Caleres Inc. (NYSE: CAL) reported second-quarter adjusted earnings per share of $0.47 on Wednesday, beating analyst estimates by roughly a quarter and marking a gain from $0.35 in the year-earlier period. The result came as consolidated sales of $695.45 million fell short of the $705.67 million forecast but still reflected a 5.6% increase from Q2 2025.
Adjusted gross margin expanded 340 basis points year-over-year to 46.8%, excluding refunds from the U.S. International Trade Commission’s antidumping investigation into imports from Iran, Kuwait, Pakistan, and South Korea. The refunds totaled $57.4 million in the quarter and are expected to narrow the gap between adjusted and GAAP earnings significantly over the full year.
Caleres shares surged 9.68% to $13.20 in morning trading, lifting the stock nearly 50% from its 52-week low of $8.80. The price remained below its recent high of $16.14.
The company’s brand portfolio, which includes Sam Edelman, Vionic, Naturalizer and Crocs distribution rights, delivered sales of $341 million, a 23.6% reported increase and an 8.2% organic gain that excluded the August acquisition of Stuart Weitzman. Adjusted operating margin in the segment jumped 740 basis points to 10.5%, while adjusted gross margin rose 880 basis points to 49.1%. Stuart Weitzman contributed $42.5 million in net sales during its partial quarter contribution.
International brand portfolio sales grew 57% year-over-year, or 18.2% organically, though the segment still accounted for less than 10% of total revenue. Circana data showed Caleres gained 0.7 percentage points in women’s fashion footwear market share and 0.2 points in total footwear during the quarter.
In contrast, Famous Footwear reported sales of $374 million, a 6.3% decline, with comparable store sales down 5.9%. Gross margin contracted 100 basis points to 42.7%, and selling, general and administrative expenses deleveraged 220 basis points to 41.3% of sales. The company said its “elevate and edit” strategy drove premium product sales growth of 21.7% and increased premium penetration by 430 basis points.
Suspended CEO Jay Schmidt described fashion footwear as seeing “breakout momentum” and called international markets the company’s “single greatest growth vector,” adding that management views 2026 as a “build back year.”
Caleres raised full-year outlook, projecting net sales growth in the low-to-mid single digits and adjusted EPS between $1.50 and $1.65. GAAP EPS is expected to fall in the $2.80 to $2.95 range, a spread largely attributable to the IEPA tariff refunds. Gross margin is anticipated to improve 180 to 220 basis points for the year. The company plans capital expenditures of $50 million to $55 million and expects Famous Footwear sales to remain under pressure in the low-to-mid single-digit decline range.
Inventory increased 8.8% year-over-year but declined 1.2% on an organic basis when excluding the Stuart Weitzman acquisition. Selling, general and administrative expenses rose $33.7 million due to higher incentive compensation and integration costs related to the Stuart Weitzman purchase.
