Caleres, Inc. reported a decline in financial performance for the second quarter of 2025, with net sales of $658.5 million, down 3.6% from $683.3 million in the same period last year. The decrease was attributed to lower traffic in retail stores, particularly within the Famous Footwear segment, which saw sales drop by 4.9% to $399.6 million. The Brand Portfolio segment also experienced a decline, with sales falling 3.5% to $275.6 million. Gross profit for the quarter decreased by 8.1% to $285.8 million, resulting in a gross margin of 43.4%, down from 45.5% a year earlier.

The company's operating earnings fell significantly, down 78.2% to $9.3 million compared to $42.5 million in the prior year. This decline was primarily driven by reduced sales and increased promotional activity, which led to higher inventory markdowns. Net earnings attributable to Caleres, Inc. were $6.7 million, or $0.20 per diluted share, a sharp decrease from $30.0 million, or $0.85 per diluted share, in the same quarter of 2024. The company also incurred restructuring and special charges of $6.8 million related to its acquisition of Stuart Weitzman and expense reduction initiatives.

In terms of operational metrics, Caleres reported a decrease in comparable sales of 3.4% for the quarter, with e-commerce sales accounting for approximately 75% of total sales. The company opened two new stores while closing seven, resulting in a total of 830 stores at the end of the quarter. The Famous Footwear segment's loyalty program, Famously You Rewards, continued to drive sales, with 77% of net sales attributed to program members.

Looking ahead, Caleres has completed the acquisition of Stuart Weitzman for $120.2 million, which is expected to enhance its brand portfolio and market presence. The acquisition was funded through increased borrowings under its revolving credit facility, which now stands at $387.5 million. The company anticipates that the acquisition will contribute positively to its financial results in the upcoming quarters. Despite the current challenges, including macroeconomic factors affecting consumer spending, Caleres remains focused on optimizing its operations and cost structure to drive long-term growth.

About CALERES INC

Caleres, Inc. is a global footwear company engaged in designing, sourcing, manufacturing, and distributing footwear for all ages. It operates two main segments: Famous Footwear, a leading family-branded retail chain with physical stores and e-commerce platforms, and Brand Portfolio, which manages owned and licensed footwear brands sold wholesale and direct-to-consumer. Caleres serves diverse markets through retail stores, online channels, and wholesale partnerships, emphasizing style, comfort, and value.

This description was generated via AI from an annual report. Updated 9 months ago.

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