What changed
SHOE printed Q2 FY26 GAAP EPS of $0.23 on revenue of $284M, down 7.2% YoY. FY26 guidance was cut: GAAP EPS to $0.32-$0.47 and adjusted EPS to $0.75-$0.90. Gross margin compressed to 31.9% from 38.8% on increased promotions, aged inventory liquidation, and a prior-year tariff-related pricing benefit.
Why it matters
SHOE printed Q2 FY26 GAAP EPS of $0.23 on revenue of $284M, down 7.2% YoY. FY26 guidance was cut: GAAP EPS to $0.32-$0.47 and adjusted EPS to $0.75-$0.90. Gross margin compressed to 31.9% from 38.8% on increased promotions, aged inventory liquidation, and a prior-year tariff-related pricing benefit.