Caleres CAL 2026Q2 Earnings Preview Upside Ahead on China Expansion

Forward-Looking Analysis
Analysts project Caleres to report Q2 2026 revenue of approximately $620–$640 million, reflecting momentum from its China expansion and brand diversification. Net income is expected to rise to $7–$8 million, with EPS estimated at $0.25–$0.28, up from $0.21 in Q1. These estimates reflect the company’s recent acquisition of Stuart Weitzman and the scaling of its joint venture with Brand Investment Holding in the Greater China region. Key banks like Morgan Stanley and JMP Securities have upgraded CAL, citing long-term growth potential from strategic brand positioning and e-commerce tailwinds. Price targets have climbed to a median of $35–$38 per share, driven by confidence in margin expansion and international market penetration.

Historical Performance Review
Caleres reported Q1 2026 results with revenue of $614.22 million and net income of $5.95 million, or $0.21 per share. Gross profit stood at $278.69 million, indicating stable cost management amid brand investment. The quarter reflected early gains from the Stuart Weitzman acquisition and continued momentum in digital sales, though international growth had yet to fully kick in.

Additional News
Caleres announced the launch of a joint venture with Shanghai-based Brand Investment Holding to expand its Naturalizer and Sam Edelman brands in the Greater China region. The first Naturalizer store is set to open in Beijing, while Sam Edelman will open in Shanghai, with additional stores planned as the market grows. The company also finalized the acquisition of Stuart Weitzman from Tapestry for $105 million in cash, adding a premium footwear line to its portfolio. Caleres CEO Diane Sullivan emphasized the strategic value of these moves, aiming to strengthen its presence in Asia and leverage its legacy of brand innovation and global retail experience.

Summary & Outlook
Caleres enters Q2 2026 on a cautiously optimistic note, with a strong balance sheet and strategic momentum from China expansion and brand acquisitions. Rising revenue and improved EPS align with its gross profit performance, indicating efficient cost control. The Stuart Weitzman acquisition and Naturalizer’s entry into China represent key growth catalysts, though execution risks remain. With the company’s long-term international and digital strategies in motion, Caleres is positioned for a bullish outlook, provided it can maintain brand momentum and capitalize on its global retail network.