Caleres (CAL) AI Stock Analysis

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Caleres

(NYSE:CAL)

72Outperform

Caleres' overall stock score of 72 reflects a balance of strengths and challenges. The company benefits from strong operational efficiency and undervaluation, but faces pressures on profitability and cash flow. The recent acquisition and strategic shifts are positive, but mixed earnings results and revised outlooks temper enthusiasm.

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

Market Cap

$513.77M

Dividend Yield1.94%

Average Volume (3M)1.25M

Price to Earnings (P/E)4.9

Beta (1Y)0.86

Revenue Growth-3.36%

EPS Growth-35.98%

CountryUS

Employees4,800

SectorConsumer Cyclical

Sector Strength60

IndustryApparel - Footwear & Accessories

Share Statistics

EPS (TTM)3.07

Shares Outstanding34,092,540

10 Day Avg. Volume1,561,342

30 Day Avg. Volume1,252,575

Financial Highlights & Ratios

PEG Ratio1.28

Price to Book (P/B)N/A

Price to Sales (P/S)0.20

Price to Cash Flow (P/CF)-3.50

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$19.50

Price Target Upside27.79% Upside

Rating ConsensusHold

Number of Analyst Covering2

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 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

Positive

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

Positive

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

Positive

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.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
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
29.71M	21.36M	33.70M	30.11M	88.30M	45.22M
	Total Assets
1.06B	1.80B	1.84B	1.84B	1.87B	2.43B
	Total Debt
263.00M	747.86M	887.63M	871.40M	1.12B	1.23B
	Net Debt
233.29M	726.50M	853.92M	841.29M	1.03B	1.19B
	Total Liabilities
654.87M	1.24B	1.41B	1.52B	1.66B	1.78B
	Stockholders Equity
408.80M	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

Negative

Last Price15.26

Price Trends

50DMA

16.47

Negative

100DMA

20.03

Negative

200DMA

27.07

Negative

Market Momentum

MACD

-0.48

Positive

RSI

44.16

Neutral

STOCH

18.80

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 15.26 is below the 20-day moving average (MA) of 16.43, below the 50-day MA of 16.47, and below the 200-day MA of 27.07, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 44.16 is Neutral, neither overbought nor oversold. The STOCH value of 18.80 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CROX	76 Outperform	$5.04B	5.55	57.76%	―	3.53%	24.55%
SHOO	74 Outperform	$1.42B	8.30	20.20%	4.30%	15.03%	1.51%
CAL	72 Outperform	$513.77M	4.88	17.83%	1.94%	-3.36%	-35.98%
RCKY	64 Neutral	$91.27M	8.03	5.00%	5.07%	-1.75%	8.28%
WEYS	64 Neutral	$280.10M	9.20	12.37%	3.58%	-8.73%	0.31%
Sector *	60 Neutral	$7.23B	11.55	3.67%	4.04%	2.96%	-13.54%
WWW	59 Neutral	$854.11M	18.21	15.57%	3.79%	-21.75%	―

* Consumer Cyclical Sector Average

Performance Comparison

CAL

Caleres

15.26

-19.20

-55.72%

CROX

Crocs

90.72

-30.36

-25.07%

RCKY

Rocky Brands

12.84

-12.45

-49.23%

SHOO

Steven Madden

19.90

-17.82

-47.24%

WEYS

Weyco Group

28.97

2.90

11.12%

WWW

Wolverine World Wide

10.79

1.44

15.40%

Caleres Earnings Call Summary

Earnings Call Date: Mar 20, 2025 | % Change Since: -6.50% | Next Earnings Date: May 22, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook for Caleres, Inc. The company highlighted strong performance from its Lead Brands, recognition for excellence, and strategic supply chain shifts. However, these were offset by sales declines, challenges in Famous Footwear, and gross margin pressure influenced by tariffs. The overall sentiment reflects a balanced view with both positive achievements and significant challenges.

Highlights

Recognition for Excellence

Caleres was honored with the Nordstrom Vendor Partner and Excellence Award for Footwear in 2024, highlighting the strength of its brands and team.

Lead Brands Performance

Lead Brands, including Sam Edelman, Allen Edmonds, Naturalizer, and Vionic, outperformed, representing over 50% of the segment's sales and profit.

Strategic Supply Chain Shift

By mid-2025, Caleres expects about 75% of its direct product sourcing to be outside of China, ahead of previous goals.

Full-Year Adjusted Earnings Per Share

Caleres delivered full-year adjusted earnings per share of $3.30, at the high end of its most recent guidance.

Vionic's Strong Performance

Vionic delivered a strong quarter with sales driven by hybrid and casual sports styles, and expanded its product innovation with new sneaker launches.

Lowlights

Sales Decline

Fourth quarter sales were down approximately 4% compared to the previous year, with Brand Portfolio sales declining 7.2%.

Challenges in Famous Footwear

Famous Footwear's comp-store sales were down 2.9%, with brick-and-mortar sales down 4.1%.

Gross Margin Pressure

Fourth quarter consolidated gross margin decreased by 80 basis points to last year, impacted by higher discounts and markdown allowances.

Disappointing Year Relative to Expectations

2024 was overall disappointing relative to initial expectations, with meaningful progress needed in strategic priorities.

Impact of Tariffs

Caleres anticipates gross margin pressure due to tariffs, with a 30-40 basis point impact expected on Brand Portfolio.

Company Guidance

In the fourth quarter of 2024, Caleres, Inc. reported adjusted earnings per share of $0.33, and for the full year, adjusted earnings per share was $3.30, both at the high end of their guidance. Sales in the fourth quarter decreased by approximately 4% year-over-year, excluding the impact of the 53rd week. The Brand Portfolio segment saw a 7.2% decline in sales, or 5% excluding the 53rd week. Famous Footwear's comparable store sales fell by 2.9%, with a 4.1% decline in brick-and-mortar sales and a 3.1% increase in web sales. For fiscal year 2025, Caleres anticipates consolidated sales to be between a 1% decrease and a 1% increase, with Famous Footwear sales expected to decrease in the low-single digits and Brand Portfolio sales to grow by 1% to 2%. The operating margin for 2025 is projected to be between 5.1% and 5.6%, with earnings per diluted share ranging from $2.80 to $3.20. The company plans to invest $50 million to $55 million in capital expenditures, and it anticipates about 75% of its direct product sourcing to shift outside of China by the end of the second quarter in 2025.

Caleres Corporate Events

M&A TransactionsBusiness Operations and Strategy

Caleres Acquires Stuart Weitzman for $105 Million

Positive

Feb 19, 2025

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.

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.