Caleres (CAL) Q4 2025 earnings summary

Executive summary

• FY24 sales declined 3.4% to $2.72 billion, with Q4 sales down 8.3% to $639.2 million, both in line with guidance.

• Adjusted EPS was $3.30 for FY24 and $0.33 for Q4, both at the high end of guidance.

• Brand Portfolio contributed over 50% of operating profit and gained share in women's fashion footwear.

• $75 million was returned to shareholders via buybacks and dividends.

• Announced $105 million acquisition of Stuart Weitzman, expected to close summer 2025, funded through revolving credit.

Financial highlights

• Q4 gross margin was 43%, down 80 bps; full-year gross margin was 44.9%, up 10 bps.

• FY24 adjusted operating margin was 5.8%, down from 7.1% in FY23.

• Inventory increased 4.5% year-over-year to $565 million.

• Debt at $219.5 million, with a debt/EBITDA leverage ratio of 1.1x at year-end.

• Total liquidity at year-end was $301.9 million.

Outlook and guidance

• FY25 consolidated sales expected to be down 1% to up 1%; EPS guidance: $2.80–$3.20; operating margin 5.1%–5.6%.

• Q1 2025 sales expected down 5%–6%, EPS $0.35–$0.40.

• 75% of Brand Portfolio sourcing, and an even higher percentage for Lead Brands, to be outside China by H2 2025.

• Guidance excludes impact of Stuart Weitzman acquisition, to be updated post-close.

• Tariff increases to be partially absorbed by company and factory partners, with selective price increases.