CALERES INC (CAL)
SIC breadcrumb: Manufacturing > SIC Major Group 31 > SIC 3140 Footwear, (No Rubber)
SEC company page: https://www.sec.gov/edgar/browse/?CIK=14707. Latest filing source: 0000014707-26-000053.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 2,757,853,000 | USD | 2026 | 2026-04-02 |
| Net income | -6,692,000 | USD | 2026 | 2026-04-02 |
| Assets | 1,965,790,000 | USD | 2026 | 2026-04-02 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-02. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000014707.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 2,785,584,000 | 2,834,846,000 | 2,921,562,000 | 2,117,070,000 | 2,777,604,000 | 2,968,138,000 | 2,817,294,000 | 2,722,683,000 | 2,757,853,000 | |
| Net income | 65,658,000 | 87,200,000 | -5,441,000 | 62,819,000 | -439,114,000 | 137,019,000 | 181,742,000 | 171,391,000 | 107,255,000 | -6,692,000 |
| Operating income | 95,992,000 | 127,683,000 | 401,000 | 103,813,000 | -485,658,000 | 205,807,000 | 214,327,000 | 194,455,000 | 149,856,000 | 6,372,000 |
| Gross profit | 1,061,991,000 | 1,168,649,000 | 1,156,344,000 | 1,184,360,000 | 787,049,000 | 1,227,317,000 | 1,284,873,000 | 1,262,957,000 | 1,222,042,000 | 1,184,778,000 |
| Diluted EPS | 1.52 | 2.02 | -0.13 | 1.53 | -11.80 | 3.56 | 4.92 | 4.80 | 3.09 | -0.21 |
| Operating cash flow | 183,622,000 | 191,375,000 | 129,589,000 | 170,786,000 | 126,353,000 | 168,441,000 | 125,879,000 | 200,151,000 | 104,562,000 | 103,177,000 |
| Capital expenditures | 50,523,000 | 44,720,000 | 62,483,000 | 44,533,000 | 16,786,000 | 18,393,000 | 55,913,000 | 44,584,000 | 49,147,000 | 63,744,000 |
| Dividends paid | 12,104,000 | 12,027,000 | 11,983,000 | 11,422,000 | 10,764,000 | 10,648,000 | 10,184,000 | 9,954,000 | 9,694,000 | 9,448,000 |
| Share buybacks | 23,139,000 | 5,993,000 | 43,771,000 | 33,424,000 | 23,348,000 | 16,965,000 | 63,225,000 | 17,445,000 | 65,039,000 | 5,044,000 |
| Assets | 1,475,273,000 | 1,489,415,000 | 1,838,568,000 | 2,431,707,000 | 1,867,050,000 | 1,843,926,000 | 1,836,472,000 | 1,804,746,000 | 1,894,754,000 | 1,965,790,000 |
| Stockholders' equity | 613,117,000 | 717,489,000 | 634,053,000 | 645,950,000 | 200,247,000 | 318,570,000 | 420,683,000 | 560,631,000 | 599,024,000 | 601,851,000 |
| Cash and cash equivalents | 55,332,000 | 64,047,000 | 30,200,000 | 45,218,000 | 88,295,000 | 30,115,000 | 33,700,000 | 21,358,000 | 29,636,000 | 29,769,000 |
| Free cash flow | 133,099,000 | 146,655,000 | 67,106,000 | 126,253,000 | 109,567,000 | 150,048,000 | 69,966,000 | 155,567,000 | 55,415,000 | 39,433,000 |
Ratios
| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | 3.13% | -0.19% | 2.15% | -20.74% | 4.93% | 6.12% | 6.08% | 3.94% | -0.24% | |
| Operating margin | 4.58% | 0.01% | 3.55% | -22.94% | 7.41% | 7.22% | 6.90% | 5.50% | 0.23% | |
| Return on equity | 10.71% | 12.15% | -0.86% | 9.73% | -219.29% | 43.01% | 43.20% | 30.57% | 17.90% | -1.11% |
| Return on assets | 4.45% | 5.85% | -0.30% | 2.58% | -23.52% | 7.43% | 9.90% | 9.50% | 5.66% | -0.34% |
| Current ratio | 1.60 | 1.97 | 1.14 | 1.04 | 0.86 | 0.82 | 0.91 | 1.06 | 1.10 | 1.02 |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-06-09. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000014707.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-07-30 | 1.38 | reported discrete quarter | ||
| 2022-Q3 | 2022-10-29 | 1.08 | reported discrete quarter | ||
| 2023-Q1 | 2023-04-29 | 662,734,000 | 34,727,000 | 0.97 | reported discrete quarter |
| 2023-Q2 | 2023-07-29 | 695,533,000 | 33,943,000 | 0.95 | reported discrete quarter |
| 2023-Q3 | 2023-10-28 | 761,904,000 | 46,914,000 | 1.32 | reported discrete quarter |
| 2023-Q4 | 2024-02-03 | 697,123,000 | 55,807,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-05-04 | 659,198,000 | 30,939,000 | 0.88 | reported discrete quarter |
| 2024-Q2 | 2024-08-03 | 683,317,000 | 29,958,000 | 0.85 | reported discrete quarter |
| 2024-Q3 | 2024-11-02 | 740,941,000 | 41,427,000 | 1.19 | reported discrete quarter |
| 2024-Q4 | 2025-02-01 | 639,227,000 | 4,930,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-05-03 | 614,221,000 | 6,943,000 | 0.21 | reported discrete quarter |
| 2026-Q2 | 2025-08-02 | 658,519,000 | 6,713,000 | 0.20 | reported discrete quarter |
| 2026-Q3 | 2025-11-01 | 790,051,000 | 2,386,000 | 0.07 | reported discrete quarter |
| 2026-Q1 | 2026-05-02 | 666,599,000 | 14,277,000 | 0.42 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0000014707-26-000087.
