Caleres delivered fourth quarter results that exceeded Wall Street’s revenue and adjusted EPS expectations, prompting a positive market response. Management attributed the outperformance to continued strength in owned e-commerce and international sales, as well as robust performance from its lead brands such as Sam Edelman and Allen Edmonds. CEO Jay Schmidt emphasized that “brand portfolio gained significant market share in both women’s fashion footwear and total footwear during the quarter,” highlighting effective execution across digital and brick-and-mortar channels. The company also saw benefits from its edit-and-elevate strategy at Famous Footwear, with premium brands and new product launches resonating well with consumers.
Is now the time to buy CAL? Find out in our full research report (it’s free for active Edge members).
Caleres (CAL) Q4 CY2025 Highlights:
- Revenue: $695.1 million vs analyst estimates of $685.4 million (8.7% year-on-year growth, 1.4% beat)
- Adjusted EPS: -$0.06 vs analyst estimates of -$0.40 (85.1% beat)
- Adjusted EBITDA: $4.58 million vs analyst estimates of $4.7 million (0.7% margin, relatively in line)
- Adjusted EPS guidance for the upcoming financial year 2026 is $1.50 at the midpoint, beating analyst estimates by 7.1%
- Operating Margin: -1.7%, down from 2.5% in the same quarter last year
- Market Capitalization: $373.2 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Caleres’s Q4 Earnings Call
- Ashley Owens (KeyBanc Capital Markets) asked how Caleres offset potential sales volatility and about the sustainability of one-time impacts. CEO Jay Schmidt explained that strong performance in other business areas offset specific risks and cited better-than-expected tariff impacts on gross margin.
- Owens (KeyBanc Capital Markets) followed up on gross margin recovery drivers. Schmidt clarified that Famous Footwear margins are expected to remain flat, while Brand Portfolio margins should recover due to tariff mitigation and improved product mix, including contributions from Stuart Weitzman.
- Dana Telsey (Telsey Advisory Group) questioned market share gains and the impact of new brands at Famous Footwear. Schmidt pointed to premium brand strength and highlighted the positive effects of the holiday season and new product launches.
- Telsey (Telsey Advisory Group) also asked about the cadence of margin improvement and the effect of rising energy prices. CFO Dan Carpel reiterated guidance for gradual gross margin improvement and noted the company’s monitoring of external cost pressures.
- Mitch Kummetz (Seaport Research) inquired about quarter-to-date trends, category performance, and the outlook for sandals. Schmidt noted ongoing strength in e-commerce, a strong sandal business at both Famous Footwear and within the Brand Portfolio, and optimism for spring/summer driven by new product introductions.
Catalysts in Upcoming Quarters
In the upcoming quarters, the StockStory team will watch for (1) sustained momentum in lead brands and associated e-commerce channels, (2) evidence of margin recovery as tariff mitigation strategies unfold and Stuart Weitzman integration benefits materialize, and (3) Famous Footwear’s ability to grow market share through premium brand focus and store remodel initiatives. Continued monitoring of geopolitical and tariff-related risks will also be essential for tracking the company’s progress.
Caleres currently trades at $11, up from $8.86 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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