Caleres, Inc. (CAL)

Caleres, Inc. (CAL) Consumer Business Overview

Caleres, Inc. (CAL) is a footwear company with a diverse portfolio of owned and licensed brands, operating through retail and wholesale channels. With its Famous Footwear segment and a range of brands catering to various consumer segments, Caleres competes in the apparel and footwear industry, balancing brand management and retail operations.

What Is the Investment Thesis for CAL?

Caleres, Inc. presents a mixed investment thesis. The company's diverse brand portfolio and established retail presence through Famous Footwear provide a stable revenue base. However, the company's recent profit margin of -0.3% raises concerns about profitability. A potential catalyst is the expansion of its e-commerce platforms, which could drive revenue growth. The company's dividend yield of 2.07% may attract income-seeking investors. Key risks include fluctuating consumer demand and intense competition in the footwear industry. Investors should monitor the company's ability to improve profitability and manage its brand portfolio effectively.

Based on FMP financials and quantitative analysis

CAL Key Highlights

• Market Cap of $390.98M reflects its current valuation in the competitive footwear market.
• Gross Margin of 43.0% indicates the company's ability to manage production costs and pricing strategies.
• Dividend Yield of 2.07% offers a potential income stream for investors.
• Operates approximately 980 retail stores, providing a significant retail footprint.
• Beta of 0.59 suggests lower volatility compared to the broader market.

Who Are CAL's Competitors?

CAL is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CAL's Key Strengths?

• Diverse brand portfolio.
• Extensive retail network.
• Established e-commerce platforms.
• Strong supply chain capabilities.

What Are CAL's Weaknesses?

• Negative profit margin.
• Dependence on brand-name products.
• Exposure to fashion trends.
• Intense competition.

What Could Drive CAL Stock Higher?

• Expansion of e-commerce platforms to drive online sales growth.
• Strategic brand portfolio management to optimize profitability.
• Potential partnerships with international retailers to expand global presence.
• Launch of new sustainable product lines to attract environmentally conscious consumers.

What Are the Key Risks for CAL?

• Rich valuation — a P/E of 1436.6 runs well above the Consumer Cyclical sector’s ~39x, leaving little room for a miss.
• Fluctuations in consumer demand due to economic conditions.
• Intense competition from other footwear retailers and brands.
• Supply chain disruptions affecting production and distribution.
• Changes in fashion trends impacting brand popularity.

What Are the Growth Opportunities for CAL?

• Expansion of E-commerce Platforms: Caleres has the opportunity to further expand its e-commerce platforms for brands like Naturalizer, Sam Edelman, and Allen Edmonds. The global e-commerce market is projected to reach trillions of dollars in the coming years, offering a significant growth avenue for Caleres. By enhancing its online presence and digital marketing efforts, the company can reach a broader customer base and drive online sales, potentially increasing revenue by 10-15% over the next three years.
• Strategic Brand Portfolio Management: Caleres can optimize its brand portfolio by focusing on high-growth brands and divesting underperforming ones. By investing in marketing and product development for brands like Ryka and Dr. Scholl's Shoes, the company can capitalize on specific market segments and consumer trends. A well-managed brand portfolio can enhance overall profitability and market share, potentially improving gross margins by 2-3% within two years.
• International Market Expansion: Caleres has the opportunity to expand its presence in international markets, particularly in Asia and Europe. By establishing partnerships with local retailers and distributors, the company can enter new markets with minimal capital investment. The global footwear market is growing rapidly, and expanding internationally can diversify revenue streams and reduce reliance on the domestic market, potentially increasing international sales by 20% over the next five years.
• Enhancing Customer Experience: Caleres can enhance the customer experience in its retail stores and online platforms by offering personalized services, loyalty programs, and seamless omnichannel shopping experiences. By leveraging data analytics and customer feedback, the company can tailor its product offerings and marketing efforts to meet individual customer needs. Improved customer experience can drive customer loyalty and repeat purchases, potentially increasing same-store sales by 3-5% annually.
• Product Innovation and Sustainability: Caleres can invest in product innovation and sustainability initiatives to appeal to environmentally conscious consumers. By developing eco-friendly footwear using recycled materials and sustainable manufacturing processes, the company can differentiate itself from competitors and attract a growing segment of consumers who prioritize sustainability. Sustainable products can command premium prices and enhance brand reputation, potentially increasing revenue from sustainable products by 15-20% over the next four years.

What Opportunities Does CAL Have?

• Expansion of e-commerce platforms.
• Strategic brand portfolio management.
• International market expansion.
• Product innovation and sustainability initiatives.

What Threats Does CAL Face?

