Shares of Caleres Inc. fell over 18 percent in pre-market trading on Tuesday as the footwear company reported third-quarter earnings below analyst expectations.

The St. Louis-based company said net sales in the third quarter of fiscal 2025 totaled $790.1 million, up 6.6 percent from $740.9 million the same time last year. Adjusted net earnings in the third quarter 2025 were $13.1 million, or 38 cents per diluted share, down from $42.6 million, or $1.23 per diluted share, in the third quarter of 2024.

While revenue beat analyst expectations — market watchers predicted net sales of $768.59 million — Caleres missed on earnings per share. According to Yahoo Finance, analysts were looking for 85 cents a share in the third quarter.

By segment, Famous Footwear saw net sales decrease 2.2 percent, with comparable sales down 1.2 percent in the third quarter. Caleres’ brand portfolio division reported a net sales increase of 18.8 percent in the period. Excluding Stuart Weitzman, net sales in the brand portfolio increased 4.6 percent to last year.

Jay Schmidt, president and chief executive officer of Caleres, reiterated in a statement on Tuesday that the company delivered third-quarter sales results that were ahead of its internal expectations.

“[The results were] highlighted by organic sales growth in our brand portfolio segment, strong lead brands performance, sequential improvement in trends at Famous Footwear, and accelerated e-commerce momentum in both segments of our business,” Schmidt said. “With the recent addition of Stuart Weitzman, our brand portfolio now drives nearly half our sales and more than half our operating earnings.”

The CEO added that the company experienced pressure on its earnings from tariffs and near-term acquisition dilution; however, the fundamentals of the business are improving.

Looking ahead, the company said that it expects continued tariff pressure on gross margin and earnings dilution from Stuart Weitzman. Additionally, it anticipates a full-year tax rate of 27 percent to 28 percent.

As a result, Caleres anticipates a loss per diluted share for the fourth quarter on both a GAAP and adjusted basis. For the full year, Caleres anticipates GAAP loss per diluted share in the range of 13 cents to 18 cents and adjusted earnings per diluted share in the range of 55 cents to 60 cents, including 60 cents to 65 cents dilution from Stuart Weitzman.

Schmidt further noted that for the balance of the year, the company will be working to transition the Stuart Weitzman business to Caleres systems and clean up aged and excess inventory as it hones its strategies for long-term growth and profitability of the brand.

“In fiscal 2026, we will begin to unlock synergistic cost savings,” the CEO added. “Through this integration process, we are sharpening our operating structure to better leverage our scale and strengthen our ability to build and grow powerful brands and consumer experiences. We are confident that executing our strategic plans will result in improved financial performance and drive long-term value for our shareholders.”