Footwear retailer Caleres reported a decline in sales and profitability for the second quarter of this year, with its net sales down 3.6 per cent to $658.5 million.

The company’s Famous Footwear segment’s net sales dropped 1.9 per cent, its brand portfolio saw a 3.5 per cent decline in net sales, while its direct-to-consumer sales represented around 75 per cent of its total net sales.

The retailer’s gross profit was $285.8 million, its gross margin down to 43.1 per cent, with net earnings reported at $6.7 million, down from $30 million year-on-year.

“As we look to address the changes in the operating environment, we completed our previously announced structural cost savings initiatives that will deliver annualized savings of $15 million and support a more efficient operating structure,” said Jay Schmidt, president and CEO.

“Just after quarter-end, we completed the acquisition of Stuart Weitzman, adding a new Lead Brand to our portfolio that aligns with our strategic focus on premium, direct-to-consumer, and international business.”

Moving forward, the company expects ongoing gross margin pressure in its Brand Portfolio segment from tariffs for the rest of the year.

Caleres expects Brand Portfolio’s gross margin to be down for the third quarter, excluding Stuart Weitzman, similar to the second quarter, and anticipates improvement driven by its mitigation strategies for the fourth quarter.