Core Viewpoint - Caleres, Inc. reported disappointing earnings and faces challenges in maintaining consistent revenue growth despite a slight revenue beat [2][3][6] Financial Performance - The company reported earnings per share (EPS) of $0.35, missing the Zacks Consensus Estimate of $0.51 by 31.37% [2][6] - Revenue for the quarter was $658.52 million, slightly above the estimated $656.5 million, but down from $683.32 million in the same quarter last year [3][6] - Over the past four quarters, Caleres has only exceeded consensus revenue estimates once, indicating difficulties in revenue consistency [3] Valuation Metrics - Caleres has a price-to-earnings (P/E) ratio of 5.43, suggesting a low valuation relative to its earnings [4][6] - The price-to-sales ratio is 0.18, indicating modest market valuation of its sales [4] - The enterprise value to sales ratio is 0.48, valuing the company at less than half of its sales when considering its enterprise value [4] Financial Health - The debt-to-equity ratio stands at 1.40, indicating significant reliance on debt in its capital structure [5][6] - The current ratio is 1.10, suggesting a slightly higher level of current assets compared to current liabilities, which may indicate short-term financial health [5] - Caleres' earnings yield is 18.41%, providing a measure of return on investment for shareholders despite recent earnings challenges [5]

Group 1 - The core investment strategy of Quipus Capital focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective rather than market-driven dynamics [1] - Quipus Capital emphasizes understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations from Quipus Capital will be holds, indicating a cautious approach to market conditions and a belief that only a small fraction of companies should be considered for purchase at any given time [1] Group 2 - The articles produced by Quipus Capital aim to provide valuable information for future investors while maintaining a healthy skepticism towards a generally bullish market [1]

Financial Data and Key Metrics Changes - The company reported second quarter sales of $658.5 million, a decline of 3.6% year over year, with sales trends improving sequentially in both segments [24][10] - Adjusted earnings per share were $0.35, down from $0.85 in the previous year [30] - Consolidated gross margin was 43.4%, down 20 basis points compared to last year, driven by lower margins in both segments [26] Business Segment Data and Key Metrics Changes - Brand Portfolio sales declined 3.5%, with lead brands growing about 1% in North America and 3.6% globally [25][11] - Famous Footwear sales were down 4.9%, with comparable sales declining 3.4% [25][19] - The Brand Portfolio experienced gross margin pressure due to tariffs and markdown reserves, while Famous Footwear's gross margin was 43.7%, down 130 basis points [26][27] Market Data and Key Metrics Changes - International sales increased by double digits, and the company gained market share in women's fashion footwear [6][11] - E-commerce sales for Famous Footwear were up double digits, particularly in May and July [19] - The company gained 0.6 points of kids market share in shoe chains during the quarter [22] Company Strategy and Development Direction - The company completed structural cost savings initiatives expected to deliver annualized savings of $15 million, with half of that coming this year [7] - The acquisition of Stuart Weitzman was completed, adding a new lead brand to the portfolio, with a focus on operational efficiency and profitability post-transition [8][9] - Strategic focuses include ongoing tariff mitigation, expense and capital discipline, and integrating Stuart Weitzman while fueling lead brands and Famous Footwear [23] Management's Comments on Operating Environment and Future Outlook - Management noted headwinds due to market uncertainty but highlighted improved sales trends and market share gains [5] - The tariff environment remains uncertain, with expectations of continued gross margin pressure in the second half of the year [17][33] - Management expressed confidence in executing strategic plans to improve financial performance and drive shareholder value [23] Other Important Information - The company expects to finalize purchase accounting for Stuart Weitzman and provide more information on its impact in the next earnings call [35] - Inventory at quarter end was $693 million, up 4.9% year over year, with a 2% increase in Famous and an 8.6% increase in Brand Portfolio [31] Q&A Session Summary Question: Can you provide insights on August performance and any shifts in the women's business? - Management noted improved traffic and conversion in brick-and-mortar stores, with flat average unit retails (AURs) [38] - The product assortment shift positively impacted sales, particularly with the launch of Jordan [39] Question: What are the expectations for gross margins moving forward? - Management anticipates less headwind from promotions in the back half of the year, with continued pressure from tariffs [41][42] Question: What is the expected impact of the Stuart Weitzman acquisition on sales and EBIT? - Management is not providing specific details at this time, as purchase accounting is still being finalized [46][47] Question: How is the consumer health of Famous Footwear and Brand Portfolio customers? - Management observed that consumers continue to prefer highly demanded national brands, with strong performance in back-to-school sales [60][61] Question: What mitigation tactics for tariffs are being employed? - The company is selectively passing through price increases and negotiating with factory partners for cost savings [64][66]

Financial Performance - Q2 2025 - Sales decreased to $659 million, a 3.6% decrease compared to $683 million in 2Q24[19, 16] - Adjusted Earnings Per Share (EPS) decreased to $0.35, compared to $0.85 in 2Q24[19, 16] - Gross margin was 43.4%, down 210 bps compared to 2Q24[19] - Inventory increased by 5% compared to 2Q24[19] - Adjusted EBITDA was $163 million[19] Segment Performance - **Famous Footwear:** Sales were $400 million, down 4.9% year-over-year, with comparable sales down 3.4%[26] Gross margin was 43.7%, down 130 bps year-over-year[26] - **Brand Portfolio:** Sales were $276 million, down 3.5% compared to 2Q24, including a $10 million impact from tariffs[21] Gross margin was 40.3%, down 240 bps compared to 2Q24[22] Outlook - Famous Footwear expects comparable sales to be up 1% in August, down low-single digits in September and October[30] - The Brand Portfolio expects Q3 gross margin to be down similar to Q2, with Q4 trends improving as mitigation strategies benefit[30] Strategic Initiatives - The company achieved $15 million in annualized, structural savings[14] - The company is partnering with a consulting firm to explore additional structural cost savings across the portfolio[30]

Financial Performance - Caleres Inc. reported quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.51 per share, and down from $0.85 per share a year ago, representing an earnings surprise of -31.37% [1] - The company posted revenues of $658.52 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 1.21%, but down from $683.32 million year-over-year [2] - Over the last four quarters, Caleres has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] Stock Performance - Caleres Inc. shares have declined approximately 35.5% since the beginning of the year, contrasting with the S&P 500's gain of 9.6% [3] - The current Zacks Rank for Caleres is 5 (Strong Sell), indicating expectations for the stock to underperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $757.5 million, and for the current fiscal year, it is $2.00 on revenues of $2.73 billion [7] - The outlook for the Shoes and Retail Apparel industry, where Caleres operates, is currently in the top 32% of Zacks industries, suggesting potential for better performance compared to lower-ranked industries [8]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Caleres achieved Q2 2025 sales improvements and market share gains, completed cost savings, and acquired Stuart Weitzman, enhancing its premium and direct-to-consumer focus [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) Caleres experienced sequential sales improvements in both business segments during Q2 2025, achieving market share gains in women's fashion footwear and shoe chains, and noting strength in Lead Brands and direct-to-consumer channels, despite overall market uncertainty - Sales trends improved sequentially in both segments of the business[2](index=2&type=chunk) - Achieved market share gains in women's fashion footwear and in shoe chains[2](index=2&type=chunk) - Experienced strength in Lead Brands, Brand Portfolio