Caleres, Inc. ( CAL ) (NYSE:CAL) shares surged after it reported fourth-quarter 2025 results. Consolidated sales rose 8.7% year over year to $695.06 million, topping the $679.6 million estimate.

• Caleres ( CAL ) shares are powering higher. Why are CAL shares rallying?

Earnings Snapshot

Adjusted EPS loss was 36 cents, down from EPS of 33 cents, better than the consensus loss of 40 cents.

Excluding Stuart Weitzman, the company reported adjusted loss per share of six cents.

For the quarter, direct-to-consumer sales represented approximately 74% of total net sales.

Gross profit was $290.3 million and gross margin was 41.8%, down 230  basis points Y/Y, while adjusted gross margin was 42.9%, down 10 basis points Y/Y.

At the year-end, cash and cash equivalents were $29.8 million, and inventory was $610.5 million.

Segment Performance

Brand Portfolio segment net sales increased 20.3% Y/Y to $361.2 million, while it was up 1.5% Y/Y excluding Stuart Weitzman. Adjusted operating earnings were $8.73 million, compared with $28.3 million.

Famous Footwear segment net sales fell 1.2% Y/Y to $354.0 million, with comparable sales up 0.1% Y/Y. Adjusted operating earnings were $3.0 million versus $6.7 million.

Caleres ( CAL ) said its owned e-commerce sales across Famous Footwear and Brand Portfolio were up double digits.

"Performance was driven by continued strength in owned e-commerce and international growth, reinforcing our strategic growth vectors. Our Lead Brands once again outperformed, and we gained market share in both women's fashion footwear and total footwear,” said Jay Schmidt, president and chief executive officer.

“We also completed the Stuart Weitzman integration with minimal business disruption. At Famous Footwear, FLAIR remodels continue to outperform the fleet, and our more curated and elevated assortment is resonating with consumers as Famous gained market share in shoe chains.”

Outlook

For FY26, Caleres ( CAL ) expects adjusted EPS of $1.35-$1.65 versus consensus of $1.51 and net sales in the low to mid-single digits.

For the first quarter of FY26, the company sees adjusted EPS of 25 to 30 cents versus the street view of 20 cents. Caleres ( CAL ) expects net sales to increase in low to mid-single digits.

"As we look ahead, 2026 is shaping up as a build-back year with modest organic sales growth and meaningful earnings recovery. While we have many reasons for optimism, we are also aware that the current geopolitical backdrop presents a level of risk and uncertainty,” said Schmidt.

“Profit improvement in 2026 will be driven primarily by our tariff mitigation efforts taking hold and our plan to bring Stuart Weitzman to breakeven profitability."

CAL Price Action: Caleres shares were up 8.92% at $9.65 at the time of publication on Thursday.