Caleres Inc 10-Q for FY2026 Q1

Caleres Inc (CAL)

10-Q 2025-06-10 For: 2025-05-03

Added on April 09, 2026

About this 10-Q

Caleres Inc filed this 10-Q on June 10, 2025, covering the quarter ended May 3, 2025 (FY2026 Q1).

Headline figures

Quarter ended May 3, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $614.22M; down 6.8% from $659.2M a year earlier
Net income: $6.94M; down 77.6% from net income of $30.94M a year earlier
Diluted EPS: $0.21; down 76.1% from $0.88 a year earlier

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☒	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended May 3, 2025

☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____________ to _____________


CALERES, INC.
(Exact name of registrant as specified in its charter)

New York	43-0197190
(State or other jurisdiction	(IRS Employer Identification Number)
of incorporation or organization)

8300 Maryland Avenue	63105
St. Louis, Missouri	(Zip Code)
(Address of principal executive offices)

(314) 854-4000
(Registrant’s telephone number, including area code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock - par value of $0.01 per share	CAL	New York Stock Exchange


Large accelerated filer ☑	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

INDEX

PART I		Page
Item 1	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Earnings	4
	Condensed Consolidated Statements of Comprehensive Income	5
	Condensed Consolidated Statements of Cash Flows	6
	Condensed Consolidated Statements of Shareholders’ Equity	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4	Controls and Procedures	33

PART II		34
Item 1	Legal Proceedings	34
Item 1A	Risk Factors	34
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3	Defaults Upon Senior Securities	35
Item 4	Mine Safety Disclosures	35
Item 5	Other Information	35
Item 6	Exhibits	36
	Signature	37


	(Unaudited)
($ thousands)	May 3, 2025		May 4, 2024		February 1, 2025
Assets
Current assets:
Cash and cash equivalents	$	33,139	$	30,709	$	29,636
Receivables, net		160,433		164,865		155,905
Inventories, net		573,615		530,570		565,241
Income taxes		4,675		8,407		13,668
Property and equipment, held for sale		16,777		16,777		16,777
Prepaid expenses and other current assets		57,753		54,008		55,282
Total current assets		846,392		805,336		836,509

Prepaid pension costs		79,452		76,302		78,463
Lease right-of-use assets		559,713		565,822		564,330
Property and equipment, net		185,069		168,154		175,213
Deferred income taxes		5,193		4,321		4,826
Goodwill and intangible assets, net		189,515		200,551		192,274
Other assets		42,362		40,624		43,139
Total assets	$	1,907,696	$	1,861,110	$	1,894,754

Liabilities and Equity
Current liabilities:
Borrowings under revolving credit agreement	$	258,500	$	191,000	$	219,500
Trade accounts payable		212,514		267,388		237,038
Income taxes		8,746		14,141		6,425
Lease obligations		118,781		120,872		127,522
Other accrued expenses		171,715		170,964		167,448
Total current liabilities		770,256		764,365		757,933
Other liabilities:
Noncurrent lease obligations		472,981		482,163		479,524
Income taxes		2,464		2,464		2,464
Deferred income taxes		32,146		11,928		31,772
Other liabilities		16,945		23,161		17,112
Total other liabilities		524,536		519,716		530,872
Equity:
Common stock		338		351		336
Additional paid-in capital		190,091		180,314		190,320
Accumulated other comprehensive loss		(27,173)		(34,121)		(34,022)
Retained earnings		441,923		423,760		442,390
Total Caleres, Inc. shareholders’ equity		605,179		570,304		599,024
Noncontrolling interests		7,725		6,725		6,925
Total equity		612,904		577,029		605,949
Total liabilities and equity	$	1,907,696	$	1,861,110	$	1,894,754


	(Unaudited)
	Thirteen Weeks Ended
($ thousands, except per share amounts)	May 3, 2025		May 4, 2024
Net sales	$	614,221	$	659,198
Cost of goods sold		335,527		350,103
Gross profit		278,694		309,095
Selling and administrative expenses		266,483		266,337
Restructuring and other special charges, net		627		—
Operating earnings		11,584		42,758
Interest expense, net		(3,795)		(3,778)
Other income, net		686		992
Earnings before income taxes		8,475		39,972
Income tax provision		(2,529)		(9,174)
Net earnings		5,946		30,798
Net loss attributable to noncontrolling interests		(997)		(141)
Net earnings attributable to Caleres, Inc.	$	6,943	$	30,939

Basic earnings per common share attributable to Caleres, Inc. shareholders	$	0.21	$	0.88

Diluted earnings per common share attributable to Caleres, Inc. shareholders	$	0.21	$	0.88


