Caleres Sees Momentum in Q3, But Takes Hit From Tariffs and Stuart Weitzman Earnings Dilution

Shares of Caleres Inc. fell implicit 18 percent successful pre-market trading connected Tuesday arsenic the footwear institution reported 3rd 4th net beneath expert expectations.

The St. Louis-based institution said nett income successful the 3rd 4th of fiscal 2025 totaled $790.1 million, up 6.6 percent from $740.9 cardinal the aforesaid clip past year. Adjusted nett net successful Q3 2025 were $13.1 million, oregon 38 cents per diluted share, down from $42.6 million, oregon $1.23 per diluted share, successful the 3rd 4th of 2024.

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While gross bushed expert expectations — marketplace watchers predicted nett income of $768.59 cardinal — Caleres missed connected net per share. According to Yahoo Finance, analysts were looking for 85 cents a stock successful the 3rd quarter.

By segment, Famous Footwear saw nett income alteration 2.2 percent, with comparable income down 1.2 percent successful the 3rd quarter. Caleres’ marque portfolio part reported a nett income summation of 18.8 percent successful the period. Excluding Stuart Weitzman, nett income successful the marque portfolio accrued 4.6 percent to past year.

Jay Schmidt, president and main enforcement serviceman of Caleres, reiterated successful a connection connected Tuesday that the institution delivered 3rd 4th income results that were up of its interior expectations.

“[The results were] highlighted by integrated income maturation successful our marque portfolio segment, beardown pb brands performance, sequential betterment successful trends astatine Famous Footwear, and accelerated e-commerce momentum successful some segments of our business,” Schmidt said. “With the caller summation of Stuart Weitzman, our marque portfolio present drives astir fractional our income and much than fractional our operating earnings.”

The CEO added that the institution experienced unit connected its net from tariffs and near-term acquisition dilution, however, the fundamentals of the concern are improving.

Looking ahead, the institution said that it expects continued tariff unit connected gross borderline and net dilution from Stuart Weitzman. Additionally, it anticipates a full-year taxation complaint of 27 percent to 28 percent.

As a result, Caleres anticipates a nonaccomplishment per diluted stock for the 4th fourth connected some a GAAP and adjusted basis. For the afloat year, Caleres anticipates GAAP nonaccomplishment per diluted stock successful the scope of 13 cents to 18 cents and adjusted net per diluted stock successful the scope of 55 cents to 60 cents, including 60 cents to 65 cents dilution from Stuart Weitzman.