Particle.news
Download on the App Store

Caleres Returns to Profit as Brands Outperform Retail

Management credits Stuart Weitzman integration, favorable mix plus tariff mitigation for improving profitability despite weakness at Famous Footwear.

Overview

  • Caleres reported first-quarter fiscal 2026 net sales of $666.6 million, up 8.5% year over year, and net earnings of $14.3 million, or $0.42 per diluted share, beating the company’s guidance.
  • The brand portfolio drove the quarter with a 20.6% sales gain and a 5.8% increase excluding Stuart Weitzman, while Famous Footwear sales fell 2.5% and comparable sales dropped 2.3%.
  • For the second quarter the company foresees consolidated sales rising in the mid-to-high-single digits, brand sales growing in the mid-20s percent range, Famous Footwear declining in the mid-single digits, and EPS of $0.32 to $0.38.
  • Caleres attributes margin improvement to favorable product mix, tariff-mitigation actions and disciplined execution and is pursuing e-commerce growth, an 'elevate-and-edit' merchandising strategy and expanded Flair stores to lift Famous Footwear.
  • The quarter positions Caleres for modest full-year sales growth and meaningful earnings recovery if Stuart Weitzman margins improve and Famous Footwear traffic trends reverse, making those two areas the key markers to watch.