Caleres Inc. (NYSE: CAL) reported its third‑quarter 2025 financial results on December 9, 2025. Revenue rose 6.6% year‑over‑year to $790.1 million, driven by a 18.8% increase in the Brand Portfolio segment, which now accounts for nearly half of the company’s sales. The company posted a net income of $2.4 million, a turnaround from the $41.4 million loss reported a year earlier, and an adjusted earnings per diluted share of $0.38, a miss of $0.47 against the consensus estimate of $0.85.
The Brand Portfolio segment, which includes the newly acquired Stuart Weitzman, grew 18.8% to $345.6 million, with Stuart Weitzman contributing $45.8 million of that total. Famous Footwear, in contrast, saw a 2.2% decline in sales to $224.5 million, reflecting continued weakness in the U.S. retail market and inventory challenges. Gross margin contracted to 41.8% from 44.0% a year earlier, a 230‑basis‑point decline largely attributable to tariff pressures on imported footwear and the integration costs associated with Stuart Weitzman.
Operating margin fell to 1.5% from 8.0% a year ago, underscoring the impact of higher operating expenses and the one‑time costs of the acquisition. Adjusted gross margin also slipped to 42.7% from 44.1%, a 140‑basis‑point drop, as the company absorbs higher raw‑material costs and invests in supply‑chain resilience. These margin compressions explain why the company’s earnings fell short of expectations despite revenue growth.
Management guided that the fourth quarter will result in a loss per diluted share on both GAAP and adjusted bases, and that full‑year 2025 GAAP loss per diluted share will be in the range of $0.13 to $0.18. Adjusted EPS for the year is projected at $0.55 to $0.60, well below the consensus estimate of $1.73. The company reiterated its $15 million annualized SG&A savings program, targeting $7.5 million in the back half of 2025, and emphasized continued focus on integrating Stuart Weitzman and cleaning up aged inventory.
"Caleres delivered third‑quarter sales results that were ahead of our internal expectations," said CEO Jay Schmidt. "We are taking decisive action in the back half of 2025 to bring Stuart Weitzman into our portfolio as clean, productive, and efficient as possible. Our fourth‑quarter earnings were at the high end of our most recent guidance, and we will continue to unlock synergistic cost savings in 2026."
Investors reacted negatively to the earnings release, citing the adjusted EPS miss and the cautious full‑year outlook. The company’s guidance signals continued integration costs and tariff headwinds, which have tempered enthusiasm despite the revenue beat.
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