tiprankstipranks
Trending News
More News >
Caleres Inc (CAL)
NYSE:CAL

Caleres (CAL) AI Stock Analysis

Compare
258 Followers

Top Page

CA

Caleres

(NYSE:CAL)

Rating:64Neutral
Price Target:
$14.50
▲(8.53%Upside)
Caleres' stock score is primarily influenced by financial performance and valuation. While the company has strong gross margins and is efficiently managed, challenges in maintaining profitability and cash flow are significant risks. The stock is undervalued, but technical indicators suggest bearish momentum. The recent earnings call highlighted ongoing challenges, further impacting the score.

Caleres (CAL) vs. SPDR S&P 500 ETF (SPY)

Caleres Business Overview & Revenue Model

Company DescriptionCaleres, Inc. is a global footwear company that operates in the retail and wholesale sectors. The company is known for its diverse portfolio of footwear brands, which includes both owned and licensed brands. Caleres caters to a wide range of consumer preferences and demographics, offering products that span from athletic and casual to dress and work shoes. Some of its well-known brands include Famous Footwear, Sam Edelman, Naturalizer, and Allen Edmonds. The company's operations are primarily centered in the United States, with a strong focus on delivering quality, style, and service across its retail and wholesale channels.
How the Company Makes MoneyCaleres generates revenue through multiple channels, with its primary income derived from the sale of footwear through both retail and wholesale operations. The retail segment includes a significant contribution from its Famous Footwear chain, which operates numerous stores across the United States, as well as online sales. In the wholesale segment, Caleres sells its various brands to department stores, specialty retailers, and online platforms. The company benefits from its diverse brand portfolio, which allows it to target different market segments and consumer needs. Additionally, strategic partnerships and licensing agreements for certain brands play a role in enhancing its revenue streams. Caleres also invests in direct-to-consumer initiatives, leveraging its e-commerce platforms to expand its reach and improve profitability.

Caleres Earnings Call Summary

Earnings Call Date:May 29, 2025
(Q1-2025)
|
% Change Since: -18.44%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Negative
The earnings call reflects a challenging quarter for Caleres with significant sales and margin pressures due to tariffs and inventory issues. However, there are positive developments such as market share gains in women's fashion footwear and strong performance from the Sam Edelman brand. The launch of the Jordan brand and expansion of FLAIR stores are also potential growth drivers. Overall, the challenges seem to outweigh the positive aspects.
Q1-2025 Updates
Positive Updates
Market Share Gain in Women's Fashion Footwear
Despite a challenging quarter, Caleres gained market share in women's fashion footwear according to Zirconia.
Sam Edelman's Strong Domestic and International Performance
The Sam Edelman brand delivered a solid quarter with domestic sales growth and double-digit international growth.
Launch of Jordan Brand
Famous Footwear launched the Jordan brand in 147 stores with plans to expand to all stores for back-to-school.
Expansion of FLAIR Stores
Caleres expanded to 44 FLAIR locations, with plans to increase to 53 by July, showing higher sales lift versus the rest of the chain.
Negative Updates
Sales Decline and Earnings Miss
First-quarter sales declined 6.8% year-over-year, missing expectations. Adjusted earnings per share were $0.22.
Pressure on Gross Margins
Gross margins were pressured by tariffs, increased reserves, and costs associated with canceling and moving inventory.
Challenges with Inventory and Customer Credit
Higher inventory levels and bad debt write-downs impacted the quarter, with markdown reserves affecting profit by $2.3 million and credit issues by $3.1 million.
Brand Portfolio Sales Decline
Sales in the brand portfolio declined 6.9%, with lower product margins and costs impacting gross margin by 280 basis points.
Company Guidance
During the Caleres First Quarter 2025 Earnings Conference Call, the company reported a 6.8% year-over-year decline in sales to $614.2 million, with adjusted earnings per share at $0.22. The call highlighted several financial pressures, including a 150 basis point drop in consolidated gross margin to 45.4%, due to increased tariffs, sourcing disruptions, and higher inventory reserves. Brand portfolio sales decreased by 6.9%, and Famous Footwear saw a 6.3% decline in total sales, with comparable sales down 4.6%. The call also detailed a reduction in SG&A expenses by $15 million annually and emphasized strategic initiatives to enhance sourcing strategies and optimize cost structures. Despite the challenging environment, the company noted growth in its international business and maintained optimism about future opportunities, including the upcoming integration of Stuart Weitzman into their portfolio.

