Caleres completed the $120.2m acquisition of Stuart Weitzman from Tapestry. For the 13 weeks ending 1 November 2025, the brand saw net sales of $790.1m, up 6.6% from the previous year. Direct-to-consumer sales made up 71% of total net sales. Gross profit increased to $329.9m, but gross margin fell to 41.8%.

Caleres’ gross margin for Famous Footwear and Brand Portfolio segments dropped in the third quarter. Selling and administrative expenses rose to $311.3m, with most attributed to Stuart Weitzman costs. GAAP net earnings fell to $2.4m, or $0.07 per diluted share, compared to $41.4m in the previous year.

The company’s inventory at quarter-end increased to $678.2m, with Stuart Weitzman accounting for $77m. Caleres expects ongoing tariff challenges and earnings dilution from Stuart Weitzman. They anticipate a GAAP loss per diluted share between $0.13 and $0.18, and adjusted earnings per diluted share between $0.55 and $0.60.

Caleres plans to transition Stuart Weitzman to their systems and improve inventory management for long-term growth. They aim to unlock cost savings in fiscal 2026. President and CEO Jay Schmidt remains optimistic about the brand’s future despite current challenges.

Read more at Yahoo Finance: Caleres Q3 profit plunges on margin pressure