Dive Brief:
- Kids apparel retailer Carter’s named Sharon Price John as the company’s chief executive officer and president, effective June 15, according to a Friday press release. She will also serve as a member of the board of directors.
- Former CEO Douglas Palladini has left the company as its CEO and as a member of the board of directors. The company named CFO and COO Richard Westenberger to also serve as interim chief executive officer and president until John joins the company.
- John was most recently the CEO of Build-A-Bear Workshop.
Dive Insight:
About a year after announcing a new CEO, Carter’s has announced another one.
The retailer previously named former Vans executive Palladini as its CEO and president last March. The company didn’t immediately respond to questions regarding his exit from the company after one year. However, the company thanked Palladini for his work.
“At the Board’s direction, Doug led a series of initiatives to help Carter’s manage the onset of record tariffs, streamline the organization structure, and improve the quality and productivity of our retail store fleet,” William Montgoris, outgoing non-executive chair of the board, said in a statement. “We believe it is the right time to transition Carter’s leadership.”
Needham analyst Tom Nikic called the leadership change “abrupt” and “a surprise.”
John is coming in to the top spot after over a decade with Build-A-Bear Workshop. Her exit from Build-A-Bear was part of a planned succession that was announced in March by the toy company.
During her time at Build-A-Bear, John is credited with landing record sales, growing the brand’s presence outside of malls, leveraging the company’s intellectual property, catering to collectors and accelerating the company’s e-commerce efforts.
John’s “success in revitalizing Build-A-Bear gives us confidence in her ability to accelerate the work underway at Carter’s and leverage the power of our iconic brands to drive sustainable growth and shareholder value creation,” Gretchen Schar, incoming non-executive chair of Carter’s board of directors, said in a statement.
Carter’s is coming off of a difficult year which saw it adopt a poison pill following an investment firm’s rapid accumulation of its stock. The company last spring pulled guidance, citing new leadership and ongoing economic uncertainty due to tariffs, as the retailer anticipated increases to its product costs.
Months later, Carter’s laid off around 300 corporate employees, or 15% of its workforce. The company also announced that it was closing about 150 North American stores over the next three years — 50 more than it previously anticipated.
The retailer was undergoing a turnaround plan outlined by former chief Palladini last May.
Carter’s on Friday also reaffirmed its guidance, which anticipated mid-single-digit percentage growth in net sales in Q1, and low-single-digit to mid-single-digit percentage growth in net sales for fiscal year 2026.
The company will report Q1 earnings on Wednesday.
