CALERES INC Segments Disclosure
8. BUSINESS SEGMENT INFORMATION
The Company’s reportable segments are Famous Footwear and Brand Portfolio. The Famous Footwear segment is comprised of Famous Footwear, famousfootwear.com and famousfootwear.ca. Famous Footwear operated 821 stores at the end of 2025, selling primarily branded footwear for the entire family.
The Brand Portfolio segment is comprised of wholesale operations selling the Company’s branded footwear, and the retail stores and e-commerce sites associated with those brands. This segment sources, manufactures and markets branded, licensed and private-label footwear primarily to online retailers, national chains, department stores, independent retailers, mass merchandisers and franchise partners, as well as Company-owned Famous Footwear, Allen Edmonds, Sam Edelman, Stuart Weitzman and Naturalizer and e-commerce businesses. The Brand Portfolio segment included 85 branded retail stores in North America and 103 branded retail stores in East and Southeast Asia at the end of 2025.
The accounting policies of the reportable segments are the same as those described in Note 1 to the consolidated financial statements. The Company’s Famous Footwear and Brand Portfolio reportable segments are operating units that are managed separately. These reportable segments reflect the level at which the chief operating decision maker (CODM), the Company’s President and Chief Executive Officer, evaluates financial performance and allocates resources. The CODM uses segment operating earnings (loss), which represents gross profit, less selling and administrative expenses and restructuring and other special charges, net, to allocate resources. Intersegment sales are generally recorded at a profit, and intersegment earnings related to inventory on hand at the purchasing segment are eliminated against the earnings.
Corporate assets, administrative expenses and other costs and recoveries that are not allocated to the operating units, as well as the elimination of intersegment sales and profit, are reported in the Eliminations and Other category.
Following is a summary of certain key financial measures for the respective periods:
2025 | ||||||||||||
Famous | Brand | Eliminations | ||||||||||
($ thousands) | | Footwear | | Portfolio | | and Other | | Total | ||||
| | | | |||||||||
Net sales (1) | $ | 1,500,050 | $ | 1,315,976 | $ | (58,173) | $ | 2,757,853 | ||||
Cost of goods sold | 852,072 |
| 778,772 |
| (57,769) |
| 1,573,075 | |||||
Gross profit | 647,978 | 537,204 | (404) | 1,184,778 | ||||||||
Less expenses: | ||||||||||||
Retail stores (2) | 372,238 | 51,003 | — | 423,241 | ||||||||
Information technology | 31,276 | 30,686 | 3,911 | 65,873 | ||||||||
Warehousing and distribution | 48,699 | 73,521 | 746 | 122,966 | ||||||||
Advertising and marketing | 52,773 | 93,829 | 501 | 147,103 | ||||||||
Restructuring and other special charges, net |
| 273 | 6,550 | 14,068 |
| 20,891 | ||||||
Other expenses (3) | 95,516 | 249,326 | 53,490 | 398,332 | ||||||||
Operating earnings (loss) | $ | 47,203 | $ | 32,289 | $ | (73,120) | $ | 6,372 | ||||
Segment assets | $ | 808,976 | $ | 983,528 | $ | 173,286 | $ | 1,965,790 | ||||
Purchases of property and equipment | $ | 38,034 | $ | 20,231 | $ | 5,479 | $ | 63,744 | ||||
Capitalized software | $ | 178 | $ | 126 | $ | 3,843 | $ | 4,147 | ||||
2024 | ||||||||||||
Famous | Brand | Eliminations | ||||||||||
($ thousands) | | Footwear | | Portfolio | | and Other | | Total | ||||
| |
| |
| |
| | |||||
Net sales (1) | $ | 1,556,456 | $ | 1,225,963 | $ | (59,736) | $ | 2,722,683 | ||||
Cost of goods sold | 869,829 |
| 689,668 |
| (58,856) |
| 1,500,641 | |||||
Gross profit | 686,627 | 536,295 | (880) | 1,222,042 | ||||||||
Less expenses: | ||||||||||||
Retail stores (2) | 366,144 | 31,108 | — | 397,252 | ||||||||
Information technology | 30,843 | 27,631 | 7,881 | 66,355 | ||||||||
Warehousing and distribution | 50,905 | 70,368 | 3,580 | 124,853 | ||||||||
Advertising and marketing | 50,370 | 78,275 | 3,459 | 132,104 | ||||||||
Restructuring and other special charges, net |
| 639 | 6,343 | 185 |
| 7,167 | ||||||
Other expenses (3) | 100,650 | 200,448 | 43,357 | 344,455 | ||||||||
Operating earnings (loss) | $ | 87,076 | $ | 122,122 | $ | (59,342) | $ | 149,856 | ||||
Segment assets | $ | 817,469 | $ | 893,460 | $ | 183,825 | $ | 1,894,754 | ||||
