Are Carter’s Stores in New York Closing? Here’s What We Know So Far

If you’re a parent, grandparent, or anyone who’s ever bought those adorable baby pajamas from Carter’s, this might make your heart sink a little. The children’s clothing company just announced it’s shutting down 150 stores and laying off hundreds of workers after a major drop in profits and it’s got a lot of people wondering if their favorite local shop could be next.

Major Store Closures and Job Cuts Ahead for Carter’s

Carter’s, the Atlanta-based company behind brands like OshKosh B’gosh, Skip Hop, and Little Planet, says it plans to close about 150 underperforming stores across North America over the next three years. That’s a big jump from the 100 store closures it had previously announced. The company, which operates over 1,000 stores, is also planning to cut around 300 corporate jobs, about 15% of its office workforce, by the end of 2025. Carter’s says these changes are part of a broader plan to cut costs and focus on locations that perform well.

Tariffs and Rising Costs Hit Carter’s Hard, Slashing Profits by 80%

The big issue? Profits have dropped and fast. Carter’s reported an 80% decline in quarterly profits, falling from nearly $58 million last year to just $11.6 million this quarter. The company is blaming several factors, but one of the biggest culprits is tariffs. CEO Douglas Palladini said higher product costs, “in part due to the impact of higher tariffs,” have hurt the company’s bottom line.

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Those tariffs, originally tied to former President Donald Trump’s trade policies, are costing Carter’s between $200 million and $250 million a year. Even though Carter’s retail stores saw some positive sales growth this year, the costs of doing business have gone up and that’s forcing them to make some tough decisions.

Could Your Local New York Carter’s Store Be on the Closure List?

So, what about here in New York? Carter’s hasn’t released a list of which locations are closing yet, but the company says it’s targeting stores with low margins or leases about to expire. That means smaller or lower-traffic stores could be on the chopping block first. Closures will roll out gradually, not all at once, and Carter’s says they’ll try to maintain online service and nearby shopping options for affected areas.

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Shop While You Can - Carter’s Isn’t Disappearing, But Change Is Coming

Now’s the time to stop in and maybe grab that adorable onesie or winter coat you’ve been eyeing, just in case. And if your store does close, don’t forget that Carter’s will still be available online, and through retail partners like Kohl’s and Target. Carter’s isn’t going away completely, but this round of closures is a wake-up call for how even long-loved family brands are feeling the pinch.