Caleres reports challenging first quarter, suspends full-year guidance

Footwear company Caleres announced its first-quarter results for the 13-weeks ended May 3, 2025, revealing a significant decline in net sales and profitability compared to the same period last year.

The company reported net sales of 614.2 million dollars, a 6.8 percent decrease from the first quarter of 2024. This downturn was observed across both segments, with Famous Footwear net sales down 6.3 percent with comparable sales decreasing 4.6 percent and the Brand Portfolio segment experiencing a 6.9 percent decline.

“While our brands continue to resonate with consumers and both segments of our business gained market share in the period, our first quarter results fell short of expectations. February sales were particularly weak, and although trends improved in March and April, overall performance was below plan. Furthermore, operating earnings were pressured by lower gross margins, increased reserves, and costs to cancel and move inventory,” said Jay Schmidt, president and chief executive officer.

“Despite the weak quarter, we did experience improving momentum at retail and growth in our strategically important international business,” Schmidt added.

Gross profit for the quarter stood at 278.7 million dollars with the gross margin contracting by 150 basis points to 45.4 percent. Both segments saw a reduction in gross margin, with Famous Footwear down 80 basis points to 45.3 percent and Brand Portfolio down a more substantial 280 basis points to 43.8 percent.

Net earnings for the quarter were 6.9 million dollars or 21 cents per diluted share, a sharp drop from 30.9 million dollars or 88 cents per diluted share, in the first quarter of 2024. Adjusted net earnings also decreased to 7.4 million dollars or 22 cents per adjusted diluted share.

In light of the challenging environment and the anticipated acquisition of Stuart Weitzman later this year, Caleres is re-evaluating its capital spending plans. Due to the prevailing uncertainty in the market, Caleres has suspended its fiscal 2025 guidance.