Dividend ReductionThe company is cutting its quarterly dividend by 70% due to challenges, including higher tariff-related costs and necessary strategic investments.
Retail Segment DeclineThe US Retail business has been the largest issue at Carters, with sales in the Retail segment declining 25% and EBIT margins declining by 1,000bp.
Tariff ChallengesCRI faces a challenging macro environment with the possibility of much higher costs due to tariffs, along with declining margins and concerning birthrate trends.