Famous Footwear: The Ultimate Back-to-School Destination for Style, Comfort, and Value

Famous Footwear is the go-to destination for back-to-school shopping, offering the hottest trends from iconic brands like Nike, Adidas, and Jordan. Families can find shoes to meet every need, from uniform-ready sneakers to fun after-school favorites, all at an affordable price. Top picks for kids include Nike Kids Court Borough Recraft, Adidas VL Court, and Crocs Classics, while parents can enjoy style beyond the classroom with Nike Women’s V5 RNR Sneaker, Birkenstock Arizona, and Jordan 1 Flight Mid. Famous Footwear's in-store fit experts ensure the perfect fit every time, making it easy to shop for the entire household without overspending.

Caleres Inc. (NYSE: CALR) reported its Q2 2025 earnings, highlighting the impact of tariffs and gross margin pressures on its financial performance. The company reported a 3.6% year-over-year (YoY) decline in revenue to $658.5 million and an earnings per share (EPS) of $0.35, down from $0.85 in the prior year. Gross margin decreased by 210 basis points (bps) to 43.4%, reflecting the challenges posed by tariffs [1].

The earnings call revealed that tariffs negatively impacted Q2 sales by $10 million, with about $5 million in cancellations and $5 million in delayed receipts. Half of the delayed receipts are expected to benefit Q3 sales [1]. The company expects gross margin improvement in Q4 as mitigation strategies take effect, although ongoing tariff pressures will continue to impact margins in the upcoming quarters [1].

Famous Footwear, a key segment of Caleres, reported a 1% increase in August comp sales, driven by better traffic and conversion in-store and higher traffic online. However, the company expects September and October comps to be down by a low single-digit percentage [1]. The acquisition of Stuart Weitzman is expected to have a limited impact on sales and EBIT in the second half of the year, with a net purchase of approximately $108 million funded by a $120 million borrowing at a rate of 5.7-5.8% [1].

Consumer health and demand remain stable, with consumers prioritizing top national and elevated brands. Back-to-school sales were strong, driven by the Jordan launch and other top-performing brands. However, fashion/dress and boots continue to face challenges [1].

Looking ahead, Caleres expects a modest increase in SG&A expenses in Q3, with more savings benefits in Q4 from restructuring. The company is pursuing additional cost savings and has engaged an external partner to unlock structural savings, largely benefiting 2026 [1]. The company's focus on tariff mitigation and cost savings is expected to improve its financial performance in the coming quarters.

References:
[1] https://www.ainvest.com/news/caleres-q2-2026-earnings-call-tariff-woes-gross-margin-delays-divergent-views-famous-footwear-sales-2509/