ITEM 2 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW Business Overview We are a global footwear company that operates retail stores and e-commerce websites, and designs, develops, sources, manufactures and distributes footwear for people of all ages. Our mission is to inspire people to feel great...feet first. We offer retailers and consumers a diversified portfolio of leading footwear brands. Outfitted in our brands, customers can step confidently into every aspect of their lives. As both a retailer and a wholesaler, we have a perspective on the marketplace that enables us to serve consumers from different vantage points. We believe our diversified business model provides us with synergies by spanning consumer segments, categories and distribution channels. A combination of thoughtful planning and rigorous execution is key to our success in optimizing our business and portfolio of brands. Our business strategy is focused on accelerating growth in our Brand Portfolio segment, gaining market share and deepening connections with the millennial family in our Famous Footwear segment, leveraging our “One Caleres” capabilities to increase profitability, and delivering value for our shareholders. Known Trends Impacting Our Business Based on the current macroeconomic environment and our recent operating results, we believe the following trends may continue to impact our business and operating results: Macroeconomic Environment Macroeconomic conditions continued to weigh on consumer discretionary spending and our financial results during the first quarter of 2026. Consumers remain impacted by elevated interest rates, persistent inflation, and expectations of future price increases, which have increased pressure on discretionary spending. In addition, heightened geopolitical volatility has adversely affected the global economy. More recently, conflict throughout the Middle East, particularly the war in Iran, has increased oil prices, resulting in higher product and transportation costs. As a result, we continued to experience lower consumer traffic in our Famous Footwear retail stores during the quarter. Tariff volatility and the lack of clarity surrounding future trade policy developments have heightened uncertainty in the global economy. We source a majority of our products internationally. We continue to monitor changes in policy impacting global trade, including tariffs, which have been volatile and subject to ongoing modification. In February 2026, the U.S. Supreme Court invalidated certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) and in March 2026, the U.S. Court of International Trade ordered the U.S. Customs and Border Protection Agency (“CBP”) to suspend collection of the invalidated tariffs and to establish a process to refund IEEPA tariffs previously collected. While the timing remains uncertain, we currently estimate that we are eligible to receive approximately $57.9 million in refunds related to the invalidated tariffs. Beginning in April 2026, we began filing refund claims with CBP related to eligible tariff payments made. There can be no guarantee that a refund will equal the full amount of IEEPA tariffs paid, and any refund may be subject to further legal and regulatory developments that could delay, reduce, or eliminate any refund. As a result of this uncertainty, as of May 2, 2026, we have not recorded a receivable related to the potential recovery of IEEPA tariffs paid. Beginning on May 11, 2026, the Company has received cash of $16.8 million for a portion of its refunds claims, with applicable interest. Additionally, following the Supreme Court’s ruling invalidating the IEEPA tariffs, the U.S. imposed a temporary 10% general tariff under Section 122 of the Trade Act of 1974 and initiated additional trade actions, including investigations under Section 301 of the Trade Act of 1974, that may result in further tariffs.. There remains substantial uncertainty regarding the potential changes or pauses to existing and newly announced tariffs, tariff levels, and whether additional tariffs or other reciprocal actions may be imposed, modified, or suspended. We have continued to implement various mitigation strategies including adjusting the countries from which we source our products and negotiating price concessions with our factories and selectively raising prices. Proposed or enacted tariffs and changes to U.S. trade policies may be reinstituted, paused, removed, or changed at any time, and to the extent we are unable to successfully mitigate any negative resulting impacts, it could adversely affect our business, financial condition, and results of operation. Liquidity Our liquidity position remains strong, with $37.7 million in cash and cash equivalents and excess availability on our revolving credit agreement of $191.5 million as of May 2, 2026. During the first quarter of 2026, borrowings on our revolving credit agreement increased to $347.5 million, primarily driven by borrowings to fund the acquisition of Stuart Weitzman in the third quarter of 2025. Refer to Note 3 to the condensed consolidated financial statements for further discussion of the acquisition. 28 Table of Contents Financial Highlights Highlights of our consolidated and segment results for the first quarter of 2026 and 2025 are as follows: Thirteen Weeks Ended ($ millions, except per share amounts) May 2, 2026 May 3, 2025 Change (1) Consolidated net sales $666.6 $614.2 $52.4 8.5 % Famous Footwear segment net sales $319.3 $327.7 ($8.4) (2.5) % Famous Footwear comparable sales % change (2.3) % (4.6) % n/m n/m Brand Portfolio segment net sales $356.3 $295.4 $60.9 20.6 % Gross profit $315.5 $278.7 $36.8 13.2 % Gross margin 47.3 % 45.4 % n/m 190 bps Operating earnings $23.9 $11.6 $12.3 106.3 % Diluted earnings per share $0.42 $0.21 $0.21 100.0 % (1) n/m – not meaningful Metrics Used in the Evaluation of Our Business The following are a few key metrics by which we evaluate our business, identify trends and make strategic decisions: Comparable sales The comparable sales metric is a metric commonly used in the retail industry to evaluate the revenue generated for stores that have been open for more than a year, though other retailers may calculate the metric differently. Management uses the comparable sales metric as a measure of an individual store’s success to determine whether it is performing in line with expectations. Our comparable sales metric is a daily-weighted calculation for the period, which includes sales for stores that have been open for at least 13 months. In addition, in order to be included in the comparable sales metric, a store must be open in the current period as well as the corresponding day(s) of the comparable retail calendar in the prior year. Accordingly, closed stores are excluded from the comparable sales metric for each day of the closure. Relocated stores are treated as new stores and therefore excluded from the calculation. E-commerce sales for those websites that function as an extension of a retail chain are included in the comparable sales calculation. In fiscal years with 53 weeks, the 53rd week of comparable sales is included in the calculation. In the following year, the prior fiscal year period is shifted by one week to compare similar calendar weeks. We believe the comparable sales metric is useful to shareholders and investors in assessing our retail sales performance of existing locations with comparable prior year sales, separate from the impact of store openings or store closures. Sales per square foot The sales per square foot metric is commonly used in the retail industry to calculate the efficiency of sales based upon the square footage in a store. Management uses the sales per square foot metric as a measure of an individual store’s success to determine whether it is performing in line with expectations. The sales per square foot metric is calculated by dividing total retail store sales, excluding e-commerce sales and the retail operations of our joint venture in China, by the total square footage of the retail store base in North America at the end of each month of the respective period. Direct-to-consumer sales Direct-to-consumer sales includes sales from our retail stores, our company-owned websites and sales through our customers’ websites that we fulfill on a drop-ship basis. While we take an omni-channel approach to reach consumers, we believe that our direct-to-consumer channels reinforce the image of our brands and strengthens our connection with the end consumer. In addition, direct-to-consumer sales generally result in a higher gross margin for the Company as compared to wholesale sales. As a result, management monitors trends in direct-to-consumer sales as a percentage of our Brand Portfolio segment and total consolidated net sales. 