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Caleres Reports First Quarter 2026 Results
Caleres Reports First Quarter 2026
About this update from Caleres, Inc.
Caleres (NYSE: CAL), a market-leading portfolio of consumer-driven footwear brands, today reported financial results for the first quarter 2026. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260604758601/en/ Sam Edelman Peyton Kitten Heel Sandal “We were pleased to report first quarter sales at the top end and earnings ahead of our guidance, reflecting the strength of our strategic growth vectors and broad-based momentum across our Brand Portfolio,” said Jay Schmidt, president and chief executive officer. “Within Brand Portfolio, we delivered growth across channels and geographies, with Lead Brands continuing to outperform, meaningful gross margin expansion, and further cross-category market share gains. At Famous Footwear, while results were more challenging amid a softer consumer and macroeconomic backdrop, we grew our e-Commerce business, made progress with our elevate-and-edit strategy, delivered even stronger outperformance from our FLAIR stores, and gained slight market share in Shoe Chains both overall and in Kids.” “The first quarter was an encouraging first step toward a build-back year for Caleres. We continue to expect modest sales growth and meaningful earnings growth in 2026. Our Brand Portfolio momentum has strengthened, with profitability supported by favorable mix, successful tariff mitigation actions, and disciplined execution. For the balance of the year, we are focused on maximizing the strong sales and earnings trends in our Brand Portfolio, improving Stuart Weitzman earnings, and elevating product and enhancing shopping experiences at Famous Footwear. Longer term, we believe that disciplined execution of our strategic plans will improve financial performance and create long-term value for our shareholders.” First Quarter 2026 Results (13 weeks ended May 2, 2026, compared to 13 weeks ended May 3, 2025) Net sales were $666.6 million, up 8.5% versus first quarter 2025, and $622.7 million when excluding Stuart Weitzman, up 1.4% versus first quarter 2025. Brand Portfolio net sales increased 20.6% to last year, and 5.8% when excluding Stuart Weitzman. Famous Footwear net sales decreased 2.5% to last year, with comparable sales down 2.3%. Direct-to-consumer sales represented approximately 67% of total net sales. Gross profit was $315.5 million with gross margin of 47.3%, up 200 basis points to last year. Excluding Stuart Weitzman, adjusted gross profit was $291.2 million, with adjusted gross margin of 46.8%, up 140 basis points to last year. Brand Portfolio gross margin was 49.0%, up 520 basis points to last year. Famous Footwear gross margin was 43.8%, down 150 basis points to last year. Selling and administrative expenses were $293.7 million, or 44.1% of net sales, deleveraged 70 basis points to last year, primarily reflecting $25.6 million in expenses related to Stuart Weitzman. Excluding Stuart Weitzman, selling and administrative expenses were $268.1 million, or 43.1% of net sales, down 30 basis points to last year. GAAP net earnings were $14.3 million, or $0.42 per diluted share, compared to $6.9 million, or $0.21 per diluted share, last year. Adjusted net earnings were $12.7 million, or $0.38 per diluted share, compared to adjusted net earnings of $7.4 million, or $0.22 per diluted share, last year. Inventory was $609.1 million at quarter-end, up $35 million to last year. Excluding Stuart Weitzman, inventory was down $22.7 million. Borrowings under the asset-based revolving credit facility were $347.5 million at quarter-end, and liquidity was $229.2 million. Second Quarter & Full Year Outlook For second quarter 2026, we expect consolidated net sales to increase mid-to-high-single digits versus last year. Brand Portfolio sales are anticipated to increase in the mid-twenties percent range, with low-double-digit organic growth. Famous Footwear sales and comparable sales are expected to be down mid-single digits. Gross margin is expected to improve 345 to 375 basis points, reflecting