Caleres, the parent company of Famous Footwear and several other consumer-focused brands, has reported results for the first quarter of 2025. The company’s total revenue fell by 6.8% compared to the same period last year, reaching $614.2 million.
Sales at Famous Footwear were down 6.3%, while its Brand Portfolio segment saw a 6.9% decline. Direct-to-consumer sales made up 70% of the overall sales.
Caleres reported earnings of just $0.21 per share, which is below market expectations. The company also shared adjusted earnings of $0.22 per share. This is a significant drop from last year’s $0.88 per share.
CEO Jay Schmidt said February sales were especially weak, though they saw some recovery in March and April. Still, overall performance was not up to the mark.
“Our brands continue to connect with consumers and gained market share, but the quarter did not meet expectations,”
Jay Schmidt, President and CEO, Caleres
To improve performance, Caleres has announced structural cost-cutting plans. These efforts are expected to save $15 million annually and $7.5 million in the current fiscal year alone.
The company also revealed plans to shift more of its sourcing away from China. By the second half of 2025, less than 10% of its product sourcing is expected to come from China.
Gross margins also took a hit. Overall gross margin dropped to 45.4% to $278.7 million, down from last year. The Brand Portfolio margin was hit hardest, falling by 2.8 percentage points.
At the end of the quarter, inventory levels were up 8.1%, and borrowing under its credit facility rose to $258.5 million.
On the investment front, Caleres continued to buy back shares, repurchasing 300,000 shares at an average price of $16.81 each. However, with the planned acquisition of Stuart Weitzman later this year, the company said it will reassess its capital spending strategy.
