Latest news with #Caleres
Yahoo
6 days ago
- Business
- Yahoo
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
Fashion Network
6 days ago
- Business
- Fashion Network
Caleres Q1 sales drop 6.8%, announces $15 million cost cuts
Caleres said on Thursday revenues for the first quarter fell 6.8%, on the back of a dip in both its Famous Footwear and Brand Portfolio segment. The St. Louis-based footwear company reported sales of $614.2 million, below expectations, for the 13-weeks ended May 3. Earnings per diluted share were $0.21, or $0.22 on an adjusted basis—well below the $0.88 reported in the same quarter last year. Famous Footwear segment net sales decreased 6.3%, with comparable sales down 4.6%; while Brand Portfolio segment net sales declined 6.9%. Direct-to-consumer channels continue to be a significant portion of the company's sales, accounting for approximately 70% of total net sales. 'While our brands continue to resonate with consumers and both segments of our business gained market share in the period, our first quarter results fell short of expectations,' said Jay Schmidt, president and chief executive officer. 'February sales were particularly weak, and although trends improved in March and April, overall performance was below plan. Furthermore, operating earnings were pressured by lower gross margins, increased reserves, and costs to cancel and move inventory.' In response, Caleres announced structural cost-cutting measures expected to reduce selling, general and administrative (SG&A) expenses by $15 million annually, including $7.5 million in savings for fiscal 2025. The company also said it expects to significantly reduce sourcing from China, projecting that less than 10% of dollars will be sourced from the country in the second half of 2025. 'The operating environment has become more challenging, and we must redouble our efforts to drive growth and profitability. In the near term, we are focused on controlling what we can control, including optimizing our sourcing strategy,' added Schmidt. 'Longer term, we are confident in our ability to get back on track, execute our strategic plan, invest to fuel our growth initiatives, and drive sustained value for our shareholders.' Due to ongoing macroeconomic uncertainty, the company has suspended its full-year fiscal 2025 guidance.
Yahoo
6 days ago
- Business
- Yahoo
Why Caleres (CAL) Shares Are Plunging Today
Shares of footwear company Caleres (NYSE:CAL) fell 17.6% in the afternoon session after the company reported underwhelming first-quarter 2025 results: its revenue, EPS, and EBITDA fell short of Wall Street's estimates. That miss mainly came from slower sales at both its Famous Footwear stores and other brands, with February being especially soft. The company suspended its full-year outlook, citing market uncertainty, a signal that near-term visibility remained clouded despite pockets of improvement in March and April. The company also announced plans to cut operating expenses, alongside efforts to diversify sourcing away from China, as it tries to regain control amid shifting consumer habits. Overall, this was a weaker quarter. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Caleres? Access our full analysis report here, it's free. Caleres's shares are very volatile and have had 24 moves greater than 5% over the last year. But moves this big are rare even for Caleres and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 9 months ago when the stock dropped 21.1% on the news that the company reported weak second-quarter results. Its revenue unfortunately missed, and its EPS fell short of Wall Street's estimates. Unpacking the drivers for the underwhelming sales results, the company called out delayed contributions from the back-to-school season, which impacted Famous Footwear sales. In addition, brand portfolio sales fell 5.1% due to operational reporting challenges in connection with its SAP ERP implementation and weak seasonal demand. Looking ahead, guidance was also underwhelming. Overall, this quarter could have been better. Caleres is down 38.8% since the beginning of the year, and at $13.76 per share, it is trading 68.7% below its 52-week high of $43.97 from August 2024. Investors who bought $1,000 worth of Caleres's shares 5 years ago would now be looking at an investment worth $1,919. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. 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
Yahoo
7 days ago
- Business
- Yahoo
Famous Footwear Parent Caleres Suspends Outlook On China Risk, Stock Plunges