Caleres Financial Statement Overview

Summary
Caleres demonstrates strong operational foundations with consistent gross profit margins and efficient cost management. However, declining net profit margins and weakened cash flow generation pose challenges to profitability and financial flexibility.
Income Statement
78
Positive
Caleres has demonstrated a consistent ability to generate strong gross profit margins, with the most recent year showing approximately 44.9%. The net profit margin, however, has seen a decline to around 3.9% from a previous high of 5.8%, indicating some pressure on profitability. Revenue has been fluctuating, with a decline in the most recent year by about 3.4%, reflecting challenges in sustaining top-line growth. Despite these challenges, EBIT and EBITDA margins have remained solid, indicating efficient operational management.
Balance Sheet
72
Positive
The company's balance sheet shows a manageable debt-to-equity ratio of approximately 0.8, down from higher levels in previous years, which suggests improved leverage management. The return on equity has decreased to around 17.9% from a peak of 29.2%, reflecting reduced profitability. The equity ratio has improved to about 31.6%, indicating a stronger equity base relative to total assets.
Cash Flow
65
Positive
Operating cash flow has decreased significantly, impacting the company's ability to generate free cash flow, which has dropped by about 63.2%. The operating cash flow to net income ratio stands at 0.97, indicating that cash generation is closely aligned with reported earnings. However, the free cash flow to net income ratio has decreased to approximately 0.52, suggesting potential constraints on cash available for growth investments and debt servicing.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
2.72B2.82B2.97B2.78B2.12B
Gross Profit
1.22B1.26B1.28B1.23B787.05M
EBIT
149.86M201.31M214.33M205.81M-102.44M
EBITDA
205.54M253.94M276.31M257.08M-432.19M
Net Income Common Stockholders
107.25M163.87M181.74M137.02M-438.99M
Balance SheetCash, Cash Equivalents and Short-Term Investments
29.64M21.36M33.70M30.11M88.30M
Total Assets
1.89B1.80B1.84B1.84B1.87B
Total Debt
826.55M747.86M887.63M871.40M1.12B
Net Debt
796.91M726.50M853.92M841.29M1.03B
Total Liabilities
1.29B1.24B1.41B1.52B1.66B
Stockholders Equity
599.02M560.63M420.68M318.57M200.25M
Cash FlowFree Cash Flow
55.41M150.53M61.84M144.30M104.29M
Operating Cash Flow
104.56M200.15M125.88M168.44M126.35M
Investing Cash Flow
-51.69M-49.62M-64.04M-24.14M-22.06M
Financing Cash Flow
-44.51M-162.99M-58.15M-202.38M-61.31M

Caleres Technical Analysis

Technical Analysis Sentiment
Negative
Last Price13.36
Price Trends
50DMA
15.98
Negative
100DMA
16.80
Negative
200DMA
24.12
Negative
Market Momentum
MACD
-0.58
Positive
RSI
35.44
Neutral
STOCH
6.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAL, the sentiment is Negative. The current price of 13.36 is below the 20-day moving average (MA) of 15.86, below the 50-day MA of 15.98, and below the 200-day MA of 24.12, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 35.44 is Neutral, neither overbought nor oversold. The STOCH value of 6.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAL.

Caleres Risk Analysis

Caleres disclosed 24 risk factors in its most recent earnings report. Caleres reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Caleres Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$1.76B10.4519.51%3.46%10.17%-4.71%
73
Outperform
$303.17M10.4311.76%3.32%-5.46%-1.09%
73
Outperform
$5.69B6.2653.70%2.09%26.18%
70
Outperform
$169.97M12.405.97%2.72%-2.01%2.08%
WWWWW
68
Neutral
$1.35B18.7325.29%2.41%-13.05%
CACAL
64
Neutral
$449.34M5.5013.67%2.12%-4.84%-49.08%
62
Neutral
$6.90B11.242.93%3.89%2.68%-24.71%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CAL
Caleres
13.36
-20.15
-60.13%
CROX
Crocs
102.17
-45.84
-30.97%
RCKY
Rocky Brands
23.32
-14.66
-38.60%
SHOO
Steven Madden
24.80
-18.59
-42.84%
WEYS
Weyco Group
31.70
3.75
13.42%
WWW
Wolverine World Wide
16.79
3.74
28.66%

Caleres Corporate Events

Executive/Board ChangesShareholder Meetings
Caleres Amends Bylaws and Elects New Directors
Neutral
May 23, 2025

On May 22, 2025, Caleres‘ Board of Directors amended the company’s Bylaws to reduce the number of directors from twelve to eleven. During the Annual Meeting of Shareholders on the same day, eleven directors were elected for a one-year term, Ernst & Young LLP was ratified as the independent registered public accountants, and an advisory resolution on executive compensation was approved.

The most recent analyst rating on (CAL) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Caleres stock, see the CAL Stock Forecast page.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.