Caleres (NYSE:CAL) reported fourth-quarter 2025 results that management said finished the year with “some momentum” across both the brand portfolio and Famous Footwear segments, with earnings per share coming in above guidance. President and CEO Jay Schmidt said sales were modestly above expectations and gross margin was better than anticipated, supported by strength in owned e-commerce and international markets.
Fourth-quarter results and segment performance
On an adjusted basis, interim CFO and chief accounting officer Dan Karpel said fourth-quarter sales were $695.1 million, up 8.7% year over year. Excluding Stuart Weitzman, organic sales decreased 0.1%, with organic growth in the brand portfolio segment offset by a decline at Famous Footwear. Stuart Weitzman contributed $56.3 million in sales during the quarter.
Consolidated gross margin was 42.9%, down 10 basis points from last year. Karpel said margin pressure reflected lower margins in the brand portfolio and relatively stable margins at Famous Footwear, while Stuart Weitzman was “modestly accretive” to gross margin. Brand portfolio gross margin excluding Stuart Weitzman fell 130 basis points due to tariffs and markdown allowances, partially offset by favorable channel mix.
SG&A expenses rose $48.3 million, or 18.3%, to $310.0 million, primarily driven by $39 million of expenses related to Stuart Weitzman. The company posted an operating loss of $11.6 million (operating margin of -1.7%). Excluding Stuart Weitzman, adjusted operating earnings were $0.5 million and operating margin was 0.1%.
Fourth-quarter earnings per diluted share were a loss of $0.36, and a loss of $0.06 excluding the acquisition of Stuart Weitzman, Karpel said.
Brand portfolio highlights: lead brands, e-commerce, and international
Schmidt said lead brands again outperformed and represented “nearly 60%” of brand portfolio sales, with owned e-commerce delivering “outsized growth” and international results described as strong. He cited Circana data indicating the brand portfolio gained “significant market share” in women’s fashion footwear and total footwear during the quarter.
Schmidt highlighted boots—particularly tall shaft boots—as a standout category, alongside strength in flats and loafers, solid dress performance, and continued momentum in sneakers.
- Sam Edelman: Schmidt said the brand delivered another strong quarter, with broad-based growth and results exceeding expectations. Wholesale sales exceeded plan, and owned e-commerce grew double digits with higher full-price selling. He also pointed to a fragrance licensing launch with rapid sell-through and expanded national distribution. The brand’s store count was cited as 111 doors (56 owned and 55 franchised), with 107 international.
- Stuart Weitzman: Management said integration onto Caleres platforms was completed on time and on budget, alongside organizational changes, new headquarters in New York and Shanghai, warehouse relocation, and liquidation of a “significant volume” of aged inventory. At quarter end, the brand operated 73 retail locations worldwide (50 in China and 23 in North America). Schmidt reiterated the company’s commitment to bring Stuart Weitzman to break even in 2026.
- Allen Edmonds: Schmidt said results were “very strong” with broad-based growth across channels, led by demand in dress, loafers, sneakers, and boots. He highlighted continued scaling of the Reserve collection and noted 58 Allen Edmonds stores, including 18 Port Washington studio stores that continue to outperform.
- Naturalizer: Schmidt pointed to improving e-commerce momentum and growth in new and retained customers, supported by marketing efforts he described as more focused and effective. He said a June Ambrose collaboration launched shortly after quarter end and is selling at higher retails, “mostly through naturalizer.com.”
- Vionic: Schmidt said the brand closed the quarter with strength in e-commerce and international channels and growing interest in sport and performance walking. He highlighted a January launch of Vionic’s first sport collaboration with Gabby Reece, supported by a marketing campaign.
Famous Footwear: comps, FLAIR remodels, and brand strategy
Schmidt said Famous Footwear’s results were in line with expectations, with e-commerce outperforming stores and average unit retails rising in both channels. He described more positive comps during the holiday period followed by more modest results in January. E-commerce sales rose double digits for the third consecutive quarter, and Schmidt said the earlier launch of Jordan contributed steady momentum through the holiday season and remained a top-10 brand.
The company continues to expand the FLAIR store format. Schmidt said Caleres ended the quarter with 57 FLAIR locations, which generated a 4.5-point sales lift overall and a 6-point lift for stores converted in the last year. Caleres plans to end 2026 with 65 to 75 FLAIR locations.
Schmidt said men’s performed best in the quarter, kids performed in line with the total, and women’s slightly underperformed. He also noted that Caleres’ owned brands outperformed at Famous Footwear with sales up “mid-teens,” higher margin rates, and lower inventory. Looking ahead, management said Famous plans to accelerate its “elevate and edit” strategy by expanding higher-demand brands and exiting underperforming labels, as well as increasing immersive “brand takeovers” throughout 2026.
Outlook: “build-back year” and 2026 guidance
Schmidt characterized 2026 as a “build-back year,” with relatively modest organic sales growth but “meaningful earnings recovery.” He said quarter-to-date trends showed brand portfolio owned e-commerce and international business up, while Famous Footwear comp sales were slightly down with e-commerce up high single digits.
Karpel said guidance assumes a changing tariff environment, including the expectation that new tariffs will be enacted and largely replace prior IEEPA tariffs. He also cited geopolitical risk, including conflict in the Middle East. Caleres said the region represents less than 1% of total business but is important to longer-term international opportunity, and the company is seeing “modest business disruption” with Middle East partners.
First-quarter 2026 guidance includes:
- Consolidated sales up mid- to high-single digits year over year
- Famous Footwear sales down low single digits to flat; comps down 2% to up 1%
- Brand portfolio sales up mid-teens, including low single-digit organic growth (excluding Stuart Weitzman)
- Gross margin up 120 to 140 basis points
- GAAP EPS of $0.21 to $0.26; adjusted EPS of $0.25 to $0.30, including about $2 million of remaining Stuart Weitzman acquisition and integration costs
Full-year 2026 guidance includes:
- Consolidated sales up low- to mid-single digits
- Famous Footwear sales down low single digits to flat; comps down 1% to up 1%
- Brand portfolio sales up low double digits, including low- to mid-single-digit organic growth excluding Stuart Weitzman
- Gross margin up 140 to 150 basis points, driven mostly by the brand portfolio as tariff mitigation strategies improve and mix shifts
- GAAP EPS of $1.31 to $1.61; adjusted EPS of $1.35 to $1.65
- CapEx of approximately $55 million to $60 million
During Q&A, management addressed volatility tied to the Saks situation, saying the company did not ship Saks for the balance of January and was “fully reserved on the bad debt,” but other areas of the business offset what management described as a $0.06 impact. Executives also said the quarter’s tariff impact on brand portfolio gross margin was 40 basis points, better than expected. On Stuart Weitzman, Schmidt said the company completed significant cost-saving work and moved through $25 million of aged inventory, positioning the business to reach break even in 2026.
About Caleres (NYSE:CAL)
Caleres, Inc, formerly known as Brown Shoe Company, is a leading footwear company engaged in the design, sourcing, marketing and selling of a broad portfolio of branded and private-label shoes. The company’s operations span a range of market segments from value-priced to premium and luxury. Caleres operates through two primary segments: a retail segment anchored by the Famous Footwear banner, which includes more than 1,100 stores across North America, and a brand portfolio segment comprising owned and licensed brands such as Allen Edmonds, Naturalizer, Sam Edelman, Dr.
