Carter's Closes 29 Stores in Q1 and Q2 of Fiscal 2026 Amid Restructuring
Carter’s, a children's clothing retailer founded in 1865, closed 29 stores across the U.S. during the first two quarters of fiscal year 2026 as part of an ongoing restructuring plan to reduce costs and streamline operations. Despite store closures, Carter’s reported strong sales growth with a 5.1% increase in comparable U.S. sales for Q2 2026 — its fifth consecutive quarter of positive performance. However, the company's operating income surge was largely driven by a one-time $128 million tariff refund from the government rather than improved profitability. The closures are part of Carter’s broader strategy to close up to 150 stores over several years in response to shifting consumer behavior and rising costs due to new tariffs. The company also returned $18 million to shareholders through dividends during the first half of fiscal 2026.
Topics: childrens clothing mall retail decline restructuring