Carter's Inc. (NYSE: CRI) stock is soaring 5.49% in Monday's intraday trading, despite initially falling in pre-market after the children's apparel manufacturer announced significant restructuring plans alongside its mixed third-quarter results.

The company reported Q3 adjusted earnings of $0.74 per share, slightly above the analyst consensus of $0.73, though this represents a 54.88% decrease from the same period last year. Revenue came in at $757.8 million, missing expectations of $772.3 million and showing a marginal decline year-over-year. In response to ongoing challenges, Carter's announced plans to cut about 300 office-based jobs, or 15% of its workforce, by the end of 2025. Additionally, the company aims to close approximately 150 stores in North America over the next three years.

Carter's CEO Douglas Palladini cited the significant impact of tariffs, projecting a gross pre-tax earnings hit of $200 million to $250 million annually. To mitigate these pressures, the company is implementing various cost-saving measures, including management compensation reductions for 2026. Despite these challenges, investors seem to be responding positively to Carter's proactive approach to navigating the difficult retail environment, driving the stock higher after an initial negative reaction.