07:47 AM EDT, 09/24/2025 (MT Newswires) -- Carter's (CRI) said Wednesday its board has approved a limited-duration stockholder rights agreement.

The apparel company said it was recently notified of the rapid accumulation of a "significant" amount of its common shares by RWWM with no advance notification.

Under the terms, the company will issue one preferred stock purchase right for each outstanding share of its common stock to shareholders of record as of Oct. 3, Carter's said.

The agreement will expire on Sept. 21, 2026, the apparel company said, adding that the rights agreement is intended to reduce the chances that any person or entity controls Carter's through open market accumulation without paying an "appropriate control premium" to the shareholders.