Caleres Sees Significant Drop in Q3 Profit Due to Margin Pressures
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2025
0mins
Source: Yahoo Finance
Acquisition and Sales Growth: Caleres completed the $120.2 million acquisition of Stuart Weitzman and reported a 6.6% increase in net sales to $790.1 million for the quarter ending November 1, 2025, driven by strong performance in the Brand Portfolio segment.
Profit and Margin Decline: Despite an increase in gross profit to $329.9 million, gross margin fell by 230 basis points to 41.8%, leading to a significant drop in GAAP net earnings to $2.4 million compared to $41.4 million in the previous year.
Increased Expenses: Selling and administrative expenses rose to $311.3 million, largely due to costs associated with the Stuart Weitzman acquisition, which added $32.2 million in expenses during the quarter.
Future Outlook: Caleres anticipates ongoing challenges with gross margins and expects a GAAP loss per diluted share between $0.13 and $0.18, while planning to transition Stuart Weitzman to its systems and address inventory issues for long-term growth.
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Analyst Views on TPR
Wall Street analysts forecast TPR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TPR is 136.57 USD with a low forecast of 120.00 USD and a high forecast of 155.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 143.190
Low
120.00
Averages
136.57
High
155.00
Current: 143.190
Low
120.00
Averages
136.57
High
155.00
About TPR
Tapestry, Inc. is a house of accessories and lifestyle brands. The Company's global house of brands include Coach and kate spade new york. Coach brand is a global fashion house of accessories and lifestyle collections. Kate Spade New York is a global lifestyle brand that designs things for the everyday, delivering seasonal collections of handbags, ready-to-wear, jewelry, footwear, gifts, home decor and more. Its products include women's handbags, women's accessories, men's and other products. Women's accessories include small leather goods which include mini and micro handbags, money pieces, wristlets, pouches and cosmetic cases. Men's includes bag collections, small leather goods, footwear, watches, sunglasses, and ready-to-wear items. Its products are sold to customers through its direct-to-consumer (DTC), wholesale and licensing businesses. Its DTC business includes retail and outlet stores, branded e-commerce sites as well as concession shop-in-shops.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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