Caleres, Inc. (NYSE:CAL) shares are trading lower after the company reported first-quarter FY25 results. Revenues fell 6.8% year over year (Y/Y) to $614.2 million, missing the analyst consensus of $622.05 million. Famous Footwear sales fell 6.3% Y/Y, with comparable store sales down 4.6% Y/Y. Brand Portfolio sales decreased 6.9% Y/Y in the company's gross margin rate contracted 150 basis points year over year to 45.4% and adjusted EBITDA fell to $28.7 million from $57.4 million a year ago quarter. The adjusted EPS of 22 cents missed the consensus of 36 cents. Jay Schmidt, president and CEO, said, 'While our brands continue to resonate with consumers and both segments of our business gained market share in the period, our first quarter results fell short of expectations.' 'February sales were particularly weak, and although trends improved in March and April, overall performance was below plan. Furthermore, operating earnings were pressured by lower gross margins, increased reserves, and costs to cancel and move inventory.' 'In the near term, we are focused on controlling what we can control, including optimizing our sourcing strategy. Additionally, we expect to decrease SG&A by $15 million on an annualized basis through structural expense cuts,' he added. In the quarter, Caleres returned 300,000 shares to shareholders at an average price of $16.81 per share. Borrowings under the revolving credit facility totaled $258.5 million at the end of the period, up $67.5 million from the first quarter of 2024. Caleres said it currently expects dollars sourced from China to be 10% or less by the second half of 2025. Given the uncertainty in the environment, the company suspended guidance for the fiscal 2025 outlook. During the fourth-quarter FY24 earnings call, the company guided FY25 net sales to decline by 1% to up 1%, with an EPS of $2.80 – $3.20. Price Action: CAL shares are trading lower by 14.5% to $14.01 at last check Thursday. Read Next:Photo by Helen89 via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Famous Footwear Parent Caleres Suspends Outlook On China Risk, Stock Plunges originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
Yahoo
7 days ago
- Business
- Yahoo
Caleres (NYSE:CAL) Misses Q1 Sales Targets, Stock Drops
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 profit of $0.22 per share was 39.7% below analysts' consensus estimates. Is now the time to buy Caleres? Find out in our full research report. Revenue: $614.2 million vs analyst estimates of $622 million (6.8% year-on-year decline, 1.3% miss) Adjusted EPS: $0.22 vs analyst expectations of $0.37 (39.7% miss) Adjusted EBITDA: $28.68 million vs analyst estimates of $34.53 million (4.7% margin, 16.9% miss) Operating Margin: 1.9%, down from 6.6% in the same quarter last year Free Cash Flow was -$26.8 million, down from $26.27 million in the same quarter last year Market Capitalization: $558.4 million 'While our brands continue to resonate with consumers and both segments of our business gained market share in the period, our first quarter results fell short of expectations. February sales were particularly weak, and although trends improved in March and April, overall performance was below plan. Furthermore, operating earnings were pressured by lower gross margins, increased reserves, and costs to cancel and move inventory,' said Jay Schmidt, president and chief executive officer. The owner of Dr. Scholl's, Caleres (NYSE:CAL) is a footwear company offering a range of styles. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Caleres struggled to consistently increase demand as its $2.68 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn't a great result and suggests it's a low quality business. We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Caleres's recent performance shows its demand remained suppressed as its revenue has declined by 3.8% annually over the last two years. This quarter, Caleres missed Wall Street's estimates and reported a rather uninspiring 6.8% year-on-year revenue decline, generating $614.2 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 1.9% over the next 12 months. While this projection implies its newer products and services will fuel better top-line performance, it is still below the sector average. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Caleres's operating margin has been trending down over the last 12 months and averaged 5.8% over the last two years. The company's profitability was mediocre for a consumer discretionary business and shows it couldn't pass its higher operating expenses onto its customers. This quarter, Caleres generated an operating profit margin of 1.9%, down 4.7 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Caleres's EPS grew at an astounding 43% compounded annual growth rate over the last five years, higher than its flat revenue. This tells us management responded to softer demand by adapting its cost structure. In Q1, Caleres reported EPS at $0.22, down from $0.88 in the same quarter last year. This print missed analysts' estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects Caleres's full-year EPS of $2.63 to grow 16.8%. We struggled to find many positives in these results as its revenue, EPS, and EBITDA fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock traded down 5.6% to $15.47 immediately after reporting. Caleres didn't show it's best hand this quarter, but does that create an opportunity to buy the stock right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
