Caleres Inc. (NYSE: CAL), a prominent player in the consumer-driven footwear market, released its financial results for the fourth quarter and full fiscal year 2025 on March 19, 2026. The results showcased a blend of growth in specific segments while reflecting challenges in others, particularly in the Famous Footwear division.

2. Fourth Quarter Highlights

Net Sales: Caleres reported fourth-quarter net sales of $695.1 million, marking an increase of 8.7% compared to the previous year. When excluding the recently acquired Stuart Weitzman brand, net sales stood at $638.7 million.

Brand Portfolio Performance: The company's Brand Portfolio segment saw a robust sales increase of 20.3%, with organic sales growing by 1.5%. This growth was bolstered by market share gains in both Women’s Fashion Footwear and Total Footwear categories.

Famous Footwear Challenges: In contrast, Famous Footwear experienced a 1.2% decline in net sales, although comparable sales showed a slight uptick of 0.1%. Despite this, owned eCommerce sales across both Famous Footwear and the Brand Portfolio exhibited strong double-digit growth.

Earnings: The company reported a GAAP loss of $22.7 million, equating to a loss per diluted share of $0.70. On an adjusted basis, the loss was $11.7 million, or $0.36 per diluted share. Notably, when excluding Stuart Weitzman, the adjusted loss per diluted share improved to $0.06.

Integration Success: Caleres successfully completed the integration of Stuart Weitzman onto its platforms, achieving the task on time and within budget, with minimal disruption to business operations.

3. Fiscal Year 2025 Results

For the full fiscal year ending January 31, 2026, Caleres reported:

Net Sales: Total net sales reached $2.8 billion, reflecting a modest 1.3% increase compared to fiscal 2024. The Brand Portfolio segment was a bright spot with a 7.3% increase, while Famous Footwear saw a more significant decline of 3.6%.

Gross Profit and Margins: The gross profit for the year was $1.18 billion, with a gross margin of 43.0%, down 190 basis points from the previous year. The decrease was attributed to rising costs and the impact of the Stuart Weitzman integration.

Selling and Administrative Expenses: Total expenses amounted to $1.2 billion, accounting for 42.0% of net sales. The increase was partly due to $71 million in expenses associated with the Stuart Weitzman acquisition.

Net Loss: The company's GAAP net loss for the year was $6.7 million, translating to a loss per diluted share of $0.21. In contrast, the previous year had shown a profit of $107.3 million, or $3.09 per diluted share.

4. Outlook for 2026

First Quarter Guidance

Caleres anticipates a mid- to high-single-digit increase in consolidated net sales for the first quarter of 2026. Specific expectations include:

Famous Footwear: Anticipated to decline slightly, with comparable sales projected to range from a 2% decrease to a 1% increase.

Brand Portfolio: Expected to grow by mid-teens, with organic growth in the low single digits.

Earnings Per Share: Projected GAAP earnings per diluted share are between $0.21 and $0.26, with adjusted earnings per diluted share expected to range from $0.25 to $0.30.

Full Year Projections

For fiscal 2026, Caleres expects:

Net Sales Growth: A low to mid-single-digit growth in total sales.

Gross Margin Improvement: An anticipated increase of 140 to 180 basis points driven by tariff mitigation efforts and an improved product mix.

Earnings Forecast: Projected GAAP earnings per diluted share of $1.31 to $1.61, and adjusted earnings per diluted share expected to be between $1.35 and $1.65.

5. Leadership Commentary

Jay Schmidt, President and CEO of Caleres, expressed optimism about the company's performance, stating, “Our fourth quarter exceeded our earnings guidance with sales modestly above expectations and gross margin better than anticipated in both segments.” He also acknowledged the challenges posed by the current geopolitical landscape but emphasized the company’s strategic plans to enhance financial performance and shareholder value.

6. Conclusion

Caleres Inc. has displayed resilience amid a mixed financial landscape, with significant growth in its Brand Portfolio countering the challenges faced by Famous Footwear. The company's strategic initiatives and successful integration of Stuart Weitzman position it for a hopeful outlook in 2026, as it aims for recovery and growth within the competitive footwear market.

Original press release