Caleres, Inc. (CAL) | Investment Case

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

Last Price	12.15
Change Percentage	-2.57%
Open	12.42
Previous Close	12.47
Market Cap ( Millions)	412
Volume	443915
Year High	18.27
Year Low	9.54
M A 50	13.06
M A 200	13.65

FCF Yield	-8.98%
Dividend Yield	2.30%
ROE	3.39%
Debt / Equity	77.82%
Net Debt / EBIDTA	530.68%
Price To Book	0.64
Price Earnings Ratio	19.17
Price To FCF	-11.14
Price To sales	0.15
EV / EBITDA	10.21

2. Caleres' Q3 2025 Earnings: Tariffs Weigh on Profitability

Caleres reported sales of $790.1 million, up 6.6% year-over-year, with organic sales increasing 0.4% excluding the acquisition of Stuart Weitzman. The company's consolidated gross margin was 42.7%, down 140 basis points from last year, primarily due to higher tariff-related costs and an unfavorable wholesale customer mix. Operating earnings were $26.3 million, and operating margin was 3.3%. The actual EPS came out at $0.67, below estimates of $0.75.

Publication Date: Dec -20

                                    📋 Highlights
                                    Stuart Weitzman Acquisition Impact::
                                                Added 18.8% to brand portfolio sales growth, but diluted Q3 earnings by $0.35–$0.40 per share.
Brand Portfolio Strength::
                                                Sam Edelman drove double-digit sales growth domestically and internationally, while Allen Edmonds saw positive comp store sales.
Tariff Pressure::
                                                Gross margin fell 140 bps to 42.7% due to $65M annualized tariff impact, with $40M mitigated through cost actions.
Famous Footwear E-commerce::
                                                Double-digit e-commerce growth for second consecutive quarter, offsetting 2.2% overall sales decline.

                                

Segment Performance

The brand portfolio was a highlight, with double-digit e-commerce performance in both segments. Sam Edelman delivered double-digit sales growth domestically and internationally, while Allen Edmonds saw positive comp store sales and solid e-commerce trends. Famous Footwear's sales were down 2.2%, with comp sales declining 1.2%, but e-commerce sales were up double digits for the second straight quarter.

Tariff Impact and Guidance

The company expects tariffs to continue weighing on results in the fourth quarter, with an annualized unmitigated tariff impact of approximately $65 million on the Brand Portfolio segment. Caleres expects consolidated gross margin to be down 75 to 100 basis points versus last year and is guiding to a loss per share in the range of $0.35 to $0.40, including 30¢ to 35¢ of dilution from Stuart Weitzman.

Outlook and Valuation

For 2026, Caleres is targeting organic growth, particularly in lead brands, and expects to drive growth through lead brand strength, SG&A savings, and improvements in gross margin. With a P/E Ratio of 20.8 and an EV/EBITDA of 10.62, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 1.0%. The company's ROE is 3.39%, and ROIC is 3.52%, indicating a challenging operating environment.

Stuart Weitzman Acquisition

The acquisition of Stuart Weitzman is a significant factor, with the brand's inclusion adding 18.8% to the brand portfolio's sales growth. Caleres is working to achieve a better 2026 through gross margin improvement, SG&A reductions, and savings in distribution, logistics, and retail stores. The team is also focused on disposing of aged inventory in a way that doesn't damage the brand.

3. NewsRoom

June Ambrose Creates STYLE-LETICS, a Sport-Infused Shoe Capsule for Naturalizer

Feb -04

Source: businesswire.com

Kristen Sosa Joins Caleres as Division President of New York Brands

Feb -03

Source: businesswire.com

New Strong Sell Stocks for February 3rd

Feb -03

Source: zacks.com

Y Intercept Hong Kong Ltd Takes Position in Caleres, Inc. $CAL

Feb -01

Source: defenseworld.net

New Strong Sell Stocks for January 29th

Jan -29

Source: zacks.com

AV and CAL Analytics Launch Operational BVLOS Airspace Management Facility in Partnership with the U.S. Air Force and Ohio Department of Transportation

Jan -27

Source: businesswire.com

Caleres Announces CFO Transition

Jan -21

Source: businesswire.com

STUART WEITZMAN EXPANDS "STUART WEITZMAN NEW YORK" WITH NEW MEN'S CAMPAIGN

Jan -13

Source: prnewswire.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

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

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Weyco

A-Score: 6.4/10

Value: 7.1

Growth: 5.9

Quality: 7.1

Yield: 10.0

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

Ethan Allen

A-Score: 6.1/10

Value: 6.8

Growth: 3.8

Quality: 6.5

Yield: 10.0

Momentum: 2.5

Volatility: 7.0

1-Year Total Return ->

Rocky Brands

A-Score: 5.7/10

Value: 7.9

Growth: 5.6

Quality: 5.3

Yield: 4.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

Wolverine World Wide

A-Score: 3.6/10

Value: 5.0

Growth: 2.8

Quality: 5.1

Yield: 4.0

Momentum: 2.5

Volatility: 2.3

1-Year Total Return ->

Caleres

A-Score: 3.5/10

Value: 7.9

Growth: 3.7

Quality: 3.5

Yield: 3.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

Vera Bradley

A-Score: 2.9/10

Value: 10.0

Growth: 0.7

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

20.53%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.27%

Caleres, Inc. - US1295001044

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CAL

1.c. Company Highlights

Strong Momentum

Average Growth

Average Quality

Earnings Miss

Fairly Valued

Stable Momentum

Average Yield

Revenues Miss

Medium Volatility

Revenues Beats

Cheaper

Earnings Beats

Weak Momentum

2. Caleres' Q3 2025 Earnings: Tariffs Weigh on Profitability

Segment Performance

Tariff Impact and Guidance

Outlook and Valuation

Stuart Weitzman Acquisition

3. NewsRoom

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%

Brand Portfolio

Expected Growth: 2.8%

Eliminations and Other

Expected Growth: 1.5%

7. Detailed Products

Allen Edmonds

Dr. Scholl's

Vionic

Sam Edelman

Naturalizer

LifeStride

Blowfish Malibu

Clarks

8. Caleres, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.15$

Current Price

12.15$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA