Footwear company Caleres (NYSE: CAL) reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 8.5% year on year to $666.6 million. Its non-GAAP profit of $0.38 per share was 2.7% above analysts’ consensus estimates.

Is now the time to buy CAL? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Caleres delivered first quarter results that exceeded Wall Street’s revenue and profit expectations, with particular strength in its Brand Portfolio segment. Management credited broad-based growth across key brands, improved product mix, and operational efficiencies as the primary factors behind the quarter’s positive outcome. CEO Jay Schmidt noted that Sam Edelman and Allen Edmonds posted robust gains, while international business and direct-to-consumer channels also contributed. Schmidt emphasized the importance of recent structural changes, including new centers of expertise in digital, marketing, and planning, which supported margin expansion across the portfolio. The Famous Footwear segment, however, faced softer consumer demand and a challenging macroeconomic backdrop, partially offset by strong e-commerce performance and continued progress on elevating store formats and product assortments.

Looking ahead, Caleres’ raised profit outlook reflects management’s confidence in the continued momentum of its Brand Portfolio and the full integration of Stuart Weitzman. Management highlighted ongoing investments in digital growth, international expansion, and product innovation as key strategies to drive performance. CFO Daniel Karpel pointed out that tariff uncertainty and inflation remain risks but expressed confidence in the company’s sourcing flexibility and ability to navigate external pressures. Schmidt stated, “We are playing to our strength and investing in our highest return growth initiatives, and we are gaining market share in both segments of our business.” Caleres expects further margin improvement to be led by premium brand mix, disciplined inventory management, and growth in elevated product lines.

Key Insights from Management’s Remarks

Management attributed Q1’s performance to accelerating growth in key brands, structural operational changes, and better inventory discipline, while acknowledging softer trends at Famous Footwear.

• Brand Portfolio momentum: The Brand Portfolio segment outperformed, with most brands posting revenue and profit growth. Management credited international expansion, effective product launches, and new digital and marketing centers of expertise as core drivers.
• Sam Edelman and Allen Edmonds gains: Both brands experienced double-digit sales growth, with Sam Edelman benefiting from successful shop-in-shop rollouts and strong consumer response to new seasonal products. Allen Edmonds’ premium offerings, especially the Reserve Collection, attracted high-value, loyal customers.
• Stuart Weitzman integration: Stuart Weitzman’s integration onto Caleres platforms was completed with minimal disruption, contributing accretive gross margins and laying the groundwork for future brand profitability. Management expects the brand to reach breakeven this year and is planning a global campaign for its 40th anniversary.
• E-commerce and digital growth: Owned e-commerce channels continued to see significant growth, especially for Naturalizer and Vionic. Enhanced digital marketing and the use of a customer data platform supported higher conversion and personalized outreach.
• Famous Footwear challenges and initiatives: While Famous Footwear saw lower store traffic and sales, e-commerce grew nearly 10%, and investments in store remodels and elevated product assortments drove share gains in key subcategories, particularly Kids. The FLAIR format remodels produced measurable sales lifts and are a focus for future expansion.

Drivers of Future Performance

Caleres’ outlook for the year centers on continued Brand Portfolio strength, premium product mix, and ongoing digital investment, tempered by macroeconomic and tariff uncertainties.

• Brand Portfolio and premium mix: Management expects further gains from the Brand Portfolio, led by growth in lead brands, expansion into international markets, and a focus on higher-margin premium products. Product innovation and targeted marketing are expected to drive wholesale and direct-to-consumer growth.
• Tariff environment and cost management: The company anticipates potential new tariffs in the second half of the year, planning to offset impacts through flexible sourcing, ongoing tariff mitigation strategies, and prudent inventory management. CFO Daniel Karpel highlighted that gross margin improvements are expected to come mostly from brand mix and operational efficiency, though volatility in tariffs remains a risk.
• Famous Footwear stabilization: While Famous Footwear’s outlook remains cautious due to consumer softness, management is modeling stronger performance during peak retail periods such as back-to-school and holidays. Continued investment in digital and store experience, along with expanding elevated product offerings, is seen as essential for recovery.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) sustained growth and margin expansion in the Brand Portfolio, particularly from lead brands and international markets, (2) Famous Footwear’s performance during key seasonal events such as back-to-school, and (3) the company’s ability to manage tariff and inflationary pressures through sourcing and inventory strategies. Success in digital channels and execution of new store formats will also be critical to track.

Caleres currently trades at $14.30, up from $14.12 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

Our Favorite Stocks Right Now

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.