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Atlanta-based Carter’s, a major retailer selling baby, toddler and young children’s clothing, announced Monday that it will be shuttering 150 stores nationwide over the next three years, citing tariffs among one of the main reasons for the closure.

In a news release issued Monday, the retailer cited a third quarter net income of $11.6 million, down from $58.3 — an 80% drop, nearly matching the retailer’s total 2025 fiscal year drop of 78%, at $27.6 million, down from $124 million just a year ago.

“Our third quarter performance reflected continued improvement in U.S. Retail business demand as we achieved positive comparable sales and improved pricing for the second consecutive quarter,” said Douglas C. Palladini, CEO & President of Carter’s. “However, elevated product costs, in part due to the impact of higher tariffs, as well as additional investment, weighed meaningfully on our profitability.”

Carter’s has two locations in Fresno, one in the Villagio Shopping Center at the corner of Blackstone and Nees avenues, and another at Marketplace at El Paseo. Managers from both stores said that they had not been told their stores would be on the chopping block.

The news release, however, added that the company plans to close the 150 locations as their leases expire, slating approximately 100 stores to be shuttered over the 2025 and 2026 fiscal years. The stores represent approximately $110 million over the last 12 months.

The company is also targeting more than $10 million in annual spending reductions, and will eliminate its office-based roles by around 300 positions, downsizing by 15% by the end of 2025.

“Our multi-channel business model affords Carter’s brands unparalleled availability and awareness, and deep consumer trust built over our 160-year legacy enables our position as the young children’s apparel market leader,” Palladini said. “I’m confident our new product, marketing, and consumer experience initiatives, which have begun to bear fruit, will further strengthen our market position in the years ahead.”

Carter’s opened in 1865 selling mittens and eventually grew into a thriving nationwide company, peaking at over 1,000 stores by the end of 2024, according to The Washington Post.