Carter's shares slump in late trade on dividend cut

Shares in Carter's Inc CRI.N down 8.6% in late trade after the children's clothing co announced cutting its quarterly dividend to 25 cents/shr from 80 cents/shr in the first quarter blaming profit levels, challenging environment, likely cost hike from proposed U.S. tariffs

Stock last traded at $33.61 after falling as low as $31.80 after the bell following regular session close of $36.77

Doug Palladini, CEO since April, said previous div was "misaligned" with current profits against backdrop of challenging market environment, possibility CRI "may incur significantly higher product costs as the result of the new proposed tariffs on products imported into the United States"

CRI said dividend would be payable on June 20 to shareholders of record as of June 2

YTD stock down 32% as of Tuesday's close after falling 27.6% in 2024