**Carter’s Profits Halved Amid Tariffs; Company Eyes Job Cuts and Dividend Review**
*October 27, 2025, 8:45 AM ET*
Carter’s, Inc. reported a significant decline in its third-quarter profits, which were cut by more than half despite sales remaining steady. The company’s shares dropped nearly 6% in early trading on Monday following the announcement.
Trade tariffs have played a major role in this profit decline, significantly reducing both profits and operating margins. Adjusted profit fell by 58%, while the operating margin eroded by 500 basis points.
In response, Carter’s is accelerating its productivity initiatives. Measures include closing low-margin stores, reducing office staff by 15%, right-sizing the overall organization, and optimizing product selections. These actions are expected to lower costs and generate approximately $35 million in annual savings.
Additionally, the company is reviewing its future dividend payments. Decisions on dividend distributions will depend on business conditions, financial performance, and investment priorities, which may result in possible reductions or suspensions.
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**Market Impact & Stock Performance**
The combined effects of tariffs and cost-cutting efforts have influenced Carter’s stock performance, with shares dipping following the earnings release.
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**Related Information**
– **Ticker Symbol:** CRI
– **Recent Price Change:** -6% (approximate)
– **Market Cap & Financial Metrics:** Available on financial platforms
– **More Trending News About CRI:** Investors are advised to stay updated on ongoing developments concerning tariffs and company restructuring.
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