Caleres Reports Lower Q4 Sales, Cautious Outlook For 2025 Amid Inflation And Tariffs

Caleres, Inc. CAL shares are trading higher after the company reported fourth-quarter results.

Revenues fell 8.3% year over year to $639.2 million, missing the analyst consensus of $653.86 million.

Famous Footwear sales fell 9.6% Y/Y, with comparable store sales down 2.9%. Brand Portfolio sales decreased 7.2% in the quarter.

“Famous Footwear’s business softened in the quarter, but we maximized key selling periods. We invested to support our long-term growth while continuing to evolve our supply chain and further mitigate the impact of additional tariffs,” said Jay Schmidt, president and chief executive officer.

The company’s gross margin rate contracted 80 basis points year over year to 43.0% and adjusted EBITDA fell to $29.0 million.

Adjusted EPS of 33 cents beat the consensus of 24 cents.

In 2024, Caleres returned $74.7 million in cash to shareholders through dividends and share repurchases. Borrowings under the revolving credit facility totaled $219.5 million at the end of the period.

“As we look forward to 2025 and the macroeconomic environment with persistent inflation and newer tariffs, we believe it is prudent to take a conservative view for the year,” added Schmidt.

Outlook: The company expects FY25 net sales to decline by 1% to up 1% and EPS of $2.80 – $3.20 (consensus $3.21).

For the first quarter, Caleres expects sales to decline 5% – 6% and EPS of $0.35 – $0.40 vs. consensus of $0.87.

Caleres said it currently expects 75% of its Brand Portfolio, and an even greater percentage of Lead Brands’ sourcing to be outside of China by the second half of 2025.

Last month, the company inked a deal to acquire Stuart Weitzman from Tapestry for $105 million. The guidance excludes this acquisition, which is expected to close in the summer of 2025.

Price Action: CAL shares are down 2.46% at $15.99 at the last check Thursday.

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