Caleres(CAL) - 2026 Q4 - Annual Report

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]