Fashion
US’ Carter’s Q3 FY25 sales edge down 0.1% to $757.8 mn
The operating income fell 62.2 per cent to $29.1 million, reflecting higher tariffs, increased investment in product quality and store expansion. Adjusted operating income dropped 48.9 per cent to $39.4 million, with an adjusted operating margin of 5.2 per cent versus 10.2 per cent in the previous year.
American apparel company Carter’s, Inc, has reported flat Q3 FY25 sales at $757.8 million, while profit fell sharply due to higher tariffs and restructuring costs.
Net income dropped to $11.6 million from $58.3 million, with adjusted EPS down to $0.74.
The company plans 300 job cuts and 150 store closures to save $35 million annually, while tariffs are expected to impact Q4 earnings by $25–35 million.
Net income plunged to $11.6 million, or $0.32 per diluted share, from $58.3 million, or $1.62 per diluted share, a year earlier. On an adjusted basis, net income was $26.8 million, or $0.74 per diluted share, compared to $59 million, or $1.64 per diluted share, in Q3 FY24, Carter’s said in a press release.
“Our third quarter performance reflected continued improvement in US retail business demand as we achieved positive comparable sales and improved pricing for the second consecutive quarter,” said Douglas C Palladini, chief executive officer (CEO) and president. “However, elevated product costs, in part due to the impact of higher tariffs, as well as additional investment, weighed meaningfully on our profitability.”
For the first nine months (9M) of FY25, Carter’s has reported net sales of $1.97 billion, down 0.6 per cent YoY. Adjusted operating income declined nearly half to $86.5 million, with adjusted earnings per share (EPS) at $1.57, compared with $3.43 a year earlier. Net cash used in operations totalled $136.3 million, compared to net cash inflow of $11.3 million in FY24.
The company has initiated a productivity drive, including the reduction of 300 office-based roles (around 15 per cent of its workforce) and the closure of 150 stores across North America by 2026, measures expected to generate annual savings of about $35 million beginning in 2026, added the release.
Looking ahead, the company warned that new US import tariffs could have a pre-tax earnings impact of $200–250 million annually. Vietnam, Cambodia, Bangladesh, and India now account for about 75 per cent of Carter’s sourcing, with China contributing less than 3 per cent. The company expects a $25–35 million hit to pre-tax income in Q4 FY25 due to tariff pressures.
Carter’s has also secured commitments for a new five-year $750 million asset-based revolving credit facility to strengthen liquidity and is evaluating refinancing options for its $500 million senior notes maturing in 2027.
Fibre2Fashion News Desk (SG)
The introduction of Levi’s Kids strengthens Apparel Group’s commitment to strategic category diversification, particularly within India’s rapidly expanding premium kidswear segment. As Indian consumers increasingly seek global brands, durable quality, and value-driven fashion for their children, Levi’s Kids enters the market as a strong, differentiated offering backed by one of the most trusted names in apparel.
Apparel Group will leverage its extensive retail footprint, operational excellence, and Indian market expertise to establish and scale the brand across key metros and urban centers. With a strong omnichannel approach, Levi’s Kids has already debuted on leading e-commerce marketplaces, with standalone store openings set to follow in a phased rollout. This dual-channel strategy ensures both reach and depth — providing parents with convenient access to a globally established brand alongside curated in-store experiences tailored to Indian families.
Levi’s Kids has entered India through Apparel Group, strengthening its premium kidswear portfolio as demand for global, durable and value-focused brands grows.
The brand will expand through an omnichannel strategy across metros, offering high-quality denim, tees and everyday essentials for children aged 4-16, blending Levi’s iconic style with comfort-driven, durable design.
Abhishek Bajpai, Chief Executive Officer – Apparel Group India, comments, “The introduction of Levi’s Kids marks an exciting milestone in our journey of bringing world-class brands and value-driven retail experiences to Indian consumers. Premium kidswear is a high-potential category, and Levi’s — backed by its heritage, trust, and universal appeal — is uniquely positioned to lead it. We look forward to building a strong and enduring footprint for Levi’s Kids in India.”
Levi’s Kids brings the brand’s multigenerational legacy of craftsmanship, authenticity, and effortless American style to children aged 4 to 16. The collection blends iconic Levi’s design DNA — such as classic indigo denim, the signature red tab, and timeless silhouettes — with kid-first functionality, including stretch-infused fabrics, soft cotton tees, adjustable waistbands, reinforced stitching, and movement-friendly fits.
From everyday essentials like graphic T-shirts, hoodies, shirts, and chinos to versatile denim jackets, skirts, shorts, and jeans in multiple washes, the range is thoughtfully designed for active, expressive, and growing children. Built with high-quality materials and durability at its core, Levi’s Kids offers clothing that ages beautifully, withstands repeat wear, and can be passed down — making it a smart and stylish choice for modern families.
