Caleres Delivers Q3 Growth While Integrating Stuart Weitzman

Caleres’ third quarter shows steady top line growth as the company reshapes its portfolio around higher value brands and digital sales.

Headline Results and Strategic Milestone

Caleres reported third quarter 2025 net sales of $790.1 million, up 6.6% year over year, or 0.4% excluding the newly acquired Stuart Weitzman business.

Brand Portfolio sales rose 18.8%, with Stuart Weitzman contributing $45.8 million, while Famous Footwear sales dipped 2.2% with comparable sales down 1.2%.

Direct-to-consumer channels remained a core strength, representing approximately 71% of total net sales, with owned eCommerce posting double-digit growth across both segments.

GAAP earnings came in at $0.07 per diluted share versus $1.19 a year ago, reflecting tariff headwinds and near-term acquisition dilution.

Adjusted earnings per diluted share were $0.38, compared to $1.23 last year; excluding Stuart Weitzman, adjusted EPS was $0.67.

“Caleres delivered third quarter sales results that were ahead of our internal expectations, highlighted by organic sales growth in our Brand Portfolio segment, strong Lead Brands performance, sequential improvement in trends at Famous Footwear, and accelerated eCommerce momentum in both segments of our business,” stated Jay Schmidt, President and Chief Executive Officer.“With the recent addition of Stuart Weitzman, our Brand Portfolio now drives nearly half our sales and more than half our operating earnings. As we expected, we experienced pressure on our earnings from tariffs and near-term acquisition dilution, however, the fundamentals of our business are improving”.

Brand Portfolio Momentum and Famous Footwear Trends

The Brand Portfolio segment remains the growth engine.

Net sales increased 18.8% versus last year, or 4.6% excluding Stuart Weitzman, with Lead Brands collectively up double digits and gaining 0.5 percentage points of market share in women’s fashion footwear (excluding Stuart Weitzman).

Gross margin for the segment came in at 40.3%, down 350 basis points year over year; on an adjusted basis, gross margin was 42.3%, down 150 basis points, reflecting mix shifts and tariff pressure.

Famous Footwear saw a modest slowdown, with net sales down 2.2% and comparable sales down 1.2%.

Segment gross margin was 41.6%, down 130 basis points versus the prior year, but management highlighted “sequential improvement in trends,” suggesting that traffic and pricing dynamics improved relative to earlier quarters.

Selling and administrative expenses totaled $311.3 million, or 39.4% of net sales, up 310 basis points year over year.

Roughly $32.2 million of that increase was tied to Stuart Weitzman; excluding that business, expenses were up about $10 million, mainly due to a tough comparison with last year’s incentive compensation release.

Stuart Weitzman Integration and Balance Sheet Position

Caleres completed the Stuart Weitzman acquisition in August for a preliminary purchase price of $108.9 million, net of cash acquired.

Inventory at quarter-end stood at $678.2 million, up $92 million versus last year. Excluding $77 million of Stuart Weitzman inventory, the increase was a modest 2.6%, indicating disciplined inventory management amid integration.

Borrowings under the asset-based revolving credit facility were $355 million, with liquidity of $312 million at quarter-end, giving the company flexibility to execute its strategy.

“For the balance of the year, we will be working to transition the Stuart Weitzman business to Caleres systems and clean up aged and excess inventory as we hone our strategies for long-term growth and profitability of the brand. In fiscal 2026, we will begin to unlock synergistic cost savings,” added Jay Schmidt, President and Chief Executive Officer.“Through this integration process, we are sharpening our operating structure to better leverage our scale and strengthen our ability to build and grow powerful brands and consumer experiences. We are confident that executing our strategic plans will result in improved financial performance and drive long-term value for our shareholders”.

Outlook (Short-Term Pressure Long-Term Upside)

Caleres expects the remainder of fiscal 2025 to be pressured by elevated tariffs and earnings dilution from Stuart Weitzman.

Management is guiding to a loss per diluted share in the fourth quarter on both a GAAP and adjusted basis, and for the full year forecasts GAAP loss per diluted share in the range of $0.13 to $0.18 and adjusted earnings per diluted share of $0.55 to $0.60, including $0.60 to $0.65 of dilution from Stuart Weitzman.

On an adjusted basis excluding Stuart Weitzman, full year EPS is projected at $1.15 to $1.25, highlighting the underlying earnings power of the core business.

While near-term profitability is under pressure, the narrative centers on building a more premium, brand-driven portfolio with strong direct-to-consumer reach.

If Caleres successfully integrates Stuart Weitzman, unlocks cost synergies in fiscal 2026 and continues to grow Lead Brands and eCommerce, the strategic shift it’s executing now could translate into a more profitable and resilient business over the long term.