Caleres (CAL) Q3 2025 earnings summary

Executive summary

• Q3 2024 net sales were $740.9M, down 2.8% year-over-year, with 72% from direct-to-consumer channels; Famous Footwear sales declined 4.8% while Brand Portfolio sales rose 0.7%.

• Adjusted EPS was $1.23, excluding $0.04 from restructuring initiatives, and EBITDA reached $73M (9.9% of sales); net earnings were $41.4M, down from $46.9M in Q3 2023.

• Performance was impacted by softer boot demand, late athletic product receipts, a customer credit issue, and weaker China business.

• Both Brand Portfolio and Famous Footwear gained market share, with lead brands outperforming and Famous posting positive comp store sales.

• $50M in share repurchases executed during the quarter, with approximately 1.5M shares bought back.

Financial highlights

• Q3 sales were $741M, down $21M year-over-year, with a $29M unfavorable calendar shift at Famous; gross margin was 44.1%, down 55 bps.

• Operating earnings were $56.7M (7.9% margin); net interest expense was $2.9M; EBITDA was $73M (9.9% of sales).

• Inventory at quarter end was $586M, up 5.4% year-over-year (2.7% adjusted for retail calendar shift).

• Total liquidity at quarter-end was $285.8M; working capital improved to $63.9M, and the current ratio increased to 1.08:1.

• SG&A expense was $269M (36.3% of sales), up 30 bps; SG&A declined $5M due to restructuring and lower incentive comp.

Outlook and guidance

• Full-year 2024 sales expected to decline 2.5%-3% (1.5%-2% excluding 53rd week); operating margin forecast at 6.1%-6.3%.

• Adjusted EPS guidance lowered to $3.45-$3.55, excluding $0.10/share in restructuring costs.

• Capital expenditures projected at $50-$55M, mainly for store remodels and ERP implementation; effective tax rate about 24%.

• Both segments expected to be down mid-single digits in Q4 (reported), with Famous comps marginally positive (1-1.5%).

• Gross margin expected to decline in Q4, with more promotional activity in Brand Portfolio.