29 Table of Contents RESULTS OF OPERATIONS Following are the consolidated results and the results by segment: CONSOLIDATED RESULTS Thirteen Weeks Ended May 2, 2026 May 3, 2025 % of % of ($ millions) Net Sales Net Sales Net sales $ 666.6 100.0 % $ 614.2 100.0 % Cost of goods sold 351.1 52.7 % 335.5 54.6 % Gross profit 315.5 47.3 % 278.7 45.4 % Selling and administrative expenses 293.7 44.1 % 266.5 43.4 % Restructuring and other special charges, net (2.1) (0.4) % 0.6 0.1 % Operating earnings 23.9 3.6 % 11.6 1.9 % Interest expense, net (4.7) (0.7) % (3.8) (0.6) % Other income, net 1.2 0.2 % 0.7 0.1 % Earnings before income taxes 20.4 3.1 % 8.5 1.4 % Income tax provision (6.6) (1.0) % (2.6) (0.4) % Net earnings 13.8 2.1 % 5.9 1.0 % Net loss attributable to noncontrolling interests (0.5) (0.1) % (1.0) (0.1) % Net earnings attributable to Caleres, Inc. $ 14.3 2.2 % $ 6.9 1.1 % Net Sales Net sales increased $52.4 million, or 8.5%, to $666.6 million for the first quarter of 2026, compared to $614.2 million for the first quarter of 2025. Net sales of our Brand Portfolio segment increased $60.9 million, or 20.6%, reflecting the impact of our Stuart Weitzman acquisition on August 4, 2025, which contributed net sales of $43.9 million, and organic growth in our owned e-commerce and wholesale businesses. We saw strength in premium brands and growth in most of our more value-oriented brands. Net sales in our Famous Footwear segment decreased $8.4 million, or 2.5%, and comparable sales declined 2.3%, reflecting less traffic in our retail stores. Our direct-to-consumer sales represented approximately 67% of consolidated net sales for the first quarter of 2026, compared to 70% for the first quarter of 2025. We remain focused on international growth, direct-to-consumer penetration, elevating the consumer experience at Famous Footwear and maximizing the vertical opportunity between the Famous Footwear and Brand Portfolio segments, with Dr. Scholl’s, LifeStride, Naturalizer, Blowfish Malibu, and Ryka representing five of Famous Footwear’s top 20 best-selling footwear brands during the quarter. Gross Profit Gross profit increased $36.8 million, or 13.2%, to $315.5 million for the first quarter of 2026, compared to $278.7 million for the first quarter of 2025. As a percentage of net sales, gross profit increased to 47.3% for the first quar [Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
ITEM 7MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
Business Overview
We are a global footwear company that operates retail shoe stores and e-commerce websites, and designs, develops, sources, manufactures and distributes footwear for people of all ages. Our mission is to inspire people to feel great...feet first. We offer retailers and consumers a diversified portfolio of leading footwear brands. Outfitted in our brands, customers can step confidently into every aspect of their lives. As both a retailer and a wholesaler, we have a perspective on the marketplace that enables us to serve consumers from different vantage points. We believe our diversified business model provides us with synergies by spanning consumer segments, categories and distribution channels. A combination of thoughtful planning and rigorous execution is key to our success in optimizing our business and portfolio of brands. Our business strategy is focused on accelerating growth in our Brand Portfolio segment, gaining market share and deepening connections with the millennial family in our Famous Footwear segment, leveraging our “One Caleres” capabilities to increase profitability, and delivering value for our shareholders.
Famous Footwear
Famous Footwear, which is one of America’s leading family–branded footwear retailers, was founded on a simple idea: that everyone deserves to feel the joy that comes from a new pair of shoes. Our Famous Footwear segment includes 821 Famous Footwear stores, famousfootwear.com and famousfootwear.ca in Canada. This North American footprint of
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Table of Contents
mostly off-mall store locations is convenient for Famous Footwear’s target consumer, the millennial family. We seek to meet the needs of that millennial family and others by providing an assortment of trend-right, brand-name fashion, casual and athletic footwear at a great price.
During 2025, we continued to execute on our three-pronged strategy, which concentrates on merchandising, marketing and consumer experience. We remained focused on increasing the opportunity between Famous Footwear and the brands within our Brand Portfolio segment, such as Dr. Scholl’s Shoes, LifeStride, Naturalizer and Blowfish Malibu, among others. Vertical integration provides Famous Footwear with greater access to fashion products from brands that resonate with its consumer, as well as greater ability to be flexible with trends and offer better profit potential. We also have focused on offering the consumer a balanced assortment of fashion and athletic styles from well-known brands. We continued to tightly manage our inventory levels in 2025, optimizing SKU counts and amplifying key product trends and items to drive sales volume. We believe our kids category is a key competitive differentiator. With the millennial mom as our target consumer, we believe her primary purchase motivation is her kids and will prioritize these purchases, even with macroeconomic pressures. As a result, we continue to make the kids business a critical component of how our associates connect with our consumers, including ensuring every child finds the perfect style and fit.
We are leaning into our best brands from an inventory, marketing and store presence perspective. In addition, we continue to invest in enhancing our in-store shopping experience to deliver a more engaging and inspiring experience across the omnichannel. Our FLAIR (Famous Localized and Immersive Retail) store concept has been successful at driving sales growth and we plan to continue to transform stores to this enhanced consumer shopping experience in 2026. The FLAIR store concept highlights our leading assortment of trending brands and elevates those brands in an energetic and exciting manner.
Brand Portfolio
Our Brand Portfolio segment is consumer-focused and we believe our success is dependent upon our ability to strengthen consumers’ preference for our brands by offering compelling style, quality, differentiated brand promises and innovative marketing campaigns. The segment is comprised of the Sam Edelman, Vionic, Naturalizer, Allen Edmonds, Dr. Scholl’s Shoes, Stuart Weitzman, LifeStride, Franco Sarto, Rykä, Blowfish Malibu, Vince, and Veronica Beard brands. Through these brands, we offer our customers a diversified selection of footwear, each designed and targeted to a specific consumer segment within the marketplace. We are able to showcase many of our brands in our retail stores and online, leveraging our wholesale and retail platforms, sharing consumer insights across our businesses and testing new and innovative products. Our Brand Portfolio segment operates 85 retail stores in North America for our Allen Edmonds, Sam Edelman and Stuart Weitzman brands. This segment also includes our e-commerce businesses that sell our branded footwear direct to consumers. We also operate a joint venture, which expands our international presence by distributing our Sam Edelman and Naturalizer brands through e-commerce sites, 53 retail stores in East Asia with further distribution through 148 branded stores owned and operated by third parties through franchise agreements. The Brand Portfolio segment also includes 50 Stuart Weitzman retail store locations in East Asia.
Known Trends Impacting Our Business
Macroeconomic Environment
Macroeconomic factors continued to impact consumer discretionary spending and our financial results during 2025. Throughout the year, we experienced less consumer traffic in our Famous Footwear retail stores, resulting in lower net sales; however, this decline was offset by higher net sales in our Brand Portfolio segment driven by our acquisition of Stuart Weitzman in August 2025. Tariff volatility and the lack of clarity surrounding future trade policy developments also heightened uncertainty in the global economy. We source a majority of our products internationally. Following the executive orders on tariffs in early 2025, we acted quickly to adjust our country sourcing mix and took other actions to mitigate the tariff impact, such as negotiating price concessions with our factories and selectively raising prices. On February 20, 2026, the U.S. Supreme Court issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”). The availability of refunds related to such tariffs, as well as the potential impact of additional tariff actions, remain uncertain. Despite these actions, we continued to be subject to tariffs ranging from 19% to 50% and price increases from our vendors. While we believe that the structural changes we have implemented in the last few years, as well as our diversified model and operational discipline, enable the Company to drive value in a variety of market conditions, changes in macro-level spending trends, geopolitical conflicts and
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uncertainties and the impact of trade policy decisions may continue to adversely impact our financial results in the future. In the near-term, we are focused on the areas within our control, including optimizing our sourcing strategy. We believe our focus on cost control and our commitment to execute our clearly defined strategic initiatives have positioned us for sustainable, long-term growth.