direct-to-consumer channels, and international[2](index=2&type=chunk) - Saw significant improvement in sales trends at Famous Footwear in July and continuing through August[2](index=2&type=chunk) [Strategic Developments](index=1&type=section&id=Strategic%20Developments) The company successfully completed structural cost savings initiatives, projected to yield $15 million in annualized savings, and strategically acquired Stuart Weitzman post-quarter end, aligning with its focus on premium, direct-to-consumer, and international business expansion - Completed previously announced structural cost savings initiatives, expected to deliver annualized savings of **$15 million**[3](index=3&type=chunk)[4](index=4&type=chunk) - Completed the acquisition of Stuart Weitzman shortly after quarter-end, adding a new Lead Brand that aligns with the strategic focus on premium, direct-to-consumer, and international business[3](index=3&type=chunk)[4](index=4&type=chunk) [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Results) Caleres experienced a consolidated sales decline and reduced gross margins in Q2 2025, with both segments facing challenges, while strategically increasing borrowings for the Stuart Weitzman acquisition and enhancing credit flexibility [Consolidated Financial Overview](index=1&type=section&id=Consolidated%20Financial%20Overview) Caleres reported a 3.6% decline in consolidated sales to $658.5 million for Q2 2025, with gross margin decreasing by 210 basis points to 43.4%. Net earnings attributable to Caleres, Inc. significantly dropped to $6.7 million, or $0.20 per diluted share, compared to $29.96 million, or $0.85 per diluted share, in the prior year, though adjusted EPS was $0.35 Consolidated Sales and Profitability (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------------- | :---------- | :---------- | :----------- | | Reported Consolidated Sales (in millions) | $658.5 | $683.3 | -3.6% | | Gross Profit (in millions) | $285.8 | $310.9 | -8.1% | | Gross Margin (%) | 43.4% | 45.5% | -210 bps | | SG&A (in millions) | $269.7 | $268.3 | +0.5% | | SG&A as % of Net Sales (%) | 41.0% | 39.3% | +170 bps | | Net Earnings (in millions) | $6.7 | $30.0 | -77.7% | | Earnings Per Diluted Share ($) | $0.20 | $0.85 | -76.5% | | Adjusted Net Earnings (in millions) | $11.7 | $30.0 | -61.0% | | Adjusted Earnings Per Diluted Share ($) | $0.35 | $0.85 | -58.8% | - Gross margin decline was attributed to tariff-related costs, selective promotions, and higher provision for inventory markdowns, partially offset by growth in higher-margin direct-to-consumer channels within Brand Portfolio[4](index=4&type=chunk)[5](index=5&type=chunk) - SG&A as a percentage of net sales increased by **170 basis points**, reflecting deleverage on lower sales[5](index=5&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Both Famous Footwear and Brand Portfolio segments experienced sales declines and reduced gross margins in Q2 2025 compared to the prior year, with Brand Portfolio also facing tariff impacts [Famous Footwear Segment](index=1&type=section&id=Famous%20Footwear%20Segment) Famous Footwear segment saw **$399.6 million** net sales, a **4.9%** decline, and a **130 bps** gross margin drop, with July sales trends improving Famous Footwear Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------------- | :---------- | :---------- | :----------- | | Net Sales (in millions) | $399.6 | $420.3 | -4.9% | | Comparable Sales (%) | -3.4% | -2.9% | -0.5 ppt | | Gross Margin (%) | 43.7% | 45.0% | -130 bps | | Operating Earnings (in millions) | $18.6 | $34.4 | -46.0% | - Experienced meaningful improvement in sales trends in July[4](index=4&type=chunk) [Brand Portfolio Segment](index=1&type=section&id=Brand%20Portfolio%20Segment) Brand Portfolio segment reported **$275.6 million** net sales, a **3.5%** decline, and a **240 bps** gross margin drop, impacted by tariffs, but gained women's fashion footwear market share Brand Portfolio Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------------- | :---------- | :---------- | :----------- | | Net Sales (in millions) | $275.6 | $285.5 | -3.5% | | Gross Margin (%) | 40.3% | 42.7% | -240 bps | | Operating Earnings (in millions) | $6.6 | $23.6 | -71.9% | - Sales decline included approximately **$10 million** in tariff impact[4](index=4&type=chunk) - Achieved gains in women's fashion footwear market