Caleres (CAL) Q2 2027 earnings summary

Executive summary

• Second quarter net sales rose 5.6% year-over-year to $695 million, with adjusted EPS of $0.47, exceeding expectations and consensus, driven by strong Brand Portfolio growth and international momentum, while Famous Footwear sales declined.

• Brand Portfolio sales surged 23.6% (8.2% organically), with notable market share gains in women's fashion footwear and international sales up 57%.

• Gross margin expanded 1,140 basis points to 54.8% due to tariff refunds; adjusted gross margin rose 340 basis points to 46.8%.

• GAAP EPS was $1.71, up from $0.20 last year; adjusted EPS was $0.47, up from $0.35.

• Market share gains were noted in total footwear and women's fashion footwear.

Financial highlights

• Second quarter sales were $695 million, up 5.6% year-over-year; trailing twelve-month revenue was $2.85 billion, with 71% from direct-to-consumer channels.

• Brand Portfolio organic sales increased 8.2%; including Stuart Weitzman, up 23.6%.

• Famous Footwear sales down 6.3% with comparable sales down 5.9%; premium product sales at Famous Footwear increased 21.7%.

• Consolidated adjusted gross margin was 46.8%, up 340 bps; Brand Portfolio gross margin 49.1%, up 880 bps; Famous Footwear gross margin 42.7%, down 100 bps.

• Operating earnings were $22.1 million (3.2% margin); adjusted net earnings were $16.1 million, up from $11.7 million.

Outlook and guidance

• Raised lower end of adjusted EPS guidance for the year to $1.50–$1.65; full-year GAAP EPS expected at $2.80–$2.95.

• Expecting consolidated sales up low to mid single digits for FY2026; Brand Portfolio up low double digits, Famous Footwear down low to mid single digits.

• Q3 2026 net sales expected to rise low single digits; GAAP EPS guidance: $0.62–$0.70; gross margin to improve 150–200 bps.

• Full-year gross margin to improve 180–220 bps; capital expenditures $50–$55 million.