Store Operations - Famous Footwear segment operated 821 stores at the end of 2025, with a plan to open approximately 15 new locations and close about 25 in 2026[16] - The Brand Portfolio segment includes 81 stores in the U.S., four in Canada, and 103 in East and Southeast Asia at the end of 2025[16] - The number of owned Brand Portfolio retail stores increased to 188 by the end of 2025, up from 114 in 2024[44] - The company expects to open approximately two new Allen Edmonds stores and close approximately five stores in 2026[44] - The company operated 188 retail stores at the end of 2025, with plans to open new stores in 2026, including two new Allen Edmonds stores[44] Sales Composition - Net sales composition for 2025: women's footwear 61%, men's footwear 21%, children's footwear 12%, clothing and accessories 6%[17] - Approximately 5% of Famous Footwear segment's net sales come from company-owned and licensed products sold by the Brand Portfolio segment[19] - Products sold under license agreements accounted for approximately 14% of the sales of the Brand Portfolio segment in 2025 and 2024, and 13% in 2023[42] - The Brand Portfolio segment sold approximately 32 million pairs of shoes on a wholesale basis during 2025[42] Marketing and Advertising - In 2025, Famous Footwear spent approximately $58.2 million on advertising and marketing efforts[25] - The company spent approximately $93 million in advertising and marketing support for the Brand Portfolio segment in 2025[46] - Marketing expenditures for the Brand Portfolio segment in 2025 were approximately $93 million, focusing on digital marketing and consumer insights[46] E-commerce and Technology - Famous Footwear's e-commerce platform allows for orders to be ready for pickup within an hour, with retail stores fulfilling about two-thirds of e-commerce orders[20] - Famous Footwear's e-commerce channels include famousfootwear.com and famousfootwear.ca, which fulfill about two-thirds of all e-commerce orders not picked up in-store[20] - The company operates 15 branded e-commerce websites, offering a product selection similar to that sold to wholesale customers[44] Product Pricing and Range - The average retail price points for Sam Edelman products range from $100 to $300, while Allen Edmonds products range from $300 to $595[28][31] - The average retail price points for Famous Footwear range from $20 for shoes to $350 for boots[19] - The Brand Portfolio segment includes brands like Vionic, Naturalizer, and Dr. Scholl's Shoes, with price points ranging from $50 to $995[29][30][32] Sourcing and Supply Chain - In 2025, the sourcing operations sourced approximately $451.0 million of shoes, with Vietnam accounting for $284.7 million[50] - The backlog of unfilled wholesale orders was approximately $332.2 million as of January 31, 2026, compared to $260.2 million as of February 1, 2025[51] Employee and Workplace Initiatives - The company has approximately 10,000 employees, with 5,000 full-time and 5,000 part-time as of January 31, 2026[53] - The company emphasizes a comprehensive benefits package for employees, including competitive salaries, health insurance, retirement plans, and education assistance[54] - Health and safety training is mandatory for newly hired associates, ensuring a focus on workplace safety and well-being[55] Sustainability and Corporate Responsibility - The company aims to use environmentally preferred materials in its products and packaging as part of its responsible business initiatives[57] - The company is committed to responsible business initiatives, aiming to eliminate waste in manufacturing and extend product life through donation and reuse programs[56] - The company is striving to use environmentally preferred materials and ensure compliance with global labor standards in its supply chain[57] - The company plans to publish its next responsible business report in spring 2026, reflecting ongoing commitments to sustainability[57] Market Dynamics - The retail market is highly fragmented, with competition from various brick-and-mortar and e-commerce businesses, necessitating improvements in shipping costs and speeds[58] - The wholesale footwear business has low barriers to entry, intensifying competition among suppliers[59] - The company's business is seasonal, with higher sales during back-to-school and holiday seasons, although earnings distribution has become more balanced across quarters in recent years[60] Profitability Expectations - The company anticipates new stores will reach normal profitability within approximately four years[23] - The company anticipates that new stores typically reach a normal level of profitability within approximately four years[23]

