Caleres, Inc. Reports 8.5% Increase in Net Sales to $666.6 Million for Thirteen Weeks Ended May 2, 2026

Caleres, Inc. reported a significant increase in financial performance for the thirteen weeks ended May 2, 2026, with net sales reaching $666.6 million, an 8.5% increase from $614.2 million in the same period last year. The company's gross profit also rose to $315.5 million, up 13.2% from $278.7 million, resulting in a gross margin improvement to 47.3% from 45.4%. Operating earnings surged to $23.9 million, more than doubling from $11.6 million in the prior year, while net earnings attributable to Caleres, Inc. increased to $14.3 million, compared to $6.9 million in the previous year.

The financial results reflect notable changes compared to the previous fiscal period, particularly driven by the acquisition of Stuart Weitzman, which contributed $43.9 million in net sales. The Brand Portfolio segment saw a 20.6% increase in sales, while the Famous Footwear segment experienced a decline of 2.5%, attributed to reduced consumer traffic in retail stores. The company also reported a significant increase in operating expenses, which rose to $293.7 million, primarily due to costs associated with the Stuart Weitzman acquisition and higher incentive compensation expenses.

Operationally, Caleres has focused on expanding its direct-to-consumer sales, which accounted for approximately 67% of total net sales in the first quarter of 2026, down from 70% in the previous year. The company opened one new store while closing ten, resulting in a total of 812 stores at the end of the quarter. The Famous Footwear segment's comparable sales decreased by 2.3%, although e-commerce sales showed growth, indicating a shift in consumer purchasing behavior. The Brand Portfolio segment also reported strong growth in its e-commerce business, which increased by approximately 21%.

The filing also highlighted strategic developments, including the completion of the sale of a parcel of the corporate headquarters, which generated a gain of $3.9 million. The company continues to navigate macroeconomic challenges, including inflation and geopolitical volatility, which have impacted consumer discretionary spending. Looking ahead, Caleres remains focused on leveraging its diversified business model to enhance profitability and market share, while also monitoring the evolving trade landscape and its potential impacts on operations.

In terms of liquidity, Caleres reported $37.7 million in cash and cash equivalents, with total borrowings under its revolving credit facility increasing to $347.5 million, primarily to fund the Stuart Weitzman acquisition. The company maintains a strong liquidity position, with additional borrowing capacity of $191.5 million as of May 2, 2026. The outlook remains cautiously optimistic, with management emphasizing the importance of adapting to changing market conditions and consumer preferences while continuing to invest in growth opportunities.