Caleres (CAL) AI Stock Analysis

• Market Cap: $424.03M
• Dividend Yield: 2.11%
• Average Volume (3M): 554.88K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.16
• Revenue Growth: -2.83%
• EPS Growth: -86.19%
• Country: US
• Employees: 4,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.38
• Shares Outstanding: 33,895,560
• 10 Day Avg. Volume: 503,984
• 30 Day Avg. Volume: 554,885
• PEG Ratio: -0.16
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 11.05
• Enterprise Value/Market Cap: 4.36
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 1.58
• Enterprise Value/Ebitda: 22.02
• 1Y Price Target: $18.00
• Price Target Upside: 37.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $12.50 ▼(-4.43% Downside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is held back primarily by weakened TTM profitability and very thin free cash flow, with earnings-call commentary reinforcing near-term margin pressure (tariffs, Stuart Weitzman dilution) and softer Famous Footwear trends. Technicals are neutral-to-slightly weak versus longer-term averages, while valuation and the dividend offer only modest support. The CFO change and updated outlook add incremental uncertainty.

Positive Factors

E-commerce Growth

Sustained double-digit owned e-commerce growth signals a durable shift toward higher-margin, scalable channels. Strong digital customer acquisition and higher full-price sell-through support long-term revenue mix improvement, lower reliance on mall traffic, and better operating leverage across distribution.

Premium Brand Addition

Adding Stuart Weitzman materially expands premium brand exposure and revenue scale, enabling cross-brand merchandising, international expansion, and pricing power over time. Management targets breakeven by 2026 and envisaged synergies that can lift long-term margin and lifetime customer value.

Improved Leverage

Directionally lower leverage increases financial flexibility to fund inventory, growth initiatives, or weather volatility. A stronger capital structure reduces refinancing risk and interest burden, supporting sustainable operations and optionality for M&A or reinvestment over the medium term.

Negative Factors

Very Thin Free Cash Flow

Extremely weak free cash flow constrains reinvestment, debt reduction, and shareholder returns. Persistent thin cash generation increases reliance on external financing for working capital and restructurings, reducing resilience to margin shocks and limiting ability to fund strategic initiatives without raising leverage.

Compressed Profitability

Material margin compression lowers return on capital and erodes buffer against cyclical retail pressures. With operating margins compressed, the company has less capacity to absorb cost inflation or promotional demand, making sustained earnings recovery dependent on durable gross margin and SG&A improvements.

Stuart Weitzman Integration Risk

Underperformance and excess inventory from the acquired premium brand create near-term dilution, markdown risk, and working-capital strain. Integration and inventory rationalization could pressure margins and cash conversion for multiple quarters, delaying expected synergies and breakeven targets.

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 generates revenue primarily through the sale of footwear across its various retail channels, including brick-and-mortar stores and e-commerce platforms. The company's key revenue streams include sales from its Famous Footwear retail chain, which operates both company-owned stores and online sales, as well as wholesale distribution to other retailers. Additionally, Caleres benefits from its strong brand partnerships and licensing agreements that enhance its product offerings. The company also capitalizes on seasonal trends and consumer demand, which is supported by effective marketing strategies and a focus on product innovation to attract and retain customers.

Caleres Financial Statement Overview

Summary

Recent fundamentals are pressured: TTM profitability and cash generation have compressed sharply (very thin free cash flow and weak cash conversion), despite strong revenue growth. The balance sheet is directionally improved with lower leverage, but ROE has fallen materially, keeping the overall financial picture below average.

Income Statement

TTM (Trailing-Twelve-Months) results show sharp profitability compression: revenue is up strongly (reported growth rate 1.851), but net profit margin is only ~0.8% and operating margins are low, indicating elevated costs and weaker pricing/volume mix. Annual results show the business can be meaningfully profitable (2022–2024 net margins roughly ~5%–6%), but 2025 profitability stepped down materially and TTM earnings are far below the prior run-rate. Overall: mixed—top-line resilience, but current earnings quality and margin trajectory are weak versus recent history.