share and strong performance from Lead Brands[4](index=4&type=chunk) - Direct-to-consumer sales represented approximately **75%** of total net sales for the consolidated business[5](index=5&type=chunk) [Key Financial Position and Liquidity Indicators](index=3&type=section&id=Key%20Financial%20Position%20and%20Liquidity%20Indicators) Caleres ended Q2 2025 with increased inventory levels and significantly higher borrowings under its revolving credit facility, primarily to pre-position cash for the Stuart Weitzman acquisition, while also enhancing financial flexibility through an amended credit agreement Key Financial Position (Q2 2025 vs Q2 2024) | Metric | August 2, 2025 | August 3, 2024 | Change (YoY) | | :---------------------------------- | :------------- | :------------- | :----------- | | Inventory, net (in millions) | $693.3 | $661.1 | +4.9% | | Borrowings under revolving credit agreement (in millions) | $387.5 | $146.5 | +164.5% | | Cash and cash equivalents (in millions) | $191.5 | $51.8 | +270.0% | | Total Assets (in millions) | $2,152.2 | $2,020.0 | +6.5% | | Total Liabilities (in millions) | $1,530.3 | $1,406.5 | +8.8% | - Increased borrowings reflect pre-positioned cash for the Stuart Weitzman acquisition[11](index=11&type=chunk) [Capital Allocation and Fiscal Outlook](index=3&type=section&id=Capital%20Allocation%20Update) Caleres focuses on growth and shareholder returns, enhanced credit flexibility, and suspended fiscal 2025 guidance due to market uncertainty, despite positive August sales trends [Capital Allocation Strategy](index=3&type=section&id=Capital%20Allocation%20Strategy) Caleres is focused on investing in value-driving growth opportunities and returning cash to shareholders through dividends. The company enhanced its financial flexibility by amending its credit agreement, extending its maturity to June 2030, and increasing its borrowing capacity to $700 million, with an accordion feature up to $950 million - Capital allocation priorities are to continue to fund its dividend and to invest in value-enhancing growth vectors[6](index=6&type=chunk) - Entered into an amendment of its credit agreement, extending the senior secured asset-based revolving credit facility to June 2030[6](index=6&type=chunk) - Increased borrowing capacity under the agreement by **$200 million** to **$700 million**, with an accordion feature allowing an increase to **$950 million**[6](index=6&type=chunk) [Fiscal 2025 Outlook](index=3&type=section&id=Fiscal%202025%20Outlook) Due to environmental uncertainty, Caleres has suspended its annual guidance for Fiscal 2025. However, August trends showed positive comparable sales for Famous Footwear and low-single-digit growth for Brand Portfolio (excluding Stuart Weitzman), with ongoing gross margin pressure from tariffs expected for Brand Portfolio through Q3, improving in Q4 - Annual guidance is suspended due to uncertainty in the environment[7](index=7&type=chunk) August 2025 Sales Trends | Segment | Performance | | :-------------------- | :------------------------------------------------ | | Famous Footwear | Same-store comparable sales up 1% | | Brand Portfolio (ex-Stuart Weitzman) | Sales up low-single digits | - Expect ongoing gross margin pressure in Brand Portfolio from tariffs for the balance of the year, with third-quarter Brand Portfolio gross margin expected to be down similar to the second quarter, with improvement in the fourth quarter[7](index=7&type=chunk) [Additional Information](index=3&type=section&id=Additional%20Information) This section clarifies GAAP and non-GAAP financial measures for business insights and presents a Safe Harbor Statement on forward-looking statements and risks [Definitions and Non-GAAP Financial Measures](index=3&type=section&id=Definitions%20and%20Non-GAAP%20Financial%20Measures) This section clarifies the company's use of both GAAP and non-GAAP financial measures, such as EBITDA and adjusted earnings, explaining that non-GAAP metrics are provided to offer additional insights into underlying business trends by excluding certain items not indicative of core operating results - 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[10](index=10&type=chunk) - Non-GAAP measures include earnings before interest, taxes, depreciation and amortization (EBITDA), and estimated/future operating earnings, net earnings, and earnings per diluted