Net sales for the second quarter totalled US$695.5 million, up 5.6% compared with the same period last year. Excluding Stuart Weitzman, net sales were US$653.0 million, down 0.8%.
The Brand Portfolio segment reported a 23.6% increase in sales, or 8.2% growth excluding Stuart Weitzman. International sales increased 57.0%, or 18.2% organically. Famous Footwear sales decreased 6.3%, with comparable sales down 5.9%. Direct-to-consumer sales accounted for approximately 71% of total net sales.
Gross profit reached US$381.0 million, with a gross margin of 54.8% driven in part by US$55.6 million in tariff refunds. Excluding tariff refunds, adjusted gross profit was US$325.4 million, with an adjusted gross margin of 46.8%. Brand Portfolio adjusted gross margin increased to 49.1%, while Famous Footwear gross margin declined to 42.7%.
GAAP net earnings rose to US$58.6 million, or US$1.71 per diluted share, compared with US$6.7 million, or US$0.20 per diluted share, a year earlier. Adjusted earnings increased to US$16.1 million, or US$0.47 per diluted share, from US$11.7 million, or US$0.35 per diluted share.
“We are pleased with our second quarter performance. In our Brand Portfolio, we experienced broad-based gains across brands, channels, and geographies and we gained market share in Women’s Fashion Footwear,” said Jay Schmidt, President and Chief Executive Officer of Caleres. He added that Famous Footwear performance was affected by a later Back-to-School season and softness in lifestyle athletic products, while the company is shifting its assortment towards fashion footwear.
