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Carter's closes 29 stores in the first half of fiscal 2026
The retailer said comparable U.S. sales rose 5.1% in the second quarter, but adjusted operating income climbed to $18.1 million after stripping out a $128 million government refund tied to tariffs.
Carter's, the children’s apparel retailer, is closing additional locations as it continues a restructuring push to reduce underperforming real estate. Yahoo Finance reports the company closed 29 stores in the United States during the first two quarters of fiscal 2026, while opening four.
As of July 4, 2026, Carter's had 1,042 company-operated retail stores in North America. The outlet also pointed to broader shifts in back-to-school shopping, citing Deloitte data that mass merchants account for 80% of planned spending in the category.
Carter's performance showed some resilience, with the company reporting a 5.1% increase in comparable U.S. sales in the second quarter of 2026, its fifth straight quarter of positive comparable-sales growth. However, the results included a significant caveat.
Nearly all of the operating income increase came from a one-time $128 million government refund related to previously paid tariffs, rather than ongoing improvements in underlying profitability, according to the report. Stripping out that refund, adjusted operating income rose to $18.1 million from $11.8 million in the comparable period of 2025.