Caleres Reports First Quarter 2025 Results

ST. LOUIS--(BUSINESS WIRE)--May 29, 2025--

Caleres (NYSE: CAL), a market-leading portfolio of consumer-driven footwear brands, today reported financial results for the first quarter 2025.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250529694928/en/

“While our brands continue to resonate with consumers and both segments of our business gained market share in the period, our first quarter results fell short of expectations. February sales were particularly weak, and although trends improved in March and April, overall performance was below plan. Furthermore, operating earnings were pressured by lower gross margins, increased reserves, and costs to cancel and move inventory,” said Jay Schmidt, president and chief executive officer. “Despite the weak quarter, we did experience improving momentum at retail and growth in our strategically important international business.”

“The operating environment has become more challenging, and we must redouble our efforts to drive growth and profitability. In the near term, we are focused on controlling what we can control, including optimizing our sourcing strategy. Additionally, we expect to decrease SG&A by $15 million on an annualized basis through structural expense cuts. We are viewing this as an opportunity to strengthen Caleres and position our company for the future,” said Schmidt. “Longer term, we are confident in our ability to get back on track, execute our strategic plan, invest to fuel our growth initiatives, and drive sustained value for our shareholders.”

First Quarter 2025 Results

(13-weeks ended May 3, 2025 compared to 13-weeks ended May 4, 2024)

Capital Allocation Update

During the quarter, Caleres continued to invest in value-driving growth opportunities while at the same time returning cash to shareholders through our dividend. We also repurchased 300,000 shares at an average price of $16.81 per share to offset dilution from stock-based compensation. Given the current challenging environment and the planned acquisition of Stuart Weitzman later this year, the company is re-evaluating its capital spending plans. Caleres will continue to consider business performance and market conditions as it evaluates all opportunities for free cash flow as the year progresses, including share repurchases.

Fiscal 2025 Outlook

Given the uncertainty in the environment, the company is suspending guidance.

Investor Conference Call

Caleres will host a conference call at 10:00 a.m. ET today, Thursday, May 29, 2025. The webcast and associated slides will be available at investor.caleres.com/events-and-presentations. A live conference call will be available at (877) 704-4453 for North America participants or (201) 389-0920 for international participants, no passcode necessary. A replay will also be available at investor.caleres.com/events-and-presentations for a limited period. Investors can access the replay through June 12, 2025 by dialing (844) 512-2921 in North America or (412) 317-6671 internationally and using the conference pin 13753803.

Definitions

All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings attributable to Caleres, Inc. and diluted earnings per common share attributable to Caleres, Inc. shareholders, are presented as net earnings and earnings per diluted share, respectively.

Non-GAAP Financial Measures and Metrics

In this press release, the company’s financial results are provided both in accordance with generally accepted accounting principles (GAAP) and using certain non-GAAP financial measures and metrics. In particular, the company provides earnings before interest, taxes, depreciation and amortization (EBITDA) and estimated and future operating earnings, net earnings and earnings per diluted share, adjusted to exclude certain gains, charges and recoveries, which are non-GAAP financial measures, and the debt to EBITDA leverage ratio, which is a non-GAAP financial metric. These results are included as a complement to results provided in accordance with GAAP because management believes these non-GAAP financial measures and metrics help identify underlying trends in the company’s business and provide useful information to both management and investors by excluding certain items that may not be indicative of the company’s core operating results. These measures and metrics should not be considered a substitute for or superior to GAAP results.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains certain forward-looking statements and expectations regarding the company’s future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) changes in United States and international trade policies, including tariffs and trade restrictions; (ii) changing consumer demands, which may be influenced by general economic conditions and other factors; (iii) inflationary pressures and supply chain disruptions; (iv) rapidly changing consumer preferences and purchasing patterns and fashion trends; (v) supplier concentration, customer concentration and increased consolidation in the retail industry; (vi) intense competition within the footwear industry; (vii) foreign currency fluctuations; (viii) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (ix) cybersecurity threats or other major disruption to the company’s information technology systems including those related to our ERP upgrade; (x) transitional challenges with acquisitions and divestitures; (xi) the ability to accurately forecast sales and manage inventory levels; (xii) a disruption in the company’s distribution centers; (xiii) the ability to recruit and retain senior management and other key associates; (xiv) the ability to secure/exit leases on favorable terms; (xv) the ability to maintain relationships with current suppliers; (xvi) changes to tax laws, policies and treaties; (xvii) our commitments and shareholder expectations related to responsible business initiatives; (xviii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xix) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights.

