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After the president, children’s clothing company Carter’s will close about 150 stores in North America and lay off about 300 people. Donald Trump’s tariffs Its profit margins were badly eaten away.
in one earnings report On Monday, the company said its net income for the three months ending in September had fallen by more than 80 per cent compared with the same period last year, from $58.3m to just $11.6m.
As a result, atlantaThe U.S.-based retailer will try to save about $35 million a year by increasing the number of stores it is closing by 50 and cutting its total workforce by about 15 percent, after previously announcing it would close about 100 stores.
It comes like this Companies across multiple industries report losses to their businesses from Trump’s import taxesled many business leaders Fear that a financial crash may be imminent,
“Our third quarter performance reflects the continued improvement in U.S. retail business demand,” CEO and President Doug Palladini said Monday.
“However, the impact of higher tariffs as well as increased product costs partly due to additional investments had a meaningful impact on our profitability.”
He said the company would take “decisive action” to improve its prospects by “closing low-margin retail stores, right-sizing its organization and improving product choices.”
Because of these “difficult decisions,” he said, he and the rest of the company’s board will receive less financial compensation in 2026.
This makes Carter the latest company to complain of unrest from US tariffs on foreign goods. which is currently underway At around 10 percent and reaches 100 percent for some products.
Many of those taxes are currently on hold pending trade talksBut can still kick back After November 1 or November 8.
last week, Toy maker and Barbie maker Mattel said it has faced a sharp decline in sales and revenue due to tariffs on China.Other companies like Home Depot have also increased their prices Multiple wine importers and manufacturers of Halloween costumes and candy,
A report from the Labor Department last week It found that companies have so far passed on about 37 percent of their increased costs to consumers and 9 percent to their suppliers, while absorbing 51 percent of the additional costs themselves.
In his earnings report on Monday, Carter said he expected the tariffs would impose an additional $200m to $250m in import costs on the company for all of 2025.
“These additional tariffs are beginning to add substantially to the approximately $110 million in duties on imported product paid by the company,” it said.
“Over time, the Company intends to partially offset these additional costs by changing its product assortment, sharing costs with its vendor partners, changing its mix of production by country, and increasing prices to end consumers and its wholesale customers.”
according to Atlanta Business ChroniclePalladini told investors on a conference call that consumers were enthusiastic about Carter’s new products, especially among Generation Z.
Still, he said, “meaningful work remains to be done to eliminate costs, increase productivity, add complexity, and demonstrate consistent growth in revenues and profitability.”