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Caleres Cuts Outlook After Q3 Profit Plunge as Stuart Weitzman Weighs

Management targets a 2026 breakeven for Stuart Weitzman via system integration, inventory cleanup, synergy capture.

Overview

  • Caleres posted Q3 net sales of $790.1 million, up 6.6%, with adjusted EPS down to $0.38 and GAAP EPS at $0.07 on lower margins.
  • The company lowered fiscal 2025 guidance to a GAAP loss of $0.13–$0.18 per share and adjusted EPS of $0.55–$0.60, citing tariff pressure and dilution from Stuart Weitzman.
  • Shares fell roughly 15%–18% following the release as results missed profit estimates and the outlook weakened.
  • Brand Portfolio sales rose 18.8% to $383.7 million including $45.8 million from Stuart Weitzman, Famous Footwear declined 2.2% with comps down 1.2%, and direct-to-consumer mix was about 71%.
  • Management is transitioning Stuart Weitzman to Caleres systems in early 2026, accelerating liquidation of aged inventory, installing new China leadership, and targeting breakeven for the brand in 2026 with synergies to follow.