Overview

• Caleres reported Q2 net earnings of $6.71 million, or $0.20 per share, down from $29.96 million, or $0.85, a year earlier, with adjusted EPS of $0.35 missing the $0.56 estimate.
• Net sales fell 3.6% to $658.52 million, slightly above forecasts, as Famous Footwear revenue declined 4.9% with comparable sales down 3.4% and Brand Portfolio revenue decreased 3.5%.
• Tariffs created roughly a $10 million headwind in Brand Portfolio, and the company expects Q3 gross margins to be roughly in line with Q2 with improvement anticipated in Q4 as mitigation efforts take hold.
• Caleres closed the Stuart Weitzman acquisition for $120.2 million, amended its revolving credit facility to extend maturity to 2030 with higher capacity, and increased borrowings to about $387.5 million.
• Shares fell sharply in premarket trading after the release, with reports showing declines of more than 9% and trades down about 16% at one point.