Caleres 2026 Q2 Earnings Sharp Net Income Drop

Caleres (CAL) reported its fiscal 2026 Q2 earnings on Sep 09th, 2025. The results fell short of expectations, marked by a sharp decline in both revenue and profitability. The company’s total revenue dropped 3.6% year-over-year, and its net income plummeted 76.7%, signaling a challenging period for the footwear and retail giant.

Revenue
Caleres recorded total revenue of $658.52 million in Q2 2026, reflecting a 3.6% decline compared to the same period in 2025. The company’s largest segment, Famous Footwear, reported $399.59 million in sales, while the Brand Portfolio segment contributed $275.62 million. Consolidated figures showed the company’s total revenue at $658.52 million, with the Eliminations and Other category recording a negative $16.69 million.

Earnings/Net Income
The company’s earnings per share (EPS) plunged 76.5% to $0.20 in Q2 2026 from $0.85 in Q2 2025. Net income also fell sharply to $7.06 million in the latest quarter, a 76.7% decrease from $30.27 million a year ago. The sharp drop in profitability highlights the broader challenges the company faces in maintaining its earnings momentum.

Price Action
Caleres’ stock edged down 1.99% during the latest trading day, but managed a 3.04% gain for the week and a stronger 10.43% rise month-to-date.

Post-Earnings Price Action Review
Jay Schmidt, CEO of Caleres, emphasized the company’s progress in refining its brand portfolio and enhancing retail performance, noting that strategic investments in digital capabilities and store optimization are driving customer engagement. He acknowledged ongoing challenges related to macroeconomic conditions and shifting consumer preferences but highlighted the strength of Caleres’ core brands and their ability to deliver consistent results. Schmidt expressed cautious optimism about the future, reiterating the company’s commitment to long-term value creation through disciplined capital allocation and a focus on profitability across all segments.

Guidance
Caleres provided forward-looking guidance, indicating expectations for continued growth in the brand portfolio segment and stable performance in the Famous Footwear division. The company expects operating margins to remain resilient amid cost management initiatives. While no specific revenue or EPS targets were disclosed, the CEO reiterated confidence in maintaining a strong balance sheet and delivering long-term shareholder value through strategic execution and operational efficiency.

Additional News
Recent non-earnings-related developments include political shifts within Nigerian parties, where Dino Melaye claimed the PDP is effectively controlled by the APC. In business news, the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) suspended its ongoing strike, and the Nigerian Industrialist’s Weekly (NIWA) announced new safety regulations for boat operations on the country’s waterways. Additionally, the Sovereign Trust Insurance company insiders sold shares worth N2.3 billion, signaling potential strategic realignments within the organization.