Caleres Reports 5.6% Increase in Net Sales to $695.5 Million in Q2 2026

Caleres, Inc. reported a significant increase in financial performance for the second quarter of 2026, with net sales reaching $695.5 million, a 5.6% increase from $658.5 million in the same period last year. The company's gross profit also saw a substantial rise, climbing to $381.0 million, up 33.3% from $285.8 million. This growth was attributed to a combination of factors, including $55.6 million in tariff refunds received during the quarter, which positively impacted gross margins, now at 54.8%, compared to 43.4% in the prior year. Operating earnings surged to $77.6 million, a notable increase from $9.3 million, while net earnings attributable to Caleres, Inc. reached $58.6 million, compared to $6.7 million in the previous year.

In contrast, the Famous Footwear segment experienced a decline in net sales, dropping 6.3% to $374.4 million, with comparable sales down 5.9%. This decline was primarily due to reduced consumer traffic in retail stores. The Brand Portfolio segment, however, reported a 23.6% increase in net sales to $340.6 million, bolstered by the acquisition of Stuart Weitzman, which contributed $42.5 million in sales. The overall performance reflects a strategic focus on expanding the Brand Portfolio while navigating challenges in the retail environment.

Caleres also made notable operational changes, including the completion of the Stuart Weitzman acquisition in August 2025, which has been integrated into the Brand Portfolio segment. The company has continued to expand its international presence, with 91 stores in East Asia as of August 1, 2026, compared to 55 a year prior. Additionally, the company opened six new stores and closed four in North America during the quarter, resulting in a total of 814 stores.

The company’s liquidity position remains strong, with cash and cash equivalents totaling $50.9 million and $357.3 million available under its revolving credit facility as of August 1, 2026. This financial flexibility has allowed Caleres to manage its operations effectively, despite the challenges posed by macroeconomic conditions, including inflation and geopolitical volatility. The company reported net cash provided by operating activities of $55.8 million for the first half of 2026, an increase from $41.7 million in the same period last year.

Looking ahead, Caleres remains focused on leveraging its diversified business model to enhance profitability and market share. The company is committed to navigating the complexities of the current economic landscape while continuing to invest in its brand portfolio and expanding its direct-to-consumer channels. The outlook remains cautiously optimistic, with ongoing efforts to adapt to changing consumer preferences and market conditions.