“While we did experience headwinds due to market uncertainty, we demonstrated the strength and resilience of our company this quarter. Sales trends improved sequentially in both segments of our business, and we saw market share gains in women’s fashion footwear and in shoe chains. We experienced strength in Lead Brands, our Brand Portfolio direct-to-consumer channels, and international. We also saw significant improvement in sales trends at Famous Footwear in July and continuing through August”, said Jay Schmidt, President and Chief Executive Officer.

Second Quarter Results

In the second quarter of its current fiscal year, which ended on the 2^nd of August, Caleres reported net sales of 658.8 million US dollars. While this represented a year-on-year decline of 3.6%, it was an improvement on the 6.8% decline recorded in the first quarter.

This result included a 4.9% year-on-year decrease in net sales in the Famous Footwear segment, with comparable sales falling by 3.4%. Net sales in the Brand Portfolio segment also fell by 3.5% year-on-year. However, these figures represent an improvement on the 6.3% and 6.9% decreases, respectively, reported in the previous quarter.

In the second quarter of fiscal year 2025, the company’s gross profit totalled 285.8 million US dollars, as compared to 310.9 million US dollars in the same prior-year period, with the gross margin contracting by 210 basis points to 43.4%.

Caleres reported second quarter SG&A expenses of 269.7 million US dollars, equating to 41.0% of net sales. This figure is up 170 basis points versus the same period last year and reflects deleveraging due to lower sales.

In the second quarter of this fiscal year, the company’s net earnings totalled 6.7 million US dollars, or earnings per share of 0.20 US dollars, on a comparable basis to net earnings of 30.0 million US dollars, or earnings per diluted share of 0.85 US dollars, in the second quarter of 2024.

Fiscal 2025 Outlook

“As we look to address the changes in the operating environment, we completed our previously announced structural cost savings initiatives that will deliver annualized savings of 15 million US dollars and support a more efficient operating structure. Just after quarter-end, we completed the acquisition of Stuart Weitzman, adding a new Lead Brand to our portfolio that aligns with our strategic focus on premium, direct-to-consumer, and international business”, concluded Schmidt.

Although Caleres has decided not to offer annual guidance, the company revealed that Famous Footwear’s same-store comparable sales were up by 1% in August, while Brand Portfolio sales (excluding Stuart Weitzman) were up in the low single digits. “We expect ongoing gross margin pressure in the Brand Portfolio from tariffs for the rest of the year”, the company added.

Image Credits: caleres.com