Shares of Carter's fell after the company warned of a decline in profitability this year due to tariffs.

The stock was down 7.6% at $34.93 in premarket trading. Shares had gained 16% year-to-date through Thursday's close.

The baby-apparel company said before the opening bell that adjusted earnings are expected decline in the high-single-digit to low-double-digit percentage range this year.

The outlook assumes a lower gross margin rate, Carter's said. That's because of incremental tariff costs that are only getting partially offset by higher pricing and other mitigation tactics.