share, adjusted to exclude certain gains, charges, and recoveries[10](index=10&type=chunk) - Management believes these non-GAAP measures help identify underlying trends and provide useful information by excluding items that may not be indicative of core operating results[10](index=10&type=chunk) [Safe Harbor Statement](index=5&type=section&id=Safe%20Harbor%20Statement) The Safe Harbor Statement advises that the press release contains forward-looking statements subject to various risks and uncertainties, including changes in trade policies, consumer demands, inflation, supply chain disruptions, and intense competition, which could cause actual results to differ materially from expectations - This press release contains certain forward-looking statements and expectations regarding the company's future performance and the performance of its brands[12](index=12&type=chunk) - Such statements are subject to various risks and uncertainties that could cause actual results to differ materially[12](index=12&type=chunk) - Key risks include changes in United States and international trade policies (including tariffs), changing consumer demands, inflationary pressures, supply chain disruptions, rapidly changing consumer preferences, intense competition, and cybersecurity threats[12](index=12&type=chunk) - Detailed information relating to such factors is available under the caption Risk Factors in Item 1A of the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q[13](index=13&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=SCHEDULE%201) The condensed consolidated financial statements present Caleres' Q2 2025 performance, detailing earnings declines, increased inventory and borrowings, and shifts in cash flow activities [Statements of Earnings](index=6&type=section&id=Statements%20of%20Earnings) The condensed consolidated statements of earnings detail Caleres' financial performance for the thirteen and twenty-six weeks ended August 2, 2025, and August 3, 2024, showing declines in net sales, gross profit, operating earnings, and net earnings year-over-year Consolidated Statements of Earnings (Thirteen Weeks Ended) | Metric | August 2, 2025 | August 3, 2024 | | :-------------------------- | :------------- | :------------- | | Net sales (in thousands) | $658,519 | $683,317 | | Cost of goods sold (in thousands) | $372,724 | $372,439 | | Gross profit (in thousands) | $285,795 | $310,878 | | Operating earnings (in thousands) | $9,292 | $42,529 | | Net earnings attributable to Caleres, Inc. (in thousands) | $6,713 | $29,958 | | Diluted earnings per common share ($) | $0.20 | $0.85 | Consolidated Statements of Earnings (Twenty-Six Weeks Ended) | Metric | August 2, 2025 | August 3, 2024 | | :-------------------------- | :------------- | :------------- | | Net sales (in thousands) | $1,272,740 | $1,342,515 | | Cost of goods sold (in thousands) | $708,251 | $722,542 | | Gross profit (in thousands) | $564,489 | $619,973 | | Operating earnings (in thousands) | $20,876 | $85,288 | | Net earnings attributable to Caleres, Inc. (in thousands) | $13,656 | $60,898 | | Diluted earnings per common share ($) | $0.40 | $1.73 | [Balance Sheets](index=7&type=section&id=Balance%20Sheets) The condensed consolidated balance sheets provide a snapshot of Caleres' financial position as of August 2, 2025, and August 3, 2024, indicating an increase in total assets and liabilities, notably a significant rise in borrowings under the revolving credit agreement Consolidated Balance Sheet (As of) | Metric | August 2, 2025 | August 3, 2024 | | :---------------------------------- | :------------- | :------------- | | Cash and cash equivalents (in thousands) | $191,494 | $51,753 | | Inventories, net (in thousands) | $693,282 | $661,146 | | Total current assets (in thousands) | $1,099,418 | $939,700 | | Total assets (in thousands) | $2,152,228 | $2,019,985 | | Borrowings under revolving credit agreement (in thousands) | $387,500 | $146,500 | | Total current liabilities (in thousands) | $1,015,087 | $860,423 | | Total liabilities and equity (in thousands) | $2,152,228 | $2,019,985 | | Total equity (in thousands) | $621,944 | $613,484 | [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows for the twenty-six weeks ended August 2, 2025, show a significant increase in cash provided by financing activities, primarily due to higher borrowings, while cash provided by operating