CALERES INC (CAL): Results of Operations and Financial Condition
CALERES INC (CAL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 September 9, 2026 Caleres Reports Second Quarter 2026 Results Second quarter adjusted EPS exceeds expectations; Brand Portfolio delivers strong organic growth and margin expansion. ● Reported second quarter net sales of $695.5 million, up 5.6%. o Brand Portfolio
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance improve the company's growth outlook, likely supporting a price uptick.
Market read
First‑report earnings release with improved guidance; actionable for traders focusing on consumer discretionary.
What to watch
Inventory increase to $754M and reliance on tariff refunds could mask underlying demand weakness.
Second quarter adjusted EPS exceeds expectations; Brand Portfolio delivers strong organic growth and margin expansion.
Brand Portfolio delivered broad-based growth and margin expansion, while Famous Footwear sales, comparable sales and gross margin declined. GAAP profit was materially lifted by tariff refunds, although adjusted earnings per diluted share increased versus last year.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $695,454 | – | 5.6% |
| Net sales, excluding Stuart Weitzmannon-GAAP | $652,961 | – | down 0.8% |
| Direct-to-consumer sales as a percentage of total net salesother | approximately 71% | – | – |
| Gross profitGAAP | $380,975 | – | – |
| Gross marginGAAP | 54.8% | – | up 1,140 basis points |
| Adjusted gross profitnon-GAAP | $325,413 | – | – |
| Adjusted gross marginnon-GAAP | 46.8% | – | up 340 basis points |
| Selling and administrative expensesGAAP | $303,361 | – | – |
| Selling and administrative expenses as a percentage of net salesGAAP | 43.6% | – | deleveraged 270 basis points |
| Operating earningsGAAP | $77,614 | – | – |
| Operating marginGAAP | 11.2% | – | – |
| Adjusted operating earningsnon-GAAP | $22,052 | – | – |
| Adjusted operating marginnon-GAAP | 3.2% | – | – |
| Interest expense, netGAAP | $(4,387) | – | – |
| Earnings before income taxesGAAP | $77,731 | – | – |
| Income tax provisionGAAP | $(18,310) | – | – |
| Net earnings attributable to Caleres, Inc.GAAP | $58,642 | – | – |
| Diluted earnings per common share attributable to Caleres, Inc. shareholdersGAAP | $1.71 | – | – |
| Adjusted net earnings attributable to Caleres, Inc.non-GAAP | $16,051 | – | – |
| Diluted adjusted earnings per common share attributable to Caleres, Inc. shareholdersnon-GAAP | $0.47 | – | – |
| InventoryGAAP | $754,241 | – | up $61.0 million |
| Inventory, excluding Stuart Weitzmannon-GAAP | down 1.2% | – | down 1.2% |
| Net cash provided by operating activities for the twenty-six weeks ended August 1, 2026GAAP | $55,777 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Famous FootwearComparable sales were down 5.9%; management cited a later Back-to-School season and softness in lifestyle athletic. | $374,360 | – | decreased 6.3% |
| Brand PortfolioGrowth was broad-based across brands, channels and geographies; sales increased 8.2% excluding Stuart Weitzman. | $340,597 | – | increased 23.6% |
Third Quarter 2026 and Full Year 2026 outlook
- RevenueThird quarter 2026 consolidated net sales: increase low-single digits versus last year. Full-year 2026 total sales: increase low-to-mid-single digits.
- Gross marginThird quarter 2026: improve 150 to 200 basis points. Full-year 2026: improve 180 to 220 basis points.
- Tax rateThird quarter 2026: 23% to 25%. Full-year 2026: 24% to 26%.
- NoteThird quarter 2026 Brand Portfolio sales: increase in the mid-high-single digit percent range.
- NoteThird quarter 2026 Famous Footwear sales and comparable sales: down low-single digits.
- NoteThird quarter 2026 GAAP earnings per diluted share: $0.62 to $0.70.
- NoteFull-year 2026 Brand Portfolio sales: up low-double digits.
- NoteFull-year 2026 Famous Footwear sales and comparable sales: down low-to-mid-single digits.
- NoteFull-year 2026 interest expense: approximately $16 to $17 million.
- NoteFull-year 2026 capital expenditures: $50 to $55 million.
- NoteFull-year 2026 GAAP earnings per diluted share: $2.80 to $2.95.
- NoteFull-year 2026 adjusted earnings per diluted share: $1.50 to $1.65.
Capital returns
- Dividends paid for the twenty-six weeks ended August 1, 2026: $(4,767).
- Acquisition of treasury stock for the twenty-six weeks ended August 1, 2026: $(3,123).
What drove it
- Brand Portfolio sales increased 23.6% and increased 8.2% excluding Stuart Weitzman.
- International sales increased 57.0% and increased 18.2% organically.
- The $55.6 million in tariff refunds fueled GAAP gross profit and gross margin.
- Brand Portfolio adjusted gross margin was 49.1%, up 880 basis points to last year.
- Management said fashion footwear is seeing breakout momentum and that the company's brands are resonating with consumers.
- The company reported market-share gains in Total Footwear and in Women's Fashion Footwear for Brand Portfolio, according to Circana.
Concerns
- Famous Footwear net sales decreased 6.3%, with comparable sales down 5.9%.
- Famous Footwear gross margin was 42.7%, down 100 basis points to last year.
- Selling and administrative expenses deleveraged 270 basis points, primarily reflecting expenses related to Stuart Weitzman.
- Famous Footwear results were below management's expectations because of a later Back-to-School season and softness in lifestyle athletic.
- Management identified a dynamic operating environment, including tariffs, changing consumer demand, inflationary pressures and supply-chain disruptions as risks.
