Latest news with #CAL
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4 days ago
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CAL Q1 Earnings Call: Management Cites Tariff and Sourcing Headwinds, Suspends Guidance
Footwear company Caleres (NYSE:CAL) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 6.8% year on year to $614.2 million. Its non-GAAP EPS of $0.22 per share was 39.7% below analysts' consensus estimates. Is now the time to buy CAL? Find out in our full research report (it's free). Revenue: $614.2 million (6.8% year-on-year decline) Adjusted EPS: $0.22 vs analyst expectations of $0.37 (39.7% miss) Adjusted Operating Income: $12.21 million vs analyst estimates of $19.4 million (2% margin, 37.1% miss) Operating Margin: 1.9%, down from 6.6% in the same quarter last year Market Capitalization: $558.4 million Caleres' first quarter results were shaped by softer consumer demand and operational pressures across both its Brand Portfolio and Famous Footwear segments. CEO Jay Schmidt pointed to particularly weak February sales, with some improvement in March and April, though overall performance remained below plan. Management attributed the underperformance to lower gross margins, higher inventory reserves, and increased costs tied to sourcing disruptions and tariffs. Schmidt acknowledged, 'Our first quarter results fell short of expectations,' highlighting the company's exposure to both macroeconomic volatility and specific industry challenges. Additional factors included higher-than-anticipated bad debt write-downs, as customer credit conditions worsened compared to last year. Looking ahead, Caleres is suspending formal guidance due to ongoing volatility in tariffs and global sourcing. Management emphasized a focus on cost controls and structural expense reductions, with CFO Jack Calandra detailing a $15 million annualized SG&A reduction initiative. The company is also navigating uncertainty around tariff timelines and potential sourcing disruptions, which could impact both gross margins and inventory. Schmidt noted, 'We must redouble our efforts to drive growth and profitability,' while also pointing to upcoming product launches and store format changes, such as the broader rollout of the Jordan brand and continued expansion of FLAIR locations, as key initiatives to support future performance. The planned integration of Stuart Weitzman is expected to further diversify the portfolio. Management cited tariff escalation, sourcing disruption, and inventory management as the primary drivers behind the quarter's margin and earnings pressure, while highlighting selective strength in international and direct-to-consumer channels. Tariff and sourcing disruption: The company experienced increased costs and operational complexity from shifting production out of China following new U.S. tariffs. This led to order cancellations, higher costs to relocate manufacturing, and additional inventory write-downs, which collectively pressured gross margins. Inventory management challenges: Caleres was unable to adjust its inventory flow quickly enough as demand softened, resulting in elevated inventory levels and a need for higher markdown reserves, especially in its Brand Portfolio segment. International segment growth: Despite overall declines, international sales—particularly from the Sam Edelman brand—showed double-digit growth, supported by expansion in China, the Middle East, and new marketplace partnerships. Management views these international gains as a strategic counterbalance to domestic softness. Brand Portfolio performance: Lead brands such as Sam Edelman outperformed others, with new product assortments like sneakers and sandals resonating well in key markets. However, Allen Edmonds and Naturalizer faced distinct category challenges, and Vionic's decline was attributed to a timing shift in catalog drops. Famous Footwear and product initiatives: The Famous Footwear segment experienced sequential sales improvement during the quarter, aided by growth in e-commerce and the launch of new brands and store formats. The introduction of the Jordan brand and continued rollout of FLAIR stores are anticipated to boost performance in upcoming periods. Caleres' outlook is shaped by volatile tariff policies, cost-saving initiatives, and evolving consumer demand across its core segments. Tariff environment remains fluid: Management has suspended forward guidance due to ongoing uncertainty around U.S. tariffs on Chinese and global imports. Sourcing disruption and possible further escalation or reversal of tariffs could materially affect gross margins and inventory costs in the next several quarters. Expense reduction and operational efficiency: The company is implementing a $15 million annualized SG&A reduction, with savings expected to materialize in the second half of the year. This initiative is designed to offset profit pressure from lower sales and higher sourcing costs, though management noted that further opportunities for efficiency may emerge as integration partners assess the business. Product and format innovation: Upcoming launches, such as the full-door rollout of the Jordan brand at Famous Footwear and expanded FLAIR store locations, are expected to drive renewed customer engagement. Management also cited ongoing investment in international markets and the integration of Stuart Weitzman as potential growth levers, even as domestic wholesale order books remain 'fluid.' Over the coming quarters, the StockStory team will track (1) the company's ability to reduce inventory and capture anticipated SG&A savings, (2) the impact of new product launches—particularly the Jordan brand rollout and FLAIR store conversions—on segment sales, and (3) progress on the integration and performance of Stuart Weitzman. The evolution of global tariff policy and sourcing costs will also be critical to monitor. Caleres currently trades at a forward P/E ratio of 4.4×. Should you double down or take your chips? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
