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Carter's Inc. (CRI) is a leading seller of branded apparel and baby-related products, with a portfolio of popular brands. However, the company faces significant challenges, including a declining US birthrate, weak consumer trends, suspended guidance, and tariff headwinds. CRI's first-quarter 2025 sales declined 4.8% YoY, and its shares have lost 49.9% in the past six months. The company's EPS growth is expected to plunge into 2026.

Carter's Inc. (CRI), a leading seller of branded apparel and baby-related products, continues to face significant challenges in its operations. The company reported a 4.8% year-over-year (YoY) decline in first-quarter 2025 sales, marking a further setback for the retailer [1]. This decline is attributed to a combination of factors, including a declining U.S. birthrate, weak consumer trends, and the impact of tariffs.

The company's shares have lost 49.9% in value over the past six months, reflecting investor concerns about the company's ability to navigate these headwinds. CRI's earnings per share (EPS) growth is expected to plunge into 2026, further exacerbating the company's financial struggles [1].

The declining birthrate in the U.S. has had a direct impact on the demand for baby-related products, a significant portion of CRI's revenue. Weak consumer trends, exacerbated by economic uncertainty, have also contributed to the company's sales decline. Additionally, the company has been grappling with tariff headwinds, which have increased the cost of goods and impacted its profitability [1].

CRI's suspended guidance for fiscal 2025 adds to the uncertainty surrounding the company's financial performance. The company has not provided updated financial projections, making it difficult for investors to assess the potential impact of these challenges on the company's future earnings [1].

Despite these challenges, CRI has been actively working to mitigate the impact of tariffs and improve its cost structure. The company has implemented effective supply chain adjustments to reduce the expected tariff burden, although it still faces ongoing exposure to tariff impacts [1].

In conclusion, Carter's Inc. is facing significant challenges in its operations, driven by a declining U.S. birthrate, weak consumer trends, and tariff headwinds. The company's financial performance has been impacted by these factors, leading to a decline in sales and a significant loss in shareholder value. As the company continues to navigate these challenges, investors will be closely watching its ability to adapt and grow in the face of these headwinds.

References:
[1] https://finance.yahoo.com/news/levis-pvh-carters-amc-networks-170551283.html