Liquidity
Our liquidity position remains strong, with $29.8 million in cash and cash equivalents and excess availability on our revolving credit agreement of $207.7 million as of January 31, 2026. During 2025, borrowings on our revolving credit agreement increased by $77.0 million to $296.5 million, primarily driven by the acquisition of Stuart Weitzman on August 4, 2025. During 2026, we will continue to evaluate our capital allocation priorities in light of business performance and market conditions.
Financial Highlights
The following is a summary of the financial highlights for 2025 and 2024:
($ millions, except per share amounts)
2025
2024
Change (1)
Consolidated net sales
$2,757.9
$2,722.7
$35.2
1.3
%
Famous Footwear segment net sales
$1,500.1
$1,556.5
($56.4)
(3.6)
%
Famous Footwear comparable sales % change
(2.3)
%
(1.3)
%
n/m
n/m
Brand Portfolio segment net sales
$1,316.0
$1,226.0
$90.0
7.3
%
Gross profit
$1,184.8
$1,222.0
($37.2)
(3.0)
%
Gross margin
43.0
%
44.9
%
n/m
n/m
Operating earnings
$6.4
$149.9
($143.5)
(95.8)
%
Diluted (loss) earnings per share
($0.21)
$3.09
($3.30)
(106.8)
%
(1)
n/m – not meaningful
The following items should be considered in evaluating the comparability of our 2025 and 2024 results:
●
Acquisition of Stuart Weitzman – As further discussed in Note 3 to the consolidated financial statements, on August 4, 2025, the Company completed its acquisition of the Stuart Weitzman business for $108.9 million, which was funded with borrowings under our revolving credit agreement. Stuart Weitzman contributed $102.2 million in net sales during the period from acquisition through January 31, 2026. In aggregate, we incurred costs of $27.6 million ($20.5 million on an after-tax basis, or $0.62 per diluted share) during 2025. These charges included $15.4 million of incremental cost of goods sold for the fair value step-up adjustment on the acquired Stuart Weitzman inventory and $12.2 million in acquisition and integration costs, which are presented in restructuring and other special charges on the consolidated statement of earnings. Refer to Note 5 to the consolidated financial statements for further discussion of these costs.
●
Expense reduction initiatives – During 2025, the Company incurred $9.6 million ($7.1 million on an after-tax basis, or $0.22 per diluted share) in connection with expense reduction initiatives announced in the second quarter of 2025. These charges primarily related to severance and other associated costs. Refer to Note 5 to the consolidated financial statements for further discussion of these costs.
●
Sale of corporate headquarters – On December 19, 2025, the Company completed the sale of the largest of the three parcels comprising its corporate headquarters in Clayton, Missouri. The Company recognized a gain of $2.6 million ($1.9 million on an after-tax basis, or $0.06 per diluted share). Refer to Note 5 to the consolidated financial statements for further discussion of these costs.
●
Organizational changes – During 2025, we incurred costs of $2.0 million ($1.5 million on an after-tax-basis, or $0.04 per diluted share) related to a CFO transition at our corporate headquarters, with no corresponding costs during 2024. Refer to Note 5 to the consolidated financial statements for further discussion.
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●
Restructuring costs - During 2024, we incurred costs of $9.9 million ($7.3 million on an after-tax basis, or $0.21 per diluted share) for restructuring. The costs were primarily for the exit of our Naturalizer domestic retail store operations, severance and pension settlement costs associated with the acceptance of a lump sum buyout offer for the domestic pension plan. Of the $7.2 million in charges presented in restructuring and other special charges on the consolidated statements of earnings in 2024, $6.4 million is reflected in the Brand Portfolio segment, $0.6 million is reflected in the Famous Footwear segment and $0.2 million is reflected within the Eliminations and Other category. The remaining $2.7 million of restructuring costs related to the pension settlement are presented in other (expense) income, net, and reflected in the Eliminations and Other category. Refer to Note 5 to the consolidated financial statements for further discussion of these costs.
Financial Outlook
While 2025 was a challenging year marked by the impact of tariffs and a highly volatile retail environment, we made progress executing our strategic growth initiatives. We expect 2026 to be a build-back year as we begin to restore earnings power through initiatives that are already in place. Although the current geopolitical environment presents ongoing uncertainty, we remain focused on disciplined execution to improve financial performance and drive long-term value for our shareholders.
Metrics Used in the Evaluation of Our Business
The following are a couple of key metrics by which we evaluate our business and make strategic decisions:
Comparable sales
The comparable sales metric is a metric commonly used in the retail industry to evaluate the revenue generated for stores that have been open for more than a year, though many retailers may calculate the metric differently. Management uses the comparable sales metric as a measure of an individual store’s success to determine whether its sales performance is consistent with expectations. Our comparable sales metric is a daily-weighted calculation for the period, which includes sales for stores that have been open at least 13 months. In addition, in order to be included in the comparable sales metric, a store must be open in the current period as well as the corresponding day(s) of the comparable retail calendar in the prior year. Accordingly, closed stores (including temporary store closures) are excluded from the comparable sales metric for each day of the closure. Relocated stores are treated as new stores and therefore excluded from the calculation. E-commerce sales for those websites that function as an extension of a retail chain are included in the comparable sales calculation. We believe the comparable sales metric is useful to shareholders and investors in assessing the performance of our existing retail store locations with comparable prior year sales, separate from the impact of store openings or closures.
Sales per square foot
The sales per square foot metric is commonly used in the retail industry to measure the efficiency of a store’s sales based upon the square footage in a store. Management uses the sales per square foot metric in our Famous Footwear segment as a measure of an individual store’s success to determine whether it is performing consistent with expectations. The sales per square foot metric is calculated by dividing total retail store sales, excluding e-commerce sales, by the total square footage of the retail store base at the end of each month of the respective period.
Comparison of Financial Results
The following sections discuss the consolidated and segment results of our operations for the year ended January 31, 2026 compared to the year ended February 1, 2025. For a discussion of the results for the year ended February 1, 2025 compared to the year ended February 03, 2024, refer to Part II, Item 7 "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended February 1, 2025.
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CONSOLIDATED RESULTS
2025
2024
2023
% of
% of
% of
($ millions)
Net Sales
Net Sales
Net Sales
Net sales
$
2,757.9
100.0
%
$
2,722.7
100.0
%
$
2,817.3
100.0
%
Cost of goods sold
1,573.1
57.0
%
1,500.7
55.1
%
1,554.3
55.2
%
Gross profit
1,184.8
43.0
%
1,222.0
44.9
%
1,263.0
44.8
%
Selling and administrative expenses
1,157.5
42.0
%
1,065.0
39.1
%
1,062.4
37.7
%
Restructuring and other special charges, net
20.9
0.8
%
7.1
0.3
%
6.1
0.2
%
Operating earnings
6.4
0.2
%
149.9
5.5
%
194.5
6.9
%
Interest expense, net
(18.5)
(0.7)
%
(14.0)
(0.5)
%
(19.4)
(0.7)
%
Other (expense) income, net
(0.1)
(0.0)
%
(0.7)
0.0
%
6.2
0.2
%
(Loss) earnings before income taxes
(12.2)
(0.5)
%
135.2
5.0
%
181.3
6.4
%
Income tax benefit (provision)
2.3
0.1
%
(29.1)
(1.1)
%
(9.5)
(0.3)
%
Net (loss) earnings
(9.9)
(0.4)
%
106.1
3.9
%
171.8
6.1
%
Net (loss) earnings attributable to noncontrolling interests
(3.2)
(0.2)
%
(1.2)
0.0
%
0.4
0.0
%
Net (loss) earnings attributable to Caleres, Inc.
