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Caleres Inc (CAL)
NYSE:CAL
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Caleres (CAL) AI Stock Analysis

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CAL

Caleres

(NYSE:CAL)

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Neutral 63 (OpenAI - 4o)
Rating:63Neutral
Price Target:
$16.00
▲(12.12% Upside)
Caleres' overall stock score reflects a challenging financial performance with significant cash flow issues and declining sales. However, the stock's technical indicators show a neutral to slightly positive trend, and its valuation suggests potential undervaluation. The balanced sentiment from the earnings call highlights both strategic achievements and ongoing challenges.

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

Caleres Business Overview & Revenue Model

Company DescriptionCaleres, 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 MoneyCaleres generates revenue primarily through the sale of footwear across its retail and wholesale channels. The company's key revenue streams include direct sales from its Famous Footwear stores and e-commerce platform, as well as wholesale partnerships with other retailers that carry Caleres brands. Additionally, the company benefits from licensing agreements with other brands, expanding its reach in the footwear market. Seasonal promotions, effective marketing strategies, and a focus on customer engagement also contribute significantly to its earnings. The diverse brand portfolio allows Caleres to cater to different market segments, enhancing its revenue stability.

Caleres Earnings Call Summary

Earnings Call Date:Sep 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 25, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several strategic achievements, including market share gains, successful brand integrations, and e-commerce growth. However, these positives were tempered by sales declines, tariff-related challenges, and margin pressures. Overall, the sentiment of the call is balanced, with both positive and negative aspects noted.
Q2-2025 Updates
Positive Updates
Market Share Gains
Caleres gained market share in both women's fashion footwear and in shoe chains, with international sales increasing by double digits.
Successful Brand Integration
The acquisition of Stuart Weitzman was completed, aligning with strategic focus on premium contemporary positioning and international growth.
E-commerce Growth
Famous Footwear's e-commerce sales were up double digits, particularly in May and July.
Sam Edelman Success
Sam Edelman delivered strong domestic sales growth and double-digit international growth, with innovative marketing campaigns and new partnerships.
Positive Back-to-School Performance
Famous Footwear launched Jordan as an exclusive brand, becoming a top 10 brand and driving back-to-school sales up 1% in August.
Structural Cost Savings Initiatives
Caleres completed structural cost savings initiatives expected to deliver annualized savings of $15 million, with additional savings from Stuart Weitzman integration expected in 2026.
Negative Updates
Sales Decline
Overall sales declined by 3.6% year over year, with Brand Portfolio sales down 3.5% and Famous Footwear down 4.9%.
Tariff-Related Challenges
Tariffs negatively impacted sales, causing $10 million in order cancellations and delayed receipts, with ongoing pressure on gross margins.
Pressure on Gross Margins
Consolidated gross margin fell by 210 basis points due to tariff-related costs, inventory reserves, and higher clearance promotions.
Naturalizer and Vionic Performance
Naturalizer faced a down quarter due to sourcing shifts, while Vionic saw modest sales declines as it cleared older inventory.
Increased SG&A Expenses
SG&A expenses increased by $1.4 million and deleveraged 170 basis points, with ongoing investment in international business and higher depreciation costs.
Company Guidance
During the second quarter of fiscal year 2025, Caleres, Inc. reported a sales decline of 3.6% year-over-year, with total sales of $658.5 million. The adjusted earnings per share were $0.35, while the gross margin stood at 43.4%, reflecting a decrease of 210 basis points compared to the previous year. The company experienced a 3.5% decline in brand portfolio sales and a 4.9% decrease in Famous Footwear sales, with comparable sales down 3.4%. The lead brands within the brand portfolio showed resilience, growing 1% in North America and 3.6% globally. The company faced challenges due to tariffs, which negatively impacted second-quarter sales by approximately $10 million and put pressure on gross margins. Despite these hurdles, Caleres reported double-digit international sales growth, a 1% increase in August back-to-school comps for Famous Footwear, and continued focus on mitigating tariff impacts and integrating the recently acquired Stuart Weitzman brand.

