Shares of Caleres Inc. (CAL) are set to open sharply lower, plummeting 14.98% in pre-market trading on Thursday, following the release of disappointing second-quarter results and ongoing concerns about tariff impacts. The footwear retailer reported adjusted earnings per share of $0.35, significantly missing the analyst estimate of $0.56, despite sales slightly beating expectations.

Caleres saw its consolidated sales decline by 3.6% to $658.5 million compared to the same period last year. The company's Brand Portfolio experienced a 3.5% decrease in sales, while Famous Footwear sales dropped by 4.9%. Gross margin contracted by 210 basis points year-over-year to 43.4%, primarily due to tariff-related costs, selective promotions, and a higher provision for inventory markdowns.

Adding to investor concerns, Caleres expects ongoing gross margin pressure in its Brand Portfolio from tariffs for the balance of the year. The company also continues to suspend its annual guidance, contributing to the uncertainty surrounding its future performance. Despite implementing structural cost savings expected to generate annualized savings of $15 million, the market appears to be focusing on the near-term challenges facing the company. As Caleres grapples with these headwinds, investors will be closely watching for signs of improvement in the coming quarters.