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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on CAL

Caleres, Inc. faced negative drivers, including reduced stake by institutional investor Connor Clark & Lunn Investment Management Ltd., which sold 17,732 shares, lowering its stake by 11.5%. Conversely, Campbell & CO Investment Adviser LLC showed confidence with a new $236,000 investment, purchasing 19,325 shares. The company is set to announce its Q3 2025 results on December 9, which may provide insight into its performance. Additionally, brand Stuart Weitzman launched its Fall 2025 campaign, introducing new global ambassadors.

1.c. Company Highlights

2. Caleres Q2 2025 Earnings Analysis

Caleres reported Q2 2025 sales of $658.5 million, down 3.6% YoY, with adjusted earnings per share of $0.35, missing analyst estimates of $0.51. Gross margin declined 210 bps to 43.4%, driven by tariff-related costs, markdown reserves, and promotional shifts. Jay Schmidt noted product assortment shifts and Jordan brand success, which became a top 10 brand.

Publication Date: Sep -28

📋 Highlights
  • Sales Decline and Earnings:: Revenue fell 3.6% to $658.5M, with adjusted EPS of $0.35, driven by weaker Famous Footwear performance and market share gains in lead brands.
  • Gross Margin Pressure:: Gross margin dropped 210 bps to 43.4%, impacted by $10M in tariff costs, markdown reserves, and promotional shifts, with Q3 pressures expected to persist.
  • Brand Portfolio Growth:: Lead brands (Sam Edelman, Allen Edmonds, Naturalizer) saw double-digit international sales growth, while value brands faced challenges, contributing to a 3.5% sales decline in the segment.
  • Strategic Cost Savings:: $15M in annualized savings from restructuring and supply chain adjustments, alongside $120M borrowed for the Stuart Weitzman acquisition, with integration targeting Jan 2026 completion.
  • Q3 Outlook and Tariffs:: Brand Portfolio gross margin to remain pressured; $10M BP sales disruption (50% cancellations, 50% delays) expected to ease in Q3, with tariff mitigation efforts (price increases, sourcing shifts) to offset 250 bps of margin drag by Q4.

Segment Performance

Brand Portfolio sales fell 3.5%, led by 1% North American growth for lead brands, while Famous Footwear sales dropped 4.9%, with comp sales down 3.4%. Segment operating margins were 3.1% for Brand Portfolio and 4.7% for Famous Footwear. Tariffs impacted Brand Portfolio gross margin by 250 bps in Q2.

Tariff Mitigation and Cost Savings

Tariff mitigation efforts, including supply chain adjustments and price increases, faced lagged implementation challenges, with $15 million annualized cost savings from restructuring. The company borrowed $120 million for the Stuart Weitzman acquisition, with interest expenses around 5.7-5.8%. Jack Calandra noted reduced headwinds from annualizing BOGO promotions and expected normalization by Q4 as tariff mitigation efforts take effect.

Valuation Metrics

With a P/E Ratio of 7.43, P/B Ratio of 0.72, and EV/EBITDA of 5.7, Caleres' valuation suggests a relatively low multiple compared to its earnings and book value. The company's ROE of 9.89% and ROIC of 6.31% indicate decent profitability. However, the Net Debt / EBITDA ratio of 2.12 raises concerns about the company's leverage.

Outlook

Q3 guidance excluded annual forecasts due to tariff uncertainty, with Brand Portfolio gross margins expected to remain pressured. Inventory rose 4.9% YoY to $693 million, and cash reserves stood at $191.5 million. The company's strategic priorities remain tariff mitigation, cost discipline, and integrating Stuart Weitzman, while leveraging DTC and international growth for lead brands and Flair stores at Famous Footwear.

3. NewsRoom

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Caleres to Announce Third Quarter 2025 Results on December 9

Nov -18

Source: businesswire.com

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Campbell & CO Investment Adviser LLC Invests $236,000 in Caleres, Inc. $CAL

Nov -18

Source: defenseworld.net

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Connor Clark & Lunn Investment Management Ltd. Sells 17,732 Shares of Caleres, Inc. $CAL

Nov -17

Source: defenseworld.net

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Strength Seen in Caleres Inc. (CAL): Can Its 9.4% Jump Turn into More Strength?

