Caleres logs 8.5 percent sales increase in first quarter

US footwear group Caleres has announced its financial results for the first quarter of fiscal year 2026, ended May 2, 2026, posting net sales at the upper end of its guidance and recording growth across its brand segments.

Consolidated net sales for the period reached 666.60 million dollars, representing an 8.5 percent increase compared to the first quarter of fiscal year 2025. Excluding results from newly acquired footwear brand Stuart Weitzman, net sales stood at 622.70 million dollars, which marks a 1.4 percent increase year-over-year (YoY).

Jay Schmidt, president and chief executive officer of the US-based footwear group, stated that the results reflect the strength of the strategic growth vectors and broad-based momentum across the brand portfolio. Schmidt added that the performance serves as an encouraging first step toward a build-back year for the business.

Segment analysis and direct-to-consumer expansion

The Brand Portfolio division recorded a 20.6 percent increase in net sales compared to the prior year. When excluding Stuart Weitzman, organic sales for the segment grew by 5.8 percent. Within this division, lead brands continued to outperform, driving cross-category market share gains.

At Famous Footwear, the retail division of the group, net sales decreased by 2.5 percent compared to the first quarter of 2025, with comparable sales down 2.3 percent. Management noted that the performance occurred amid a softer consumer and macroeconomic backdrop, though the banner expanded its e-commerce channel and slightly increased its market share within shoe chains and children’s footwear.

Direct-to-consumer (D2C) channels remained a significant part of the distribution strategy, accounting for approximately 67 percent of total net sales during the 13-week period.

Profitability gains and balance sheet review

Gross profit for the quarter amounted to 315.50 million dollars, resulting in a gross margin of 47.3 percent, an expansion of 200 basis points compared to the previous year. Excluding Stuart Weitzman, adjusted gross profit was 291.2 million dollars, representing an adjusted gross margin of 46.8 percent, up 140 basis points YoY.

The Brand Portfolio segment achieved a gross margin of 49 percent, rising by 520 basis points, while Famous Footwear recorded a gross margin contraction of 150 basis points to 43.8 percent.

Net earnings under GAAP improved to 14.30 million dollars, or 0.42 dollars per diluted share, up from 6.90 million dollars, or 0.21 dollars per diluted share, in the first quarter of fiscal year 2025. Adjusted net earnings reached 12.70 million dollars, or 0.38 dollars per diluted share.

Financial outlook

For the second quarter of fiscal year 2026, Caleres expects consolidated net sales to increase by mid-to-high-single digits compared to the same period last year. Brand Portfolio sales are projected to grow in the mid-twenties percent range, while Famous Footwear sales and comparable sales are anticipated to decline by mid-single digits. Gross margin is expected to improve by 345 to 375 basis points, aided by tariff mitigation efforts, with GAAP earnings per diluted share projected between 0.32 dollars and 0.38 dollars.

For the full fiscal year 2026, the group forecasts total sales to rise by low-to-mid-single digits. Brand Portfolio sales are estimated to increase by low-double digits, while Famous Footwear sales are anticipated to drop by low-to-mid-single digits.

Consolidated gross margin is projected to expand by 220 to 260 basis points. Capital expenditures for the full year are planned at 50 million dollars to 55 million dollars, with GAAP earnings per diluted share estimated between 1.44 dollars and 1.69 dollars, and adjusted earnings per diluted share expected between 1.40 dollars and 1.65 dollars.