Caleres (CAL) Q1 2026 earnings summary

Executive summary

• Q1 2025 sales declined 6.8% year-over-year to $614.2 million, missing expectations due to weak early sales, pressured margins, and macroeconomic headwinds including tariffs and softer demand.

• Adjusted EPS dropped to $0.22 from $0.88, and net earnings attributable to the company fell to $6.9 million.

• Both business segments gained market share, with improving retail momentum and international growth in March and April.

• Management is focused on $15 million in annualized SG&A savings, sourcing optimization, and integrating the Stuart Weitzman acquisition.

• Guidance for fiscal 2025 is suspended due to ongoing market and trade policy uncertainty.

Financial highlights

• Q1 2025 sales were $614.2 million, down 6.8% year-over-year; gross margin declined to 45.4% from 46.9%.

• Adjusted EPS was $0.22, and net earnings were $6.9 million, both down sharply from the prior year.

• Operating margin fell to 1.9%-2.0% from 6.5% a year ago.

• Inventory increased 8.1% year-over-year to $573.6-$574 million.

• Cash flow from operations was -$5.7 million, impacted by lower net income and higher inventory.

Outlook and guidance

• Fiscal 2025 guidance is suspended due to tariff, sourcing, and market uncertainty.

• $15 million in annualized SG&A savings targeted, with $7.5 million expected in the back half of 2025.

• Sourcing from China expected to fall to 10% or less in the back half of 2025.

• Focus on international growth, new partnerships, and premium product expansion.