tariff mitigation efforts and lower current tariff rates. We anticipate a second quarter tax rate of 26% to 27%. We expect GAAP earnings per diluted share of $0.32 to $0.38. For full-year 2026, we anticipate total sales to increase low-to-mid-single digits. Brand Portfolio sales are expected to be up low-double digits, and mid-single digits organically. Famous Footwear sales and comparable sales are expected to be down low-to-mid-single digits. Consolidated gross margin is expected to improve 220 to 260 basis points. We anticipate interest expense of approximately $18 million, a full-year tax rate of 27% to 28%, and capital expenditures of $50 to $55 million. We expect GAAP earnings per diluted share of $1.44 to $1.69, and adjusted earnings per diluted share of $1.40 to $1.65. Second Quarter Outlook Net Sales Up mid-to-high single digits Gross Margin Up 345 to 375 bps Tax Rate 26% to 27% GAAP EPS $0.32 to $0.38 Full Year Outlook Net Sales Up low to mid-single digits Gross Margin Up 220 to 260 bps Interest Expense ~$18 million Tax Rate 27% to 28% GAAP EPS $1.44 to $1.69 Adjusted EPS $1.40 to $1.65 Capital Expenditures $50 to $55 million Investor Conference Call Caleres will host a conference call at 10:00 a.m. ET today, Thursday, June 4, 2026 . 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 June 18, 2026, by dialing (844) 512-2921 in North America or (412) 317-6671 internationally and using the pin 13760681. About Caleres Caleres is a market-leading portfolio of global footwear brands that includes Famous Footwear, Sam Edelman, Stuart Weitzman, Allen Edmonds, Naturalizer and Vionic. Our products are available virtually everywhere — in the ~1,000 retail stores we operate, in hundreds of major department and specialty stores, on our branded e-Commerce sites, and on many additional third-party retail websites. Combined, these brands make Caleres a company with both a legacy and a mission. Our legacy is nearly 150 years of craftsmanship and our passion for fit, while our mission is to continue to inspire people to feel great… feet first. Visit caleres.com to learn more about us. 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 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. In particular, the company provides estimated and future gross profit, operating earnings (loss), 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 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. These measures 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) transitional challenges with acquisitions and divestitures; (x) cybersecurity threats or other major disruption to the company’s information technology; (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) changes to tax laws, policies and treaties; (xvi) our commitments and shareholder expectations related to responsible business initiatives; (xvii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xviii) 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 January 31, 2026, 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. SCHEDULE 1 CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Thirteen Weeks Ended ($ thousands, except per share data) May 2, 2026 May 3, 2025 Net sales $ 666,599 $ 614,221 Cost of goods sold 351,127 335,527 Gross profit 315,472 278,694 Selling and administrative expenses 293,729 266,483 Restructuring and other special charges, net (2,126 ) 627 Operating earnings 23,869 11,584 Interest expense, net (4,682 ) (3,795 ) Other income, net 1,166 686 Earnings before income taxes 20,353 8,475 Income tax provision (6,603 ) (2,529 ) Net earnings 13,750 5,946 Net loss attributable to noncontrolling interests (527 ) (997 ) Net earnings attributable to Caleres, Inc. $ 14,277 $ 6,943 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 0.42 $ 0.21 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 0.42 $ 0.21 SCHEDULE 2 CALERES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) ($ thousands) May 2, 2026 May 3, 2025 ASSETS Cash and cash equivalents $ 37,737 $ 33,139 Receivables, net 173,912 160,433 Inventories, net 609,102 573,615 Property and equipment, held for sale — 16,777 Prepaid expenses