Caleres (CAL) Q2 2027 earnings summary

Executive summary

• Second quarter net sales rose 5.6% year-over-year to $695.5 million, with adjusted EPS of $0.47 and GAAP EPS of $1.71, both exceeding expectations, driven by Brand Portfolio growth and the Stuart Weitzman acquisition, while Famous Footwear sales declined.

• Gross margin expanded 1,140 basis points to 54.8% due to $55.6M–$57.4M in tariff refunds; adjusted gross margin rose 340 basis points to 46.8%.

• Operating earnings increased to $77.6M from $9.3M, and diluted EPS rose to $1.71 from $0.20 year-over-year; adjusted operating earnings were $22M (3.2% margin).

• Market share gains were noted in total footwear and women's fashion footwear, with broad-based brand strength and international momentum.

• Brand Portfolio delivered sales and earnings growth, offsetting Famous Footwear's challenges from delayed back-to-school and lifestyle athletic softness.

Financial highlights

• Brand Portfolio net sales grew 23.6% to $340.6M, with Stuart Weitzman contributing $42.5M; organic sales up 8.2%.

• Famous Footwear net sales fell 6.3% to $374.4M, with comparable sales down 5.9% and gross margin down 100 bps to 42.7%.

• GAAP net earnings reached $58.6M, up from $6.7M; adjusted net earnings were $16.1M, up from $11.7M.

• Inventory at quarter-end was $754.2M, up $61M; excluding Stuart Weitzman, inventory was down 1.2%.

• Direct-to-consumer sales accounted for 71% of total net sales.

Outlook and guidance

• Full-year 2026 net sales projected up low-to-mid single digits; GAAP EPS $2.80–$2.95, adjusted EPS $1.50–$1.65; capital expenditures $50–$55M.

• Q3 2026 net sales expected to rise low-single digits; Brand Portfolio up mid-high single digits, Famous Footwear down low-single digits.

• Q3 GAAP EPS guidance: $0.62–$0.70; gross margin to improve 150–200 bps.

• Brand Portfolio full-year sales expected up low-double digits; Famous Footwear sales down low-to-mid single digits.

• Management remains focused on international growth, direct-to-consumer penetration, and maximizing segment synergies.