Caleres (CAL) Q2 2026 earnings summary

Executive summary

• Consolidated net sales for Q2 2025 were $658.5 million, down 3.6% year-over-year, with sequential improvement in sales trends across both business segments.

• Market share gains were achieved in women's fashion footwear and shoe chains, with strong performance from lead brands and direct-to-consumer channels.

• The acquisition of Stuart Weitzman was completed post-quarter, expanding the premium and international portfolio and expected to deliver operational efficiencies and cost savings.

• Achieved $15 million in annualized structural cost savings, with further efficiencies targeted for 2026 and beyond.

• Key growth vectors included international expansion and elevated assortment at Famous Footwear.

Financial highlights

• Q2 2025 sales were $658.5 million, down 3.6% year-over-year; gross margin was 43.4%, down 210 basis points due to tariffs, promotions, and higher inventory markdowns.

• Adjusted earnings per share for the quarter were $0.35, down from $0.85 last year; diluted EPS was $0.20.

• Operating earnings were $16 million, with an operating margin of 2.4%; adjusted EBITDA was $32.1 million (4.9% margin).

• Inventory at quarter-end was $693.3 million, up 4.9% year-over-year.

• Debt/EBITDA leverage ratio increased to 2.7x from 0.6x year-over-year, reflecting higher borrowings for the Stuart Weitzman acquisition.

Outlook and guidance

• Annual guidance remains suspended due to ongoing tariff and market uncertainty.

• Famous Footwear August comparable sales were up 1%, but September and October are expected to be down low single digits.

• Brand Portfolio August sales (excluding Stuart Weitzman) were up low single digits; gross margin pressure expected to persist in Q3, with improvement anticipated in Q4 as mitigation strategies take effect.

• Additional cost savings opportunities are being explored, with more benefits expected in 2026.

• Forward-looking estimates exclude Stuart Weitzman’s impact.