Caleres (CAL) Q2 2025 Financial Results Summary

# Caleres (CAL) Q2 2025 Financial Results Summary

Release Date: September 4, 2025

Caleres (NYSE: CAL), a leading footwear brand company, has announced its financial results for the second quarter of 2025. Below is a summary of the key metrics and highlights from the report.

## Summary of Financial Results

– **Consolidated Sales:**
– Reported consolidated sales of **$658.5 million**, down **3.6%** vs. Q2 2024.
– Brand Portfolio sales decreased **3.5%**, impacted by approximately **$10 million in tariff costs**.
– Famous Footwear segment saw sales decline of **4.9%**, with comparable sales down **3.4%**, although a notable improvement was observed in July.

– **Gross Margin and Profit:**
– Gross margin was reported at **43.4%**, a decrease of **210 basis points** year-over-year.
– Factors affecting gross margin included tariff-related costs, selective promotions, and higher inventory markdowns.
– Growth in direct-to-consumer channels partially offset these declines.

– **Earnings:**
– Net earnings stood at **$6.7 million**, translating to earnings per diluted share of **$0.20**.
– Adjusted net earnings were **$11.7 million**, reflecting adjusted earnings per diluted share of **$0.35**.
– This is a decrease from **$30.0 million** (or **$0.85** per share) in Q2 2024.

– **Operational Costs:**
– Selling, general and administrative expenses (SG&A) amounted to **$269.7 million**, or **41.0%** of net sales, representing an increase of **170 basis points** compared to the previous year.

– **Inventory and Liquidity:**
– Inventory at quarter-end totaled **$693.3 million**, up **4.9%** from last year.
– Caleres entered into an amended credit agreement extending the maturity of its credit facility, increasing borrowing capacity by **$200 million** to **$700 million**.

– **Acquisitions:**
– The acquisition of Stuart Weitzman was completed shortly after the quarter-end, aligning with the company’s strategy to enhance its premium and international offerings.

## Dividend and Share Repurchase

– During the quarter, Caleres declared a quarterly dividend of **$0.15 per share**, which is consistent with its commitment to returning capital to shareholders amidst a challenging environment. Additionally, share repurchases continued with **$5.0 million** spent on repurchasing company stock.

## Summary of Segment Results

– **Famous Footwear Segment:**
– Q2 sales were **$399.6 million**, down **4.9%** from **$420.3 million** in Q2 2024.
– Gross margin decreased from **45.0%** to **43.7%**.

– **Brand Portfolio Segment:**
– Segment net sales were **$275.6 million**, compared to **$285.5 million** in the prior year, a decline of **3.5%**.
– Gross margin dropped from **42.7%** to **40.3%**.

## Outlook

Given the ongoing uncertainty in the market, Caleres has suspended its annual guidance. However, early sales trends in August showed improvement:
– Famous Footwear same-store sales were up **1%**.
– Brand Portfolio sales excluding Stuart Weitzman were reported as rising in low-single digits.

The company anticipates continued gross margin pressure in the Brand Portfolio due to tariffs for the remainder of the year, projecting that Q3 gross margins will experience a decline similar to Q2 margins, with potential improvements expected in Q4 as mitigation strategies begin to yield results.

Caleres plans to balance investments in growth with debt reduction and shareholder returns moving forward.

### Conclusion

Caleres reported a challenging quarter for Q2 2025, with declines in both revenue and earnings, impacted by market conditions and external tariff costs, while also enhancing its financial position through cost savings and a strategic acquisition. The company remains focused on leveraging its direct-to-consumer channels and navigating the operating environment effectively.

Below are the extracted tables from the press release:

### CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
> Amounts are in thousands.

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### CONDENSED CONSOLIDATED BALANCE SHEETS
> Amounts are in thousands.