Balance Sheet

Leverage has improved versus earlier years: debt-to-equity moved down from very high levels in 2021–2023 to below 1.0 in TTM (Trailing-Twelve-Months), driven by lower debt and higher equity. That said, the capital structure still relies meaningfully on debt (TTM debt ~78% of equity), and returns on equity have fallen sharply in TTM (~3%) versus much stronger levels in 2022–2024, reflecting the earnings downturn. Overall: balance sheet directionally better and more stable, but profitability-driven equity returns are currently a key weakness.

Cash Flow

Cash generation has deteriorated notably in TTM (Trailing-Twelve-Months): operating cash flow is modest and free cash flow is very thin (~$7.5M), with a steep free-cash-flow decline (reported growth -120.21). Free cash flow covers only a small portion of net income in TTM, suggesting weaker cash conversion and/or heavier working-capital/capex pressure versus prior years. While prior annual periods showed stronger free cash flow (especially 2022 and 2024), the most recent trajectory points to reduced financial flexibility.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	2.70B	2.72B	2.82B	2.97B	2.78B	2.12B
Gross Profit	1.17B	1.22B	1.26B	1.28B	1.23B	787.05M
EBITDA	84.04M	205.54M	253.94M	276.31M	257.08M	-408.29M
Net Income	20.61M	107.25M	163.87M	181.74M	137.02M	-438.99M
Balance Sheet
Total Assets	2.08B	1.89B	1.80B	1.84B	1.84B	1.87B
Cash, Cash Equivalents and Short-Term Investments	33.96M	29.64M	21.36M	33.70M	30.11M	88.30M
Total Debt	1.44B	826.55M	747.86M	887.63M	871.40M	1.12B
Total Liabilities	1.45B	1.29B	1.24B	1.41B	1.52B	1.66B
Stockholders Equity	616.75M	599.02M	560.63M	420.68M	318.57M	200.25M
Cash Flow
Free Cash Flow	7.47M	55.41M	150.53M	61.84M	144.30M	104.29M
Operating Cash Flow	66.24M	104.56M	200.15M	125.88M	168.44M	126.35M
Investing Cash Flow	-166.53M	-51.69M	-49.62M	-64.04M	-24.14M	-22.06M
Financing Cash Flow	100.61M	-44.51M	-162.99M	-58.15M	-202.38M	-61.31M

Caleres Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.08
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 13.08 is above the 20-day moving average (MA) of 12.48, above the 50-day MA of 12.95, and below the 200-day MA of 13.42, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 68.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAL.

Caleres Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCKY	76 Outperform	$253.29M	12.34	8.67%	2.08%	4.13%	53.56%
WEYS	70 Outperform	$302.97M	12.52	9.57%	9.66%	-3.64%	-16.12%
SHOO	64 Neutral	$2.85B	49.73	6.68%	1.97%	6.26%	-66.51%
CROX	62 Neutral	$4.93B	-76.71	-5.19%	―	<0.01%	-77.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	58 Neutral	$1.52B	17.65	25.57%	2.28%	3.61%	―
CAL	49 Neutral	$424.03M	20.21	3.33%	2.11%	-2.83%	-86.19%

Caleres Corporate Events

Caleres Names Interim CFO and Updates Fiscal Outlook

On January 15, 2026, Caleres announced that Senior Vice President and Chief Financial Officer Jack P. Calandra will step down as CFO effective that date and leave the company on January 30, 2026; the company emphasized that his departure is not related to any disagreement over its operations, policies, or accounting and financial practices. Effective January 21, 2026, Senior Vice President and Chief Accounting Officer Daniel L. Karpel, a finance executive with more than 30 years of experience and prior tenure at Caleres, was appointed interim Chief Financial Officer and principal financial officer, and on January 21, 2026, the company also updated its fourth-quarter and fiscal 2025 outlook to reflect the potential impact of the Saks Global bankruptcy and possible restructuring charges not previously included in guidance, signaling potential financial and operational adjustments ahead for stakeholders.

The most recent analyst rating on (CAL) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Caleres stock, see the CAL Stock Forecast page.