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CAL
Earnings call · Jul 2026 (Q2 FY27)

CALERES Q2 FY27 earnings call CAL

Sep 9, 2026 Source

Executive summary

Caleres Q2 FY27 — Brand Portfolio Strength and Stuart Weitzman Progress Offset Famous Footwear Headwinds

Caleres delivered adjusted earnings above expectations in Q2 FY27, primarily driven by robust performance across its Brand Portfolio, particularly in fashion footwear and international markets. This strength helped mitigate sales pressures at Famous Footwear, which faced headwinds from a delayed back-to-school season and a consumer shift from lifestyle athletic. The company is actively managing inventory and pivoting assortments, while maintaining its full-year guidance range amidst ongoing tariff uncertainty.

Highlights

5

  • Adjusted earnings per diluted share were $0.47, exceeding expectations and up from $0.35 last year.

  • Brand Portfolio sales increased 23.6% (8.2% organic), with broad-based gains and market share in women's fashion footwear.

  • International sales for the Brand Portfolio grew over 50% (high teens organically), highlighting a significant growth vector.

  • Stuart Weitzman made meaningful progress towards its 2026 break-even operating earnings goal, with improved full-price sell-through and international performance.

  • Consolidated gross margin, excluding tariff refunds, was 46.8%, an increase of 340 basis points year-over-year.

Concerns

4

  • Famous Footwear sales decreased 6.3% (comparable sales down 5.9%) due to a late back-to-school season and a shift away from lifestyle athletic.

  • Famous Footwear gross margin declined 100 basis points year-over-year to 42.7%, driven by increased promotional and clearance activity.

  • SG&A deleverage of 100 to 150 basis points is expected in Q3 FY27, primarily due to incremental incentives and lower Famous Footwear sales.

  • The company faces an uncertain tariff environment, with new tariffs assumed to be enacted in Q3 FY27, largely replacing prior IEPA tariffs.

Guidance & targets

CategoryTargetConfidence
Stuart Weitzman operating earnings
break-even
medium materiality
High
Consolidated sales growth
low single digits increase
high materiality
Medium
Brand Portfolio sales growth
mid to high single digit percent range
medium materiality
Medium
Famous Footwear same-store and comparable sales
down low single digits
medium materiality
Medium
Consolidated gross margin improvement
improve 150 to 200 basis points
high materiality
Medium
SG&A deleverage
100 to 150 basis points
medium materiality
Medium
Consolidated tax rate
23 to 25%
low materiality
Medium
GAAP earnings per diluted share
$0.62 to $0.70
high materiality
Medium
Consolidated sales growth
low to mid single digits
high materiality
Medium
Brand Portfolio sales growth
low double digits
medium materiality
Medium
Famous Footwear sales and comparable sales
down low to mid single digits
medium materiality
Medium
Store openings and closures
open 13 stores and close 26
low materiality
Medium
Consolidated gross margin improvement
up 180 to 220 basis points
high materiality
Medium
SG&A rate
tend to slightly de-leverage
medium materiality
Medium
Interest expense
approximately $16 to $17 million
low materiality
Medium
Full-year tax rate
24 to 26%
low materiality
Medium
GAAP earnings per diluted share
$2.80 to $2.95
high materiality
Medium
Adjusted earnings per diluted share
$1.50 to $1.65
high materiality
High
CAPEX
approximately $50 to $55 million
medium materiality
Medium
New tariffs enactment
enacted during the third quarter
high materiality
Medium

Segment performance

SegmentRevenueYoYQoQMargin
Brand Portfolio
Experienced broad-based gains across brands, wholesale, direct-to-consumer, and international. Lead brands and the balance of the portfolio delivered sales and earnings growth. Sam Edelman showed broad-based performance across categories and channels. Stuart Weitzman improved full price sell through and international. Allen Edmonds saw broad-based consumer demand and gained market share. Naturalizer's profitability outpaced sales. Vionic sales were lower but earnings were up slightly, with encouraging adoption of new technology platforms.
Organic sales growth: 8.2%Operating margin (ex-Stuart Weitzman): 13%International sales growth: over 50%International organic sales growth: high teensSam Edelman sales growth: mid-teens vs last yearSam Edelman market share: #9 dollar volume brand in women's fashion footwear (Circana)Sam Edelman #1 flat, #1 pump, #1 loafer in segment (through spring)Allen Edmonds net sales growth: low teensNaturalizer sales growth: high single digitsVionic walking category penetration: 13% (sequential increase)Vionic walking category sales growth: over 50% vs last year
up 23.6%23.6%—10.5% operating margin
Famous Footwear
Sales were below expectations due to a later back-to-school season and a shift away from lifestyle athletic. Weakness in lifestyle athletic products, while performance athletic remained strong. Fashion business strengthened and outperformed athletic. Actions taken to improve inventory positioning, including reducing receipts and increasing clearance events, pressured gross margin but improved inventory health.
Comparable sales growth: -5.9%Store locations: 814 (opened 3, closed 3 in Q2)Quarter-to-date comp sales (through Labor Day): flatPremium product penetration sales increase: 22%Kids market share: held share in total measurable market, gained share in shoes (Circana)
down 6.3%-6.3%—1.4% operating margin