activities decreased compared to the prior year Consolidated Statements of Cash Flows (Twenty-Six Weeks Ended) | Metric | August 2, 2025 | August 3, 2024 | | :---------------------------------- | :------------- | :------------- | | Net cash provided by operating activities (in thousands) | $41,646 | $115,696 | | Net cash used for investing activities (in thousands) | $(34,072) | $(21,808) | | Net cash provided by (used for) financing activities (in thousands) | $154,221 | $(63,426) | | Increase in cash and cash equivalents (in thousands) | $161,858 | $30,395 | | Cash and cash equivalents at end of period (in thousands) | $191,494 | $51,753 | [Non-GAAP Reconciliations and Metrics](index=9&type=section&id=SCHEDULE%204) This section provides reconciliations of GAAP to adjusted financial measures and calculations of EBITDA and leverage ratios, offering a clearer view of core operational performance and financial health [GAAP to Adjusted Net Earnings and EPS](index=9&type=section&id=GAAP%20to%20Adjusted%20Net%20Earnings%20and%20EPS) This section reconciles GAAP net earnings and diluted EPS to adjusted figures for the thirteen and twenty-six weeks, and trailing twelve months, by excluding specific charges such as Stuart Weitzman acquisition costs and expense reduction initiatives, providing a clearer view of core operational performance GAAP to Adjusted Net Earnings and EPS (Thirteen Weeks Ended) | Metric | GAAP (Aug 2, 2025) | Adjusted (Aug 2, 2025) | GAAP (Aug 3, 2024) | Adjusted (Aug 3, 2024) | | :---------------------------------- | :------------------- | :--------------------- | :------------------- | :--------------------- | | Net earnings attributable to Caleres, Inc. (in thousands) | $6,713 | $11,730 | $29,958 | $29,958 | | Diluted earnings per common share ($) | $0.20 | $0.35 | $0.85 | $0.85 | - Adjustments for the thirteen weeks ended August 2, 2025, include Stuart Weitzman acquisition and integration costs (**$1,678 thousand** after tax) and expense reduction initiatives (**$3,339 thousand** after tax)[18](index=18&type=chunk) GAAP to Adjusted Net Earnings and EPS (Twenty-Six Weeks Ended) | Metric | GAAP (Aug 2, 2025) | Adjusted (Aug 2, 2025) | GAAP (Aug 3, 2024) | Adjusted (Aug 3, 2024) | | :---------------------------------- | :------------------- | :--------------------- | :------------------- | :--------------------- | | Net earnings attributable to Caleres, Inc. (in thousands) | $13,656 | $19,138 | $60,898 | $60,898 | | Diluted earnings per common share ($) | $0.40 | $0.56 | $1.73 | $1.73 | [Segment Adjusted Operating Earnings](index=10&type=section&id=Segment%20Adjusted%20Operating%20Earnings) This section reconciles GAAP operating earnings to adjusted operating earnings for the Famous Footwear and Brand Portfolio segments for both the thirteen and twenty-six weeks, isolating the impact of specific charges like acquisition and expense reduction initiatives to show segment-level adjusted performance Segment Adjusted Operating Earnings (Thirteen Weeks Ended Aug 2, 2025) | Segment | GAAP Operating Earnings (in thousands) | Charges/Other Items (in thousands) | Adjusted Operating Earnings (in thousands) | | :---------------- | :---------------------- | :-------------------- | :-------------------------- | | Famous Footwear | $18,551 | $123 | $18,674 | | Brand Portfolio | $6,649 | $1,792 | $8,441 | | Consolidated | $9,292 | $6,756 | $16,048 | Segment Adjusted Operating Earnings (Twenty-Six Weeks Ended Aug 2, 2025) | Segment | GAAP Operating Earnings (in thousands) | Charges/Other Items (in thousands) | Adjusted Operating Earnings (in thousands) | | :---------------- | :---------------------- | :-------------------- | :-------------------------- | | Famous Footwear | $23,525 | $123 | $23,648 | | Brand Portfolio | $24,064 | $1,792 | $25,856 | | Consolidated | $20,876 | $7,383 | $28,259 | [EBITDA and Debt/EBITDA Leverage Ratio Calculation](index=14&type=section&id=EBITDA%20and%20Debt%2FEBITDA%20Leverage%20Ratio%20Calculation) This section provides the calculation of EBITDA and Adjusted EBITDA for the thirteen weeks and trailing twelve months, along with the Debt/EBITDA leverage ratio, highlighting a significant increase in the leverage ratio from 0.6 to 2.7 year-over-year EBITDA and Adjusted EBITDA (Thirteen Weeks Ended) | Metric | August 2, 2025 | August 3, 2024 | | :-------------------- | :------------- | :------------- | | EBITDA (in thousands) | $25,302 | $57,209 | | EBITDA margin (%) | 3.8% | 8.4% | | Adjusted EBITDA (in thousands) | $32,058 | $57,209 | | Adjusted EBITDA margin (%) | 4.9% | 8.4% | EBITDA and Adjusted EBITDA (Trailing Twelve Months Ended) | Metric | August 2, 2025 | August 3, 2024 | | :-------------------- | :------------- | :------------- | | EBITDA (in thousands) | $145,461 | $240,737 | | EBITDA margin (%) | 5.5% | 8.6% | | Adjusted EBITDA (in thousands) | $162,727 | $245,193 | | Adjusted EBITDA margin (%) | 6.1% | 8.8% | Debt/EBITDA Leverage Ratio | Metric | August 2, 2025 | August 3, 2024 | | :-------------------- | :------------- | :------------- | | Borrowings under revolving credit agreement (in thousands) | $387,500 | $146,500 | | EBITDA (trailing twelve months, in thousands) | $145,461 | $240,737 | | Debt/EBITDA (x) | 2.7 | 0.6 |

Core Viewpoint - Caleres has officially completed the acquisition of luxury footwear brand Stuart Weitzman for a total transaction value of $120.2 million, which includes cash compensation and adjustments for other operating capital [1] Group 1: Acquisition Details - The total transaction amount for the acquisition is $120.2 million [1] - The acquisition includes cash compensation and adjustments for other operating capital [1] Group 2: Brand Performance - Stuart Weitzman is known for its elegant and modern design style, making it a popular choice in the market [1] - The brand achieved sales of $220 million over the past 12 months, indicating strong performance in the high-end footwear market [1]

Group 1 - Tapestry, Inc. has completed the sale of the Stuart Weitzman brand to Caleres [1] - Caleres is a leading consumer-focused footwear brand management company [1][5] - The transaction involved financial advisory from Morgan Stanley for Tapestry and BofA Securities for Caleres [2] Group 2 - Tapestry, Inc. is a modern luxury lifestyle brand company based in New York, with brands including COACH and kate spade [3] - Stuart Weitzman, founded in 1986, is known for its craftsmanship and design, empowering women with its brand message [4] - Caleres has a portfolio of well-known brands and operates nearly 1,000 retail stores, along with a strong online presence [5]

Core Insights - Pomerantz LLP is investigating claims on behalf of investors of Caleres, Inc. regarding potential securities fraud or unlawful business practices by the company and its officers [1] - Caleres reported a first-quarter 2025 sales figure of $614.2 million, which is a 6.8% decline year-over-year, and the CFO acknowledged this was below expectations [3] - Following the disappointing financial results, Caleres's stock price dropped by $3.00 per share, or 18.32%, closing at $13.38 per share on May 29, 2025 [3] - The company has suspended its guidance for 2025 due to uncertainty in the business environment [3] Company Overview - Caleres, Inc. is a publicly traded company listed on the NYSE under the ticker symbol CAL [1] - The company is currently facing scrutiny from investors and legal investigations related to its business practices [1] Legal Context - Pomerantz LLP is recognized for its expertise in corporate, securities, and antitrust class litigation, having a long history of fighting for victims of securities fraud and corporate misconduct [4]

Company Overview - Caleres, Inc. (CAL) is experiencing significant attention from investors due to high implied volatility in its options market, particularly the Oct 17, 2025 $42.50 Call option [1] - The company currently holds a Zacks Rank of 5 (Strong Sell) within the Shoes and Retail Apparel industry, which is positioned in the bottom 12% of the Zacks Industry Rank [3] Analyst Sentiment - Over the past 60 days, no analysts have increased their earnings estimates for Caleres for the current quarter, while two analysts have revised their estimates downwards [3] - The Zacks Consensus Estimate for the current quarter has decreased from 85 cents per share to 51 cents per share during this period [3] Options Market Insights - The high implied volatility suggests that options traders are anticipating a significant price movement for Caleres, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Options traders often seek to capitalize on high implied volatility by selling premium, aiming for the underlying stock to not move as much as expected by expiration [4]