synopsis
Carter's Inc (CRI) shares declined over 11% on Friday after the kids' apparel retailer posted lower quarterly revenue and profit and suspended its 2025 business forecast.
The company said its move is influenced by the recent leadership transition and "significant uncertainty surrounding proposed new tariffs and potential related impact on the business."
Carter's appointed Douglas Palladini, a former senior executive for VF Corp's (VFC) Vans brand, as CEO on April 3.
For the fiscal first quarter ending March 29, Carter's said revenue declined to $629.8 million from $661.5 million a year earlier. However, it exceeded the $623.8 million analyst estimate from FactSet.
Adjusted earnings were $0.66 per share, down from $1.04 a year earlier, but exceeded the estimate of $0.53.
The company's annual revenue has declined over the last three years, weighed down by persistent inflation and elevated interest rates, which, among other things, have reduced consumer spending among families with young children.
Carter's is one of North America's largest clothing brands for babies and young children. It sells under labels such as OshKosh B'gosh and Skip Hop and offers exclusive lines for major retailers: Just One You and Precious Firsts (Target), Child of Mine (Walmart), and Simple Joys (Amazon).
It also operates over 1,000 self-owned stores in the U.S. and Canada.
On Stocktwits, retail sentiment for Carter's was in the 'neutral' territory, with 'high' message volume.

A user posted saying that withdrawing the guidance was a smart move on the company's part.
Shares of the company are down 37.5% year to date.
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