Nov -06

Source: zacks.com

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Solstice Advance Materials and Qnity Electronics Set to Join S&P 500; Others to Join S&P SmallCap 600

Oct -27

Source: prnewswire.com

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Caleres to Participate in 2025 Global Consumer & Retail Conference

Sep -24

Source: businesswire.com

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STUART WEITZMAN LAUNCHES "STUART WEITZMAN NEW YORK" FOR FALL 2025

Sep -09

Source: prnewswire.com

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Caleres Q2 Earnings Miss Estimates, Sales Decline 3.6% Y/Y

Sep -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.61%)

6. Segments

Famous Footwear

Expected Growth: 2.5%

Famous Footwear's 2.5% growth is driven by strategic brand acquisitions, effective inventory management, and a strong omnichannel presence. Additionally, the brand's focus on comfort and wellness, as well as its loyalty program, have contributed to increased customer retention and sales growth.

Brand Portfolio

Expected Growth: 2.8%

Caleres, Inc.'s Brand Portfolio growth of 2.8% is driven by strategic acquisitions, expanding e-commerce presence, and effective brand management. The company's diverse portfolio, including Famous Footwear and Allen Edmonds, benefits from a strong omnichannel approach, resulting in increased customer engagement and loyalty. Additionally, Caleres' focus on product innovation and targeted marketing initiatives contribute to its sustained growth.

Eliminations and Other

Expected Growth: 1.5%

Caleres, Inc.'s Eliminations and Other segment growth of 1.5% is driven by strategic brand portfolio management, effective cost savings initiatives, and synergies from acquisitions. Additionally, the company's focus on e-commerce and digital marketing has contributed to the growth, while ongoing efforts to optimize supply chain and logistics have improved operational efficiency.

7. Detailed Products

Allen Edmonds

Luxury men's footwear and accessories

Dr. Scholl's

Comfort footwear and foot care products

Vionic

Comfortable and stylish footwear for women and men

Sam Edelman

Fashion footwear and accessories for women

Naturalizer

Comfortable and stylish footwear for women

LifeStride

Comfortable and affordable footwear for women

Blowfish Malibu

Casual and comfortable footwear for women and girls

Clarks

Comfortable and stylish footwear for men and women

8. Caleres, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Caleres, Inc. operates in the footwear industry, where substitutes are available in the form of other types of footwear or alternative products. However, the company's strong brand portfolio and diversified product offerings mitigate the threat of substitutes.

Bargaining Power Of Customers

Caleres, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand recognition and wide distribution network limit the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

Caleres, Inc. relies on a network of suppliers for raw materials and components. While the company has some bargaining power due to its size, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The footwear industry has high barriers to entry, including significant capital requirements and the need for established distribution networks. This limits the threat of new entrants and allows Caleres, Inc. to maintain its market position.

Intensity Of Rivalry

The footwear industry is highly competitive, with many established players competing for market share. Caleres, Inc. faces intense rivalry from other companies, which can lead to pricing pressure and high marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 57.15%
Debt Cost 3.95%
Equity Weight 42.85%
Equity Cost 14.03%
WACC 8.27%
Leverage 133.40%

11. Quality Control: Caleres, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Weyco

A-Score: 6.5/10

Value: 7.4

Growth: 5.9

Quality: 7.1

Yield: 9.0

Momentum: 3.5

Volatility: 6.0

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Ethan Allen

A-Score: 6.2/10

Value: 6.1

Growth: 3.8

Quality: 6.4

Yield: 10.0

Momentum: 4.0

Volatility: 6.7

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A-Score: 5.1/10

Value: 7.8

Growth: 5.6

Quality: 5.4

Yield: 4.0

Momentum: 5.5

Volatility: 2.7

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Wolverine World Wide

A-Score: 4.6/10

Value: 4.3

Growth: 2.8

Quality: 5.1

Yield: 4.0

Momentum: 8.5

Volatility: 2.7

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Caleres

A-Score: 3.9/10

Value: 9.3

Growth: 3.7

Quality: 4.2

Yield: 4.0

Momentum: 0.0

Volatility: 2.3

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Vera Bradley

A-Score: 2.8/10

Value: 9.8

Growth: 0.7

Quality: 4.4

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.51$

Current Price

13.51$

Potential

-0.00%

Expected Cash-Flows