Shares of Caleres Inc. jumped nearly 18 percent in pre-market trading on Thursday as the footwear company reported fourth-quarter earnings that exceeded guidance.

The St. Louis-based company said net sales in the fourth quarter of fiscal 2025 totaled $695.1 million, up 8.7 percent from $639.2 million the same time last year. Net sales in the period excluding Stuart Weitzman, the company’s newest brand, were $638.7 million.

Adjusted net loss was $11.7 million, or a loss of 36 cents a diluted share, down from net earnings of $11.1 million, or 33 cents a diluted share, in the fourth quarter of 2024. Excluding Stuart Weitzman, the adjusted net loss in Q4 was $1.9 million, or adjusted loss per diluted share of 6 cents.

These results beat analyst expectations, which called for net sales in Q4 between $680.4 million and $691.2 million, with a net loss between 43 cents and 35 cents per share, according to Yahoo Finance.

By segment, Famous Footwear saw net sales decrease 1.2 percent versus the year-ago period, with comparable sales up 0.1 percent. Caleres’ brand portfolio division reported a net sales increase of 20.3 percent in the period. (Excluding Stuart Weitzman, net sales in the brand portfolio increased 1.5 percent.)

Jay Schmidt, president and chief executive officer of Caleres, said in a statement that gross margin was “better than anticipated” in the quarter.

“Performance was driven by continued strength in owned e-commerce and international growth, reinforcing our strategic growth vectors,” Schmidt noted. “Our lead brands once again outperformed, and we gained market share in both women’s fashion footwear and total footwear.

The CEO added that the company completed the Stuart Weitzman integration with minimal business disruption in the quarter. And, at Famous Footwear, Flair store remodels “continue to outperform” the fleet as the more curated and elevated assortment is “resonating with consumers” as Famous gained market share in shoe chains.

As for the full fiscal year 2025, Caleres saw net sales of $2.8 billion, up 1.3 percent versus $2.7 billion in fiscal 2024, including Stuart Weitzman. Adjusted net earnings for the year were $20.5 million, or 61 cents per diluted share, versus last year’s net earnings of $114.6 million, or $3.30 per diluted share. Excluding Stuart Weitzman, adjusted net earnings were $40.2 million, or $1.19 per diluted share.

By segment, Famous Footwear saw net sales decreas 3.6 percent versus 2024, with comparable sales down 2.3 percent. The brand portfolio segment saw net sales increase 7.3 percent versus the prior year. Excluding Stuart Weitzman, net sales decreased 1.0 percent versus last year.

Looking ahead, the company expects total sales in fiscal 2026 to increase low to mid-single digits versus fiscal 2025 and adjusted earnings per diluted share of between $1.35 and $1.65.

For the first quarter 2026, the company expects sales to increase mid- to high-single digits versus Q1 2025 and adjusted earnings per diluted share of between 25 cents to 30 cents.

The CEO noted that profit improvement in fiscal 2026 will be driven primarily by the company’s tariff mitigation efforts taking hold, and its plan to return Stuart Weitzman to profitability.

“As we look ahead, 2026 is shaping up as a build-back year with modest organic sales growth and meaningful earnings recovery,” Schmidt added. “While we have many reasons for optimism, we are also aware that the current geopolitical backdrop presents a level of risk and uncertainty. We are confident that executing our strategic plans will result in improved financial performance and drive long-term value for our shareholders.”