Although Caleres’ Brand Portfolio sales fell by 9 percent in H1 to nearly $626.4 million, the segment realized 460 basis points year-over-year improvement in gross margin to 42.8 percent. H1 operating profit declined by 1.8 percent to $69.5 million.

In Q2, the Brand Portfolio segment achieved an operating margin of 9 percent and a 295-basis point gain in gross margin due to higher initial margins, lower freight costs, and tight inventory management. Allen Edmonds’ sales rose by mid-single digits year-over-year with brick-and-mortar sales up by 5 percent and e-commerce sale growing 13 percent thanks to higher traffic and conversion. At Vionic, early catalog results contributed to a 7 percent gain in e-commerce sales that were driven by loafers and white sneakers.

Meanwhile, there was strong consumer reaction to the new Layla sneaker for the Sam Edelman brand and Naturalizer accelerated delivery of its Morrison 2.0 sneaker, the latest iteration of its best-selling Lace Up sports shoe. And the Dr. Scholl’s brand realized viral success from its Time Off sneaker, a TikTok favorite, that sold 75,000 pairs at retail during Q2.

Caleres is banking on its Brand Portfolio to show improving sales trends in H2 to make a more meaningful contribution to its operating performance this year.