Caleres Reports Modest Sales Increase to $2.76 Billion, Faces Net Loss in Fiscal Year 2026

Caleres, Inc. reported a modest increase in net sales for the fiscal year ending January 31, 2026, reaching $2.76 billion, a 1.3% rise from $2.72 billion in the previous year. The Brand Portfolio segment saw a notable increase in sales, up 7.3% to $1.32 billion, largely attributed to the acquisition of Stuart Weitzman, which contributed $102.2 million in net sales since its acquisition in August 2025. In contrast, the Famous Footwear segment experienced a decline in sales, dropping 3.6% to $1.50 billion, reflecting reduced consumer traffic and a 2.3% decrease in comparable sales.

The company's gross profit decreased by 3.0% to $1.18 billion, resulting in a gross margin of 43.0%, down from 44.9% in the prior year. This decline was primarily driven by lower sales in the Famous Footwear segment, increased inventory markdowns, and higher costs associated with tariffs and the fair value step-up adjustment for the acquired Stuart Weitzman inventory. Operating earnings plummeted to $6.4 million, a significant drop of 95.8% compared to $149.9 million in 2024, leading to a net loss attributable to Caleres, Inc. of $6.7 million, compared to a profit of $107.3 million in the previous year.

Strategically, Caleres has focused on enhancing its retail presence and optimizing its product offerings. The company operated 1,009 retail stores at the end of the fiscal year, including 821 Famous Footwear locations and 188 Brand Portfolio stores. The Famous Footwear segment plans to open approximately 15 new stores while closing around 25 in 2026, continuing its strategy to optimize store locations. The Brand Portfolio segment is also expanding, particularly in East and Southeast Asia, where it operates 103 stores, including those acquired from Stuart Weitzman.

Caleres has faced challenges due to macroeconomic factors, including inflation and tariff volatility, which have impacted consumer spending and operational costs. The company has implemented various strategic initiatives to mitigate these challenges, including optimizing its sourcing strategy and enhancing its marketing efforts. Looking ahead, Caleres anticipates 2026 to be a year of recovery, aiming to restore earnings power through disciplined execution of its strategic initiatives, despite ongoing geopolitical uncertainties. The company maintains a strong liquidity position with $29.8 million in cash and $207.7 million available under its revolving credit agreement as of January 31, 2026.