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
Published
December 16, 2025
Richemont’s Watchfinder.co.uk has filed its accounts for the year to March 2025 with the retailer of premium pre-owned watches reporting a similar sized loss to the previous year although revenue was higher.
In fact, sales increased as much as 18%, reaching just under £110 million and gross profit was up 10% at £15.4 million. But the operating loss was £12.58 million after a loss of £12.53 million in the previous year. The net loss for the financial year was slightly narrower than in the previous period, dropping to £12.156 million from £12.614 million.
The numbers relate to its UK activities specifically and the company said that despite a challenging trading year, it maintained its position as a market leader for luxury preowned watch sales in the country. But the strong volatility of prices in the market, together with the difficult economic environment in Britain had an impact on its trading results.
For the current year, the board said that it will continue to elevate the brand positioning, enhanced brand awareness and develop its presence further in key locations around the world. It will also look at continuing to expand the business in the UK via a combination of e-commerce and a physical retail presence.
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The last month’s budget is unlikely to kickstart economic growth, with the first major post-budget forecast from a leading business body pointing to a subdued outlook. The growth prospects remain modest despite a marginal upward revision for 2025, BCC said in its latest economic forecast.
UK GDP growth for 2025 is forecast to edge up to 1.4 per cent, driven by public spending, according to the British Chambers of Commerce.
Last month’s Budget is unlikely to revive the economy.
Growth in 2026 and 2027 remains subdued, with weak business investment, slowing exports, and rising unemployment.
Inflation is easing, but only modest interest rate cuts are expected.
In 2026, manufacturing growth is forecast at 0.9 per cent, and by 2027, growth is projected to improve to 1.8 per cent in manufacturing.
Business investment is expected to weaken sharply next year. After an estimated rise of 3 per cent in 2025, investment growth is forecast to slow to just 0.9 per cent in 2026, before recovering modestly to 1.5 per cent in 2027. The BCC attributed the weakness to sustained cost pressures on firms and the absence of direct growth-boosting measures in the budget.
Exports are forecast to rise by 1.8 per cent in 2026 and 2.4 per cent in 2027, sharply lower than earlier expectations of 3.3 per cent and 3.2 per cent. Imports are projected to grow by 3.8 per cent this year, before easing to 1.4 per cent in 2026 and then rising to 2.8 per cent in 2027.
Inflation is forecast to continue easing, with consumer price inflation expected to fall to 2.1 per cent by the end of 2026 and reach the Bank of England’s 2 per cent target by the fourth quarter of 2027. Average earnings growth is also expected to cool, from 4.3 per cent by the end of this year to 3.8 per cent in 2026 and 3.5 per cent in 2027.
With inflation easing but growth remaining weak, interest rate cuts are expected to be limited. The BCC forecast sees the policy rate at 3.75 per cent by the end of this year, falling only slightly to 3.5 per cent by December 2026.
Unemployment is projected to rise further, reaching 5.1 per cent in 2026 as labour market conditions loosen and firms rein in hiring amid cost pressures and sluggish productivity. The rate is then expected to ease to 4.8 per cent in 2027.
“Our forecast suggests last month’s Budget is unlikely to be a growth game-changer for the UK economy,” said David Bharier, head of research at the BCC. “The outlook for SMEs in 2026 will continue to be challenging with business investment and export growth struggling. Inflationary pressures, specifically from rising labour and energy costs, are likely to persist, meaning only modest cuts in the interest rate. Unemployment will be a key indicator to track as labour costs rise and automation costs ease.”
“Taken together the forecast paints a picture of an economy remaining stuck in low gear. Businesses are showing remarkable resilience and innovation, but many are weighed down by political uncertainty and the cumulative cost pressures,” added Bharier. “Delivery on growth is now key—the government has published industrial, trade, and infrastructure strategies, and these must translate into action. The UK is trapped in a low growth cycle, with consequences for both the fiscal and political landscape. Maximising the AI roll-out and global trading opportunities could help break the deadlock.”
“Businesses will be steering through choppy waters once again next year after a Budget that lacked the growth measures so desperately needed,” said Vicky Pryce, chair of the BCC economic advisory council. “Getting inflation back down towards the Bank’s 2 per cent target is good news, but that masks the continuing cost pressures for businesses. Significant interest rate cuts, that would make a huge difference to businesses and households, are not guaranteed next year by any means.
“Rising unemployment will be a key part of the economic landscape next year, pushing down consumer spending and presenting further challenges for firms of all sizes,” added Pryce.
Fibre2Fashion News Desk (SG)
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