Caleres Brand Portfolio sales increase 23.6 percent, Famous Footwear declines

American footwear company Caleres reported its financial results for the second quarter ended August 1, 2026, recording net sales of 695.5 million dollars, up 5.6 percent compared to the same period last year. Excluding the impact of the newly acquired Stuart Weitzman brand, net sales declined 0.8 percent to 653 million dollars.

GAAP net earnings reached 58.6 million dollars, or 1.71 dollars per diluted share, compared to 6.7 million dollars, or 0.20 dollars per diluted share, in the second quarter of 2025. Profitability was substantially bolstered by 55.6 million dollars in tariff refunds. Adjusted net earnings, excluding the refund benefits, stood at 16.1 million dollars, or 0.47 dollars per diluted share, compared to 11.7 million dollars, or 0.35 dollars per diluted share, in the prior-year period.

“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,” said Jay Schmidt, president and chief executive officer of Caleres.

Diverging performance in Brand Portfolio and Famous Footwear

Performance across the company's operating segments diverged during the 13-week period. The Brand Portfolio division saw net sales rise 23.6 percent to last year, or 8.2 percent when excluding Stuart Weitzman. Adjusted gross margin for the segment expanded 880 basis points to 49.1 percent.

In contrast, Famous Footwear net sales fell 6.3 percent, with like-for-like (LFL) sales declining 5.9 percent. Gross margin for the retail chain dropped 100 basis points to 42.7 percent. Schmidt noted that results at Famous Footwear fell below expectations due to a delayed back-to-school shopping season and persistent softness in lifestyle athletic categories. However, LFL store sales for the chain flattened quarter to date through Labor Day.

Consolidated GAAP gross profit reached 381 million dollars, delivering a gross margin of 54.8 percent, up 1,140 basis points year-over-year (YoY). Excluding the tariff refunds, adjusted gross profit was 325.4 million dollars, representing a margin of 46.8 percent, which marks a 340 basis point expansion YoY.

Financial outlook

For the third quarter of 2026, Caleres expects consolidated net sales to grow in the low-single digits YoY. Brand Portfolio sales are projected to increase in the mid-to-high single digits, while Famous Footwear sales and LFL metrics are anticipated to decline in the low-single digits. Consolidated gross margin is expected to improve between 150 and 200 basis points, supported by lower current tariff rates and ongoing mitigation efforts. GAAP earnings per diluted share (EPS) are forecasted between 0.62 dollars and 0.70 dollars.

For the full fiscal year 2026, the executive team expects total sales to rise in the low-to-mid-single digit range, led by low-double-digit growth in the Brand Portfolio. Famous Footwear net sales and LFL sales are expected to contract by low-to-mid-single digits. Full-year gross margin expansion is projected at 180 to 220 basis points. Caleres forecasts full-year GAAP EPS of 2.80 dollars to 2.95 dollars, and adjusted EPS of 1.50 dollars to 1.65 dollars.