Caleres (CAL) AI Stock Analysis

• Market Cap: $554.88M
• Dividend Yield: 1.59%
• Average Volume (3M): 928.47K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.00
• Revenue Growth: -1.28%
• EPS Growth: 2.83%
• Country: US
• Employees: 5,100
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 3.07
• Shares Outstanding: 33,629,060
• 10 Day Avg. Volume: 1,160,612
• 30 Day Avg. Volume: 928,471
• PEG Ratio: 1.28
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.20
• Price to Cash Flow (P/CF): -3.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.00
• Price Target Upside: 15.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Caleres' overall stock score of 67 reflects a combination of solid valuation and financial stability with notable challenges in technical performance and market demand. The company's strategic acquisitions and initiatives provide positive long-term prospects, but current sales and cash flow concerns, along with a bearish technical outlook, weigh on the score. Investors should closely monitor recovery in revenue and cash flow to assess future performance improvements.

Caleres Business Overview & Revenue Model

Company Description

Caleres, Inc. engages in the retail and wholesale of footwear in the United States, Canada, China, and Guam. It operates through Famous Footwear and Brand Portfolio segments. The company offers licensed, branded, and private-label athletic, casual, and dress footwear products to women, men, and children. Its retail shoe stores provide brand name athletic, casual, and dress shoes, including Nike, Skechers, adidas, Vans, Converse, Crocs, Puma, Birkenstock, New Balance, Asics, New Balance, Under Armour, Bearpaw, Timberland, Sperry, and Dr. Martens, as well as company-owned and licensed brands, such as Dr. Scholl's Shoes, Blowfish Malibu, LifeStride, Naturalizer, Zodiac, Circus by Sam Edelman, Franco Sarto, and Ryka. The company also operates naturalizer.com, naturalizer.ca, vionicshoes.com, samedelman.com, allenedmonds.com, drschollsshoes.com, lifestride.com, francosarto.com, ryka.com, bzees.com, and zodiacshoes.com, as well as Vince.com, blowfishshoes.com, and veronicabeard.com websites. In addition, it designs, sources, manufactures, and markets footwear to retail stores, such as national chains, online retailers, department stores, mass merchandisers, independent retailers, and catalogs. Further, the company wholesales men's apparel, leather goods, and accessories under the Allen Edmonds brand; footwear for women under LifeStride brand; Italian footwear Franco Sarto brand; athletic footwear for women under the Rykä brand; women's shoe collection under the Vince brand; and women's footwear under the Bzees brand; other footwear under Zodiac brand; and women's footwear collection under Veronica Beard brand, as well as Via Spiga brand. It operates approximately 980 retail stores. The company was formerly known as Brown Shoe Company, Inc. Caleres, Inc. was founded in 1878 and is headquartered in St. Louis, Missouri.

How the Company Makes Money

Caleres primarily generates revenue through the sale of footwear across its retail and wholesale operations. In the retail segment, the company earns money from its brick-and-mortar stores, notably under the Famous Footwear brand, and through its online sales channels, which cater directly to consumers. Additionally, Caleres' wholesale business involves distributing its branded footwear to department stores, specialty retailers, and other third-party sellers. This multifaceted approach allows Caleres to capture a broad market share and leverage brand recognition across different consumer demographics. Partnerships with influential retailers and investments in digital platforms further bolster its revenue streams by expanding market reach and enhancing customer engagement.

Caleres Financial Statement Overview

Summary

Caleres demonstrates stable profitability and efficient equity use, but faces challenges with revenue growth and cash flow generation. The balanced leverage provides some financial stability, while operational margins remain healthy. Future focus should be on reversing the revenue and cash flow declines to enhance overall financial health.

Income Statement

The gross profit margin for TTM (Trailing-Twelve-Months) is 44.89% and the net profit margin is 5.64%, indicating a solid profitability level. The revenue growth rate from the previous year to TTM is -1.30%, which shows a slight decline. However, the EBIT margin is 6.31% and the EBITDA margin is 7.86%, supporting healthy operational performance despite revenue contraction.

