Caleres reported first-quarter 2026 net sales of $666.6 million, up 8.5% from $614.3 million a year earlier, as the company said growth in its brand portfolio offset a decline at Famous Footwear.
Brand portfolio sales climbed 20.6% year over year, and 5.8% excluding Stuart Weitzman. Famous Footwear sales fell 2.5%, with comparable sales down 2.3%.
Gross profit rose to $315.5 million from $277.2 million, and gross margin widened to 47.3% from 45.3%, a gain of 200 basis points. Excluding Stuart Weitzman, adjusted gross margin was 46.8%, up 140 basis points.
Selling and administrative expenses increased to $293.7 million from $270.5 million. As a percentage of sales, they rose to 44.1% from 43.4%. Excluding Stuart Weitzman, selling and administrative expenses were $268.1 million, or 43.1% of sales, down 30 basis points from last year.
Net earnings rose to $14.3 million from $6.9 million, and diluted earnings per share increased to $0.42 from $0.21. Adjusted net earnings were $12.7 million, or $0.38 per diluted share, compared with $7.4 million, or $0.22 per diluted share, a year ago.
Inventory ended the quarter at $609.1 million, up $35 million from last year. Excluding Stuart Weitzman, inventory was down $22.7 million. Borrowings under the asset-based revolving credit facility were $347.5 million, and liquidity stood at $229.2 million.
For the second quarter, Caleres expects consolidated net sales to rise in the mid-to-high-single digits, gross margin to improve 345 to 375 basis points, and diluted EPS to be $0.32 to $0.38.
For full-year 2026, the company now expects net sales to increase low-to-mid-single digits, gross margin to improve 220 to 260 basis points, and diluted EPS to be $1.44 to $1.69. It raised its adjusted EPS outlook to $1.40 to $1.65 from prior guidance of $1.35 to $1.65. The market has reacted to these announcements by moving the company's shares -2.62% to a price of $13.75. For the full picture, make sure to review CALERES INC's 8-K report.
