Caleres demonstrates resilience in second quarter 2025
Net sales for the quarter totalled US$658.5 million, down 3.6% compared with the same period last year.
The Famous Footwear segment saw sales decrease by 4.9%, with comparable sales down 3.4%. The Brand Portfolio segment reported a 3.5% drop in sales. Direct-to-consumer sales accounted for approximately 75% of total net sales.
Gross profit for the quarter reached US$285.8 million, with a gross margin of 43.4%. Famous Footwear recorded a gross margin of 43.7%, while Brand Portfolio gross margin declined to 40.3%.
Net earnings for the quarter were US$6.7 million, translating to earnings of US$0.20 per diluted share. On an adjusted basis, earnings were US$11.7 million, or US$0.35 per diluted share, down from US$30 million and US$0.85 per diluted share in the same quarter of 2024.
In response, Caleres completed structural cost-saving initiatives expected to generate US$15 million in annualised savings. The company also enhanced financial flexibility by amending its credit agreement, increasing its borrowing capacity and extending the maturity of its asset-based revolving credit facility. Shortly after the quarter ended, Caleres completed the acquisition of Stuart Weitzman, adding a new Lead Brand to its portfolio.
“While we did experience headwinds due to market uncertainty, we demonstrated the strength and resilience of our company this quarter,” said Jay Schmidt, President and CEO of Caleres. “Sales trends improved sequentially in both segments of our business, and we saw market share gains in women’s fashion footwear and in shoe chains. We also completed our previously announced structural cost savings initiatives and added Stuart Weitzman to our portfolio, strengthening our focus on premium, direct-to-consumer, and international growth.”