$
(6.7)
(0.2)
%
$
107.3
3.9
%
$
171.4
6.1
%
Net Sales
Net sales increased $35.2 million, or 1.3%, to $2,757.9 million in 2025, compared to $2,722.7 million last year. Net sales for our Brand Portfolio segment increased $90.0 million, or 7.3%, compared to 2024. The increase in Brand Portfolio net sales reflects the impact of the Stuart Weitzman acquisition on August 4, 2025, which contributed $102.2 million of net sales. Net sales for our Famous Footwear segment decreased $56.4 million, or 3.6%, compared to 2024 net sales reflecting less traffic. On a consolidated basis, our direct-to-consumer sales represented approximately 73% of total net sales in 2025 compared to 72% last year.
Gross Profit
Gross profit decreased $37.2 million, or 3.0%, to $1,184.8 million in 2025, compared to $1,222.0 million in 2024, primarily driven by lower net sales at our Famous Footwear segment. As a percentage of net sales, our gross profit rate decreased to 43.0% in 2025, compared to 44.9% in 2024, primarily driven by lower merchandise margins associated with the impact of tariffs, higher inventory markdowns, higher sales of lower margin product and incremental cost of goods sold of $15.4 million for the Stuart Weitzman fair value inventory step-up adjustment required for purchase accounting.
We classify warehousing, distribution, sourcing and other inventory procurement costs in selling and administrative expenses. Accordingly, our gross profit and selling and administrative expenses, as a percentage of net sales, may not be comparable to other companies.
Selling and Administrative Expenses
Selling and administrative expenses increased $92.5 million, or 8.7%, to $1,157.5 million in 2025, compared to $1,065.0 million last year. The increase was primarily due to expenses associated with our acquired Stuart Weitzman brand. We also experienced higher expenses associated with growth in our international business, higher facility costs, reflecting higher depreciation associated with the investment in Famous Footwear store renovations, including the FLAIR concept and higher store rent expense as leases are renewed. As a percentage of net sales, selling and administrative expenses increased to 42.0% in 2025, from 39.1% in 2024.
Restructuring and Other Special Charges, Net
During 2025, we incurred restructuring costs of $20.9 million ($15.8 million on an after-tax basis, or $0.47 per diluted share). The costs were primarily for legal, information technology and other related costs due to the acquisition and integration of Stuart Weitzman, which closed on August 4, 2025, and severance and other related costs with our expense reduction initiatives and a CFO transition. These costs were partially offset by a gain on the sale of a portion of our corporate headquarters in the fourth quarter of 2025. During 2024, we incurred restructuring and other special charges of $7.1 million ($5.3 million on an after-tax basis, or $0.15 per diluted share) associated with our expense reduction initiatives. Refer to further discussion of these charges in the Financial Highlights section above and Note 5 to the consolidated financial statements.
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Operating Earnings
Operating earnings decreased $143.5 million to $6.4 million in 2025, compared to $149.9 million last year, reflecting the factors described above. As a percentage of net sales, operating earnings were 0.3% in 2025, compared to 5.5% in 2024.
Interest Expense, Net
Interest expense, net increased $4.5 million, or 32.1%, to $18.5 million in 2025, compared to $14.0 million in 2024, reflecting higher average borrowings on our revolving credit facility. As discussed above, we used the revolving credit facility to fund the acquisition of Stuart Weitzman that closed on August 4, 2025. Refer to Note 12 to the consolidated financial statements for additional information related to our borrowings.
Other (Expense) Income, Net
Other expense was $0.1 million in 2025, compared to $0.7 million in 2024. During the fourth quarter of 2025, we incurred a Supplemental Executive Retirement Plan settlement charge of $0.9 million. During the fourth quarter of 2024, we incurred a pension settlement charge of $2.7 million associated with a lump sum buyout for certain participants in the domestic pension plan. During 2025, we also had a lower expected return on assets. Refer to Note 6 to the consolidated financial statements for additional information related to our retirement plans. The net pension income in 2025 and 2024 was offset by non-operating expenses associated with logistics services provided to a third party.
Income Tax Benefit (Provision)
Our consolidated effective tax rate was 19.2% in 2025, compared to 21.5% in 2024. During 2025, discrete tax items affected our effective tax rate, including $5.0 million of expense from valuation allowances, offset by tax benefits of $3.0 million attributable to the Macau foreign tax rate differential and $2.5 million related to the remaining transition tax on the mandatory deemed repatriation of cumulative foreign earnings. During 2024, our effective tax rate was impacted by discrete tax benefits of $1.1 million related to share-based compensation.
In 2021, the OECD released Pillar Two Global Anti-Base Erosion model rules, designed to ensure large corporations are taxed at a minimum rate of 15% in all countries of operation. The OECD continues to release guidance and countries are implementing legislation to adopt the rules, which became effective on January 1, 2024. In January 2026, the OECD announced that the U.S. multinational regime would be considered a side-by-side regime that should prevent U.S. companies from double taxation. We are continuing to evaluate the Pillar Two rules and their potential impact on future periods, but we do not expect the rules to have a material impact on our tax provision or effective tax rate.
Refer to Note 7 to the consolidated financial statements for additional information regarding income taxes.
Net (Loss) Earnings Attributable to Caleres, Inc.
Consolidated net losses attributable to Caleres, Inc. were $6.7 million in 2025, compared to net earnings of $107.3 million in 2024, reflecting the factors described above.
Geographic Results
We have both domestic and international operations. Domestic operations include the operation of our Famous Footwear and other branded retail footwear stores, the wholesale distribution of footwear to numerous retail consumers and the operation of our domestic e-commerce websites. International operations primarily consist of wholesale operations in East Asia, Canada and Europe, retail operations in Canada and East and Southeast Asia and the operation of our international e-commerce websites. In addition, we license certain of our trade names to third parties who distribute and/or operate retail locations internationally. The operations in East Asia include first-cost transactions, where footwear is sold at
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international ports to customers who then import the footwear into the United States and other countries. The breakdown of domestic and international net sales and earnings before income taxes is as follows:
2025
2024
2023
(Loss)
Earnings Before
Earnings Before
Earnings Before
($ millions)
Net Sales
Income Taxes
Net Sales
Income Taxes
Net Sales
Income Taxes
Domestic
$
2,515.7
$
(39.3)
$
2,532.7
$
84.8
$
2,624.5
$
132.5
International
242.2
27.1
190.0
50.4
192.8
48.8
$
2,757.9
$
(12.2)
$
2,722.7
$
135.2
$
2,817.3
$
181.3
As a percentage of sales, the pre-tax profitability on international sales is higher than on domestic sales because of a lower cost structure and the inclusion of the unallocated corporate administrative and other costs within domestic earnings.
