savings beginning in 2026 [12] - The closures are expected to be accretive to profitability due to sales transfer to nearby stores and online channels [13] Financial Position - As of the end of Q3 2025, Carter's had cash and cash equivalents of $184.2 million, net long-term debt of $498.7 million, and shareholders' equity of $864.6 million [8] - The company paid a cash dividend of 25 cents per share in Q3, totaling $9.1 million, with total cash dividends for the first nine months amounting to $47.2 million [8] Outlook and Challenges - The company faces challenges from new tariffs, with an estimated $110 million in duties paid in 2024 and projected annualized impacts of $200-$250 million from additional import duties [14][15] - Carter's has suspended its 2025 guidance due to uncertainties surrounding tariffs and their potential impact on business [16]