Shares of Carter’s (CRI) hit their lowest level since 2011 on Wednesday, a day after the youngsters’s clothes retailer slashed its dividend.

New CEO Doug Palladini, who took over the top job last month, mentioned on Wednesday that he expects to current the corporate’s new strategic plan to return to worthwhile development in its second-quarter earnings name later this summer time. Palladini mentioned he has «just lately offered to the Board my preliminary ideas» on methods to place the corporate for development.

«Our present money place and liquidity are sturdy and are forecasted to stay so,» Palladini mentioned. «Nevertheless, as we anticipate making strategic investments in our enterprise within the coming years, our present dividend is misaligned with our present degree of profitability,» particularly contemplating the doubtless «considerably larger product prices» forward as a result of Trump administration’s tariffs.

Carter’s Slashes Dividend Practically 70%

Because of these issues, Carter’s slashed its quarterly dividend to $0.25 per share, down practically 70% from the dividend of $0.80 per share paid out in March. Carter’s didn’t declare a dividend when it reported first-quarter outcomes final month, saying the board would consider future funds primarily based on «enterprise circumstances» and different elements.

In its Q1 report, Carter’s suspended its full-year outlook, citing its contemporary CEO transition, in addition to «important uncertainty surrounding proposed new tariffs and potential associated influence on the enterprise.»

Carter’s shares sank 12% in current buying and selling to $32.38. Earlier within the session, they hit an intraday low of $31.50, the primary time that they had dropped under $32 since early October 2011.