and other current assets 91,847 62,428 Total current assets 912,598 846,392 Lease right-of-use assets 571,812 559,713 Property and equipment, net 201,691 185,069 Goodwill and intangible assets, net 201,884 189,515 Other assets 134,101 127,007 Total assets $ 2,022,086 $ 1,907,696 LIABILITIES AND EQUITY Borrowings under revolving credit agreement $ 347,500 $ 258,500 Trade accounts payable 190,514 212,514 Lease obligations 126,715 118,781 Other accrued expenses 218,505 180,461 Total current liabilities 883,234 770,256 Noncurrent lease obligations 475,069 472,981 Other liabilities 44,411 51,555 Total other liabilities 519,480 524,536 Total Caleres, Inc. shareholders’ equity 612,076 605,179 Noncontrolling interests 7,296 7,725 Total equity 619,372 612,904 Total liabilities and equity $ 2,022,086 $ 1,907,696 SCHEDULE 3 CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) ($ thousands) May 2, 2026 May 3, 2025 OPERATING ACTIVITIES: Net cash used for operating activities $ (27,779 ) $ (5,657 ) INVESTING ACTIVITIES: Purchases of property and equipment (11,193 ) (20,542 ) Proceeds from sale of headquarters 3,951 — Capitalized software (1,080 ) (604 ) Adjustment to acquisition of Stuart Weitzman (307 ) — Net cash used for investing activities (8,629 ) (21,146 ) FINANCING ACTIVITIES: Borrowings under revolving credit agreement 125,250 135,500 Repayments under revolving credit agreement (74,250 ) (96,500 ) Dividends paid (2,354 ) (2,362 ) Acquisition of treasury stock (3,123 ) (5,044 ) Issuance of common stock under share-based plans, net (2,083 ) (3,067 ) Contributions by noncontrolling interests 850 1,750 Net cash provided by financing activities 44,290 30,277 Effect of exchange rate changes on cash and cash equivalents 86 29 Increase in cash and cash equivalents 7,968 3,503 Cash and cash equivalents at beginning of period 29,769 29,636 Cash and cash equivalents at end of period $ 37,737 $ 33,139 SCHEDULE 4 CALERES, INC. RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) (Unaudited) Thirteen Weeks Ended May 2, 2026 May 3, 2025 Pre-Tax Net Earnings Pre-Tax Net Earnings Impact of Attributable Diluted Impact of Attributable Diluted Charges/Other to Caleres, Earnings Charges/Other to Caleres, Earnings ($ thousands, except per share data) Items Inc. Per Share Items Inc. Per Share GAAP earnings $ 14,277 $ 0.42 $ 6,943 $ 0.21 Charges/other items: Stuart Weitzman acquisition and integration costs $ 1,814 1,347 0.03 $ 627 466 0.01 Gain on sale of corporate headquarters (3,940 ) (2,926 ) (0.07 ) Total charges/other items $ (2,126 ) $ (1,579 ) $ (0.04 ) $ 627 $ 466 $ 0.01 Adjusted earnings $ 12,698 $ 0.38 $ 7,409 $ 0.22 SCHEDULE 5 CALERES, INC. SUMMARY FINANCIAL RESULTS BY SEGMENT SUMMARY FINANCIAL RESULTS (Unaudited) Thirteen Weeks Ended Famous Footwear Brand Portfolio Eliminations and Other Consolidated May 2, May 3, May 2, May 3, May 2, May 3, May 2, May 3, ($ thousands) 2026 2025 2026 2025 2026 2025 2026 2025 Net sales $ 319,321 $ 327,676 $ 356,269 $ 295,395 $ (8,991 ) $ (8,850 ) $ 666,599 $ 614,221 Net sales, excluding Stuart Weitzman (1) 319,321 327,676 312,408 295,395 (8,991 ) (8,850 ) 622,738 614,221 Gross profit 140,006 148,441 174,510 129,287 956 966 315,472 278,694 Adjusted gross profit 140,006 148,441 174,510 129,287 956 966 315,472 278,694 Adjusted gross profit, excluding Stuart Weitzman 140,006 148,441 150,285 129,287 956 966 291,247 278,694 Gross margin 43.8 % 45.3 % 49.0 % 43.8 % (10.6 )% (10.9 )% 47.3 % 45.4 % Adjusted gross margin 43.8 % 45.3 % 49.0 % 43.8 % (10.6 )% (10.9 )% 47.3 % 45.4 % Adjusted gross margin, excluding Stuart Weitzman 43.8 % 45.3 % 48.1 % 43.8 % (10.6 )% (10.9 )% 46.8 % 45.4 % Operating earnings (loss) (437 ) 4,974 39,091 17,415 (14,785 ) (10,805 ) 23,869 11,584 Adjusted operating earnings (loss) (437 ) 4,974 39,548 17,415 (17,368 ) (10,178 ) 21,743 12,211 Adjusted operating earnings (loss), excluding Stuart Weitzman (437 ) 4,974 40,986 17,415 (17,368 ) (10,178 ) 23,181 12,211 Operating margin (0.1 )% 1.5 % 11.0 % 5.9 % n/m % n/m % 3.6 % 1.9 % Adjusted operating margin (0.1 )% 1.5 % 11.1 % 5.9 % n/m % n/m % 3.3 % 2.0 % Adjusted operating margin, excluding