Caleres Inc. has reported its financial results for the second quarter of 2025, revealing a 3.6% decline in consolidated sales to $658.5 million compared to the prior year. The Brand Portfolio experienced a 3.5% decrease in sales, attributed to gains in women's fashion footwear market share and strong performance from Lead Brands, although it faced approximately $10 million in tariff impacts. Famous Footwear sales dropped by 4.9%, with comparable sales down 3.4%, though there was meaningful improvement in July. The company reported a gross margin of 43.4%, down 210 basis points year-over-year, influenced by tariff-related costs, selective promotions, and a higher provision for inventory markdowns. These factors were partly offset by growth in higher-margin direct-to-consumer channels within the Brand Portfolio. Caleres achieved structural cost savings, expected to generate annualized savings of $15 million. Earnings per diluted share were reported at $0.20, with adjusted earnings per diluted share at $0.35, both figures including a discrete tax benefit of $0.07. Caleres also enhanced its financial flexibility by entering into an amended credit agreement, extending the maturity date of its asset-based revolving credit facility and increasing its borrowing capacity. The company completed the acquisition of Stuart Weitzman shortly after the quarter's end.