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CI

CALERES INC (CAL)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 results and call are not yet released; Caleres will report before market open on December 9, 2025, with a 10:00 a.m. ET call and replay available thereafter .
  • Recent trajectory: Q1 revenue fell 6.8% to $614.2M and adjusted EPS was $0.22; Q2 improved sequentially to $658.5M revenue with adjusted EPS of $0.35, though gross margin compressed sharply on tariffs and promotions .
  • Guidance remains suspended; management flagged Q3 Brand Portfolio gross margin “down similar to Q2” (with improvement in Q4) and ongoing tariff pressure through year-end .
  • Strategic changes: $15M structural cost savings achieved; ABL facility extended to 2030 and upsized to $700M; Stuart Weitzman acquisition closed shortly after Q2-end, adding a premium, DTC/international-focused lead brand .

What Went Well and What Went Wrong

What Went Well

  • Structural cost savings completed, expected to generate $15M annualized, supporting a more efficient operating structure .
  • Sequential improvement: Famous Footwear sales trends strengthened in July and continued through August; August comps +1% and Brand Portfolio ex-SW up low single digits .
  • Strategic portfolio strengthening via Stuart Weitzman acquisition, consistent with focus on premium, DTC, and international .

What Went Wrong

  • Gross margin compression: Q2 consolidated GM fell 210 bps YoY to 43.4% due to tariffs, selective promotions, and higher inventory markdown provisions; segment GM down 130 bps (Famous) and 240 bps (Brand Portfolio) .
  • Q1 missed expectations with revenue down 6.8% and EPS $0.21, pressured by lower gross margins, increased reserves, and costs to cancel/move inventory .
  • Deleveraging in SG&A: Q2 SG&A rose to 41.0% of sales (+170 bps YoY) amid lower sales; inventory and borrowings increased to pre-position cash for acquisition .

Financial Results

Recent quarterly performance (prior two quarters for trend; Q3 pending):

MetricQ1 2025Q2 2025
Revenues ($USD Millions)$614.2 $658.5
YoY Revenue Change (%)-6.8% -3.6%
Gross Margin %45.4% 43.4%
Diluted EPS ($USD)$0.21 $0.20
Adjusted Diluted EPS ($USD)$0.22 $0.35
Net Earnings ($USD Millions)$6.943 $6.713

Segment breakdown:

Segment MetricQ1 2025Q2 2025
Famous Footwear Net Sales ($USD Millions)$327.676 $399.593
Famous Footwear Gross Margin %45.3% 43.7%
Brand Portfolio Net Sales ($USD Millions)$295.395 $275.620
Brand Portfolio Gross Margin %43.8% 40.3%
Eliminations ($USD Millions)($8.850) ($16.694)
Consolidated Gross Profit ($USD Millions)$278.694 $285.795

KPIs:

KPIQ1 2025Q2 2025
Direct-to-Consumer (% of Sales)~70% ~75%
Famous Footwear Comparable Sales % (13-week)-4.6% -3.4%
Brand Portfolio Comparable Sales % (13-week)-1.2% +3.9%
Inventory ($USD Millions)$573.615 $693.282
Borrowings under ABL ($USD Millions)$258.5 $387.5
Company-Operated Stores (Total)950 948

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Annual Guidance (Consolidated)FY 2025Suspended (Q1) Continue suspended (Q2) Maintained
Brand Portfolio Gross Margin (YoY trend)Q3 2025Not providedDown similar to Q2; improvement in Q4 Directional detail added
Tariff Impact (Brand Portfolio)H2 2025Not providedOngoing GM pressure from tariffs for balance of year Added caution
August Comps (Famous Footwear)Aug 2025Not provided+1% SSS New update
August Sales (Brand Portfolio ex-SW)Aug 2025Not providedUp low-single digits New update
Capital Structure – ABL FacilityFY 2025Prior facilityExtended to 2030; capacity increased to $700M; accordion to $950M Raised flexibility

Earnings Call Themes & Trends

Note: Q3 call and transcript pending (Dec 9, 2025) .

