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The company said it would focus on extending Brand Portfolio strength while realigning Famous Footwear\u2019s assortment towards fashion-led demand.<\/p>\n
For the second quarter ended August 1, 2026, Caleres reported net sales of $695.5 million, up 5.6 per cent year on year (YoY). GAAP net earnings rose to $58.6 million from $6.7 million, while diluted earnings per share (EPS) increased to $1.71 from $0.20.<\/p>\n
Caleres expects low-to-mid-single-digit fiscal 2026 sales growth and lifted the lower end of adjusted EPS guidance to $1.50.
\nSecond-quarter net sales rose 5.6 per cent to $695.5 million and GAAP net earnings reached $58.6 million, aided by tariff refunds.
\nBrand Portfolio sales grew 23.6 per cent, offsetting lower Famous Footwear sales amid a delayed Back-to-School season.<\/p>\n
Adjusted net earnings, excluding tariff refunds, reached $16.1 million, compared with $11.7 million a year earlier, and adjusted diluted EPS rose to $0.47 from $0.35 according to the company’s financial release.<\/p>\n
\u201cWe are pleased with our second quarter performance. In our Brand Portfolio, we experienced broad-based gains across brands, channels, and geographies and we gained market share in Women\u2019s Fashion Footwear,\u201d said Jay Schmidt, president and chief executive officer, Caleres Inc<\/em><\/strong>.<\/p>\n \u201cDespite the shift in Back-to-School, Caleres delivered strong profit improvement and earnings ahead of our guidance. Fashion footwear is clearly seeing breakout momentum and Caleres\u2019 brands are resonating with consumers,\u201d added Schmidt.<\/p>\n Brand Portfolio net sales increased 23.6 per cent YoY, or 8.2 per cent excluding Stuart Weitzman. International sales within the portfolio surged 57 per cent, or 18.2 per cent organically. Stuart Weitzman contributed $42.5 million in sales during the quarter.<\/p>\n Famous Footwear net sales declined 6.3 per cent and comparable sales fell 5.9 per cent, reflecting a later Back-to-School season and weaker lifestyle athletic demand. The company said comparable sales at Famous Footwear were flat quarter to date through Labor Day.<\/p>\n Direct-to-consumer sales represented about 71 per cent of consolidated net sales.<\/p>\n GAAP gross profit rose to $381.0 million from $285.8 million, lifting gross margin by 1,140 basis points to 54.8 per cent. The result included $55.6 million in tariff refunds. Excluding those refunds, adjusted gross profit was $325.4 million and adjusted gross margin increased 340 basis points to 46.8 per cent.<\/p>\n Brand Portfolio adjusted gross margin expanded 880 basis points to 49.1 per cent, while Famous Footwear gross margin declined 100 basis points to 42.7 per cent.<\/p>\n Selling and administrative expenses rose to $303.4 million, or 43.6 per cent of sales, primarily due to Stuart Weitzman-related costs. Operating earnings increased to $77.6 million from $9.3 million, while adjusted operating earnings rose to $22.1 million from $16.0 million, Caleres said in its earnings release.<\/p>\n For the first 26 weeks ended August 1, 2026, net sales increased 7 per cent YoY to $1.36 billion. Net earnings attributable to Caleres rose to $72.9 million from $13.7 million, and diluted EPS improved to $2.14 from $0.40. Adjusted net earnings increased to $28.8 million from $19.1 million, while adjusted diluted EPS rose to $0.84 from $0.56.<\/p>\n First-half gross profit reached $696.4 million and gross margin expanded to 51.1 per cent from 44.4 per cent. Adjusted gross margin was 47.1 per cent, compared with 44.4 per cent a year earlier. Net cash provided by operating activities increased to $55.8 million from $41.6 million, while purchases of property and equipment declined to $19.1 million from $32.9 million.<\/p>\n Quarter-end inventory stood at $754.2 million, up $61.0 million YoY, although inventory excluding Stuart Weitzman declined 1.2 per cent. Borrowings under the asset-based revolving credit facility were $288.0 million, with $357.3 million available under the facility.<\/p>\n For the third quarter of 2026, Caleres expects consolidated net sales to increase by a low-single-digit rate, with Brand Portfolio sales up by a mid-to-high-single-digit rate. Famous Footwear sales and comparable sales are expected to decline by a low-single-digit rate. Gross margin is projected to improve by 150-200 basis points, and GAAP diluted EPS is expected at $0.62-$0.70.<\/p>\n For FY26, the company expects total sales growth in the low-to-mid-single-digit range, with Brand Portfolio sales increasing by a low-double-digit rate and Famous Footwear sales and comparable sales declining by a low-to-mid-single-digit rate.<\/p>\n Consolidated gross margin is forecast to improve by 180-220 basis points. Caleres lifted the lower end of adjusted diluted EPS guidance to $1.50-$1.65 from $1.40-$1.65, while maintaining GAAP diluted EPS guidance of $2.80-$2.95. It expects capital expenditure of $50-$55 million and interest expense of approximately $16-$17 million.<\/p>\n
<\/p>\n Fibre2Fashion News Desk (MS)<\/p>\n
\n <\/p><\/div>\n\tBrand Portfolio offsets Famous Footwear decline<\/strong><\/h3>\n
\tTariff refunds lift margins and operating earnings<\/strong><\/h3>\n
\tFirst-half sales and earnings advance<\/strong><\/h3>\n
\tCaleres raises lower end of FY26 adjusted EPS outlook<\/strong><\/h3>\n