The company's reports to the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation, the information under the caption Risk Factors in Item 1A of the company’s Annual Report on Form 10-K for the year ended February 1, 2025, which information is incorporated by reference herein and updated by the company’s Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change.

 

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President Donald Trump tried to put some teeth into his latest attempt to save college sports.

The threat of cutting funding to cash-starved schools that don’t comply is real, even if the stricter rules that come out of the executive order he signed Friday could take a while to figure out.

In the order signed hours before the women’s Final Four tipped off one of the biggest weekends in college sports Trump went after eligibility rules, transfers and the spiraling costs associated with an industry that now pays its players millions of dollars per year.

He called on federal agencies to ensure schools are following the rules and threatened to choke off federal grants and funding, a similar approach his administration has taken to force universities around the country to alter policies involving diversity, equity and inclusion, transgender rights and even the kinds of classes they offer.

In some ways, forcing those changes might seem like child’s play once college sports figures this out. The NCAA, the newly created College Sports Commission, the four power conferences, dozens more smaller ones and hundreds of educational institutions all have a say here: It’s a big reason Congress, which Trump instructed to act quickly, has been stuck for more than a year on this.

Trump’s order was his second since one last July and it was a laundry list of proposed fixes, many of which lawmakers and college leaders have been pushing for since the approval of a $2.8 billion settlement changed the face of games that were once played by pure amateurs.

He called for “clear, consistent and fair eligibility limits, including a five-year participation window," and wants to limit athletes to one transfer with one more available once they get a four-year degree.

At a college sports roundtable last month, Trump said he anticipated any order he signed would trigger litigation. Athletes have largely won the freedom to transfer almost at will via the portal along with the ability to be paid by schools that are now doling out more than $20 million a year to their athletes.

As much as the changes he directs, Trump’s call for the Education Department, the Federal Trade Commission and the attorney general’s office to evaluate “whether violations of such rules render a university unfit for Federal grants and contracts” stands out as a way to force change.

Several universities across the country have made policy changes to comply with federal orders and avoid funding-related showdowns with the government. Yet big-named schools like Penn State and Florida State are facing huge debts.

“I haven’t read it, obviously, but I certainly appreciate his interest in the issue," NCAA President Charlie Baker said at the women's Final Four in Phoenix. "And from what I saw, some of the social media traffic, it’s pretty clear that he made clear that we need congressional action to sort of seal the deal on a number of these things, which is good, because we do.”

ACC Commissioner Jim Phillips praised the president's order, saying “there continues to be significant momentum to preserve the athletic and academic opportunities for the next generation of student-athletes and we appreciate the ongoing efforts.”

Attorney Mit Winter, who follows college sports law, said the order is likely to set up a situation where the NCAA and schools have to decide whether to follow a federal court order or an executive order.

“Federal court orders prohibit the NCAA from making athletes sit out a season if they transfer more than once and prohibit the NCAA from enforcing rules that limit collectives from being involved in recruiting,” he said. "The EO appears to direct the NCAA to create rules that would likely violate both of these court orders. Will the NCAA create rules that do that? And if they do, will schools follow them?

"Either way, we’re likely going to see litigation challenging the EO by athletes and third parties.”

Winter added that the order also appears to urge schools to pay new revenue share amounts.

“Most schools are paying 90-95% of their rev-share funds to men's basketball and football players,” he said. "And those funds are already promised via contracts signed with those athletes. Will the order purport to make schools not adhere to those contracts?”

AP Sports Writers Maura Carey, David Brandt and Eric Olson contributed.

Get poll alerts and updates on the AP Top 25 throughout the season. Sign up here. AP college football: https://apnews.com/hub/ap-top-25-college-football-poll and https://apnews.com/hub/college-football

President Donald Trump pauses as he finishes speaking about the Iran war from the Cross Hall of the White House on Wednesday, April 1, 2026, in Washington. (AP Photo/Alex Brandon, Pool)