{
  "id": 6930136,
  "title": "Caleres (CAL) Stock Lags Behind Its Brand Portfolio’s Surge",
  "url": "https://urgent.news/2026/09/12/caleres-cal-stock-lags-behind-its-brand-portfolios-surge",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-12T11:51:47.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/caleres-cal-stock-lags-behind-115147339.html"
  },
  "original_language": "en",
  "account": "On September 9, Caleres (NYSE:CAL) released its second-quarter earnings, revealing two distinct narratives. Net sales increased by 5.6% to $695.5 million, while adjusted diluted earnings per share surged to $0.47 from $0.35 the previous year. The company also announced it had raised its full-year guidance low end. However, the flagship Famous Footwear chain continued to underperform as the newer brand portfolio, including brands such as Sam Edelman, Allen Edmonds, Naturalizer, Vionic, and Stuart Weitzman, propelled growth. The brand portfolio's sales rose 23.6% to $340.6 million, driven primarily by the Weitzman integration and 8.2% organic growth. Margins improved even more than sales, with the adjusted gross margin for the segment expanding by 880 basis points to 49.1% due to easing markdowns and tariff mitigation efforts. Sales for Sam Edelman grew in the mid-teens, with double-digit growth at key department store accounts and increased average unit retail. Allen Edmonds' revenue expanded in the low-teens, buoyed by wholesale strength and a doubling of its premium reserve collection. Naturalizer's sales increased in the high single digits, while Vionic's walking category surged more than 50% year over year, accounting for 13% of the brand's total sales. International sales climbed by 57%, with the rapid recovery of Stuart Weitzman in China highlighted as the company's most significant growth driver. However, Famous Footwear experienced a decline in sales by 6.3% to $374.4 million as consumers reduced spending on lifestyle athletic shoes, and its gross margin fell by 100 basis points to 42.7% due to promotional and clearance sales to offload inventory. CFO Daniel Karpel attributed the decline to the delayed start of back-to-school season, compounded by the impact of shifting tax-free events on the quarter. Karpel also cautioned about the ongoing challenges in certain segments of the Famous business and the uncertainties surrounding tariffs, noting that the company expects new tariffs to replace the previous IEEPA refunds, adding $57.4 million to the quarter. Caleres concluded the quarter with $50.9 million in cash against $288 million in revolver borrowings, and the company intends to open 13 stores while closing 26 this year. Hedge fund ownership remained steady at 26 funds during the quarter, indicating no change in institutional confidence in either direction. Short interest stood at 11.66% of the float, suggesting a considerable bearish stance still exists. Despite this, shares trade at a forward P/E of just 7.42 as of September 11, a valuation that presumes limited continuation of the brand portfolio's momentum. This juxtaposition of strong brand performance and Famous Footwear's decline raises questions about whether the market fully appreciates the growth potential of the brand portfolio. Caleres enters the latter half of the year with raised guidance and a strong brand portfolio demonstrating its ability to grow margins and market share simultaneously. However, the challenges faced by Famous Footwear and the looming tariff shift, as discussed by Karpel, present significant obstacles. For the bull case to materialize, the brand portfolio must continue to outpace Famous Footwear's decline, particularly as Stuart Weitzman progresses toward its 2026 breakeven target. While acknowledging the potential of CAL as an investment, this report suggests that certain AI stocks may offer greater upside potential and lower risk. For a short-term AI stock that could benefit from Trump-era tariffs and the onshoring trend, readers are directed to a free report on the best short-term AI stock.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}