• Fluctuating consumer demand.
• Economic downturns.
• Changing fashion trends.
• Increased competition from online retailers.

What Are CAL's Competitive Advantages?

• Established Brand Portfolio: A diverse portfolio of owned and licensed brands provides a competitive advantage.
• Extensive Retail Network: Approximately 980 retail stores offer a significant retail presence.
• E-commerce Capabilities: Online platforms enhance reach and customer engagement.
• Supply Chain Expertise: Decades of experience in sourcing and manufacturing footwear.

What Does CAL Do?

Caleres, Inc., originally founded as Brown Shoe Company in 1878 and headquartered in St. Louis, Missouri, has evolved into a global footwear company. It operates through two primary segments: Famous Footwear and Brand Portfolio. The Famous Footwear segment focuses on providing brand-name athletic, casual, and dress shoes through its retail stores. These stores feature brands like Nike, Skechers, Adidas, Vans, Converse, Crocs, Puma, Birkenstock, New Balance, Asics, Under Armour, Bearpaw, Timberland, Sperry, and Dr. Martens. The Brand Portfolio segment designs, sources, manufactures, and markets a range of owned and licensed brands, including Dr. Scholl's Shoes, Blowfish Malibu, LifeStride, Naturalizer, Zodiac, Circus by Sam Edelman, Franco Sarto, and Ryka. These brands are distributed through various channels, including national chains, online retailers, department stores, mass merchandisers, independent retailers, and catalogs. Caleres also operates e-commerce platforms for several of its brands, such as naturalizer.com, vionicshoes.com, samedelman.com, and allenedmonds.com. With approximately 980 retail stores, Caleres has a significant presence in the United States, Canada, China, and Guam, offering footwear for women, men, and children.

What Products and Services Does CAL Offer?

• Retail of brand-name athletic, casual, and dress shoes through Famous Footwear stores.
• Design, sourcing, manufacturing, and marketing of owned and licensed footwear brands.
• Wholesale of footwear to national chains, online retailers, department stores, and independent retailers.
• Operation of e-commerce platforms for brands like Naturalizer, Sam Edelman, and Allen Edmonds.
• Distribution of men's apparel, leather goods, and accessories under the Allen Edmonds brand.
• Offering footwear for women, men, and children.

How Does CAL Make Money?

• Retail sales through Famous Footwear stores.
• Wholesale distribution of owned and licensed brands.
• E-commerce sales through brand-specific websites.
• Licensing of brands to other manufacturers and retailers.

What Industry Does CAL Operate In?

Caleres operates in the competitive apparel and footwear industry, which is characterized by evolving consumer preferences and intense competition. The industry is influenced by fashion trends, economic conditions, and technological advancements in e-commerce. Caleres competes with other major footwear retailers and brands, both domestically and internationally. The company's success depends on its ability to innovate, manage its brand portfolio effectively, and adapt to changing consumer demands. The global footwear market is expected to continue growing, driven by increasing disposable incomes and urbanization in emerging markets.

Who Are CAL's Key Customers?

• Consumers seeking brand-name athletic, casual, and dress shoes.
• Retailers purchasing footwear for resale.
• Online shoppers looking for a variety of footwear brands.
• Department stores and mass merchandisers.

FY2027 estForward Outlook

Wall Street analysts project Caleres, Inc. revenue of about $2.87B for fiscal 2027, with EPS near $1.63. The estimate reflects 3 contributing analysts.

F-Score 6/9Financial Health

Caleres, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.88 places it in the grey zone, a middle ground that warrants monitoring.

ROE 0%Key Financial Metrics

Return on equity for Caleres, Inc. stands at 0.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.0%, showing how much profit it generates from its asset base. Its free cash flow yield is 5.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.03 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 0.1%, the inverse of the P/E and a quick read on earnings relative to price.

Caleres, Inc. (CAL) Valuation Context

Valued at $390.98M, CAL is classified as a small-cap stock. Relative to its peer group, CAL's quantitative score of 35/100 is below the peer average of 56/100.

CAL Revenue & Earnings Trend

In Q2 2026, CAL generated $666.6M in top-line revenue, marking a sequential decrease of 4.1%. The company recorded net income of $14.3M, with diluted EPS of $0.44. Revenue has contracted over three consecutive quarters, which investors in this small-cap Consumer Cyclical stock should monitor closely. Across the four most recent quarters, CAL averaged $0.00 in diluted EPS.

Company Profile

Caleres, Inc. operates in the Apparel - Footwear & Accessories industry within the Consumer Cyclical sector. It is headquartered in Saint Louis, US. The company is led by CEO John W. Schmidt. CAL has traded publicly since 1980.

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Common Questions About CAL (Consumer Cyclical)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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