FAMOUS FOOTWEAR
2025
2024
2023
% of
% of
% of
($ millions, except sales per square foot)
Net Sales
Net Sales
Net Sales
Net sales
$
1,500.1
100.0
%
$
1,556.5
100.0
%
$
1,609.4
100.0
%
Cost of goods sold
852.1
56.8
%
869.9
55.9
%
889.9
55.3
%
Gross profit
648.0
43.2
%
686.6
44.1
%
719.5
44.7
%
Selling and administrative expenses
600.5
40.0
%
598.9
38.5
%
594.3
36.9
%
Restructuring and other special charges, net
0.3
0.0
%
0.6
0.0
%
1.4
0.1
%
Operating earnings
$
47.2
3.2
%
$
87.1
5.6
%
$
123.8
7.7
%
Key Metrics
Comparable sales % change
(2.3)
%
(1.3)
%
(6.3)
%
Comparable sales $ change
$
(34.2)
$
(20.5)
$
(106.4)
Sales change from 53rd week
$
—
$
(18.2)
$
18.2
Sales change from new and closed stores, net
$
(21.9)
$
(13.5)
$
(6.3)
Impact of changes in Canadian exchange rate on sales
$
(0.3)
$
(0.7)
$
(1.2)
Sales per square foot, excluding e-commerce (trailing twelve months)
$
229
$
238
$
246
Square footage (thousand sq. ft.)
5,411
5,566
5,661
Stores opened
11
15
9
Stores closed
36
29
22
Ending stores
821
846
860
Net Sales
Net sales decreased $56.4 million, or 3.6%, to $1,500.1 million in 2025, compared to $1,556.5 million last year, reflecting soft consumer demand. Comparable sales decreased 2.3% in 2025 but improved each quarter throughout the year. While we experienced a decline in consumer traffic in our retail stores, our e-commerce business grew in 2025. We also experienced higher penetration of the e-commerce channel, with growth from 14% of net sales last year to 16% of net sales in 2025. We remain focused on maximizing the vertical integration opportunity between the Brand Portfolio and Famous Footwear segments, with Dr. Scholl’s Shoes, LifeStride, Naturalizer and Blowfish Malibu representing four of Famous Footwear’s top 20 best-selling footwear brands in 2025. In the second quarter of 2025, we launched the Jordan brand, both online and in our retail stores. The brand quickly rose to one of Famous Footwear’s top brands and was in the top 10 best-selling brands for the remainder of the year.
During 2025, we closed 25 stores on a net basis as we continued to focus on optimizing our store base. During 2025, we continued to enhance the consumer experience by converting 22 stores to the FLAIR (Famous Localized and Immersive Retail) concept. These stores continue to outperform our traditionally designed retail stores. In addition, we opened one
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new store with the FLAIR concept in 2025. We ended the year with a total of 57 FLAIR stores and anticipate investing in more store conversions in 2026.
Sales to members of our customer loyalty program, Famously You Rewards ("Rewards"), continue to account for a majority of the segment’s sales, with approximately 77% of net sales to loyalty program members in 2025, compared to 75% in 2024.
Gross Profit
Gross profit decreased $38.6 million, or 5.6%, to $648.0 million in 2025, compared to $686.6 million last year, primarily driven by lower net sales. As a percentage of net sales, our gross profit rate decreased to 43.2% in 2025, compared to 44.1% in 2024 driven by higher levels of promotional activity and clearance sales.
Selling and Administrative Expenses
Selling and administrative expenses increased $1.6 million, or 0.3%, to $600.5 million during 2025, compared to $598.9 million last year. The increase primarily reflects higher facilities costs, including depreciation expense associated with the investment Famous Footwear store renovations, including the FLAIR store concept, and higher salary and benefits expenses, partially offset by lower share-based compensation expense and lower warehouse and distribution costs. As a percentage of net sales, selling and administrative expenses increased to 40.0% in 2025 from 38.5% last year, reflecting the deleveraging of expenses on lower net sales.
Restructuring and Other Special Charges, Net
Restructuring and other special charges of $0.3 million were incurred for severance costs associated with our expense reduction initiatives during 2025. Restructuring and other special charges of $0.6 million were incurred in 2024 for severance costs. Refer to Note 5 to the consolidated financial statements for additional information related to these charges.
Operating Earnings
Operating earnings decreased $39.9 million to $47.2 million for 2025, compared to $87.1 million last year, primarily reflecting lower net sales and gross profit, as described above. As a percentage of net sales, operating earnings were 3.2% for 2025, compared to 5.6% last year.
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BRAND PORTFOLIO
2025
2024
2023
% of
% of
% of
($ millions)
Net Sales
Net Sales
Net Sales
Net sales
$
1,316.0
100.0
%
$
1,226.0
100.0
%
$
1,270.9
100.0
%
Cost of goods sold
778.8
59.2
%
689.7
56.3
%
724.9
57.0
%
Gross profit
$
537.2
40.8
%
$
536.3
43.7
%
$
546.0
43.0
%
Selling and administrative expenses
498.4
37.9
%
407.9
33.2
%
397.9
31.4
%
Restructuring and other special charges, net
6.5
0.5
%
6.3
0.5
%
2.6
0.2
%
Operating earnings
$
32.3
2.4
%
$
122.1
10.0
%
$
145.5
11.4
%
Key Metrics
Direct-to-consumer (% of net sales) (1)
39
%
34
%
34
%
Change in wholesale net sales ($)
$
(26.4)
$
(43.8)
$
(67.6)
Change in retail net sales ($)
$
14.2
$
5.7
$
8.9
Sales change from acquired Stuart Weitzman business
$
102.2
Sales change from 53rd week
$
—
$
(6.8)
$
6.8
Unfilled order position at end of period
$
332.2
$
260.2
$
234.5
Company-Operated Stores:
North America
Stores opened (2)
31
4
4
Stores closed
6
6
5
Ending stores - North America
85
60
62
East and Southeast Asia
Ending stores - East Asia (2)
103
54
36
Total Company-Operated Stores
188
114
98
International franchise locations
148
120
107
Total
336
234
205
(1)
Direct-to-consumer includes sales of our retail stores and e-commerce sites, and sales through our customers’ websites that we fulfill on a drop-ship basis.
(2)
Includes 25 North America and 53 East Asia retail stores acquired from Stuart Weitzman.
Net Sales
Net sales increased $90.0 million, or 7.3%, to $1,316.0 million in 2025, compared to $1,226.0 million last year. The increase primarily reflects the acquisition of Stuart Weitzman on August 4, 2025, which contributed net sales of $102.2 million during 2025. During the year we saw strong growth in our company-owned e-commerce and international business.
