Carter's, Inc. (NYSE: CRI) has announced an update to its return of capital strategy, indicating a shift in its capital allocation strategy and the declaration of a $0.25 quarterly dividend. The company's CEO and President, Doug Palladini, expressed optimism about the future, highlighting the potential for significant value creation for shareholders.
As part of this update, the board of directors declared a dividend of $0.25 per share, payable on June 20, 2025, to shareholders of record as of June 2, 2025. This represents a change in the company's dividend payout compared to the previous period.
Palladini also emphasized the company's strong cash position and liquidity, which are forecasted to remain robust. However, he noted that the current dividend is misaligned with the company's level of profitability, especially in the face of a challenging market environment and the potential impact of new proposed tariffs on imported products.
Looking ahead, Carter's, Inc. will continue to evaluate its capital allocation priorities, including the amount and timing of returning capital to shareholders, as part of its goal to return to consistent, profitable growth.
Carter's, Inc. is the largest branded marketer in North America of apparel exclusively for babies and young children, with well-known brands such as Carter’s and OshKosh B’gosh. The company operates over 1,000 company-owned stores and also supplies young children's apparel to major retailers in North America. Additionally, it owns brands like Child of Mine, Just One You, Simple Joys, Little Planet, and Skip Hop.
As the company progresses with its strategic plan and capital allocation strategy revision, investors and stakeholders will be keen to see how these changes translate into financial performance and shareholder value in the coming quarters. Following these announcements, the company's shares moved 0.81%, and are now trading at a price of $36.685. Check out the company's full 8-K submission here.
