Caleres (CAL) Q3 2025 earnings summary

Executive summary

• Q3 2024 net sales were $740.9M, down 2.8% year-over-year, mainly due to lower Famous Footwear sales, a retail calendar shift, and softer boot demand; Brand Portfolio sales rose 0.7%.

• Adjusted EPS was $1.23, excluding $0.04/share in restructuring charges, and EBITDA reached $73M (9.9% margin); reported EPS was $1.19.

• Direct-to-consumer sales accounted for 72% of net sales; both segments gained market share despite overall sales decline.

• Performance was impacted by soft boot sales, late athletic product receipts, a credit issue with a Brand Portfolio customer, and weaker China business.

• Share repurchases totaled $50M (1.5M shares) in Q3, with strong liquidity and working capital improvement.

Financial highlights

• Q3 gross margin was 44.1%, down 55 bps year-over-year; Brand Portfolio margin up 15 bps to 43.8%, Famous margin down 130 bps to 42.9%.

• Operating earnings were $56.7M (7.9% margin); adjusted EBITDA margin was 9.9%.

• Net earnings attributable to shareholders were $41.4M, down from $46.9M last year.

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

• Total liquidity at quarter-end was $285.8M; net borrowings under the revolving credit agreement were $238.5M.

Outlook and guidance

• Full-year 2024 net sales expected to decline 2.5%–3%; 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 expected at $50–$55M, mainly for store remodels and ERP implementation.

• Q4 outlook assumes continued boot softness, aggressive inventory clearance, and gross margin pressure.

• Plans to reduce borrowings under the revolving credit agreement to mitigate high interest expense.