One of the nation’s largest sellers of child and baby clothes has announced upwards of 100 store closures. Carter’s, which operates standalone locations and sells its merchandise in department stores and chains throughout the country, announced in its third quarter fiscal report that it would be closing about 150 stores across North America — approximately 50 more than it previously stated.

“The Company now plans to close approximately 150 stores at lease expiration in North America over the next three years,” the release read. Approximately 100 stores will close during 2025 and 2026, and the remaining locations will shutter by 2028 as leases expire. The locations set to close account for $110 million in sales during the past year.

SFGATE reached out to Carter’s to see whether any Bay Area locations would be impacted but did not hear back by publication time.

In the release, Carter’s CEO Douglas Palladini said that the closures are part of a larger organizational change, which also included “right-sizing” the company and “honing product choices.” He also mentioned that the “impact of higher tariffs” was cutting into profitability.

Palladini also confirmed that in addition to the closures, he and the board of directors would be taking pay cuts in 2026 to help improve the company’s finances.

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