Seasonally-adjusted compensation costs for US civilian workers increased by 0.8 per cent quarter on quarter (QoQ) for the third quarter (Q3) this year, according to the Bureau of Labour Statistics (BLS).

Wages and salaries increased 0.8 per cent QoQ and benefit costs increased by 0.8 per cent QoQ.

Without seasonal adjustment, compensation costs for civilian workers increased by 3.5 per cent year on year (YoY) in September 2025. Wages and salaries increased by 3.5 per cent YoY and benefit costs increased by 3.5 per cent YoY, a BLS release said.

Seasonally-adjusted compensation costs for US civilian workers increased by 0.8 per cent quarter on quarter (QoQ) for the third quarter (Q3) this year, according to official statistics.
Without seasonal adjustment, such costs rose by 3.5 per cent YoY in September.
Compensation costs for private industry workers increased by 3.5 per cent YoY without seasonal adjustment in September.

Compensation costs for private industry workers increased by 3.5 per cent YoY without seasonal adjustment in September. Wages and salaries for such workers increased by 3.6 per cent YoY and benefit costs increased by 3.5 per cent YoY.

Fibre2Fashion News Desk (DS)

American footwear company Caleres has reported a stronger third quarter (Q3) for fiscal 2025 (FY25), with consolidated revenue rising 6.6 per cent year-over-year (YoY) to $790.1 million, and Brand Portfolio sales up 18.8 per cent, including a $45.8 million contribution from Stuart Weitzman. Excluding the acquisition, organic Brand Portfolio revenue increased 4.6 per cent.

Lead Brands delivered double-digit growth and helped the company gain 0.5 per cent market share in women’s fashion footwear. E-commerce performance remained a bright spot, with owned digital sales across Famous Footwear and Brand Portfolio rising at a double-digit pace. Famous Footwear, however, saw softer performance, with sales falling 2.2 per cent and comparable sales down 1.2 per cent.

Caleres has recorded a solid Q3 FY25 with revenue up 6.6 per cent to $790.1 million, driven by 18.8 per cent Brand Portfolio growth and strong e-commerce momentum.
Famous Footwear softened, while margins and earnings fell due to tariffs and acquisition dilution.
CEO said results exceeded expectations and integration of Stuart Weitzman will support long-term growth despite near-term pressure.

Despite top-line growth, profitability was pressured by tariffs, acquisition-related dilution, and inventory actions. GAAP earnings per diluted share fell sharply to $0.07 from $1.19 a year earlier. Adjusted earnings per diluted share were $0.38, compared with $1.23 in the prior-year quarter. Excluding Stuart Weitzman, adjusted diluted earnings per share stood at $0.67, Caleres said in a press release.

The gross margin declined 230 basis points to 41.8 per cent, while adjusted gross margin slipped 140 basis points to 42.7 per cent. Selling and administrative expenses rose to $311.3 million, driven by $32.2 million in Stuart Weitzman-related costs and higher incentive-related comparisons. Quarter-end inventory increased to $678.2 million, though excluding the acquisition effect, inventory rose just 2.6 per cent.

Caleres ended the quarter with $355 million in borrowings under its revolving credit facility and liquidity of $312 million.

“Caleres delivered third quarter sales results that were ahead of our internal expectations, 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,” said Jay Schmidt, president and CEO at Caleres.

“With the recent addition of Stuart Weitzman, our Brand Portfolio now drives nearly half our sales and more than half our operating earnings. As we expected, we experienced pressure on our earnings from tariffs and near-term acquisition dilution, however, the fundamentals of our business are improving,” added Schmidt.

Looking ahead, Caleres expects continued margin pressure from tariffs and earnings dilution from Stuart Weitzman. The company anticipates a fourth-quarter loss on both a GAAP and adjusted basis and now guides to a full-year GAAP loss per diluted share of between $0.13 and $0.18. Adjusted earnings per diluted share are expected to be in the range of $0.55 to $0.60, including $0.60 to $0.65 of dilution from Stuart Weitzman. Excluding the acquisition, full year adjusted earnings per diluted share would range between $1.15 and $1.25.

“For the balance of the year, we will be working to transition the Stuart Weitzman business to Caleres systems and clean up aged and excess inventory as we hone our strategies for long-term growth and profitability of the brand. In fiscal 2026, we will begin to unlock synergistic cost savings,” said Schmidt.

Fibre2Fashion News Desk (SG)

Lululemon Athletica’s CEO shake-up has put the spotlight on the once-dominant yoga pants maker’s race to wrest back younger and affluent shoppers from rivals and revive its sagging U.S. business.

Its shares, which have halved in value this year, rose 10% on Friday following the departure of CEO Calvin McDonald after about seven years in the role.

An athleisure pioneer known for its premium yoga apparel, Lululemon lost ground as newer rivals such as Alo Yoga and Vuori weaned away its core younger shoppers with trendier styles, marketing campaigns and celebrity partnerships.

Meanwhile, established players like Nike and Gap also entered the market with lower-priced styles.

Lululemon “caught the perfect wave in fashion, becoming the trend for the last five years,” said Brian Mulberry, senior client portfolio manager at Zacks Investment Management.

“But as its core customers graduate college and face tighter budgets, affordability is a challenge and a new outfit at Lulu can cost as much as a month’s groceries.”

Lululemon sells a range of yoga, running and training apparel such as Align yoga pants priced at $108 and men’s joggers at $128.

The slow refresh to core styles and product missteps, such as its decision to pull its $98 “Breezethrough” leggings from shelves last year, have led to heavy discounting to clear aged inventory.

At an earnings call late on Thursday, company executives said the board is “focused on a leader with experience and growth and transformation”.

“It’s understandable to think that a strategic overhaul with a new leader at the helm will be a positive, but this opens the door to more questions as to what direction the board will go with a replacement,” said Jay Woods, chief market strategist at Freedom Capital Markets.

Lululemon is the latest global consumer company facing leadership churn as macroeconomic uncertainty fuels increasingly divergent spending patterns.

Lululemon is making efforts to speed up product development, launch fresh styles and drive company-wide efficiencies to offset cost inflation and protect margins.

The company beat third-quarter results, lifted by strong China sales, but issued a weaker-than-expected holiday forecast as higher promotions and increased spending on marketing weigh on margins.

Founder Chip Wilson, who is also Lululemon’s largest independent shareholder, in a statement on Friday slammed the board for “poor succession planning” and value erosion.

He called for an urgent CEO search led by new, independent directors with deep company knowledge to restore a product-first focus.
Lululemon did not immediately respond to a Reuters request for comment on Wilson’s statement.

The company’s forward price-to-earnings multiple, a common benchmark for valuing stocks, is 14.66, compared to 31.26 for Nike and Abercrombie & Fitch‘s ratio of 10.8, according to LSEG data.

“The main challenge I foresee for the new leadership is not how consumers see Lulu, but how does it see itself?” said Mulberry.