At the end of 2025, we operated 85 stores in North America, which included 25 stores acquired as part of the Stuart Weitzman acquisition. During the year, we closed six stores and opened six new locations within the region. In East and Southeast Asia, we operated 103 stores at the end of 2025, including 50 stores acquired from Stuart Weitzman, at the end of 2025. The acquisition of Stuart Weitzman represents the Company’s continued commitment to expand its presence in East Asia. During the year, we closed 22 stores and opened 17 new stores in East and Southeast Asia. There were also 148 international branded stores owned and operated by third parties through franchise agreements at the end of 2025, compared to 120 international branded stores at the end of 2024.
The unfilled order position for our wholesale business increased $72.0 million to $332.2 million at the end of 2025, compared to $260.2 million at the end of last year.
Gross Profit
Gross profit increased $0.9 million, or 0.2%, to $537.2 million in 2025, compared to $536.3 million last year. As a percentage of sales, our gross profit rate decreased to 40.8% in 2025, compared to 43.7% last year. The decrease was driven by $15.4 million of incremental cost of goods sold related to purchase accounting inventory adjustments for Stuart Weitzman, the impact of tariffs and higher inventory markdowns.
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Selling and Administrative Expenses
Selling and administrative expenses increased $90.5 million, or 22.2%, to $498.4 during 2025, compared to $407.9 million last year. The increase primarily reflects expenses associated with the Stuart Weitzman business that we acquired in August 2025, growth in our international business and a higher provision for expected credit losses, partially offset by lower salaries and benefits expenses. As a percentage of net sales, selling and administrative expenses increased to 37.9% in 2025 from 33.2% last year.
Restructuring and Other Special Charges, Net
Restructuring and other special charges of $6.5 million were incurred during 2025. The costs were primarily associated with the integration and acquisition of Stuart Weitzman and expense reduction initiatives. Restructuring and other special charges of $6.3 million were recorded during 2024 for expenses associated with the exit of the Naturalizer retail store operations and severance. Refer to Note 5 to the consolidated financial statements for additional information related to these charges.
Operating Earnings
Operating earnings decreased $89.8 million to $32.3 million in 2025, compared to $122.1 million last year, as a result of the factors described above. As a percentage of net sales, operating earnings were 2.4% in 2025, compared to 10.0% last year.
ELIMINATIONS AND OTHER
2025
2024
2023
% of
% of
% of
($ millions)
Net Sales
Net Sales
Net Sales
Net sales
$
(58.2)
100.0
%
$
(59.7)
100.0
%
$
(63.0)
100.0
%
Cost of goods sold
(57.8)
99.3
%
(58.8)
98.5
%
(60.4)
95.9
%
Gross profit
$
(0.4)
0.7
%
$
(0.9)
1.5
%
$
(2.6)
4.1
%
Selling and administrative expenses
58.6
(100.7)
%
58.2
(97.7)
%
70.1
(111.4)
%
Restructuring and other special charges, net
14.1
(24.2)
%
0.2
(0.1)
%
2.1
(3.4)
%
Operating loss
$
(73.1)
125.6
%
$
(59.3)
99.3
%
$
(74.8)
118.9
%
The Eliminations and Other category includes the elimination of intersegment sales and profit, unallocated corporate administrative expenses, and other costs and recoveries.
The net sales elimination of $58.2 million for 2025 is $1.5 million, or 2.6%, lower than in 2024, reflecting a decrease in product sold from our Brand Portfolio segment to Famous Footwear.
Selling and administrative expenses increased $0.4 million, or 0.7%, to $58.6 million in 2025, compared to $58.2 million last year. The increase primarily reflects higher salaries and benefits expense and depreciation associated with the implementation of our cloud-based ERP platform in 2024. These higher costs were partially offset by lower expense associated with our cash and share-based incentive compensation plans.
Restructuring and other special charges of $14.1 million in 2025 were for legal, information technology and other integration-related costs associated with the acquisition of Stuart Weitzman that closed on August 4, 2025 as well as severance and other costs associated with our expense reduction initiatives. We also incurred costs related to a CFO transition at the corporate headquarters. Restructuring and other special charges of $0.2 million in 2024 were associated with severance. Refer to Note 5 to the consolidated financial statements for additional information related to these charges.
RESTRUCTURING AND OTHER INITIATIVES
Refer to the Financial Highlights section above and Note 5 to the consolidated financial statements for additional information related to these charges.
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LIQUIDITY AND CAPITAL RESOURCES
Our borrowings under the revolving credit agreement increased $77.0 million to $296.5 million at the end of 2025, compared to $219.5 million at the end of last year. We used our revolving credit facility to complete the Stuart Weitzman acquisition of $108.9 million on August 4, 2025. This increase was partially offset by cash generated from our operations in 2025. Net interest expense in 2025 was $18.5 million, compared to $14.0 million in 2024. The increase in net interest expense in 2025 reflects higher average borrowings and a lower weighted-average interest rate on our revolving credit facility.
Credit Agreement
As further discussed in Note 12 to the consolidated financial statements, the Company maintains a revolving credit facility (the “Credit Agreement”) for working capital needs and strategic initiatives. The Credit Agreement, which provides borrowing availability of up to $700.0 million, subject to borrowing base restrictions, that may be further increased by up to $250.0 million, matures on June 27, 2030. Interest on the borrowings is at variable rates based on the secured overnight financing rate (“SOFR”), or the prime rate (as defined in the Credit Agreement), plus a spread.
At January 31, 2026, we had $296.5 million of borrowings and $8.6 million in letters of credit outstanding under the Credit Agreement. Total borrowing availability was $207.7 million at January 31, 2026. We were in compliance with all covenants and restrictions under the Credit Agreement as of January 31, 2026.
Working Capital and Cash Flow
January 31, 2026
February 1, 2025
Working capital ($ millions) (1)
$
17.2
$
78.6
Current ratio (2)
1.02:1
1.10:1
Debt-to-capital ratio (3)
32.7
%
26.6
%
(1)
Working capital has been computed as total current assets less total current liabilities.
(2)
The current ratio has been computed by dividing total current assets by total current liabilities.
(3)
Debt-to-capital has been computed by dividing the borrowings under our revolving credit agreement by total capitalization. Total capitalization is defined as total debt and total equity.
Working capital at January 31, 2026 was $17.2 million, which was $61.4 million lower than at February 1, 2025. The decrease in working capital from 2024 primarily reflects higher borrowing under our revolving credit agreement and an increase in other accrued expenses, partially offset by a decrease in trade accounts payable, an increase in inventories and an increase in prepaid expenses and other current assets as of January 31, 2026. Our current ratio was 1.02 to 1 at January 31, 2026, compared to 1.10 to 1 at February 1, 2025. Our debt-to-capital ratio was 32.7% as of January 31, 2026, compared to 26.6% at February 1, 2025, primarily reflecting higher borrowings under our revolving credit agreement as a result of the Stuart Weitzman acquisition in August 2025.
