What Wall Street Is Watching Ahead of Caleres’ Q4 Report: Saks Bankruptcy Impact, Tariffs and Stuart Weitzman

<h1>What Wall Street Is Watching Ahead of Caleres’ Q4 Report: Saks Bankruptcy Impact, Tariffs and Stuart Weitzman</h1>
<p>Caleres Inc.’s fourth quarter sales and earnings could see impact from the Saks Global bankruptcy.</p>
<p>That was the word from Dana Telsey, chief investment officer at Telsey Advisory Group (TAG). She noted that the company previously said a <a href="https://wwd.com/business-news/human-resources/saks-global-ceo-pay-bankruptcy-details-1238680963/">Saks</a> Chapter 11 could result in up to a drag of 6-cents-a-share to fourth quarter EPS (earnings per share) and reaffirmed prior guidance. But there’s a chance the company could incur a restructuring charge not previously announced.</p>
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<p>In the fourth quarter earnings report due out on Thursday, Telsey said she’s expecting EPS of 43 cents versus 33 cents year ago and consensus estimates of 38 cents. Topline, sales are expected to increase 6.4 percent year-over-year to $680 million versus consensus of $688 million. Famous Footwear sales are expected to contract 2.6 percent, although the brand portfolio is expected to grow 18 percent, driven by the <a href="https://finance.yahoo.com/news/caleres-completes-stuart-weitzman-acquisition-122036534.html">Stuart Weitzman acquisition</a> last August that is expected to contribute between $55 million to $60 million for the quarter.</p>
<p>“Since the acquisition closed, fall deliveries improved year-over-year at wholesale and U.S. retail with dress and tall and short boots selling through at full price,” she wrote in a research not. “The systems integration is on track for the beginning of 2026 and reporting structures are in place for key functional areas.”</p>
<p>The areas of concern has been the business in China, which saw “significant volatility in China’s DTC (direct-to-consumer) segment,” Telsey said, noting that a new leadership team was put in place in China. The brand is still expected to break even in 2026.</p>
<p>At Famous Footwear, the analyst noted that “early holiday results were encouraging,” adding that <a href="https://www.yahoo.com/entertainment/celebrity/articles/exclusive-emma-chamberlain-highlights-vinnie-130000870.html">Caleres</a> has said it plans to lean further into high-demand premium brands and prune weaker fashion labels to re-allocate open-to-buy. Top-performing labels at the chain included Jordan, Adidas, Birkenstock, New Balance, Brooks and Timberland.</p>
<p>Other areas of interest in the Caleres conference call after the earnings report include an update on tariffs and its progress on the CFO search.</p>
<p>In connection with <a href="https://finance.yahoo.com/news/trending-coterie-trade-show-amid-215033718.html">tariffs</a>, Telsey noted that Caleres said it expected to see a headwind in connection with gross margin pressure in the fourth quarter before improvement in 2026. But that was before both the <a href="https://finance.yahoo.com/news/trump-emergency-tariffs-ruled-illegal-160237635.html">U.S. Supreme Court ruling</a> against U.S. President Donald Trump’s reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA) and the subsequent implementation of temporary <a href="https://finance.yahoo.com/news/footwear-firms-preparing-potential-15-222324774.html">Section 122 tariffs</a> of the Trade Act of 1974.</p>