Carter’s board member Hali Borenstein to step down after 2026 annual meeting

Carter’s Inc. (NYSE:CRI) announced that Hali Borenstein, a member of its board of directors, has notified the company that she will not stand for re-election at the company’s annual meeting of shareholders in 2026. The notice was provided on Tuesday.

According to a statement from the company, Borenstein’s decision was not the result of any disagreement with Carter’s regarding its operations, policies, or practices. She plans to dedicate more time to her role as Chief Executive Officer of Reformation LLC and to her family.

Borenstein has served on Carter’s board since 2019. She will continue to fulfill her responsibilities as a director, including her roles on the Nominating & Corporate Governance Committee and the Business Transformation Committee, until the 2026 shareholders’ meeting.

The information is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, Carter’s Inc. reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.66, compared to the forecasted $0.62, and revenue of $630 million, slightly above the expected $624.86 million. Despite this, the company has suspended forward guidance amid leadership changes and tariff uncertainties. The company announced a significant reduction in its quarterly dividend from $0.80 to $0.25 per share, reflecting a shift in capital allocation strategy due to a challenging market environment. S&P Global Ratings revised its outlook for Carter’s to negative from stable, citing declining profitability and increased revenue pressure, while maintaining the issuer credit rating of ’BB+’.

Barclays (LON:BARC) initiated coverage on Carter’s shares with an Underweight rating and a price target of $25, citing structural challenges in the children’s apparel sector. The company has paused share repurchases and is expected to halt future dividend and share repurchase activities until it improves its operating performance. The new CEO, Doug Palladini, plans to present a comprehensive strategic plan aimed at returning the company to profitable growth during the second quarter earnings call. Carter’s has also indicated that future dividends will be at the discretion of the board, based on business conditions and financial performance.

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