Group 1 - Caleres, Inc. (CAL) reported Q4 '25 results with more negatives than positives, yet the stock price increased by almost 20% the day after the release [1] - The stock rally is attributed to long-only investment strategies that focus on operational aspects and long-term earnings potential rather than market-driven dynamics [1] - Quipus Capital emphasizes a buy-and-hold perspective, suggesting that only a small fraction of companies should be considered a buy at any time, while most recommendations will be holds [1] Group 2 - The article highlights the importance of understanding competitive dynamics within industries and the long-term earnings power of companies [1] - Hold articles are intended to provide valuable information for future investors and introduce a healthy skepticism in a generally bullish market [1]

Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing its offerings in this area [1] Group 1 - The company publishes thousands of quarterly earnings calls each quarter, showcasing its extensive coverage and growth in the transcript publishing sector [1]

Core Insights - Caleres reported strong fourth quarter earnings, exceeding estimates on both revenue and adjusted loss per share, leading to a 9.2% increase in stock price [1][2] Financial Performance - Revenue increased by 8.7% to $695.1 million, surpassing estimates of $685.4 million [1] - Brand portfolio sales rose by 20.3%, with a 1.5% increase on an organic basis, while comparable sales at Famous Footwear grew by 0.1% [2] - E-commerce sales on company-owned platforms also saw double-digit growth [2] - Adjusted gross margin decreased by 10 basis points to 42.9%, which was better than the company's expectations [2] - The adjusted loss was reported at $0.36 per share, better than the consensus estimate of a $0.40 loss, but worse than the $0.33 profit from the previous year [2] Challenges and Future Outlook - Year-over-year comparisons faced challenges due to tariffs and the acquisition of the loss-generating Stuart Weitzman brand; excluding this brand, the adjusted loss per share was $0.06 [3] - CEO Jay Schmidt expressed optimism for 2026, predicting modest organic sales growth and significant earnings recovery [3] - For the full year 2026, management anticipates net sales growth in the low to mid-single digits and adjusted EPS of $1.35-$1.65, compared to $0.61 in 2025 [3] Valuation - Caleres trades at less than $10, with a P/E ratio of approximately 6 based on the EPS forecast, suggesting potential for stock appreciation if growth is achieved [4]

Core Viewpoint - Caleres shares are experiencing a significant rally, attributed to better-than-expected earnings and strong performance in e-commerce and international markets [1][4]. Earnings Snapshot - The adjusted EPS loss was 36 cents, an improvement from an EPS of 33 cents, and better than the consensus loss of 40 cents [1]. - Excluding Stuart Weitzman, the adjusted loss per share was six cents [1]. - Direct-to-consumer sales accounted for approximately 74% of total net sales for the quarter [1]. Financial Performance - Gross profit reached $290.3 million, with a gross margin of 41.8%, down 230 basis points year-over-year; the adjusted gross margin was 42.9%, down 10 basis points year-over-year [2]. - At year-end, cash and cash equivalents stood at $29.8 million, while inventory was $610.5 million [2]. Segment Performance - The Brand Portfolio segment net sales increased by 20.3% year-over-year to $361.2 million, with a 1.5% increase excluding Stuart Weitzman; adjusted operating earnings were $8.73 million, down from $28.3 million [3]. - The Famous Footwear segment saw net sales decline by 1.2% year-over-year to $354.0 million, with comparable sales up 0.1% year-over-year; adjusted operating earnings were $3.0 million, down from $6.7 million [3]. - Owned e-commerce sales across Famous Footwear and Brand Portfolio increased by double digits [3]. Strategic Insights - The performance was driven by strong owned e-commerce and international growth, with the company gaining market share in women's fashion footwear and total footwear [4]. - The integration of Stuart Weitzman was completed with minimal disruption, and Famous Footwear's FLAIR remodels are outperforming the fleet [5]. Outlook - For FY26, Caleres expects adjusted EPS in the range of $1.35 to $1.65, compared to the consensus of $1.51, with net sales projected to grow in the low to mid-single digits [5]. - For the first quarter of FY26, the company anticipates adjusted EPS of 25 to 30 cents, exceeding the street view of 20 cents, with net sales also expected to increase in the low to mid-single digits [6]. Stock Performance - Caleres shares were up 8.92% at $9.65 at the time of publication [6].