Purchases of property and equipment | $ | 36,694 | $ | 10,335 | $ | 2,118 | $ | 49,147 | ||||
Capitalized software | $ | 618 | $ | 44 | $ | 1,877 | $ | 2,539 | ||||
2023 | ||||||||||||
Famous | Brand | Eliminations | ||||||||||
($ thousands) | | Footwear | | Portfolio | | and Other | | Total | ||||
| |
| |
| |
| | |||||
Net sales (1) | $ | 1,609,396 | $ | 1,270,853 | $ | (62,955) | $ | 2,817,294 | ||||
Cost of goods sold | 889,847 |
| 724,848 |
| (60,358) |
| 1,554,337 | |||||
Gross Profit | 719,549 | 546,005 | (2,597) | 1,262,957 | ||||||||
Less expenses: | ||||||||||||
Retail stores (2) | 360,102 | 28,793 | — | 388,895 | ||||||||
Information technology | 31,286 | 28,180 | 1,459 | 60,925 | ||||||||
Warehousing and distribution | 52,874 | 59,045 | 4,439 | 116,358 | ||||||||
Advertising and marketing | 52,771 | 70,761 | 3,102 | 126,634 | ||||||||
Restructuring and other special charges, net |
| 1,366 | 2,608 | 2,129 | 6,103 | |||||||
Other expenses (3) | 97,312 | 211,159 | 61,116 | 369,587 | ||||||||
Operating earnings (loss) | $ | 123,838 | $ | 145,459 | $ | (74,842) | $ | 194,455 | ||||
Segment assets | $ | 770,848 | $ | 862,404 | $ | 171,494 | $ | 1,804,746 | ||||
Purchases of property and equipment | $ | 31,743 | $ | 10,515 | $ | 2,326 | $ | 44,584 | ||||
Capitalized software | $ | 743 | $ | — | $ | 4,291 | $ | 5,034 | ||||
| (1) | Net sales includes intersegment sales from Brand Portfolio to Famous Footwear of $58.2 million, $59.7 million and $63.0 million in 2025, 2024 and 2023, respectively. |
| (2) | Includes compensation and facilities costs associated with the Company’s North America retail stores. |
| (3) | Primarily includes compensation costs associated with non-retail store operations, depreciation and amortization, and other overhead expenses. |
Products purchased for the Famous Footwear segment from three key third-party suppliers (Nike, Skechers and adidas) represented approximately 24% of consolidated net sales for 2025, 2024, and 2023.
Following is a reconciliation of operating earnings to earnings before income taxes:
| |||||||||
($ thousands) | | 2025 | | 2024 | | 2023 | |||
Operating earnings | $ | 6,372 | $ | 149,856 | $ | 194,455 | |||
Interest expense, net |
| (18,464) |
| (13,957) |
| (19,343) | |||
Other (expense) income, net |
| (130) |
| (741) |
| 6,210 | |||
(Loss) earnings before income taxes | $ | (12,222) | $ | 135,158 | $ | 181,322 | |||
For geographic purposes, the domestic operations include the Company’s domestic retail operations, the wholesale distribution of licensed, branded and private-label footwear to a variety of retail customers, including the Famous Footwear and Brand Portfolio stores, as well as the Company’s e-commerce businesses.
The Company’s international operations consist of wholesale and retail operations primarily in East and Southeast Asia, Canada and Europe.
A summary of the Company’s net sales and long-lived assets, including lease right-of-use assets and property and equipment, by geographic area were as follows:
($ thousands) | | 2025 | | 2024 | | 2023 | |||
Net Sales |
| |
| |
| | |||
United States | $ | 2,582,127 | $ | 2,532,717 | $ | 2,624,474 | |||
East and Southeast Asia |
| 54,648 |
| 111,670 |
| 130,423 | |||
Canada |
| 64,807 |
| 58,140 |
| 48,220 | |||
Other |
| 56,271 |
| 20,156 |
| 14,177 | |||
Total net sales | $ | 2,757,853 | $ | 2,722,683 | $ | 2,817,294 | |||
| |
| |
| | ||||
Long-Lived Assets (1) |
| |
| |
| | |||
United States | $ | 734,001 | $ | 716,894 | $ | 676,937 | |||
East and Southeast Asia |
| 20,666 |
| 13,295 |
| 11,805 | |||
Canada |
| 8,230 |
| 8,697 |
| 6,601 | |||
Other |
| 2,369 |
| 657 |
| 269 | |||
Total long-lived assets | $ | 765,266 | $ | 739,543 | $ | 695,612 | |||
| (1) | During the year ended January 31, 2026, the Company identified and corrected an immaterial misstatement in the segment footnote disclosure related to long-lived assets by geographic area for the year ended February 1, 2025. The disclosure misstatement had no impact to the consolidated financial statements. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Apr 2, 2026 | Showing above |
| 2025 | Apr 1, 2025 | |
| 2024 | Apr 2, 2024 | |
| 2023 | Mar 28, 2023 | |
| 2022 | Mar 28, 2022 | |
| 2021 | Mar 30, 2021 | |
| 2020 | Mar 31, 2020 | |
| 2019 | Apr 3, 2019 | |
| 2018 | Apr 4, 2018 | |
| 2017 | Mar 28, 2017 | |
| 2016 | Mar 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.