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Aug 02
Caleres Q2 2025 Earnings Report
Caleres posted a decline in revenue and profitability in Q2, impacted by soft sales at Famous Footwear and higher costs.
Key Takeaways
Caleres delivered Q2 results that reflected a challenging retail environment with lower net sales and gross margin pressure, though the company maintained profitability and advanced strategic initiatives, including the acquisition of Stuart Weitzman.
Net sales declined 3.6% YoY to $658.5 million.
Net income was $6.7 million, with EPS of $0.20 and adjusted EPS of $0.35.
Gross margin declined 210 basis points to 43.4% due to tariffs and promotions.
Stuart Weitzman acquisition completed post-quarter to strengthen premium portfolio.
Caleres
Caleres
Caleres Revenue by Segment
Revenue by Segment
Famous Footwear Revenue
CapyFin.comBrand Portfolio Revenue
CapyFin.com Forward Guidance
Caleres did not provide formal full-year guidance but anticipates margin pressure to continue in Q3 with some relief expected in Q4 due to mitigation strategies.
Positive Outlook
- Improved sales trends in July and August.
- Direct-to-consumer now represents ~75% of total sales.
- Completed Stuart Weitzman acquisition post-quarter.
- Amended and expanded credit facility for increased flexibility.
- Brand Portfolio gaining share in women’s fashion footwear.
Challenges Ahead
- Gross margin pressures expected to persist in Q3.
- Famous Footwear comparable sales declined 3.4% in Q2.
- Brand Portfolio gross margin fell 240 basis points YoY.
- SG&A expense ratio increased due to sales deleverage.
- Inventory levels rose 4.9% YoY, reflecting softer sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income