Caleres Inc. (NYSE:CAL) stock rose Wednesday after the footwear company reported second-quarter earnings that beat Wall Street expectations and raised its full-year adjusted earnings outlook.

Caleres reported adjusted earnings of 47 cents per share, beating the consensus estimate of 37 cents.

Sales rose 5.6% year over year to $695.45 million, topping the $686.73 million estimate.

GAAP consolidated gross margin expanded 1,140 basis points to 54.8%, driven by Brand Portfolio performance and tariff refunds. Excluding tariff refunds, adjusted gross margin increased 340 basis points to 46.8%.

Inventory stood at $754.2 million at quarter-end. Excluding $69 million tied to Stuart Weitzman, inventory declined 1.2%. Cash and cash equivalents totaled $50.9 million as of Aug. 1.

Famous Footwear Weighs On Results

Famous Footwear comparable sales were flat quarter to date through Labor Day. Second-quarter Famous Footwear sales fell 6.3%, while comparable sales declined 5.9%.

Brand Portfolio sales jumped 23.6%, including 8.2% organic growth. International sales surged 57%, or 18.2% organically. Stuart Weitzman sales were in line with expectations.

Caleres also gained market share in total footwear, while its Brand Portfolio gained share in women’s fashion footwear. Schmidt said fashion footwear continues to show strong momentum.

CEO Commentary

Caleres CEO Jay Schmidt said the company delivered a solid second quarter, with broad gains across its Brand Portfolio spanning brands, sales channels and regions. The company also gained market share in women’s fashion footwear, citing Circana data.

However, Famous Footwear fell short of expectations. A later back-to-school season and weaker demand for lifestyle athletic products weighed on sales and margins. Comparable-store sales at Famous Footwear were flat quarter to date through Labor Day.

Despite the back-to-school timing shift, Caleres improved profitability and beat its earnings guidance. Schmidt said fashion footwear is gaining strong momentum, with the company’s brands “resonating with consumers”.

At Famous Footwear, Caleres is adjusting its product mix to reflect changing demand. The retailer is placing greater emphasis on fashion footwear, which continues to significantly outperform lifestyle athletic products quarter to date.

Schmidt said the operating environment remains dynamic. Caleres plans to build on strength across its Brand Portfolio, improve Famous Footwear’s performance and continue rebuilding its earnings power.

Caleres Raises Full-Year Earnings Outlook

For the third quarter, Caleres expects adjusted EPS of 62 cents to 70 cents, below the 83-cent analyst estimate. The company expects net sales to rise in the low-single digits.

Famous Footwear sales and comparable sales are expected to decline in the low-single digits.

Caleres raised its fiscal 2026 adjusted EPS outlook to $1.50-$1.65 from $1.40-$1.65, compared with the $1.62 estimate. It continues to expect net sales growth in the low-to-mid-single digits.

For the full year, Famous Footwear sales and comparable sales are expected to decline in the low-to-mid-single digits.

CAL Price Action: Caleres shares were up 4.41% at $12.56 at the time of publication on Wednesday, according to Benzinga Pro data.

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