Caleres, Inc.

First-quarter sales were $667 million, up 8.5% year over year, and organic sales rose 1.4%. Adjusted EPS was $0.38 versus $0.22 last year. Consolidated gross margin was 47.3%, up 200 basis points, while Brand Portfolio gross margin was 49%, up 520 basis points; Famous gross margin was 43.8%, down 150 basis points. Operating earnings were $21.7 million and operating margin was 3.3%. For Q2, management expects consolidated sales to increase mid- to high-single digits, Brand Portfolio sales up in the mid-20s percent range including low double-digit organic growth, Famous sales and comps down mid-single digits, gross margin up 345 to 375 bps, and EPS of $0.32 to $0.38. For full-year 2026, management expects consolidated sales up low to mid-single digits, Brand Portfolio sales up low double digits and organically up mid-single digits, Famous sales and comps down low to mid-single digits, consolidated gross margin up 220 to 260 bps, and adjusted EPS of $1.40 to $1.65.

Jay Schmidt emphasized that Caleres is seeing momentum in its Brand Portfolio, with broad growth across channels and geographies, led by Lead Brands and supported by international, digital, and specialty retail initiatives. He said the company is becoming more structurally organized around centers of expertise and described 2026 as a build-back year with modest sales growth but meaningful earnings recovery. His tone was constructive and confident, while acknowledging Famous Footwear faces a tougher environment.

Dan Karpel said Q1 sales were $667 million and adjusted EPS was $0.38, with consolidated gross margin of 47.3% and Brand Portfolio gross margin of 49%, helped by favorable mix, lower current tariffs, mitigation efforts, and lower markdowns. He noted SG&A rose to $293.7 million, or 44.1% of sales, largely due to $25.7 million of Stuart Weitzman expenses; excluding Stuart Weitzman, the SG&A rate improved 30 bps. He also highlighted $37.7 million of cash, $34.7 million of borrowings, $229.2 million of liquidity, and inventory of $609.1 million, with organic inventory down $23 million excluding Stuart Weitzman. On capital allocation, he guided to about $50 million to $55 million of CapEx and said tariff refunds of about $57.8 million plus interest are not included in guidance.

Analysts focused on why the full-year guide was unchanged overall but shifted by segment, and management said Brand Portfolio strength offset a more cautious Famous outlook tied to softer March-April trends and conservative assumptions for the rest of the year. Questions also centered on gross margin, where management said Brand Portfolio margin expansion is driven mainly by mix and structural improvements, with some tariff benefit, while Famous is expected to be flat to slightly down due to clearance and inventory discipline. Management said they have not included the potential $57 million-plus tariff refunds in guidance and are treating them as a gain contingency, not a forecasted benefit.