5 days ago
- Business
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Caleres Inc. (CAL) Lags Q1 Earnings and Revenue Estimates
Caleres Inc. (CAL) came out with quarterly earnings of $0.22 per share, missing the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.88 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -40.54%. A quarter ago, it was expected that this footwear wholesaler and retailer would post earnings of $0.27 per share when it actually produced earnings of $0.33, delivering a surprise of 22.22%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Caleres Inc. , which belongs to the Zacks Shoes and Retail Apparel industry, posted revenues of $614.22 million for the quarter ended April 2025, missing the Zacks Consensus Estimate by 1.09%. This compares to year-ago revenues of $659.2 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Caleres Inc. Shares have lost about 29.3% since the beginning of the year versus the S&P 500's gain of 0.1%. While Caleres Inc. Has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Caleres Inc. Unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.82 on $675.67 million in revenues for the coming quarter and $2.80 on $2.69 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Shoes and Retail Apparel is currently in the bottom 9% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Nike (NKE), has yet to report results for the quarter ended May 2025. This athletic apparel maker is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -89.1%. The consensus EPS estimate for the quarter has been revised 8.7% higher over the last 30 days to the current level. Nike's revenues are expected to be $10.67 billion, down 15.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Caleres, Inc. (CAL) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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5 days ago
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Caleres Inc.: Fiscal Q1 Earnings Snapshot
ST LOUIS (AP) — ST LOUIS (AP) — Caleres Inc. (CAL) on Thursday reported fiscal first-quarter net income of $6.9 million. On a per-share basis, the St. Louis-based company said it had net income of 21 cents. Earnings, adjusted for non-recurring costs, came to 22 cents per share. The footwear wholesaler and retailer posted revenue of $614.2 million in the period. Caleres Inc. shares have decreased 29% since the beginning of the year. The stock has fallen 56% in the last 12 months. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on CAL at Sign in to access your portfolio
Yahoo
5 days ago
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Caleres Inc.: Fiscal Q1 Earnings Snapshot
ST LOUIS (AP) — ST LOUIS (AP) — Caleres Inc. (CAL) on Thursday reported fiscal first-quarter net income of $6.9 million. On a per-share basis, the St. Louis-based company said it had net income of 21 cents. Earnings, adjusted for non-recurring costs, came to 22 cents per share. The footwear wholesaler and retailer posted revenue of $614.2 million in the period. Caleres Inc. shares have decreased 29% since the beginning of the year. The stock has fallen 56% in the last 12 months. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on CAL at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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14-05-2025
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Caleres, Inc. (CAL): One of the Underperforming Stocks Targeted By Short Sellers
We recently published a list of . In this article, we are going to take a look at where Caleres, Inc. (NYSE:CAL) stands against other underperforming stocks targeted by short sellers. Short interest refers to the percentage of publicly available shares that have been sold short. It is an indicator used by many investors to determine how strong a company's bear thesis may be. Due to the nature of short selling, the short interest has become a popular indicator among investors. The reason it is given so much weightage is that people betting against a stock have usually done solid research and are confident of a company's downfall. They take unlimited risk, so when big investors or the smart money shorts a stock, people take notice. They try to unearth the red flags that may have prompted the high short interest. We decided to dig deeper and try to find out where smart money sees trouble ahead. To come up with our list of 20 underperforming stocks targeted by short sellers, we looked at the worst-performing stocks of the last six months and then ranked them by the short interest. A sneaker factory production line, showcasing the manufacturing process of the company's products. Short interest: 15.71% 6 months' performance: -49.56% Caleres, Inc. (NYSE:CAL) is a developer, designer, manufacturer, sourcer, and seller of footwear. The company generates its revenue through the Brand Portfolio and Famous Footwear segments. It provides private-label, licensed, and branded athletic, dress, and casual footwear products. The firm's sales performance remained challenging, with Famous Footwear comparable sales down by 3% and Brand Portfolio sales down by 7%. Due to high fixed costs and lower sales, the company faces margin pressure. Caleres' operating margins significantly declined to 2% in Q4 from 5%. For the full year, operating margins dropped by 5.8%. Caleres, Inc. (NYSE:CAL)'s capital allocation decisions highlight further risks. In 2024, the company prioritized shareholders' returns instead of paying off debt. As a result, the amount of debt increased to $220 million from $190 million in the last year. The latest acquisition of Stuart Weitzman will further cost $105 million, increasing debt by 50%. Stuart Weitzman, which is an unprofitable brand, will require significant investment, which is likely to also pressure margins. Overall, CAL ranks 12th on our list of underperforming stocks targeted by short sellers. While we acknowledge the potential of CAL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CAL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