Financial Data and Key Metrics Changes - For the fourth quarter, sales were $695.1 million, up 8.7% year-over-year, while organic sales decreased 0.1% excluding Stuart Weitzman [19] - Consolidated gross margin was 42.9%, down 10 basis points compared to the previous year, reflecting lower margins in the brand portfolio [20] - SG&A expenses increased by $48.3 million or 18.3% to $310 million, primarily driven by expenses related to Stuart Weitzman [21] - Fourth quarter earnings per diluted share were a loss of $0.36, while excluding Stuart Weitzman, the loss was $0.06 [22] Business Line Data and Key Metrics Changes - Brand portfolio sales increased 1.5% on an organic basis and 20.3% including Stuart Weitzman, with lead brands growing about 2% [5][19] - Famous Footwear sales decreased 1.2%, with comparable sales up 0.1%, showing slight improvement in November and December [20][12] - Sam Edelman and Allen Edmonds showed strong performance, with Sam Edelman exceeding expectations and Allen Edmonds experiencing broad-based growth across all channels [7][9] Market Data and Key Metrics Changes - The brand portfolio gained significant market share in both women's fashion footwear and total footwear during the quarter [6] - International business was strong, contributing positively to overall sales performance [5] - E-commerce continued to see outsized growth, particularly in owned channels, with double-digit growth reported [10][12] Company Strategy and Development Direction - The company views 2026 as a "build-back year," focusing on strategic growth vectors and initiatives already in place [5][16] - Plans to expand the FLAIR format in Famous Footwear, aiming for 65 to 75 locations by year-end 2026 [14] - The strategy includes elevating and editing the brand and product assortment, with a focus on premium brands [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about building market share and improving profitability, despite a volatile market environment [18] - The company is monitoring geopolitical risks and tariff changes, which could impact future performance [26] - Guidance for 2026 includes modest organic sales growth and meaningful earnings recovery, with expectations for consolidated sales to increase mid- to high single digits in Q1 [29] Other Important Information - The company successfully integrated Stuart Weitzman onto its platforms, completing the transition on time and on budget [8] - Inventory at quarter-end was $610.5 million, up $45 million from last year, with a portion attributed to Stuart Weitzman [25] Q&A Session Summary Question: Concerns about sales volatility and potential risks - Management noted that expected sales volatility did not materialize, with strong performance in other areas offsetting the impact from Saks [31][33] Question: Wholesale strategy and market share gains - Management indicated that the order book is in line with guidance, and they are prepared to move forward with their wholesale strategy [39][41] Question: Category performance and impact of external factors - Management highlighted strong performance in key brands and noted mixed results in Famous Footwear, with ongoing monitoring of external factors like weather and geopolitical issues [49][51] Question: Stuart Weitzman's break-even target - Management expressed confidence in achieving break-even for Stuart Weitzman in 2026, supported by completed cost-saving measures and inventory management [56][58]

