Caleres reported second-quarter 2026 net sales of $695.5 million, up 5.6% year over year, as strong growth across its Brand Portfolio and international business offset weaker results at Famous Footwear.
Brand Portfolio sales increased 23.6%, including 8.2% organic growth excluding Stuart Weitzman. International sales increased 57%, or 18.2% organically. Famous Footwear sales declined 6.3%, with comparable sales down 5.9%.
GAAP gross margin expanded 1,140 basis points to 54.8%, helped by $55.6 million of tariff refunds and stronger Brand Portfolio margins. Excluding tariff refunds, adjusted gross margin increased 340 basis points to 46.8%.
GAAP net earnings increased to $58.6 million, or $1.71 per diluted share, from $6.7 million, or $0.20 per share, a year earlier. Adjusted net earnings excluding tariff refunds were $16.1 million, or $0.47 per diluted share, compared with $11.7 million, or $0.35 per share.
Caleres said its fashion footwear brands are gaining momentum, while Famous Footwear was pressured by a later back-to-school season and softness in lifestyle athletic products.
For the third quarter, Caleres expects consolidated sales to increase in the low-single-digit percentage range and GAAP diluted EPS of $0.62 to $0.70.
For the full year, the company expects sales growth in the low-to-mid-single-digit range, GAAP EPS of $2.80 to $2.95, and adjusted EPS of $1.50 to $1.65, narrowing and raising the lower end from its previous range of $1.40 to $1.65.
KEY QUOTE:
“We are pleased with our second quarter performance. In our Brand Portfolio, we experienced broad-based gains across brands, channels, and geographies and we gained market share in Women’s Fashion Footwear, according to Circana. At Famous Footwear, results were below our expectations, as a later Back-to-School season and softness in lifestyle athletic pressured sales and margins. Quarter to date through Labor Day, Famous Footwear comparable store sales are flat.”
“Despite the shift in Back-to-School, Caleres delivered strong profit improvement and earnings ahead of our guidance. Fashion footwear is clearly seeing breakout momentum – and Caleres’ brands are resonating with consumers. Within Famous Footwear, we are pivoting to quickly align our assortment with changing consumer demand, emphasizing fashion, which continues to meaningfully outperform lifestyle athletic products quarter to date.”
“We’re operating in an environment that remains dynamic, but our focus is clear. We will capitalize on the strength in our Brand Portfolio, improve performance at Famous Footwear, and continue rebuilding earnings power.”
Jay Schmidt, President and Chief Executive Officer of Caleres
