Caleres Reports Mixed Q3 Results with Increased Sales but Declining Net Earnings

Caleres, Inc. reported its financial results for the third quarter and the first nine months of fiscal 2025, revealing a mixed performance amid ongoing challenges in the retail environment. For the thirteen weeks ended November 1, 2025, the company achieved net sales of $790.1 million, a 6.6% increase from $740.9 million in the same period last year. However, net earnings attributable to Caleres, Inc. significantly declined to $2.4 million, or $0.07 per diluted share, compared to $41.4 million, or $1.19 per diluted share, in the prior year. The decrease in profitability was attributed to higher costs and lower margins, particularly in the Famous Footwear segment, which saw a 2.2% drop in sales.

The company's financial performance was impacted by several factors, including the acquisition of Stuart Weitzman, which contributed $45.8 million in net sales but also incurred additional costs. Gross profit for the quarter increased slightly to $329.9 million, but the gross margin fell to 41.8% from 44.1% a year earlier, primarily due to increased markdowns and the impact of tariffs. Selling and administrative expenses rose by 15.9% to $311.2 million, driven by costs associated with the Stuart Weitzman brand and higher compensation expenses.

In terms of operational developments, Caleres reported a notable increase in its inventory levels, which reached $678.2 million, up from $585.9 million a year prior. The company also experienced a decrease in customer traffic at its Famous Footwear retail stores, leading to a 1.2% decline in comparable sales. Despite these challenges, the Brand Portfolio segment saw an 18.8% increase in net sales, reflecting the successful integration of Stuart Weitzman and growth in e-commerce channels.

Looking ahead, Caleres remains focused on optimizing its sourcing strategy and controlling costs in response to the current macroeconomic environment. The company has implemented expense reduction initiatives expected to save approximately $15 million annually. With a strong liquidity position, including $34 million in cash and $278.1 million in available credit, Caleres is positioned to navigate the ongoing challenges while pursuing growth opportunities in both domestic and international markets. The company anticipates that its strategic initiatives will support sustainable long-term growth despite the pressures from tariffs and changing consumer preferences.