Carter's Cuts Dividend Amid Tariffs, Challenging Market Conditions

Dow Jones
2025/05/21
 

By Kelly Cloonan

 

Carter's has cut its quarterly dividend to 25 cents a share from 80 cents, citing the current market environment and impending tariffs.

The new payout, equal to $1 a year, represents an annual yield of 2.7% based on Tuesday's closing price of $36.77.

The dividend will be payable on June 20 to shareholders of record as of June 2.

Chief Executive Doug Palladini said Tuesday the current dividend is misaligned with its level of profitability, especially against a challenging market environment and the possibility the company incurs higher costs amid the Trump administration's proposed tariffs.

The stock fell 11% to $32.60 in after-hours trading on Tuesday. Shares have declined 46% over the past 12 months through Tuesday's market close.

 

Write to Kelly Cloonan at kelly.cloonan@wsj.com

 

(END) Dow Jones Newswires

May 20, 2025 16:41 ET (20:41 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

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