Caleres Inc. reported second-quarter earnings that topped guidance, but sales fell short as Famous Footwear’s comps declined 5.9 percent due to a later back-to-school season and weakness in lifestyle athletic footwear.

Second-Quarter Highlights

Reported second-quarter net sales of $695.5 million, up 5.6 percent. Guidance had called for sales to increase in the mid-to-high single digits

  • Brand Portfolio sales growth was broad-based, up 23.6 percent and 8.2 percent organically.
    • International up 57.0 percent and 18.2 percent organically.
    • Stuart Weitzman tracking in line with expectations.
  • Famous Footwear sales declined 6.3 percent, with comparable sales down 5.9 percent. For more on the second quarter Famous Footwear business, see SGB Executive story link at the bottom of this page.

Grew market share in Total Footwear, while Brand Portfolio gained share in Women’s Fashion Footwear.

GAAP consolidated gross margin expanded 1,140 basis points to 54.8 percent, driven by Brand Portfolio and tariff refunds. Excluding tariff refunds, adjusted gross margin was up 340 basis points to 46.8 percent.

Reported second quarter GAAP earnings per diluted share of $1.71 versus 20 cents last year, or adjusted earnings per diluted share of 47 cents versus 35 cents last year. Adjusted EPS of 47 cents was well above guidance in the range of 32 cents to 38 cents.

Expects third quarter 2026 consolidated net sales up low-single digits, with GAAP earnings per diluted share of 62 cents to.70 cents.

Expects full-year 2026 consolidated net sales up low-to-mid-single digits and GAAP earnings per diluted share of $2.80 to $2.95, with adjusted earnings per diluted share of $1.50 to $1.65 versus prior guidance of $1.40 to $1.65.

Management Commentary
“We 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’s Fashion Footwear, according to Circana,” said Jay Schmidt, president and chief executive officer. “At Famous Footwear, results were below our expectations, as a later Back-to-School season and softness in lifestyle athletic pressured sales and margins. Quarter to date through Labor Day, Famous Footwear comparable store sales are flat.”

“Despite 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’ brands are resonating with consumers. Within Famous Footwear, we are pivoting to quickly align our assortment with changing consumer demand, emphasizing fashion, which continues to meaningfully outperform lifestyle athletic products quarter to date.”

“We’re operating in an environment that remains dynamic, but our focus is clear. We will capitalize on the strength in our Brand Portfolio, improve performance at Famous Footwear, and continue rebuilding earnings power.”

Second Quarter 2026 Results
(13 weeks ended August 1, 2026, compared to 13 weeks ended August 2, 2025)

  • Net sales were $695.5 million, up 5.6 percent versus second quarter 2025, and $653.0 million when excluding Stuart Weitzman, down 0.8 percent to second quarter 2025.
    • Brand Portfolio net sales increased 23.6 percent to last year, and 8.2 percent when excluding Stuart Weitzman.
    • Famous Footwear net sales decreased 6.3 percent to last year, with comparable sales down 5.9 percent.
    • Direct-to-consumer sales represented approximately 71 percent of total net sales.
  • GAAP gross profit was $381.0 million, with gross margin of 54.8 percent, up 1,140 basis points to last year, fueled by $55.6 million in tariff refunds. Excluding tariff refunds, adjusted gross profit was $325.4 million, or 46.8 percent of net sales, up 340 basis points to last year.
    • Brand Portfolio adjusted gross margin was 49.1 percent, up 880 basis points to last year.
    • Famous Footwear gross margin was 42.7 percent, down 100 basis points to last year.
  • Selling and administrative expenses were $303.4 million, or 43.6 percent of net sales, deleveraged 270 basis points to last year, primarily reflecting expenses related to Stuart Weitzman. Excluding Stuart Weitzman, selling and administrative expenses were $279.9 million, or 42.9 percent of net sales.
  • GAAP net earnings were $58.6 million, or $1.71 per diluted share, compared to $6.7 million, or 20 cents per diluted share, last year. Adjusted net earnings, excluding tariff refunds, were $16.1 million, or 47 cents per diluted share, compared to last year’s adjusted net earnings of $11.7 million, or 35 cents per diluted share.
  • Inventory was $754.2 million at quarter-end, up $61.0 million to last year. Excluding $69.0 million of inventory attributable to Stuart Weitzman, inventory was down 1.2 percent.
  • Borrowings under the asset-based revolving credit facility were $288.0 million at quarter-end, with $357.3 million in availability under its revolver.

Third Quarter Guidance
For third quarter 2026, Caleres expects consolidated net sales to increase low-single digits versus last year.

  • Brand Portfolio sales are anticipated to increase in the mid-high-single digit percent range.
  • Famous Footwear sales and comparable sales are expected to be down low-single digits.

Gross margin is expected to improve 150 to 200 basis points, reflecting tariff mitigation efforts and lower current tariff rates.

Caleres anticipates a third quarter tax rate of 23 percent to 25 percent.

GAAP earnings per diluted share projected in the range of 62 cents to 70 cents.

Full-Year 2026 Guidance
For full-year 2026, total sales are still expected to increase low-to-mid-single digits. Brand Portfolio sales are still expected to be up low-double digits. Famous Footwear sales and comparable sales are still expected to be down low- to mid-single digits.

Consolidated gross margin is expected to improve 180 to 220 basis points, down from an improvement of 220 to 260 basis points expected previously.

Caleres anticipates interest expense of approximately $16 to $17 million (up from approximately $18 million previously), a full-year tax rate of 24 percent to 26 percent (previously,  27 percent to 28 percent), and capital expenditures of $50 to $55 million (same as under previous guidance).

GAAP earnings per diluted share is expected in the range of $2.80 to $2.95, and adjusted earnings per diluted share between $1.50 to $1.65. Previous guidance called for GAAP EPS of $1.44 to $1.69, and adjusted EPS of $1.40 to $1.65.

The Caleres portfolio includes Famous Footwear, Sam Edelman, Stuart Weitzman, Allen Edmonds, Naturalizer, Vionic, Blowfish Malibu, Dr. Scholl’s Shoes, LifeStride, Rykä, Favorite Daughter, Franco Sarto, Veronica Beard and  Vince.

Image courtesy of Caleres, Inc.

See below for more in-depth SGB Executive coverage of the Q2 Famous Footwear business:

EXEC: Famous Footwear Sees Shift from Lifestyle Athletic Pushing Q2 Comps and Margins Lower