Financial Data and Key Metrics Changes - For the fourth quarter, sales were $695.1 million, up 8.7% year-over-year, while organic sales decreased 0.1% excluding Stuart Weitzman [19] - Consolidated gross margin was 42.9%, down 10 basis points from the previous year, reflecting lower margins in the brand portfolio [20] - SG&A expenses increased by $48.3 million or 18.3% to $310 million, primarily due to expenses related to Stuart Weitzman [21] - Fourth quarter earnings per diluted share were a loss of $0.36, while excluding Stuart Weitzman, the loss was $0.06 [23] Business Line Data and Key Metrics Changes - Brand portfolio sales increased 1.5% on an organic basis and 20.3% including Stuart Weitzman, with lead brands growing about 2% [5][19] - Famous Footwear sales decreased 1.2%, with comparable sales up 0.1% [20] - Sam Edelman and Allen Edmonds showed strong performance, with Sam Edelman exceeding expectations and Allen Edmonds experiencing broad-based growth across all channels [9][10] Market Data and Key Metrics Changes - The brand portfolio gained significant market share in both women's fashion footwear and total footwear during the quarter [5] - Famous Footwear saw market share gains driven by strong performance from brands like Skechers and Jordan during the holiday season [45] Company Strategy and Development Direction - The company aims to build back earnings power in 2026, focusing on strategic growth vectors and initiatives already in place [5] - Plans to expand the FLAIR format at Famous Footwear, with expectations to increase locations from 57 to a range of 65-75 by year-end 2026 [13] - The company is committed to elevating and editing brand and product assortments to enhance consumer experience [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026 as a build-back year, with expectations of modest organic sales growth and meaningful earnings recovery [16] - The company is monitoring geopolitical risks and tariff changes, which could impact future performance [27] - Management noted that the integration of Stuart Weitzman is on track and is expected to contribute positively to profitability [60] Other Important Information - The company ended the fourth quarter with $282.9 million in cash and $296.5 million in borrowings, with inventory at $610.5 million [26] - The company is maintaining a flexible approach to sourcing amid evolving tariff environments [27] Q&A Session Summary Question: Concerns about sales volatility and tax impacts - Management acknowledged that expected sales volatility did not materialize, with strong performance in other business areas offsetting minor impacts [34] Question: Wholesale planning and market share gains - Management indicated that the order book is in line with guidance, and they are seeing positive trends in e-commerce and international sales [43] Question: Category performance and sandal sales - Management reported strong sales in sandals, particularly from brands like Birkenstock and Crocs, and noted good performance in the thong category [57] Question: Stuart Weitzman break-even expectations - Management confirmed that significant cost-saving measures have been implemented, positioning Stuart Weitzman to return to break-even in 2026 [60]

FOURTH QUARTER & FULL YEAR 2025 MARCH 19, 2026 SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation 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 restricti ...