						Accumulated				Total
						Other				Caleres, Inc.
(Unaudited)	Common Stock			Additional		Comprehensive		Retained		Shareholders’		Noncontrolling
($ thousands, except number of shares and per share amounts)	Shares	Dollars		Paid-In Capital		Loss		Earnings		Equity		Interests		Total Equity
BALANCE FEBRUARY 1, 2025	33,631,764	$	336	$	190,320	$	(34,022)	$	442,390	$	599,024	$	6,925	$	605,949
Net earnings (loss)									6,943		6,943		(997)		5,946
Foreign currency translation adjustment							5,761				5,761		47		5,808
Pension and other postretirement benefits adjustments, net of tax of $376							1,088				1,088				1,088
Comprehensive income (loss)							6,849		6,943		13,792		(950)		12,842
Contributions by noncontrolling interests											—		1,750		1,750
Dividends ($0.07 per share)									(2,362)		(2,362)				(2,362)
Acquisition of treasury stock	(300,000)		(3)						(5,048)		(5,051)				(5,051)
Issuance of common stock under share-based plans, net	483,778		5		(3,072)						(3,067)				(3,067)
Share-based compensation expense					2,843						2,843				2,843
BALANCE MAY 3, 2025	33,815,542	$	338	$	190,091	$	(27,173)	$	441,923	$	605,179	$	7,725	$	612,904

BALANCE FEBRUARY 3, 2024	35,490,019	$	355	$	184,451	$	(34,504)	$	410,329	$	560,631	$	6,939	$	567,570
Net earnings (loss)									30,939		30,939		(141)		30,798
Foreign currency translation adjustment							(757)				(757)		(73)		(830)
Pension and other postretirement benefits adjustments, net of tax of $395							1,140				1,140				1,140
Comprehensive income (loss)							383		30,939		31,322		(214)		31,108
Dividends ($0.07 per share)									(2,442)		(2,442)				(2,442)
Acquisition of treasury stock	(416,000)		(4)						(15,066)		(15,070)				(15,070)
Issuance of common stock under share-based plans, net	61,388		0		(7,847)						(7,847)				(7,847)
Share-based compensation expense					3,710						3,710				3,710
BALANCE MAY 4, 2024	35,135,407	$	351	$	180,314	$	(34,121)	$	423,760	$	570,304	$	6,725	$	577,029


	Thirteen Weeks Ended May 4, 2024
					Eliminations and
($ thousands)	Famous Footwear		Brand Portfolio		Other		Total

Retail stores	$	304,528	$	17,089	$	—	$	321,617
E-commerce - Company websites ⁽¹⁾		44,478		58,007		—		102,485
E-commerce - wholesale drop-ship ⁽¹⁾		—		30,370		(1,348)		29,022
Total direct-to-consumer sales		349,006		105,466		(1,348)		453,124
Wholesale - e-commerce ⁽¹⁾		—		67,787		—		67,787
Wholesale - landed		—		125,757		(6,218)		119,539
Wholesale - first cost		—		15,736		—		15,736
Licensing and royalty		427		2,438		—		2,865
Other ⁽²⁾		120		27		—		147
Net sales	$	349,553	$	317,211	$	(7,566)	$	659,198


	Thirteen Weeks Ended May 4, 2024
		Famous		Brand		Eliminations
		Footwear		Portfolio		and Other		Total
Net sales ⁽¹⁾		$	349,553	$	317,211	$	(7,566)	$	659,198
Cost of goods sold			188,548		169,399		(7,844)		350,103
Gross Profit		$	161,005		147,812		278	$	309,095

Less expenses:
Retail stores ⁽²⁾			87,542		7,477		—		95,019
Information technology			7,784		7,077		1,242		16,103
Warehousing and distribution			14,476		14,763		(1,190)		28,049
Advertising and marketing			10,248		24,032		(791)		33,489
Restructuring and other special charges, net			—		—		—		—
Other expenses ⁽³⁾			24,100		53,038		16,539		93,677
Operating earnings (loss)		$	16,855	$	41,425	$	(15,522)	$	42,758

Segment assets		$	868,729		827,645		164,736	$	1,861,110


($ thousands)	May 3, 2025
	Estimated Useful Lives			Accumulated		Accumulated
	(In Years)	Cost Basis		Amortization		Impairment		Net Carrying Value
Trade names	2 - 40	$	299,488	$	142,610	$	10,200	$	146,678
Trade names	Indefinite		107,400		—		92,000		15,400
Customer relationships	15 - 16		44,200		17,714		4,005		22,481
		$	451,088	$	160,324	$	106,205	$	184,559

	May 4, 2024
	Estimated Useful Lives			Accumulated		Accumulated
	(In Years)	Cost Basis		Amortization		Impairment		Net Carrying Value
Trade names	2 - 40	$	299,488	$	133,863	$	10,200	$	155,425
Trade names	Indefinite		107,400		—		92,000		15,400
Customer relationships	15 - 16		44,200		15,425		4,005		24,770
		$	451,088	$	149,288	$	106,205	$	195,595

	February 1, 2025
	Estimated Useful Lives			Accumulated		Accumulated
	(In Years)	Cost Basis		Amortization		Impairment		Net Carrying Value
Trade names	2 - 40	$	299,488	$	140,424	$	10,200	$	148,864
Trade names	Indefinite		107,400		—		92,000		15,400
Customer relationships	15 - 16		44,200		17,141		4,005		23,054
		$	451,088	$	157,565	$	106,205	$	187,318



			Pension and		Accumulated
	Foreign		Other		Other
	Currency		Postretirement		Comprehensive
($ thousands)	Translation		Transactions ