Latest news with #Caleres'
Fibre2Fashion
05-08-2025
- Business
- Fibre2Fashion
US' Caleres buys Stuart Weitzman, names Lelonek brand head
Caleres (NYSE: CAL) ( a market-leading portfolio of consumer-driven footwear brands, announced it has closed on the acquisition of Stuart Weitzman from Tapestry, Inc. for $120.2 million, which included $11.5 million in cash received at the closing. Excluding cash received at the closing, the net purchase price was $108.7 million. The purchase price is subject to final adjustments for net working capital. The agreement to acquire Stuart Weitzman was originally announced in February 2025. This strategic acquisition further strengthens Caleres' position in the global footwear market and adds a storied name in luxury footwear to its diverse brand portfolio. With its legacy of craftsmanship, innovation and iconic style, Stuart Weitzman furthers Caleres' ambition to lead with brands that have unique meaning and resonance with consumers. Jonathan Lelonek, who joined Stuart Weitzman in 2012 and most recently served as SVP of global wholesale, has been named Stuart Weitzman brand president. Lelonek brings deep industry experience and a strong track record in luxury and contemporary footwear, having previously held senior roles in sales and merchandising at Prada, Salvatore Ferragamo and Paul Frank. Caleres has acquired luxury footwear brand Stuart Weitzman, strengthening its global position and adding to its diverse brand portfolio. Jonathan Lelonek has been appointed brand president. With $220 million in trailing 12-month sales, the brand will now be integrated into Caleres' portfolio, which will account for nearly half of total revenue. 'Stuart Weitzman is one of the most iconic names in luxury footwear, and the brand's original designs have embodied elegance and modernity for decades. We are honored to welcome Stuart Weitzman to Caleres as our newest lead brand and to congratulate Jonathan on his appointment as brand president,' said Jay Schmidt, president and CEO of Caleres . 'With the addition of Stuart Weitzman, our Brand Portfolio segment will represent nearly half of our total revenue going forward. As we integrate this iconic brand, we remain committed to preserving the artistry, quality and renowned fit at the brand's core.' Stuart Weitzman generated trailing 12-month sales of approximately $220 million and maintains a strong presence in North America, Europe and Asia across both wholesale and direct-to-consumer channels. Caleres expects to leverage its capabilities and expertise in footwear to return the brand to profitability after a period of transition and integration through the balance of this fiscal year. The acquisition of Stuart Weitzman was funded through Caleres' revolving credit agreement. BofA Securities served as Caleres' financial advisor on the acquisition and Bryan Cave Leighton Paisner acted as legal counsel. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. Fibre2Fashion News Desk (RM)
Business Wire
04-08-2025
- Business
- Business Wire
Caleres Completes Acquisition of Stuart Weitzman, Accelerating Brand Portfolio Growth
ST. LOUIS--(BUSINESS WIRE)--Caleres (NYSE: CAL) ( a market-leading portfolio of consumer-driven footwear brands, announced today it has closed on the acquisition of Stuart Weitzman from Tapestry, Inc. for $120.2 million, which included $11.5 million in cash received at the closing. Excluding cash received at the closing, the net purchase price was $108.7 million. The purchase price is subject to final adjustments for net working capital. The agreement to acquire Stuart Weitzman was originally announced in February 2025. This strategic acquisition further strengthens Caleres' position in the global footwear market and adds a storied name in luxury footwear to its diverse brand portfolio. With its legacy of craftsmanship, innovation and iconic style, Stuart Weitzman furthers Caleres' ambition to lead with brands that have unique meaning and resonance with consumers. Jonathan Lelonek, who joined Stuart Weitzman in 2012 and most recently served as SVP of global wholesale, has been named Stuart Weitzman brand president. Lelonek brings deep industry experience and a strong track record in luxury and contemporary footwear, having previously held senior roles in sales and merchandising at Prada, Salvatore Ferragamo and Paul Frank. 'Stuart Weitzman is one of the most iconic names in luxury footwear, and the brand's original designs have embodied elegance and modernity for decades. We are honored to welcome Stuart Weitzman to Caleres as our newest lead brand and to congratulate Jonathan on his appointment as brand president,' said Jay Schmidt, president and CEO of Caleres. 'With the addition of Stuart Weitzman, our Brand Portfolio segment will represent nearly half of our total revenue going forward. As we integrate this iconic brand, we remain committed to preserving the artistry, quality and renowned fit at the brand's core.' Stuart Weitzman generated trailing 12-month sales of approximately $220 million and maintains a strong presence in North America, Europe and Asia across both wholesale and direct-to-consumer channels. Caleres expects to leverage its capabilities and expertise in footwear to return the brand to profitability after a period of transition and integration through the balance of this fiscal year. The acquisition of Stuart Weitzman was funded through Caleres' revolving credit agreement. BofA Securities served as Caleres' financial advisor on the acquisition and Bryan Cave Leighton Paisner acted as legal counsel. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This press release contains certain forward-looking statements and expectations regarding the company's future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) changes in United States and international trade policies, including tariffs and trade restrictions; (ii) changing consumer demands, which may be influenced by general economic conditions and other factors; (iii) inflationary pressures and supply chain disruptions; (iv) rapidly changing consumer preferences and purchasing patterns and fashion trends; (v) supplier concentration, customer concentration and increased consolidation in the retail industry; (vi) intense competition within the footwear industry; (vii) foreign currency fluctuations; (viii) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (ix) cybersecurity threats or other major disruption to the company's information technology systems including those related to our ERP upgrade; (x) transitional challenges with acquisitions and divestitures; (xi) the ability to accurately forecast sales and manage inventory levels; (xii) a disruption in the company's distribution centers; (xiii) the ability to recruit and retain senior management and other key associates; (xiv) the ability to secure/exit leases on favorable terms; (xv) the ability to maintain relationships with current suppliers; (xvi) changes to tax laws, policies and treaties; (xvii) our commitments and shareholder expectations related to responsible business initiatives; (xviii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xix) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights. About Caleres Caleres is a market-leading portfolio of global footwear brands that include Famous Footwear, Sam Edelman, Stuart Weitzman, Allen Edmonds, Naturalizer, Vionic and more. Our products are available virtually everywhere - in the nearly 1,000 retail stores we operate, in hundreds of major department and specialty stores, on our branded e-commerce sites, and on many additional third-party retail platforms. Combined, these brands make Caleres a company with both a legacy and a mission. Our legacy is nearly 150 years of craftsmanship and our passion for fit, while our mission is to continue to inspire people to feel great… feet first. Visit to learn more about us. About Stuart Weitzman Since 1986, New York City-based global luxury footwear brand Stuart Weitzman has combined its signature artisanal craftsmanship and precise engineering to empower women to stand strong. Having perfected the art of shoemaking for over 35 years, the brand continues to expand its assortment to feature handbags and men's footwear, all the while staying true to its ethos of inspiring strength and confidence with every step.
Business Wire
30-06-2025
- Business
- Business Wire
Caleres Announces Amendment and Extension of Credit Agreement
ST. LOUIS--(BUSINESS WIRE)--Caleres (NYSE: CAL) ( today announced it has entered into an amendment of its credit agreement, which extends its senior secured asset-based revolving credit facility to June 2030. The company's borrowing capacity under the agreement will increase by $200 million to $700 million, and the agreement includes an accordion feature, which allows the company to request an increase in the size of the facility to $950 million in the aggregate. 'The expanded facility provides Caleres with enhanced liquidity and flexibility, and further strengthens the balance sheet,' said Jack Calandra, senior vice president and CFO of Caleres. 'In the near term, after continuing to pay our dividend, Caleres' capital allocation priorities are to complete the acquisition of Stuart Weitzman and invest in our growth vectors. Longer term, we will balance our investment priorities with debt reduction and returning capital to shareholders.' Bank of America, N.A. is the administrative agent, collateral agent and lead issuing bank. Truist Bank, Wells Fargo Bank and U.S. Bank served as the joint lead arrangers and joint bookrunners. Fifth Third Bank, Regions Bank and TD Bank also participated in the credit facility. About Caleres Caleres is a market-leading portfolio of global footwear brands that includes Famous Footwear, Sam Edelman, Allen Edmonds, Naturalizer and Vionic and more. Our products are available virtually everywhere - in the nearly 1,000 retail stores we operate, in hundreds of major department and specialty stores, on our branded e-commerce sites and on many additional third-party retail platforms. Combined, these brands make Caleres a company with both a legacy and a mission. Our legacy is nearly 150 years of craftsmanship and our passion for fit, while our mission is to continue to inspire people to feel great… feet first. Visit to learn more about us.
