Popular Clothing Retailer Carter's Closing 150 Locations

A popular clothing retailer is closing 150 locations following economic uncertainty stemming from tariffs put in place last year.

In an announcement from the company on Wednesday, Carter's revealed it continues to battle financial woes.

"Our profitability in the quarter was negatively affected by higher tariffs, investment spending and other inflationary cost pressures and higher interest costs. We expect the impact of these items to moderate as we move through the year and today we have reiterated our full year outlook for both sales and operating profit growth in 2026," the statement read.

Carter's Cutting 150 Locations

Late last year, the company announced plans to close approximately 150 stores at lease expiration in North America after initially saying only 100 stores would close over the next three years.

One hundred of the stores to be closed over the fiscal year 2025 and 2026 periods.

"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 as we establish the foundation to return to consistent, profitable growth going forward," outgoing CEO Douglas C. Palladini said in a statement while revealing he and the Board of Directors would take pay cuts in 2026.

In addition to closing 150 stores, the company also announced plans to cut its staffing by 300 jobs.

Carter's Welcoming New CEO

Carter's has more than 1,000 stores in operation between Carter's and OshKosh B'gosh, but more than 10% of those stores will close in the next three years.

Sarah Price John, the CEO of Build-a-Bear will be ushered in as the new CEO next month.

"Sharon's extensive industry experience, especially in the children's space, and her demonstrated record of success position her well to lead the next chapter of Carter's transformation and growth," Carter's announced.

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This story was originally published by Men's Journal on May 7, 2026, where it first appeared in the News section. Add Men's Journal as a Preferred Source by clicking here.

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This story was originally published May 7, 2026 at 4:30 AM.