Caleres Inc. (NYSE:CAL) Earnings Report Highlights

• Caleres Inc. (NYSE:CAL) reported an EPS of $0.22, missing the estimated $0.37 and marking a significant decline from the previous year.
• The company's revenue for Q1 2025 was $614.2 million, slightly below expectations and showing a 6.8% decrease year-over-year.
• Despite challenges, Caleres maintains a low valuation with a P/E ratio of approximately 4.21 and shows reasonable short-term financial stability.

Caleres Inc. (NYSE:CAL), a prominent player in the footwear industry, known for its diverse portfolio of consumer-driven brands, recently announced its financial results for the first quarter of 2025, revealing some challenges in meeting market expectations. Despite its established presence, Caleres faces competition from other major footwear retailers, which adds pressure to its financial performance.

On May 29, 2025, Caleres reported earnings per share (EPS) of $0.22, which was below the estimated $0.37. This represents a significant decline from the $0.88 per share reported in the same quarter last year, as highlighted by Zacks. The earnings report reflects a negative surprise of 40.54%, indicating that the company's performance fell short of market expectations.

In terms of revenue, Caleres posted $614.2 million for the quarter ending April 2025, slightly below the estimated $622.1 million. This marks a 6.8% decrease compared to the same period last year, when the company reported $659.2 million in revenue. Over the past four quarters, Caleres has consistently failed to meet consensus revenue estimates, which may concern investors.

Despite these challenges, Caleres maintains a relatively low valuation with a price-to-earnings (P/E) ratio of approximately 4.21. The company's price-to-sales ratio is 0.17, suggesting that investors are paying 17 cents for every dollar of sales. Additionally, the enterprise value to sales ratio is 0.46, reflecting the company's total valuation relative to its sales.

Caleres' financial health is further supported by an enterprise value to operating cash flow ratio of 12.10, indicating efficient cash flow generation. The company's debt-to-equity ratio stands at 1.38, showing a moderate level of debt financing. With a current ratio of 1.10, Caleres has a slightly higher level of current assets compared to its current liabilities, suggesting reasonable short-term financial stability.

On Thursday, September 12, 2024, Caleres Inc. (NYSE:CAL), a prominent footwear company known for owning brands like Famous Footwear and Allen Edmonds, reported its earnings before the market opened. The company's revenue for the quarter was approximately $683.3 million, which did not meet the expected $723.8 million. This shortfall in revenue reflects the challenges Caleres faced during the quarter, including weak demand and operational issues.

During its Q2 2024 Earnings Conference Call, Caleres' executives, including CEO Jay Schmidt, discussed the factors contributing to the company's disappointing financial performance. Notably, the company experienced a 1.8% year-over-year decrease in revenue and a significant drop in earnings per share (EPS) to 85 cents, which was more than 30% below the consensus estimate of analysts. This decline in performance was attributed to a delayed back-to-school sales period and challenges with a new enterprise resource planning system, among other issues.

Despite a modest 1.5% increase in unit sales at Famous Footwear, the company's overall sales were negatively impacted by a 2.9% decline in comparable-store sales and a 5.1% drop in sales within its Brand Portfolio segment. These figures highlight the struggles Caleres faced in attracting customers and managing its operations efficiently during the quarter.

In response to these challenges, Caleres has adjusted its full-year outlook downwards, indicating a cautious stance on its future performance. The company's executives, including CEO Jay Schmidt, have acknowledged the impact of weak seasonal demand and operational difficulties on Caleres' financial health. This adjustment in guidance reflects the company's realistic assessment of the obstacles it faces and its efforts to navigate through them.

Financial metrics such as the price-to-earnings (P/E) ratio of approximately 6.31 and the price-to-sales (P/S) ratio of around 0.38 suggest that Caleres' stock might be undervalued, presenting a potentially attractive opportunity for investors. However, the company's moderate level of debt, as indicated by a debt-to-equity (D/E) ratio of roughly 0.84, and its reasonable ability to meet short-term obligations, with a current ratio of about 1.09, are important factors for investors to consider when evaluating Caleres' financial stability and growth prospects.