Stuart Weitzman (0.1 )% 1.5 % 13.1 % 5.9 % n/m % n/m % 3.7 % 2.0 % Comparable sales % (on a 13-week basis) (2.3 )% (4.6 )% 6.8 % (1.2 )% — % — % — % — % Company-operated stores, end of period 812 835 184 115 — — 996 950 n/m – Not meaningful (1) Stuart Weitzman net sales were $43.9 million in the thirteen weeks ended May 2, 2026. SCHEDULE 5 CALERES, INC. SUMMARY FINANCIAL RESULTS BY SEGMENT RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) (Unaudited) Thirteen Weeks Ended Famous Footwear Brand Portfolio Eliminations and Other Consolidated May 2, May 3, May 2, May 3, May 2, May 3, May 2, May 3, ($ thousands) 2026 2025 2026 2025 2026 2025 2026 2025 Gross profit $ 140,006 $ 148,441 $ 174,510 $ 129,287 $ 956 $ 966 $ 315,472 $ 278,694 Charges/Other Items: Stuart Weitzman acquisition and integration costs — — — — — — — — Total charges/other items — — — — — — — — Adjusted gross profit $ 140,006 $ 148,441 $ 174,510 $ 129,287 $ 956 $ 966 $ 315,472 $ 278,694 Stuart Weitzman Stuart Weitzman gross profit — — 24,225 — — — 24,225 — Adjusted gross profit, excluding Stuart Weitzman $ 140,006 $ 148,441 $ 150,285 $ 129,287 $ 956 $ 966 $ 291,247 $ 278,694 Operating earnings (loss) $ (437 ) $ 4,974 $ 39,091 $ 17,415 $ (14,785 ) $ (10,805 ) $ 23,869 $ 11,584 Charges/Other Items: Stuart Weitzman acquisition and integration costs — — 457 — 1,357 627 1,814 627 Gain on sale of corporate headquarters — — — — (3,940 ) — (3,940 ) — Total charges/other items — — 457 — (2,583 ) 627 (2,126 ) 627 Adjusted operating earnings (loss) $ (437 ) $ 4,974 $ 39,548 $ 17,415 $ (17,368 ) $ (10,178 ) $ 21,743 $ 12,211 Stuart Weitzman Stuart Weitzman operating loss (2) — — (1,438 ) — — — (1,438 ) — Adjusted operating earnings (loss), excluding Stuart Weitzman $ (437 ) $ 4,974 $ 40,986 $ 17,415 $ (17,368 ) $ (10,178 ) $ 23,181 $ 12,211 (2) Represents the operating loss of Stuart Weitzman, adjusted for Stuart Weitzman acquisition and integration costs. SCHEDULE 6 CALERES, INC. BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION (Unaudited) Thirteen Weeks Ended May 2, 2026 May 3, 2025 ($ thousands, except per share data) Net earnings attributable to Caleres, Inc.: Net earnings $ 13,750 $ 5,946 Net loss attributable to noncontrolling interests 527 997 Net earnings attributable to Caleres, Inc. 14,277 6,943 Net earnings allocated to participating securities (452 ) (241 ) Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 13,825 $ 6,702 Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 32,620 32,523 Dilutive effect of share-based awards 130 128 Diluted common shares attributable to Caleres, Inc. 32,750 32,651 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 0.42 $ 0.21 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 0.42 $ 0.21 SCHEDULE 7 CALERES, INC. BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION (Unaudited) Thirteen Weeks Ended May 2, 2026 May 3, 2025 ($ thousands, except per share data) Adjusted net earnings attributable to Caleres, Inc.: Adjusted net earnings $ 12,171 $ 6,412 Net loss attributable to noncontrolling interests 527 997 Adjusted net earnings attributable to Caleres, Inc. 12,698 7,409 Net earnings allocated to participating securities (400 ) (241 ) Adjusted net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 12,298 $ 7,168 Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 32,620 32,523 Dilutive effect of share-based awards 130 128 Diluted common shares attributable to Caleres, Inc. 32,750 32,651 Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.38 $ 0.22 Diluted adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.38 $ 0.22 SCHEDULE 8 CALERES, INC. RECONCILIATION OF DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) (Unaudited) (Unaudited) Second Quarter 2026 Guidance Fiscal 2026 Guidance Low High Low High GAAP diluted earnings per share $ 0.32 $ 0.38 $ 1.44 $ 1.69 Stuart Weitzman acquisition and integration costs — — 0.03 0.03 Gain on sale of corporate headquarters — — (0.07 ) (0.07 ) Adjusted diluted earnings per share $ 0.32 $ 0.38 $ 1.40 $ 1.65 View source version on businesswire.com: https://www.businesswire.com/news/home/20260604758601/en/