A major clothing brand is closing multiple locations nationwide, citing financial strain and rising costs—thanks in part to ongoing tariffs.
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Carter’s, a retailer specializing in clothing and footwear for babies, toddlers, and young children, announced plans to close around 150 stores over the next three years, according to its latest earnings report. The company also plans to eliminate 300 office-based positions.
Carter’s operating income fell by over 62% in the first three fiscal quarters of 2025 compared to the same period last year. The company attributed this decline to higher production costs, which were partially driven by the impact of increased tariffs.
“The [Trump] Administration has implemented significant new tariffs on products imported into the United States from a wide range of countries,” Carter’s explained in a press release. “These additional tariffs have begun to add substantially to the approximately $110 million in duties on imported products paid by the Company in fiscal 2024.”
The Clothing Store Joins a Growing List of Retailers Citing Trump’s Tariffs Creating Financial Strain
While Carter’s currently has over 1,200 stores in the U.S., the company has not yet revealed which locations will close.
“While we are steadying our business in 2025, there’s still meaningful work to do,” CEO Douglas C. Palladini said. “We are pursuing several initiatives, including closing low-margin retail stores, right-sizing our organization, and honing product choices, which we believe will generate significant savings, improve overall cost structure, and provide investment capacity.”
Palladini also added that he and the company’s board of directors would take pay cuts.
Carter’s joins a growing list of retailers, including outdoor brand Orvis, facing financial strain from tariffs on overseas production. Earlier in November, Orvis announced it would close 36 locations.
Kohl’s, Gap Inc., and Macy’s have also attributed their financial difficulties to Trump’s trade policies.