Yahoo
02-06-2025
- Business
- Yahoo
The Great Unknown
What's the way forward? It's the billion-dollar question right now. As vendors and retailers gather at FFANY in New York this week for the start of the spring '26 buying season, President Donald Trump's trade policy and his punishing tariffs are top of mind. More from WWD Fashion Insiders Meet With Susie Wiles at the White House Destination XL Slips Into Red as Male Customers Shift to Lower-priced Apparel Tariff Impact Evident in Caleres' Q1 as Sales, Profits Slide It's not known what might happen to duty rates when the temporary 90-day freeze on global tariff hikes ends this summer. (Right now, the pause that ends for most countries is set to conclude on July 9; for China, the date is Aug. 14.) What is clear is that some footwear prices are going up as consumer confidence remains on shaky ground. At the same time, the footwear landscape is undergoing rapid consolidation — Dick's Sporting Goods is gearing up to buy Foot Locker, and Skechers is set to go private in the biggest shoe buyout in the industry's history. In the department store sector, the future of Saks Global, which acquired Neiman Marcus in December, is also weighing on the industry, with the cash-strapped company expected to drop up to 600 vendors. 'We're basically in triage mode as we try to figure out what costs will be for our brands and then what retailers can absorb and what consumers can absorb,' said Matt Priest, president and chief executive officer of the Footwear Distributors and Retailers of America (FDRA). He expects an 'elevated pricing landscape' for the foreseeable future due to the uncertainties connected with tariffs, which will make it 'hard for any brand or retailer coming into the June market to fully understand the depth and breadth of what actions lie ahead because it's been so unpredictable to this point.' Retailers big and small are shifting strategies in real time as tariff realities can change from day to day. Walmart CEO Doug McMillon told Wall Street during the retailer's first quarter conference call last month that as the tariff numbers have changed, his merchant team has pivoted and recalculated quantities. 'Where it can be more challenging is making decisions related to things like Halloween and Christmas further out. And how do you make a quantity call? And what tariff number do you use?' McMillon's only answer was that the mass discounter has a sales plan and it will 'operate against that sales plan,' meaning that some quantities will be adjusted based on certain tariff assumptions. A number of independents said they are in wait-and-see mode as Trump's trade policies continue to unfold — and they're focusing on tried-and-true strategies to give them an edge. 'Product is king, and we are always looking for the best shoes at the best prices,' said Lester Wasserman, owner of Tip Top Shoes, which is celebrating its 85th anniversary this year, as well as West NYC. 'We have received plenty of emails from a variety of different vendors, with most of them saying prices will increase roughly $5 to $10 at retail, which in my opinion isn't catastrophic. The tariff situation is still in its infancy and I'm not quite sure anyone knows how it will play out.' Peter Lawson, VP of Shoe Inn — which has been family-run for more than four decades — said the retailer is focusing on fill-ins for fall, as well as timeless, elevated essentials for spring. Price increases will be strategic, he said. 'We're looking closely at perceived value and margin impact. In some cases, we're consolidating buys or working more closely with vendor partners on exclusives to protect pricing,' Lawson said. He noted that the boutique chain also continues to diversify its sourcing strategy. 'While China remains important for some categories, we're seeing great opportunities in Italy, Spain, and Portugal, especially for products that emphasize craftsmanship and quality,' he said. Greg Wagner, president of family-owned Wagner Shoes in Pittsburgh, said the retailer's major objective is to budget seasonal product more accurately. 'Historically we've been guilty of overbuying and carrying too much over. That hurts our turn, gross margin return on investment and cash flow. In the northeast, the boot season is so short that it's very difficult to sell through. We try to leave room for fill-ins, and this fall we should have open to buy,' said Wagner, a fifth-generation family member in the business, which was founded in 1854. With earnings season in full swing, one big trend among brands across the industry — and in the broader consumer sector — has been to withdraw their full-year guidance as tariff policies and consumer behavior remain difficult to predict. Crocs Inc. CEO Andrew Rees told analysts that the 'daily uncertainty' on the level of tariffs makes it hard to plan and predict both short- and long-term impacts. He said expectations are that incremental costs from tariffs would see the industry to go up in terms of price, and that if prices go up, 'we would expect volumes to go down and would therefore plan accordingly.' That's not necessarily a bad thing, according to the CEO. A higher price would mean a higher margin, and maybe slightly lower volume, which 'is a much stronger place to be,' he said. (Crocs beat Q1 forecasts.) Steve