ATLANTA — Recent annual filings with federal regulators by Atlanta-based children’s clothing company Carter’s shows that birthrate fluctuations are among the biggest factors that impact their business margins.
In their annual report, company leaders said babies are what their business is based on.
Among the business highlights from 2025, Chief Executive Officer & President Douglas C. Palladini said the company had “maintained our overall market share in the young children’s apparel market in the United States and increased our market share of the baby category, the largest and most important part of our business.”
[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]
While the company was able to keep its portion of the market share for young children’s apparel and increased how much of the baby clothes market they supply, it said in the annual report that birth rates were a concern for products and supply needs.
In 2025, the national birthrate was down 23% compared to 2007.
According to a recent data set from the U.S. Centers for Disease Control and Prevention, the 2025 birthrate in the United States was 53.1%.
In Georgia, the most recent data available showed a 36.3% birthrate in 2024.
TRENDING STORIES:
- Rain coming to metro by Tuesday but may not be enough to impact drought
- Atlanta podcaster sentenced for $3.8M unemployment fraud scheme
- UGA Chapel Bell to leave tower over summer for repairs, pausing longtime tradition
"Birth rate fluctuations, which in turn affect the number of customers that are acquired and retained, can have a material impact on consumer spending and our business," the company’s annual report says. “Reductions, or lower-than-expected growth, in the level of discretionary or overall consumer spending may have a material adverse effect on our sales and results of operations.”
Tariff impacts on products and materials were also said to have impacted operations.
"We have prioritized stabilizing business performance in response to recent market challenges, including declining birth rates, inflationary pressures, evolving consumer preferences and the imposition of incremental tariffs," the report to the U.S. Securities and Exchange Commission says.
Despite the current economy, Carter’s leadership says they’ve weathered storms before.
“Over its long and rich history, Carter’s has operated through world wars, regional wars, the Great Depression, recessions, inflationary periods, financial crises, supply chain disruptions, global pandemics, and, more recently, the imposition of unprecedented tariffs,” William J. Montgoris, Non-Executive Chair of the Board of Directors, said in a letter to shareholders.
[SIGN UP: WSB-TV Daily Headlines Newsletter]
©2026 Cox Media Group