Balance Sheet

The debt-to-equity ratio for TTM is 0.85, suggesting moderate leverage. Return on Equity (ROE) stands at 26.22%, indicating efficient use of equity. The equity ratio is 30.59%, pointing to a balanced capital structure but with room for improvement in equity levels.

Cash Flow

The free cash flow growth rate from the previous year to TTM is -56.00%, indicating a decline in cash generation. The operating cash flow to net income ratio is 0.76, showing reasonable cash conversion, while the free cash flow to net income ratio is 0.42, indicating some challenges in translating earnings into free cash flow.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.78B	2.82B	2.97B	2.78B	2.12B	2.92B
	Gross Profit
1.25B	1.26B	1.28B	1.23B	787.05M	1.18B
	EBIT
175.29M	201.31M	214.33M	205.81M	-102.44M	60.94M
	EBITDA
218.63M	253.94M	276.31M	257.08M	-432.19M	171.88M
	Net Income Common Stockholders
156.92M	163.87M	181.74M	137.02M	-438.99M	62.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.20M	21.36M	33.70M	30.11M	88.30M	45.22M
	Total Assets
1.84B	1.80B	1.84B	1.84B	1.87B	2.43B
	Total Debt
532.93M	747.86M	887.63M	871.40M	1.12B	1.23B
	Net Debt
502.73M	726.50M	853.92M	841.29M	1.03B	1.19B
	Total Liabilities
1.20B	1.24B	1.41B	1.52B	1.66B	1.78B
	Stockholders Equity
634.05M	560.63M	420.68M	318.57M	200.25M	645.95M
Cash Flow		Free Cash Flow
66.26M	150.53M	61.84M	144.30M	104.29M	120.63M
	Operating Cash Flow
118.82M	200.15M	125.88M	168.44M	126.35M	170.79M
	Investing Cash Flow
-52.57M	-49.62M	-64.04M	-24.14M	-22.06M	-49.52M
	Financing Cash Flow
-66.73M	-162.99M	-58.15M	-202.38M	-61.31M	-106.33M

Caleres Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAL, the sentiment is Neutral. The current price of 17.28 is above the 20-day moving average (MA) of 16.41, below the 50-day MA of 17.54, and below the 200-day MA of 28.63, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 78.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CAL.

Caleres Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CROX	76 Outperform	$6.31B	7.05	57.76%	―	3.53%	24.55%
DECK	76 Outperform	$18.66B	19.96	39.80%	―	19.40%	32.70%
SKX	73 Outperform	$8.57B	13.81	15.42%	―	12.11%	19.16%
CAL	67 Neutral	$554.88M	5.35	17.83%	1.59%	-1.28%	2.83%
NKE	63 Neutral	$98.42B	22.42	31.93%	2.24%	-7.16%	-12.12%
Sector *	59 Neutral	$12.76B	11.27	1.14%	3.69%	1.25%	-20.97%
FL	55 Neutral	$1.52B	130.54	0.62%	―	-2.20%	―

Caleres Corporate Events

Caleres Acquires Stuart Weitzman for $105 Million

On February 16, 2025, Caleres, Inc. entered into a Sale and Purchase Agreement with Tapestry, Inc. to acquire the Stuart Weitzman business for $105 million. The acquisition, announced on February 19, 2025, aims to strengthen Caleres’ position in the women’s fashion footwear market, particularly in the contemporary segment. The deal includes customary representations, warranties, and covenants, with Caleres planning to fund the acquisition through its revolving credit agreement. The transaction is expected to close in the summer of 2025, and it will advance Caleres’ strategic goal of growing its Brand Portfolio segment with more global reach, enhancing its revenue and operating profit.

Caleres Revises 2024 Financial Outlook Amid Challenges

Caleres has revised its financial outlook for 2024, anticipating a decrease in consolidated net sales by 3.0% to 3.5% and adjusted earnings per share in the range of $3.20 to $3.30. The update is due to a slowdown in sales trends during the holiday season and weather-related closures affecting Famous Footwear. Despite these challenges, Caleres is committed to its strategic plan for 2025, aiming to drive long-term value for shareholders and return to growth.