Caleres Exceeds Guidance: Strong Sales and Gross Margin Results Drive Earnings Growth
Caleres, a leading footwear company, has reported strong sales and earnings growth in its first quarter of 2027. The company's CEO, Jay Schmidt, highlighted the success of their strategic growth vectors during a recent conference call.
The brand portfolio segment saw broad growth across channels and geographies, supported by centers of expertise. Lead brands outperformed, with most brands delivering growth in both revenue and profit. The segment also experienced significant gross margin expansion due to strong brand and channel mix, tariff mitigation efforts, lower current tariff rates, continued operational execution, improved product mix, and disciplined inventory control.
In particular, Sam Edelman delivered double-digit top-line growth both domestically and internationally. This achievement underscores the effectiveness of Caleres' strategy in driving sales and revenue for its lead brands.
The company's Famous Footwear business faced more challenging conditions amid a softer consumer and macroeconomic backdrop. However, e-commerce growth remained strong, with sales up nearly 10%. The brand also made progress on its strategy to add more elevated brands and products to strengthen its market position.
Caleres' Flair remodel continued to outperform versus the fleet, with stores opened less than a year ago outperforming non-Flair stores by nine points. Overall, Famous Footwear gained market share in shoe chains both overall and in kids, according to Circana.
Looking at more detailed financials, brand portfolio sales on an organic basis increased 5.8% in the quarter, while lead brands grew 7% organically and represented nearly 60% of organic brand portfolio sales. Owned e-commerce continued to see growth, with international business also up.
The company's efforts to ensure they were capturing all synergies from integrating Stuart Weitzman led to the creation of new centers of expertise in areas such as international, specialty retail operations, digital, marketing operations, and planning and costing. These initiatives are expected to drive further efficiency and effectiveness across the brand portfolio.
Overall, Caleres' strong sales and earnings growth demonstrate the company's ability to adapt to changing market conditions and execute its strategic vision with success.
