Carter's, the 161-year-old children's clothing retailer, closed 29 stores in the United States during the first two quarters of fiscal 2026, part of a broader plan to shutter approximately 150 lower-margin locations by 2028. As of July 4, 2026, the company operated 1,042 company-owned stores in North America, down from earlier counts. Despite the closures, comparable U.S. sales rose 5.1% in the second quarter, marking the fifth consecutive quarter of growth, though operating income was boosted by a one-time $128 million tariff refund. Excluding that refund, adjusted operating income increased to $18.1 million from $11.8 million a year earlier. The company narrowed its full-year outlook, and its stock fell more than 8% on the news. Carter's continues to reach customers through exclusive lines at Target, Walmart, and Amazon, as consumers shift spending toward mass merchants and value-oriented shopping.
Target Corporation
Walmart Inc.Carter’s IncCarter's closed stores, narrowed outlook, and stock fell over 8%.
Amazon.com Inc