Financial Performance - Fourth quarter net sales were $695.1 million, an increase of 8.7% year-over-year, with Brand Portfolio sales up 20.3% and organic sales up 1.5%[5] - GAAP loss per diluted share was $0.70, while adjusted loss per diluted share was $0.36; excluding Stuart Weitzman, adjusted loss per diluted share was $0.06[5] - Gross profit for the fourth quarter was $290.3 million, with a gross margin of 41.8%, down 230 basis points compared to the previous year[8] - For fiscal 2026, total sales are expected to increase low to mid-single digits, with GAAP earnings per diluted share projected between $1.31 and $1.61[12] - First quarter 2026 guidance anticipates net sales to increase mid to high-single digits, with GAAP earnings per diluted share expected to be between $0.21 and $0.26[11] - Consolidated net sales for the same period reached $695.1 million, a 8.8% increase from $639.2 million in the prior year[27] - For the fiscal year ended January 31, 2026, consolidated net sales reached $2,757.9 million, a slight increase from $2,722.7 million in the previous year[31] Profitability and Margins - Gross profit for the thirteen weeks ended January 31, 2026, was $290,340, representing a gross margin of 41.7%, compared to $275,108 and a gross margin of 43.0% in the prior year[23] - The gross profit margin for the consolidated segment was 41.8%, down from 44.1% in the previous year[27] - Gross profit for the same period was $1,184.8 million, down from $1,222.0 million, resulting in a gross margin of 43.0%, compared to 44.9% in the prior year[31] - Adjusted gross profit, excluding Stuart Weitzman, was $1,152.3 million, reflecting a decrease from $1,222.0 million[32] - Operating earnings for the fiscal year were $6.4 million, significantly lower than $149.9 million in the previous year, with an operating margin of 0.2% compared to 5.5%[31] - The adjusted operating margin for the consolidated segment was -1.7%, compared to 0.2% in the prior year, reflecting operational challenges[27] Losses and Expenses - Operating loss for the thirteen weeks ended January 31, 2026, was $(26,473), a decline from operating earnings of $7,870 in the same period last year[23] - Net loss attributable to Caleres, Inc. for the thirteen weeks ended January 31, 2026, was $(22,734), compared to net earnings of $4,930 in the prior year[23] - Total charges and other items amounted to $14.9 million, impacting adjusted earnings negatively by $0.34 per share[26] - For the thirteen weeks ended January 31, 2026, Caleres reported a net loss of $24.3 million, compared to net earnings of $3.9 million for the same period in 2025[34] - The adjusted net loss for the same period was $13.3 million, while adjusted net earnings were $10.1 million in the prior year, indicating a significant decline[35] - For the fiscal year ended January 31, 2026, Caleres, Inc. reported a net loss of $9.9 million, down from net earnings of $106.1 million in the previous year[34] Sales by Segment - Famous Footwear sales declined 1.2%, while comparable sales were up 0.1%[5] - The Famous Footwear segment reported net sales of $354.0 million, slightly down from $358.4 million in the previous year, with a comparable sales increase of 0.1%[27] - The Brand Portfolio segment achieved net sales of $361.2 million, up from $300.3 million in the prior year, indicating a significant growth[27] - Stuart Weitzman net sales were $56.3 million for the thirteen weeks ended January 31, 2026, contributing to the overall financial results[27] Operational Metrics - Direct-to-consumer sales represented approximately 74% of total net sales in the fourth quarter[8] - The integration of Stuart Weitzman was completed on time and on budget, with minimal business disruption[5] - Selling and administrative expenses were $310.0 million, or 44.6% of net sales, reflecting a deleverage of 370 basis points compared to the previous year[8] - Inventory at year-end was $610.5 million, up $45.2 million year-over-year, with approximately $57 million attributed to Stuart Weitzman[14] - Total assets increased to $1,965,790 as of January 31, 2026, up from $1,894,754 as of February 1, 2025[24] - Total current liabilities increased to $845,540 as of January 31, 2026, from $757,933 as of February 1, 2025[24] - Cash and cash equivalents at the end of the period were $29,769, slightly up from $29,636 at the beginning of the period[25] - Net cash provided by operating activities for the thirteen weeks ended January 31, 2026, was $103,177, compared to $104,562 in the prior year[25] - The company incurred $108,858 in cash outflows for the acquisition of Stuart Weitzman during the period[25] - The company ended the period with 1,009 company-operated stores, an increase from 960 stores in the previous year[27] - The company operated 1,009 stores at the end of the fiscal year, an increase from 960 stores in the previous year[31] Shareholder Information - Basic loss per share attributable to Caleres, Inc. shareholders for the thirteen weeks ended January 31, 2026, was $(0.70), compared to earnings of $0.15 in the same period last year[23] - The diluted adjusted loss per common share, excluding Stuart Weitzman, was $(0.06) for the thirteen weeks ended January 31, 2026, compared to $0.33 in the prior year[36] - The company reported a total of 32.5 million basic common shares for the thirteen weeks ended January 31, 2026, slightly up from 32.5 million shares in the previous year[35] - Caleres, Inc. anticipates adjusted diluted earnings per share for fiscal 2026 to be between $1.35 and $1.65[38] - The company provided guidance for the first quarter of 2026, projecting GAAP diluted earnings per share between $0.21 and $0.26, and adjusted diluted earnings per share between $0.25 and $0.30[38]

Group 1 - Caleres, Inc. initiated its earnings and adjusted earnings guidance for the full-year 2026 during the fourth quarter financial results report [1] - For Q1 2026, the company expects earnings between $0.21 to $0.26 per share and adjusted earnings between $0.25 to $0.30 per share, with consolidated net sales growth in mid to high-single digits [1] - Looking ahead to fiscal 2026, Caleres projects earnings in the range of $1.31 to $1.61 per share and adjusted earnings between $1.35 to $1.65 per share, with consolidated net sales growth in low to mid-single digits [2] Group 2 - In pre-market trading, Caleres shares are priced at $9.67, reflecting an increase of $0.81 or 9.14 percent [3]