While Caleres’s Famous Footwear segment had a rocky start to fiscal 2026, there is plenty that’s working for the retailer.
During the company’s first-quarter 2026 earnings call on Thursday, Caleres president and chief executive officer Jay Schimdt noted that while net sales at Famous Footwear declined 2.5 percent in the period, e-commerce continued to outperform stores, up almost 10 percent.
“Famous sales results were strongest in February,” the CEO told analysts on the call. “While we saw improving trends leading into Easter, we believe accelerated inflation put pressure on consumer traffic and sales, especially as we moved into April.”
From a divisional perspective, Schmidt said that kids’ shoes performed best in the first quarter, followed by men’s, while women’s and accessories underperformed the total business. Fashion footwear outperformed athletic with more pronounced softness in women’s athletic, while sandals were strong across both adults and kids’ categories, he noted.
Schmidt also pointed to Famous Footwear’s “Elevate-and-Edit” merchandising strategy as a win in the quarter. “Sales of elevated products increased nearly 50 percent in the quarter and penetration reached almost 20 percent year-over-year,” he explained. “We saw growth in the quarter from Jordan, Skechers, Birkenstock, New Balance, Reef and Brooks, while several brands in the Caleres portfolio finished among Famous’ top 15 best-selling brands. We were especially pleased with the first Skechers takeover in February. We’ve seen similar results with the Birkenstock takeover that began in April and continued into May.”
“These exclusive high-impact events drive strong visibility and brand excitement which we amplify through media, in-store and across digital,” Schmidt said. “Considering the investments so far this spring, these events are delivering meaningful returns, and we have at least five additional brand events planned for the balance of the year.”
As for the retailer’s store portfolio, Schmidt highlighted the success of Famous Footwear’s “Flair” concept stores. He noted that the company ended the first quarter with 59 Flair locations, which generated a 7-point sales lift overall and a 9-point sales lift for stores converted in the last year.
“These results continue to reinforce our confidence in the Flair strategy and underscore Famous’ ability to amplify elevated brands and products,” the CEO said. “As we evaluate the optimal markets for Flair, we are shifting our focus to Flair openings in the near term, which generate even higher returns than remodels.”
Caleres plans to build on that momentum with additional Flair openings in 2026, ending with approximately 65 locations by year-end.
“At Famous Footwear, while the environment is more challenging, we are encouraged by continued e-commerce growth, the progress we’ve made with our ‘Elevate-and-Edit’ strategy and our efforts to enhance the shopping experience through Flair,” Schmidt added. “And as always, we will lean into our strength in kids heading into this important back-to-school season.”