What to watch
- Famous Footwear comparable store sales were flat quarter to date through Labor Day, according to management.
- The pace of the planned Famous Footwear assortment pivot toward fashion footwear.
- Whether third-quarter gross margin improves 150 to 200 basis points through tariff mitigation efforts and lower current tariff rates.
- Brand Portfolio sales growth, which is expected to increase in the mid-high-single digit percent range in the third quarter.
- The contribution and integration costs of Stuart Weitzman, which contributed $42.5 million of net sales in the thirteen weeks ended August 1, 2026.
Balance sheet and cash flow
- Cash and cash equivalents at August 1, 2026: $50,920, compared to $191,494 at August 2, 2025.
- Inventories, net at August 1, 2026: $754,241, compared to $693,282 at August 2, 2025.
- Borrowings under revolving credit agreement at August 1, 2026: $288,000, compared to $387,500 at August 2, 2025.
- Availability under the revolver at quarter-end: $357.3 million.
- Net cash provided by operating activities for the twenty-six weeks ended August 1, 2026: $55,777, compared to $41,646.
- Purchases of property and equipment for the twenty-six weeks ended August 1, 2026: $(19,104).
- Net cash used for investing activities for the twenty-six weeks ended August 1, 2026: $(16,919).
- Net cash used for financing activities for the twenty-six weeks ended August 1, 2026: $(17,630).
Analysis
Caleres reported second-quarter net sales of $695,454, up 5.6% versus the prior year. The acquired Stuart Weitzman business was material to reported growth: sales excluding Stuart Weitzman were $652,961, down 0.8% to second quarter 2025. Brand Portfolio sales increased 23.6%, or 8.2% excluding Stuart Weitzman, while Famous Footwear sales decreased 6.3% and comparable sales declined 5.9%.
Profitability improved sharply on a GAAP basis, but the result included tariff refunds. GAAP gross margin rose 1,140 basis points to 54.8%, fueled by $55.6 million in tariff refunds. Excluding tariff refunds, adjusted gross margin was 46.8%, up 340 basis points. Brand Portfolio adjusted gross margin increased 880 basis points to 49.1%, whereas Famous Footwear gross margin declined 100 basis points to 42.7%.
GAAP net earnings attributable to Caleres, Inc. were $58,642, or $1.71 per diluted share, compared with $6,713, or $0.20 per diluted share. Excluding tariff refunds, adjusted net earnings attributable to Caleres, Inc. were $16,051, or $0.47 per diluted share, compared with $11,730, or $0.35 per diluted share. Selling and administrative expenses were $303,361 and represented 43.6% of net sales, with 270 basis points of deleverage primarily reflecting Stuart Weitzman-related expenses.
The balance sheet reflects $754,241 of inventories and $288,000 of borrowings under the revolving credit agreement at quarter-end, alongside $357.3 million of revolver availability. Inventory was up $61.0 million to last year, but was down 1.2% excluding $69.0 million attributable to Stuart Weitzman. For the twenty-six weeks ended August 1, 2026, net cash provided by operating activities was $55,777, and the company paid $(4,767) in dividends and used $(3,123) for acquisition of treasury stock.
Third-quarter guidance calls for consolidated net-sales growth of low-single digits, gross-margin improvement of 150 to 200 basis points and GAAP EPS of $0.62 to $0.70. Full-year guidance calls for low-to-mid-single-digit total-sales growth, gross-margin improvement of 180 to 220 basis points, GAAP EPS of $2.80 to $2.95 and adjusted EPS of $1.50 to $1.65. The principal execution issue is whether the improving Brand Portfolio and tariff mitigation can offset continued expected low-single-digit to low-to-mid-single-digit declines at Famous Footwear.
Management, verbatim
We are pleased with our second quarter performance. In our Brand Portfolio, we experienced broad-based gains across brands, channels, and geographies and we gained market share in Women’s Fashion Footwear, according to Circana.
Jay Schmidt, president and chief executive officer
At Famous Footwear, results were below our expectations, as a later Back-to-School season and softness in lifestyle athletic pressured sales and margins.
Jay Schmidt, president and chief executive officer
Within Famous Footwear, we are pivoting to quickly align our assortment with changing consumer demand, emphasizing fashion, which continues to meaningfully outperform lifestyle athletic products quarter to date.
Jay Schmidt, president and chief executive officer
Not in the filing
stated, not guessed- Previous release outlook was not provided; therefore, no comparison of reported results with prior guidance is available.
- Quarterly free cash flow was not reported.
- Quarterly net cash provided by operating activities was not reported; the filing reports this metric only for the twenty-six weeks ended August 1, 2026.
- Forward operating-expense guidance was not reported.
- Cash dividend per share was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Caleres (NYSE: CAL) is a footwear retailer with brands including Famous Footwear, Sam Edelman, and Stuart Weitzman.
Ticker impact
Caleres reported Q2 2026 results with net sales up 5.6% and raised full-year EPS guidance to $2.80‑$2.95.
Potential short‑term rally as investors price in stronger earnings and higher guidance.
Quarterly EPS of $1.71 beats prior year and guidance lifts full‑year EPS, indicating improved profitability.
Market effects
Footwear sector may see broader optimism as Caleres shows margin expansion and market‑share gains.
U.S. consumer discretionary stocks could benefit from the upbeat earnings.
Limited to U.S. market; no direct global macro effect.
Counterpoint
Higher guidance may already be priced in; execution risk at Famous Footwear could pressure margins.
Key entities
- ExecutiveJay Schmidt
President and CEO of Caleres, provided commentary on results.
