Caleres Reports 8.7% Increase in Fourth Quarter Net Sales

By Chris Stiles • Thursday, March 19 12:45 • Permanent Link

Caleres, a leading portfolio of consumer-driven footwear brands, has reported its financial results for the fourth quarter and fiscal year 2025, and has provided guidance for the first quarter and full year of 2026. The company's fourth-quarter net sales were $695.1 million, representing an increase of 8.7% compared to the same period in 2024.

The brand portfolio sales increased by 20.3%, with organic sales up 1.5%. Notably, direct-to-consumer sales represented approximately 74% of the total net sales. However, Famous Footwear sales decreased by 1.2%, with comparable sales up 0.1%.

The gross profit for the fourth quarter was $290.3 million, with a gross margin of 41.8%, down 230 basis points versus last year. Adjusted gross profit was $298.4 million with an adjusted gross margin of 42.9%, down 10 basis points versus last year.

For the fiscal year 2025, net sales were $2.8 billion, up 1.3% versus fiscal 2024. The Famous Footwear segment's net sales decreased by 3.6% versus the previous year, with comparable sales down 2.3%. On the other hand, the brand portfolio segment net sales increased by 7.3% versus the previous year.

The company reported a GAAP net loss of $22.7 million for the fourth quarter, as compared to last year's GAAP net earnings of $4.9 million. The adjusted net loss was $11.7 million, or an adjusted loss per diluted share of $0.36, versus last year's net earnings of $11.1 million, or earnings per diluted share of $0.33.

Looking ahead to the first quarter of 2026, Caleres expects sales to increase mid* to high-single digits versus last year. Famous Footwear sales are expected to be down low single digits to flat, with brand portfolio sales anticipated to be up mid-teens with low single-digit organic growth. The company anticipates gross margin to improve by 120 to 140 basis points.

For fiscal 2026, Caleres expects total sales to increase low to mid-single digits versus fiscal 2025. Famous Footwear sales are expected to be down low single digits to flat, with brand portfolio sales anticipated to increase low double digits, with low to mid-single-digit organic growth. The company expects gross margin to improve by 140 to 180 basis points.

Following these announcements, the company's shares moved -0.36%, and are now trading at a price of $13.73. If you want to know more, read the company's complete 8-K report here.

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