Madden Ltd. was already moving production out of China even before the skyrocketing reciprocal tariffs were announced on April 2 (and later paused.) CEO Edward Rosenfeld said last month during the company's first quarter conference call that whatever was early enough in the production process that could be shifted has been moved. And while Madden is planning strategic price increases on select goods this fall, Rosenfeld said the company is also working with factory partners and suppliers to negotiate price concessions to help with mitigation strategies. And he told analysts that some wholesale customers are planning more conservatively for fall, mostly due to uncertainty connected with consumer demand. Like Steve Madden, Wolverine Worldwide is not waiting around for Trump to resolve his ongoing conflict with China. In the company's first quarter 2025 earnings call, president and chief executive officer Chris Hufnagel told analysts that he is 'optimistic' amid the ongoing tariff dispute as the company has been working since the pandemic to diversify its sourcing. '[In 2025], less than 10 percent of our products are now expected to be sourced from China, down from the mid-teens just earlier this year,' said the CEO, who was optimistic after its Saucony and Merrell brands posted double-digit growth in the first quarter. 'We're targeting to push this down to near zero in 2026.' During a webinar on May 22, Coresight Research CEO Deborah Weinswig noted that some footwear manufacturers have product sitting in warehouses in duty-free zones as they take a 'wait-and-see attitude' until there's more clarity on how to proceed over the next few months. For their part, trade show organizers are prepping for the months ahead by emphasizing face-to-face interactions, innovative product strategies —and flexibility. Sandi Mines, VP of corporate engagement at FDRA and president of FFANY, said about 20 brands are set to exhibit in the show's pop-up space this week, and overall participation in the show is robust. Laura Conwell-O'Brien, the longtime executive director of the Atlanta Shoe Market, which will take place Aug. 9-11, encouraged buyers to 'know your numbers' during a challenging climate. 'Retailers who understand what's working [in terms] of styles, price points and consumer preferences can make confident, data-driven buying decisions,' she said. Flexibility is also essential, she said. 'Amid shifting tariffs, supply chains and trends, adaptability offers a competitive edge. Brands that deliver innovation, reliability and strong support will stand out,' she said, noting that in-person connections are key right now. Christina Henderson, event director for both The Running Event and Switchback, the new outdoor show debuting June 16 in Nashville with more than 190 brands, said now is the time for the industry to come together. 'Brands are eager to reinvigorate their relationships with specialty retailers, likely because the pandemic outdoor boom has faded, and the pivot to digital is less of a sure thing than it was,' Henderson said. 'And retailers are equally motivated to discover new vendors, new products, and new ideas.' Even before the recent wave of M&A activity swept across the industry, analysts predicted that store closings would continue to be a major headline. UBS analyst Michael Lasser in April projected between 40,000 to 50,000 closings by 2029, from the current U.S. store base of around 956,000 locations. In softlines retail, which includes apparel, accessories and footwear, he estimated 12,500 doors will close over the next five years. But there also could be more openings in certain sectors, like sporting goods. Lasser expects Dick's Sporting Goods and Academy Sports + Outdoors to continue to expand their market share through the addition of new locations. The forecast was less promising for department store stalwarts such as Kohl's Corp., Macy's Inc. and Dillard's, and some specialty stores. On the consolidation front, the merger of Saks and Neiman Marcus in December is expected to see some change among vendors now that parent Saks Global has formed one buying team for both the Neiman Marcus and Saks Fifth Avenue banners. In the case of Dick's purchase of Foot Locker Inc., some analysts think the deal could benefit footwear vendors, including Nike Inc. That's because the two retailers target different consumer segments, and the combined entity will pave the way for stronger relationships through multiple platforms. As for Skechers U.S.A. Inc.'s surprise $9 billion deal with 3G Capital to go private, Needham & Co. analyst Tom Nikic said the decision to sell might have been accelerated by the macro- environment and possible thinking that it might be better to navigate current challenges 'without being under the Street's scrutiny.' (Chairman and CEO Robert Greenberg and his son, Michael Greenberg, the company's president, will continue to run day-to-day operations.) TD Cowen's John Kernan said that with 3G's playbook of boosting margins through cost- cutting and efficiencies, there's a likelihood that 'we will see Skechers come public again in the distant future.' Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Connectez-vous pour accéder à votre portefeuille
Yahoo
30-05-2025
- 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
