Q2 2026 Caleres Inc Earnings Call Transcript
Key Points
- Caleres Inc (CAL) reported second-quarter adjusted earnings above expectations, with consolidated gross margin up 340 basis points to 46.8%.
- Brand portfolio sales grew 8.2% organically, with lead brands like Sam Edelman (mid-teens growth) and Allen Edmonds (low-10s growth) delivering strong results.
- International sales surged over 50% in the quarter, with high-teens organic growth, highlighting a significant growth vector.
- Stuart Weitzman is on track to achieve breakeven operating earnings in 2026, with improved full-price sell-through and international performance, particularly in China.
- Fashion footwear momentum is strong, with gains in ballet flats, pumps, and loafers, and the company is gaining market share in women's fashion footwear.
- The company raised the lower end of its full-year adjusted EPS guidance to $1.50-$1.65, reflecting first-half outperformance.
- Famous Footwear sales declined 6.3% in the quarter, with comparable sales down 5.9%, pressured by a later back-to-school season and a shift away from lifestyle athletic products.
- Famous Footwear gross margin decreased 100 basis points to 42.7% due to increased promotional and clearance activity in lifestyle athletic.
- The company expects continued softness in certain Famous Footwear categories and related promotional activity through the back half of the year.
- Inventory levels remain elevated, with total inventory up $61 million year-over-year, including $69 million attributable to Stuart Weitzman.
- The company faces an uncertain tariff environment, with guidance assuming new tariffs will be enacted in Q3, potentially impacting costs.
- Vionic sales were lower in the quarter, reflecting ongoing efforts to elevate distribution, though earnings were slightly up.
Greetings. Welcome to the Caleres Incorporated second-quarter 2026 earnings call.
(Operator Instructions) Please note that today's conference is being recorded.
I'll now turn the conference over to Liz Dunn, Senior Vice President, Corporate Development and Strategic Communications. Thank you, Liz. You may begin.
Thanks, Rob. Good morning and thank you for joining our second quarter earnings call and webcast. A press release with detailed financial tables as well as our quarterly slide presentation are available at calares.com. Please be aware today's discussion contains forward-looking statements, which are subject to several risks and uncertainties.
Actual results may differ materially due to various risk factors, including those disclosed in the company's Form 10-K and other filings with the US Securities and Exchange Commission. Please refer to today's press release and our SEC filings for more information on risk factors and other factors which
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