(Decrease) Increase
in Cash and
($ millions)
2025
2024
in Cash Equivalents
Net cash provided by operating activities
$
103.1
$
104.6
$
(1.5)
Net cash used for investing activities
(161.5)
(51.7)
(109.8)
Net cash provided by (used for) financing activities
58.4
(44.5)
102.9
Effect of exchange rate changes on cash and cash equivalents
0.1
(0.1)
0.2
Increase (decrease) in cash and cash equivalents
$
0.1
$
8.3
$
(8.2)
Cash provided by operating activities was $1.5 million lower in 2025 than last year, reflecting the following factors:
●
A loss in 2025 compared to earnings last year;
●
A larger decrease in trade accounts payable in 2025 compared to last year; and
●
A decrease in deferred income taxes in 2025, compared to an increase last year; partially offset by
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●
An increase in inventories, compared to a decrease last year; and
●
A decrease in receivables in 2025, compared to an increase last year.
Cash used for investing activities was $109.8 million higher in 2025 than last year, reflecting the acquisition of Stuart Weitzman in August 2025 and higher capital expenditures, due in part to the Famous Footwear store remodels to the FLAIR concept. We had 57 FLAIR stores as of January 31, 2026 and expect to invest in more remodels in 2026.
Cash used for financing activities was $102.9 million higher in 2025 than last year, primarily due to net borrowings on our revolving credit agreement of $77.0 million in 2025, compared to net borrowings on our revolving credit agreement of $37.5 million in 2024. This increase was partially offset by a $60.0 million decrease in repurchases of common stock under our share repurchase programs during 2025.
We paid dividends of $0.28 per share in each of 2025, 2024 and 2023. On March 12, 2026 the Board of Directors declared a quarterly dividend of $0.07 per share, payable on April 10, 2026, to shareholders of record on March 26, 2026. The declaration and payment of any future dividend is at the discretion of the Board of Directors and will depend on our results of operations, financial condition, business conditions and other factors deemed relevant by our Board of Directors.
As of January 31, 2026, we had various contractual or other obligations, including the following:
Payments Due by Period
Less Than
1-3
3-5
More Than
($ millions)
Total
1 Year
Years
Years
5 Years
Borrowings under Credit Agreement (1)
$
296.5
$
296.5
$
—
$
—
$
—
Operating lease commitments, including imputed interest (2)
693.5
192.0
238.9
127.0
135.6
Purchase obligations (3)
597.5
578.1
14.8
1.5
3.1
Other (4)
9.4
2.4
1.9
1.8
3.3
Total
$
1,596.9
$
1,069.0
$
255.6
$
130.3
$
142.0
(1)
Refer to further discussion in Note 12 to the consolidated financial statements.
(2)
The majority of our retail operating leases contain provisions that allow us to modify amounts payable under the lease or terminate the lease in certain circumstances, such as experiencing actual sales volume below a defined threshold and/or co-tenancy provisions associated with the facility. The contractual obligations presented in the table above reflect the minimum rent obligations, irrespective of our ability to reduce or terminate rental payments in the future. Refer to Note 13 to the consolidated financial statements.
(3)
Purchase obligations include agreements to purchase assets, goods or services that specify all significant terms, including quantity and price provision.
(4)
Includes obligations of our supplemental executive retirement plan and other postretirement benefits, as discussed in Note 6 to the consolidated financial statements.
We believe our operating cash flows are sufficient to meet our material cash requirements for at least the next 12 months.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Certain accounting issues require management estimates and judgments for the preparation of financial statements. Our most significant policies requiring the use of estimates and judgments are described below.
Inventories
Inventories are one of our most significant assets, representing approximately 31% of total assets at the end of 2025. We value our inventories at the lower of cost or market for approximately 84% of our consolidated inventories, which represents the divisions using the LIFO cost method. For the remaining portion, our inventories are valued at the lower of cost or net realizable value. For inventory valued at LIFO, we regularly review the inventory for excess, obsolete or impaired inventory and write it down to the lower of cost or market. We apply judgment in determining the market value of inventory, which requires an estimate of net realizable value, including current and expected selling prices, costs to sell and normal gross profit rates. The method used to determine market value varies by business division, based on the unique operating models. At our Famous Footwear segment and certain operations within our Brand Portfolio segment, market
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value is determined based on net realizable value less an estimate of expected costs to be incurred to sell the product. Accordingly, we record markdowns when it becomes evident that inventory items will be sold at prices below cost. As a result, gross profit rates at our Famous Footwear segment and, to a lesser extent, our Brand Portfolio segment are lower than the initial markup during periods when permanent price reductions are taken to clear product. For the majority of our Brand Portfolio segment, we determine market value based upon the net realizable value of inventory less a normal gross profit rate. We believe these policies reflect the difference in operating models between our Famous Footwear segment and our Brand Portfolio segment. Famous Footwear periodically runs promotional events to drive sales to clear seasonal inventories. The Brand Portfolio segment generally relies on permanent price reductions to clear slower-moving inventory.
The determination of markdown reserves for the Brand Portfolio segment requires significant assumptions, estimates and
judgments by management, and is subject to inherent uncertainties and subjectivity. In determining markdown reserves,
management considers recent and forecasted sales prices, historical gross profit rates, the length of time the product is held in inventory and quantities of various product styles contained in inventory, as well as demand, among other factors. The ultimate amount realized from the sale of certain products could differ from management estimates.
We perform physical inventory counts or cycle counts on merchandise inventory on hand throughout the year and adjust the recorded balance to reflect the results. We record estimated shrinkage between physical inventory counts based on historical results. Inventory shrinkage is included as a component of cost of goods sold.
Store Impairment Charges
We regularly analyze the results of all stores and assess the viability of underperforming stores to determine whether events or circumstances exist that indicate the stores should be closed or whether the carrying amount of their long-lived assets may not be recoverable. After allowing for an appropriate start-up period, and consideration of any unusual nonrecurring events, property and equipment at stores and the lease right-of-use assets indicated as impaired are written down to fair value as calculated using a discounted cash flow method. The fair value of the lease right-of-use assets and property and equipment is determined utilizing projected cash flows for each store location, discounted using a risk-adjusted discount rate, subject to a market floor based on current market lease rates. The projected cash flows of the stores (including net sales projections), discount rates and current market lease rates for the remaining lease term of the related stores used to determine fair value require significant management judgment and are the assumptions to which the fair value calculations are most sensitive.
Income Tax Valuation Allowances
We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the consolidated financial statement carrying amounts and the tax bases of assets and liabilities. Valuation allowances are established if we believe that it is more-likely-than-not that some or all of our deferred tax assets will not be realized. The evaluation of the realizability of deferred tax assets requires significant assumptions, estimates and judgment by management, including estimates of future taxable income by jurisdiction. Such estimates are subject to inherent uncertainties and subjectivity. As of January 31, 2026, we have valuation allowances totaling $8.7 million, reflecting the uncertainty regarding the utilization of net operating loss carryforwards.
Impact of Prospective Accounting Pronouncements
Recent accounting pronouncements and their impact on the Company are described in Note 1 to the consolidated financial statements.