Caleres Reports Third Quarter 2025 Results

Lead Brands & owned eCommerce up double digits. Stuart Weitzman integration progressing toward unlocking synergies.

Caleres (NYSE:CAL), a market-leading portfolio of consumer-driven footwear brands, today reported financial results for the third quarter 2025.

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Stuart Weitzman - Stuart Power Zip 75 Bootie

• Reported consolidated sales of $790.1 million, up 6.6% versus last year (up 0.4% excluding Stuart Weitzman)
  • Brand Portfolio sales increased 18.8% with $45.8 million in contribution from Stuart Weitzman;
  • Brand Portfolio organic sales increased 4.6% with Lead Brands, in total, up double digits, growth across all channels of our Brand Portfolio business and market share gain in women's fashion footwear (+0.5%), excluding Stuart Weitzman;
  • Famous Footwear sales declined 2.2%, with comparable sales down 1.2%;
• Owned eCommerce sales across Famous Footwear and Brand Portfolio up double digits;
• GAAP earnings per diluted share of $0.07, compared to last year's earnings per diluted share of $1.19. Adjusted earnings per diluted share of $0.38, compared to last year's adjusted earnings per diluted share of $1.23; Adjusted earnings per diluted share excluding Stuart Weitzman of $0.67;
• Completed Stuart Weitzman acquisition in August for a preliminary purchase price of $108.9 million, net of cash acquired.

"Caleres delivered third quarter sales results that were ahead of our internal expectations, highlighted by organic sales growth in our Brand Portfolio segment, strong Lead Brands performance, sequential improvement in trends at Famous Footwear, and accelerated eCommerce momentum in both segments of our business," said Jay Schmidt, president and chief executive officer. "With the recent addition of Stuart Weitzman, our Brand Portfolio now drives nearly half our sales and more than half our operating earnings. As we expected, we experienced pressure on our earnings from tariffs and near-term acquisition dilution, however, the fundamentals of our business are improving."

"For the balance of the year, we will be working to transition the Stuart Weitzman business to Caleres systems and clean up aged and excess inventory as we hone our strategies for long-term growth and profitability of the brand. In fiscal 2026, we will begin to unlock synergistic cost savings," said Schmidt. "Through this integration process, we are sharpening our operating structure to better leverage our scale and strengthen our ability to build and grow powerful brands and consumer experiences. We are confident that executing our strategic plans will result in improved financial performance and drive long-term value for our shareholders."

Third Quarter 2025 Results

(13-weeks ended November 1, 2025 compared to 13-weeks ended November 2, 2024)

• Net sales were $790.1 million, up 6.6% versus third quarter 2024;
  • Famous Footwear segment net sales decreased 2.2% versus last year, with comparable sales down 1.2%;
  • Brand Portfolio segment net sales increased 18.8% versus last year. Excluding Stuart Weitzman, net sales increased 4.6% to last year;
  • Direct-to-consumer sales represented approximately 71% of total net sales;
• Gross profit was $329.9 million with gross margin of 41.8%, down 230-basis points versus last year. Adjusted gross margin was 42.7%, down 140-basis points versus last year;
  • Famous Footwear segment gross margin of 41.6%, down 130-basis points versus last year;
  • Brand Portfolio segment gross margin of 40.3%, down 350-basis points versus last year. Adjusted gross margin of 42.3%, down 150-basis points versus last year;
• Selling and administrative expenses were $311.3 million, or 39.4% of net sales, up 310-basis points versus last year, primarily reflecting $32.2 million in expense related to Stuart Weitzman. Excluding Stuart Weitzman, selling and administrative expenses were up $10 million, reflecting an unfavorable comparison to last year's incentive compensation release;
• GAAP net earnings of $2.4 million, or earnings per diluted share of $0.07 versus last year's GAAP net earnings of $41.4 million or earnings per diluted share of $1.19. Adjusted net earnings of $13.1 million, or adjusted earnings per diluted share of $0.38, versus last year's net earnings of $42.6 million, or earnings per diluted share of $1.23. Excluding Stuart Weitzman, adjusted earnings per diluted share were $0.67;
• Inventory was $678.2 million at quarter-end, up $92 million versus last year. Excluding Stuart Weitzman inventory of $77 million, inventory was up 2.6% versus last year.
• Borrowings under the asset-based revolving credit facility were $355 million at quarter-end, and liquidity was $312 million.

Fiscal 2025 Outlook

We expect continued tariff pressure on gross margin and earnings dilution from Stuart Weitzman. Additionally, we anticipate a full-year tax rate of 27% to 28%. We expect a loss per diluted share for the fourth quarter on both a GAAP and adjusted basis. For the full year, we anticipate GAAP loss per diluted share in the range of $0.13 to $0.18 and adjusted earnings per diluted share in the range of $0.55 to $0.60, including $0.60 to $0.65 dilution from Stuart Weitzman.

Investor Conference Call

Caleres will host a conference call at 10:00 a.m. ET today, Tuesday, December 9, 2025. The webcast and associated slides will be available at investor.caleres.com/events-and-presentations. A live conference call will be available at (877) 704-4453 for North America participants or (201) 389-0920 for international participants, no passcode necessary. A replay will also be available at investor.caleres.com/events-and-presentations for a limited period. Investors can access the replay through December 23, 2025 by dialing (844) 512-2921 in North America or (412) 317-6671 internationally and using the conference pin 13757191.

Definitions

All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings attributable to Caleres, Inc. and diluted earnings per common share attributable to Caleres, Inc. shareholders, are presented as net earnings and earnings per diluted share, respectively.

Non-GAAP Financial Measures and Metrics

In this press release, the company's financial results are provided both in accordance with generally accepted accounting principles (GAAP) and using certain non-GAAP financial measures and metrics. In particular, the company provides estimated and future gross profit, operating earnings, net earnings and earnings per diluted share, adjusted to exclude certain gains, charges and recoveries and the financial results of the acquired Stuart Weitzman business, which are non-GAAP financial measures. These results are included as a complement to results provided in accordance with GAAP because management believes these non-GAAP financial measures and metrics help identify underlying trends in the company's business and provide useful information to both management and investors by excluding certain items that may not be indicative of the company's core operating results. This measure and metric should not be considered a substitute for or superior to GAAP results.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains certain forward-looking statements and expectations regarding the company's future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) changes in United States and international trade policies, including tariffs and trade restrictions; (ii) changing consumer demands, which may be influenced by general economic conditions and other factors; (iii) inflationary pressures and supply chain disruptions; (iv) rapidly changing consumer preferences and purchasing patterns and fashion trends; (v) supplier concentration, customer concentration and increased consolidation in the retail industry; (vi) intense competition within the footwear industry; (vii) foreign currency fluctuations; (viii) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (ix) cybersecurity threats or other major disruption to the company's information technology systems including those related to our ERP upgrade; (x) transitional challenges with acquisitions and divestitures; (xi) the ability to accurately forecast sales and manage inventory levels; (xii) a disruption in the company's distribution centers; (xiii) the ability to recruit and retain senior management and other key associates; (xiv) the ability to secure/exit leases on favorable terms; (xv) the ability to maintain relationships with current suppliers; (xvi) changes to tax laws, policies and treaties; (xvii) our commitments and shareholder expectations related to responsible business initiatives; (xviii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xix) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights.

The company's reports to the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation, the information under the caption Risk Factors in Item 1A of the company's Annual Report on Form 10-K for the year ended February 1, 2025, which information is incorporated by reference herein and updated by the company's Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change.