Caleres Sees $15M in Annualized Cost Savings, Integrates Stuart Weitzman Amid Tariff Challenges

Caleres Inc. reported $15M annualized cost savings and integration of Stuart Weitzman amid tariff headwinds. CEO John Schmidt stated that sales trends improved sequentially in both segments, with market share gains in women's fashion footwear and shoe chains. Lead times have stabilized, and inventory levels are being normalized. The company is focused on driving growth through innovation and strategic investments.

Caleres Inc. (NYSE: CAL), a market-leading portfolio of consumer-driven footwear brands, reported its second-quarter 2025 financial results today. The company faced headwinds due to market uncertainty but demonstrated resilience with improved sales trends in both segments of its business. Reported consolidated sales of $658.5 million, down 3.6% year-over-year, with Brand Portfolio sales decreasing 3.5% and Famous Footwear sales declining 4.9% [1].

The company's gross margin was 43.4%, down 210 basis points year-over-year, primarily due to tariff-related costs, selective promotions, and higher provisions for inventory markdowns. However, the company achieved structural cost savings targets, expected to generate annualized savings of $15 million. This was complemented by the integration of Stuart Weitzman, a premium footwear brand, shortly after quarter-end [1].

Caleres reported earnings per diluted share of $0.20 and adjusted earnings per diluted share of $0.35, both including a discrete tax benefit of $0.07. The company also enhanced its financial flexibility by entering into an amended credit agreement, extending the maturity date of its asset-based revolving credit facility and increasing its borrowing capacity [1].

The company's CEO, Jay Schmidt, noted the sequential improvement in sales trends in both segments and market share gains in women's fashion footwear and shoe chains. He also highlighted the strength in Lead Brands, Brand Portfolio direct-to-consumer channels, and international markets. Schmidt emphasized that the company is focused on driving growth through innovation and strategic investments [1].

For the month of August, Famous Footwear same-store comparable sales were up 1%, and Brand Portfolio sales excluding Stuart Weitzman were up low-single digits. The company expects ongoing gross margin pressure in Brand Portfolio from tariffs for the balance of the year but anticipates improvement in the fourth quarter as it realizes more of the benefit from its mitigation strategies [1].

Caleres will host a conference call today, Thursday, September 4, 2025, at 10:00 a.m. ET to discuss these results further. The webcast and associated slides will be available at investor.caleres.com/events-and-presentations [1].

References:
[1] https://www.businesswire.com/news/home/20250904899109/en/Caleres-Reports-Second-Quarter-2025-Results