Caleres Financial Statement Overview

Summary
Caleres shows a mixed financial performance with strong gross and operating margins but faces challenges with declining revenue and free cash flow. The balance sheet is stable with manageable leverage, yet cash flow management needs improvement for long-term growth.
Income Statement
65
Positive
Caleres has shown a solid recovery in its income statement metrics. The Gross Profit Margin for TTM stands at approximately 44.5%, indicating effective cost management. However, the Net Profit Margin decreased to around 3.1% in TTM from 3.9% the previous year. Revenue has decreased by 3.2% over the last year, signaling a slight decline in sales momentum. The EBIT Margin is at 4.4% for TTM, highlighting stable operational efficiency despite the revenue dip. EBITDA Margin remains robust at 6.0% in TTM.
Balance Sheet
55
Neutral
Caleres' balance sheet shows a reasonable leverage position with a Debt-to-Equity Ratio of approximately 1.41 in TTM, indicating reliance on borrowed funds but within a manageable range. The Return on Equity (ROE) for TTM is around 13.8%, showcasing decent profitability relative to equity. The Equity Ratio is moderate at 31.7% in TTM, suggesting a solid equity base to support its total assets.
Cash Flow
40
Negative
The cash flow analysis reflects some challenges, with Free Cash Flow decreasing significantly over the past year. The Free Cash Flow to Net Income Ratio is very low, indicating limited free cash generation relative to profits. However, the Operating Cash Flow to Net Income Ratio is approximately 0.75 in TTM, showing a decent conversion of net income into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.65B2.72B2.82B2.97B2.78B2.12B
Gross Profit1.17B1.22B1.26B1.28B1.23B787.05M
EBITDA129.08M205.54M253.94M276.31M257.08M-432.19M
Net Income59.75M107.25M163.87M181.74M137.02M-438.99M
Balance Sheet
Total Assets2.15B1.89B1.80B1.84B1.84B1.87B
Cash, Cash Equivalents and Short-Term Investments191.49M29.64M21.36M33.70M30.11M88.30M
Total Debt465.79M826.55M747.86M887.63M871.40M1.12B
Total Liabilities1.53B1.29B1.24B1.41B1.52B1.66B
Stockholders Equity613.30M599.02M560.63M420.68M318.57M200.25M
Cash Flow
Free Cash Flow-36.96M55.41M150.53M61.84M144.30M104.29M
Operating Cash Flow27.59M104.56M200.15M125.88M168.44M126.35M
Investing Cash Flow-63.45M-51.69M-49.62M-64.04M-24.14M-22.06M
Financing Cash Flow175.56M-44.51M-162.99M-58.15M-202.38M-61.31M

Caleres Technical Analysis

Technical Analysis Sentiment
Negative
Last Price14.27
Price Trends
50DMA
14.63
Negative
100DMA
14.51
Negative
200DMA
16.62
Negative
Market Momentum
MACD
0.04
Positive
RSI
43.73
Neutral
STOCH
12.63
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 14.27 is below the 20-day moving average (MA) of 15.08, below the 50-day MA of 14.63, and below the 200-day MA of 16.62, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 43.73 is Neutral, neither overbought nor oversold. The STOCH value of 12.63 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 8 risk factors in its most recent earnings report. Caleres reported the most risks in the "Production" 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
219.79M11.704.90%2.11%-0.09%24.18%
74
Outperform
2.41B25.1911.02%2.53%7.80%-48.10%
69
Neutral
2.36B29.0817.84%1.37%-2.83%0.00%
68
Neutral
4.21B20.7116.64%2.04%-71.52%
68
Neutral
291.43M11.5010.43%10.02%-6.39%-14.72%
63
Neutral
$484.63M8.229.50%1.96%-5.31%-62.20%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CAL
Caleres
14.27
-17.59
-55.21%
CROX
Crocs
77.14
-67.69
-46.74%
RCKY
Rocky Brands
29.43
0.75
2.62%
SHOO
Steven Madden
33.16
-14.54
-30.48%
WEYS
Weyco Group
30.55
-0.63
-2.02%
WWW
Wolverine World Wide
29.10
13.38
85.11%

Caleres Corporate Events

M&A Transactions
Caleres Completes Acquisition of Stuart Weitzman Brand
Positive
Aug 5, 2025

On August 4, 2025, Caleres, Inc. completed the acquisition of the Stuart Weitzman brand from Tapestry, Inc. for a net purchase price of $108.7 million, excluding cash received at closing. This acquisition, initially announced in February 2025, is expected to enhance Caleres’ portfolio and strengthen its position in the footwear industry.

The most recent analyst rating on (CAL) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Caleres stock, see the CAL Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 19, 2025