Carter’s Inc., a major player in the North American children’s apparel market with more than 1,000 stores, announced a sudden leadership transition Friday morning. Doug Palladini has exited the company as chief executive officer and president, effective immediately.
Palladini, a 20-year veteran of VF Corp. and the former global brand president of Vans, is being replaced by Sharon Price John, who joins Carter’s after a 13-year tenure as CEO and president of Build-A-Bear Workshop. John is scheduled to officially take the helm June 15.
The move marks a swift conclusion to Palladini’s tenure at the Atlanta-based company. He was named CEO on April 3, 2025, tasked with applying the brand-building playbook he used to turn Vans into a $4 billion powerhouse to the struggling baby apparel sector. It was a departure for Palladini, who spent nearly his entire career in the action sports space, had never served as CEO of a public company, and had not worked in the mass-market retail space.
He brought aboard two executives whom he had worked with during his tenure at Vans – Carter’s Chief Brand Officer David Tichiaz and Chief Marketing Officer Sarah Crockett, who remain with the company.
In a statement, outgoing non-executive chair William Montgoris thanked Palladini for his work during a “pivotal year of reset.”
“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,” Montgoris said in a statement. “We believe it is the right time to transition Carter’s leadership.”
Before joining Build-A-Bear, John held a number of executive positions, including president of Stride Rite Children’s Group and GM and SVP of Hasbro’s Global Playskool business. She has also worked at Mattel as the VP of international marketing for the Disney business unit and as a director of the Barbie brand.
The Carter’s Reset
Palladini’s time at Carter’s was defined by navigating a “reset” year. While he managed to return the company to top-line growth in late 2025, profitability remained under pressure from tariffs and restructuring costs.
During an earnings call in January 2026, Palladini spoke about his efforts to stabilize the business, which reported $2.9 billion in 2025 revenue, a 2% increase.
“Fourth quarter comparable retail sales grew for the third consecutive quarter, reflecting strong consumer response to product and marketing initiatives,” Palladini said. “We also continue to grow average unit retail pricing as we price up… an important element of ongoing efforts to offset the impact of higher tariffs and improve profitability.”
Market and Analyst Reaction
Wall Street’s reaction to the news was mixed but cautious. Carter’s stock was trading down approximately 2% in early morning trading following the announcement, hovering near its 52-week low.
Analysts from UBS noted that while Palladini had made strides in streamlining the organization, the appointment of Sharon Price John, who has deep roots in the children’s space via Build-A-Bear, suggests the board is looking for a leader with specific toy and children’s retail experience to navigate the current demographic headwinds.
“Sharon has a distinguished track record as a public company CEO and brings substantial and relevant experience in the children’s space,” Gretchen Schar, incoming nonexecutive chair of the Carter’s board, said in a statement.
