Caleres kicked off fiscal 2026 on a high note after beating earnings guidance for the second quarter in a row and returning to earnings growth.
On Thursday, the St. Louis-based company reported net sales in the first quarter of fiscal 2026 totaled $666.6 million, up 8.5 percent from $614.2 million the same time last year. Net sales in the period excluding Stuart Weitzman, the company’s newest brand, were $622.7 million.
Net earnings in Q1 were $14.3 million, or 42 cents per diluted share, compared to net earnings of $6.9 million, or 21 cents per diluted share, last year.
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These results were largely in-line with analyst expectations, which called for net sales in Q1 between $666.9 million and $667 million, with net earnings of 37 cents per share, according to Yahoo Finance. Plus, Caleres beat its own earnings guidance in the quarter, which called for earnings per share of between 25 cents to 30 cents in the period.
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By segment, Famous Footwear saw net sales decrease 2.5 percent versus the year-ago period, with comparable sales down 2.3 percent. Caleres’ brand portfolio division reported a net sales increase of 20.6 percent in the period. (Excluding Stuart Weitzman, net sales in the brand portfolio increased 5.8 percent.)
Jay Schmidt, president and chief executive officer of Caleres, said in a statement that the quarter’s performance reflected the strength of its strategic growth vectors and broad-based momentum across the brand portfolio.
“Within brand portfolio, we delivered growth across channels and geographies, with lead brands continuing to outperform, meaningful gross margin expansion, and further cross-category market share gains,” Schmidt noted. “At Famous Footwear, while results were more challenging amid a softer consumer and macroeconomic backdrop, we grew our e-commerce business, made progress with our elevate-and-edit strategy, delivered even stronger outperformance from our Flair stores, and gained slight market share in shoe chains both overall and in kids.”
The CEO added that the first quarter was an “encouraging first step” toward a build-back year for Caleres.
“We continue to expect modest sales growth and meaningful earnings growth in 2026,” he continued. “Our brand portfolio momentum has strengthened, with profitability supported by favorable mix, successful tariff mitigation actions, and disciplined execution.”
For the balance of the year, Schmidt noted that the company is focused on maximizing the strong sales and earnings trends in its brand portfolio, improving Stuart Weitzman earnings, and elevating product and enhancing shopping experiences at Famous Footwear.
Looking ahead, Caleres expects second quarter consolidated net sales to increase mid-to-high-single digits versus last year. Brand portfolio sales are anticipated to increase in the mid-twenties’ percent range, with low-double-digit organic growth in Q2, while Famous Footwear sales and comparable sales are expected to be down mid-single digits. Earnings per share in the second quarter are expected to be between 32 cents and 38 cents.
As for the full year 2026, the company anticipates total sales to increase low-to-mid-single digits, with earnings per share between $1.44 and $1.69.
“Longer term, we believe that disciplined execution of our strategic plans will improve financial performance and create long-term value for our shareholders,” Schmidt said.