Adjusted earnings also fell to $20.5 million from $114.6 million a year earlier. Direct-to-consumer (DTC) sales remained a key pillar, accounting for around 73 per cent of total revenue, Caleres said in a press release.
Caleres has reported modest FY25 revenue growth, with sales rising 1.3 per cent to $2.8 billion, driven by e-commerce and international gains, despite profitability pressure.
Q4 sales grew 8.7 per cent, but losses widened due to Stuart Weitzman integration costs.
The company expects 2026 to be a recovery year, with improved margins, tariff mitigation benefits and steady earnings growth.
The integration of Stuart Weitzman, completed on time and within budget, weighed on margins and expenses during the year but is expected to support future growth. Selling and administrative expenses rose significantly, largely due to acquisition-related costs.
In the fourth quarter (Q4) of FY25, net sales rose 8.7 per cent YoY to $695.1 million. Growth was primarily driven by a 20.3 per cent surge in Brand Portfolio sales, while Famous Footwear sales declined 1.2 per cent, with comparable sales marginally up 0.1 per cent. The company continued to gain market share in women’s fashion footwear and total footwear.
Despite higher sales, Caleres reported a GAAP net loss of $22.7 million, or $0.7 per diluted share, compared to a net profit of $4.9 million in the same period last year. Adjusted loss per share stood at $0.36, though this narrowed significantly to $0.06 when excluding the impact of the Stuart Weitzman business. Gross margin declined 230 basis points to 41.8 per cent, reflecting integration-related costs and product mix shifts.
“Caleres’ fourth quarter exceeded our earnings guidance with sales modestly above expectations and gross margin better than anticipated in both segments,” said Jay Schmidt, president and chief executive officer at Caleres. “Performance was driven by continued strength in owned eCommerce and international growth, reinforcing our strategic growth vectors. Our Lead Brands once again outperformed, and we gained market share in both women’s fashion footwear and total footwear. We also completed the Stuart Weitzman integration with minimal business disruption. At Famous Footwear, FLAIR remodels continue to outperform the fleet, and our more curated and elevated assortment is resonating with consumers as Famous gained market share in shoe chains.”
Looking ahead, Caleres expects first quarter (Q1) 2026 sales to grow in the mid- to high-single-digit range, with adjusted earnings per share projected between $0.25 and $0.3. For the full year, the company forecasts low- to mid-single-digit sales growth and adjusted EPS of $1.35 to $1.65, supported by margin improvement and operational efficiencies.
Fibre2Fashion News Desk (SG)