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Tariffs/MacroMargin pressure; costs to cancel/move inventory; weak Feb trends GM down 210 bps YoY due to tariffs/promotions/markdowns; expect tariff pressure through year-end PendingPersistent headwind; mitigation planned
Supply Chain/SourcingOptimize sourcing; China dollars ≤10% in H2 2025 Continued mitigation strategies; improvement expected in Q4 PendingDiversification/mitigation progressing
DTC and Market ShareDTC ~70%; market share gains noted DTC ~75%; women’s fashion share gains; Lead Brands strength PendingMix shift toward DTC
Structural Cost ActionsAnnounced $15M annualized SG&A reduction Achieved $15M annualized savings PendingExecuted; ongoing benefits
Stuart WeitzmanPlanned acquisition later in year Acquisition completed post-Q2; adds premium/DTC/international lead brand PendingPortfolio upgrade/integration

Management Commentary

  • “While our brands continue to resonate with consumers and both segments of our business gained market share in the period, our first quarter results fell short of expectations… operating earnings were pressured by lower gross margins, increased reserves, and costs to cancel and move inventory.” — Jay Schmidt, President & CEO .
  • “We demonstrated the strength and resilience of our company this quarter. Sales trends improved sequentially in both segments… We also saw significant improvement in sales trends at Famous Footwear in July and continuing through August.” — Jay Schmidt .
  • “We completed our previously announced structural cost savings initiatives that will deliver annualized savings of $15 million… Just after quarter-end, we completed the acquisition of Stuart Weitzman, adding a new Lead Brand to our portfolio that aligns with our strategic focus on premium, direct-to-consumer, and international business.” — Jay Schmidt .

Q&A Highlights

  • Q3 2025 call transcript not yet available; the company will host the call on December 9, 2025 with replay access thereafter .

Estimates Context

  • S&P Global consensus for Q3 2025 could not be retrieved at this time due to system limitations; we will update post-release with EPS and revenue consensus to benchmark actuals against Street expectations. Values retrieved from S&P Global.*
  • Q1 results were below expectations per management commentary; Q2 adjusted EPS benefited from a discrete tax item of $0.07, which should be considered in comparability analyses .

Key Takeaways for Investors

  • Near-term catalyst: December 9 release and call; focus on Brand Portfolio GM trajectory (Q3 “down similar to Q2”) and tariff mitigation progress .
  • Watch sequential momentum: August comps and sales updates point to improving retail trends; confirm if momentum sustained into Q3 .
  • Margin lens: Tariff-related costs and promotions drove GM compression; quantify Q3 impact and the timing/scale of mitigation benefits into Q4 .
  • Portfolio upgrade: Stuart Weitzman integration could enhance premium/DTC/international mix; look for synergy and growth vectors outlined by management .
  • Balance sheet flexibility: Extended and upsized ABL provides liquidity to navigate volatility while funding growth and dividend; monitor leverage and inventory normalization .
  • Structural savings: $15M annualized cost reduction provides a base-level margin tailwind; track flow-through to operating income amid sales volatility .
  • Trading setup: Given suspended guidance and pending Q3 print, price reaction likely tied to (1) Brand Portfolio GM trend, (2) Famous Footwear comps, and (3) clarity on tariffs/integration pace .

Additional Note on Q3 Primary Sources

  • The Q3 2025 8-K earnings release and the Q3 2025 earnings call transcript are not yet available in the document catalog; company has disclosed the release and call timing (Dec 9, 2025). This recap will be updated immediately upon publication to include full primary-source synthesis and Street estimate benchmarking .

Appendix: Supporting Data Extracts (Prior Two Quarters)

ItemQ1 2025 DetailQ2 2025 Detail
Net Sales$614.221M; down 6.8% YoY $658.519M; down 3.6% YoY
Gross Margin45.4%; Famous 45.3%, Brand 43.8% 43.4%; Famous 43.7%, Brand 40.3%
EPSDiluted $0.21; Adjusted $0.22 Diluted $0.20; Adjusted $0.35; includes $0.07 discrete tax benefit
SG&A (%)43.4% of sales (+300 bps YoY) 41.0% of sales (+170 bps YoY)
Inventory$573.615M $693.282M
Borrowings (ABL)$258.5M $387.5M; facility extended to 2030, capacity to $700M
DTC Mix~70% ~75%
CompsFamous Footwear -4.6% ; Brand Portfolio -1.2% Famous Footwear -3.4% ; Brand Portfolio +3.9%

Press activity relevant to portfolio positioning:

  • Stuart Weitzman brand campaign launch (marketing; not financial results) underscores focus on premium positioning within Brand Portfolio .