Shares of Caleres (NYSE: CAL) were surging today after the diversified footwear retailer topped estimates on the top and bottom lines in its fourth quarter earnings report.
As a result, the stock was up 9.2% as of 12:44 p.m. ET.
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Revenue at Caleres rose 8.7% to $695.1 million in the quarter, which was well ahead of estimates at $685.4 million.
Brand portfolio sales were up 20.3%, or 1.5% on an organic basis, and comparable sales at Famous Footwear rose 0.1%. E-commerce sales were again up double digits on company-owned platforms, another bright spot.
Adjusted gross margin fell 10 basis points to 42.9%, though that was better than the company’s expectations. The company reported an adjusted loss of $0.36, which was ahead of the consensus at a per-share loss of $0.40, but worse than the $0.33 per share profit it reported a year ago.
Year-over-year comparisons were challenged by tariffs and the acquisition of the loss-generating Stuart Weitzman brand. Excluding Stuart Weitzman, it reported an adjusted loss per share of $0.06 in the quarter.
CEO Jay Schmidt expressed optimism heading into the new year, saying, “As we look ahead, 2026 is shaping up as a build-back year with modest organic sales growth and meaningful earnings recovery.”
For the full year 2026, management sees the company returning to profitability and stability as it called for net sales to be up low to mid-single digits and adjusted EPS of $1.35-$1.65, which compares to $0.61 in 2025.
Considering the footwear stock trades at less than $10, Caleres has a P/E of roughly 6 at that EPS forecast. If the company can deliver growth from here, the stock should be a winner at that price.
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