CAL operating KPIs by quarter

CAL operating KPIs stated on its earnings calls, by fiscal quarter
KPI Apr 2026 Q1 FY27This call Jul 2026 Q2 FY27Change vs prior quarter
Stores Sam Edelman
113 From a brick-and-mortar perspective, we ended the quarter with 113 Sam Edelman stores including 54 owned and 59 franchise with 109 being international. Source transcript
110 And finally, we ended the quarter with 110 owned and franchised Sam Edelman stores, including four in North America. Source transcript
-2.7%
Stores Stuart Weitzman
71 Stuart Weitzman ended the quarter with 71 stores, including 23 in North America and 48 in China. Source transcript
62 We ended the quarter with 62 stores, including 21 in North America and 41 in Asia. Source transcript
-12.7%
Stores Stuart Weitzman North America
23 Stuart Weitzman ended the quarter with 71 stores, including 23 in North America and 48 in China. Source transcript
21 We ended the quarter with 62 stores, including 21 in North America and 41 in Asia. Source transcript
-8.7%
Stores Allen Edmonds
58 These 18 stores outperformed the broader 58 store fleet by 11 points in the quarter. Source transcript
58 Retail sales were strong again, led by our 18 Port Washington Studio stores, where sales grew 15%, outperforming the rest of our 58-store fleet by over 800 basis points. Source transcript
0%
Stores Famous Footwear
812 We ended the quarter with 812 store locations as we closed 10 and opened 1 during the quarter. Source transcript
814 We ended the quarter with 814 store locations as we opened three stores and closed three stores in the quarter. Source transcript
+0.2%

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
Sam Edelman Men's Linelaunch
Stuart Weitzman 40th Anniversary Campaignlaunch
Vionic Beachlaunch

Risks & headwinds

Famous Footwear sales pressure Q2 FY27

Q2 sales down 6.3%, comparable sales down 5.9%

Mitigation:Actively pivoting assortment to performance athletic, fashion, and higher demand brands; reducing exposure to softer lifestyle athletic products.

Increased promotional activity at Famous Footwear Q2 FY27

Gross margin down 100 bps YoY to 42.7%

Mitigation:Increasing clearance events to address excess and aged inventory; investing in trending categories.

Uncertain tariff environment Q3 FY27 onwards

New tariffs assumed to be enacted during Q3 FY27, largely replacing prior IEPA tariffs

Mitigation:Maintaining flexibility in sourcing strategy; seeking best country matrix for quality and price needs.

SG&A deleverage Q3 FY27

100 to 150 basis points deleverage expected

Mitigation:Offsetting increases in incentive compensation and other investments with cost-saving measures (full year).

What to watch in Q3 FY27

Stuart Weitzman Operating Earnings

2026
Current Meaningful progress towards break-even
Target Break-even operating earnings

Why it matters

Achieving break-even for Stuart Weitzman is a key indicator of successful integration and overall brand portfolio profitability.

Our goal remains to achieve break-even operating earnings in 2026, and we believe we have the foundation in place to get there.

Q&A highlights

Can you break down Brand Portfolio organic growth between North America and international, and what are you seeing in the domestic wholesale order book for the back half?

International business is less than 10% of total sales but has significant growth potential. The wholesale order book is consistent with Q3 guidance, showing no volatility.

“our international business is currently less than 10% of our total, so it has a lot of runway for growth.”

asked by Ashley Owens · answered by John Schmidt

2 min read 5 chapters

Detailed narrative

Brand Portfolio Momentum

Caleres' Brand Portfolio, encompassing Sam Edelman, Allen Edmonds, and Naturalizer, demonstrated strong performance in Q2 FY27. Sam Edelman achieved mid-teens sales growth and secured its position as the #9 dollar volume brand in women's fashion footwear, holding the #1 flat, pump, and loafer. Allen Edmonds reported low-teens net sales growth and significantly outpaced the broader men's footwear market in share gains, while Naturalizer delivered high single-digit sales growth with profitability exceeding sales growth.

Stuart Weitzman Turnaround Progress

The Stuart Weitzman brand made meaningful strides towards its goal of achieving break-even operating earnings in 2026. The brand is now fully integrated onto Caleres' platforms, with improved full-price sell-through and a strong resurgence in international markets, particularly China, which is ahead of plan. Brick-and-mortar comparable sales strengthened, and the brand is strategically expanding its casual and sneaker assortments while building on iconic styles.

Famous Footwear Challenges and Strategic Pivot

Famous Footwear faced sales pressure in Q2 FY27, with comparable sales down 5.9%, attributed to a later-than-expected back-to-school season and a consumer shift away from lifestyle athletic products. In response, the company is actively pivoting its assortment, reducing exposure to softer lifestyle athletic and increasing emphasis on performance athletic, fashion, and higher-demand brands. Quarter-to-date through Labor Day, Famous Footwear's comp sales were flat, with fashion outperforming athletic by over 10 points.

Significant International Growth

International sales emerged as a key growth driver for the Brand Portfolio, increasing over 50% and high teens organically during the quarter. Management highlighted that its lead brands remain under-penetrated in international markets, indicating substantial runway for future growth. This global expansion strategy is supported by leveraging Caleres' core capabilities across product, sourcing, marketing, digital, and logistics.

Tariff Environment and Inventory Management

Caleres received $57.4 million in IEPA tariff refunds in Q2, with $55.6 million reducing cost of sales and $1.8 million in interest income, which were excluded from adjusted results. The company's guidance assumes new tariffs will be enacted in Q3, largely replacing the prior ones, and maintains a flexible sourcing strategy. Famous Footwear took decisive actions to improve inventory positioning, including reducing receipts and increasing clearance events, which pressured gross margin but led to a healthier inventory position exiting the quarter.

AI-generated summary of the company's earnings call. Not investment advice.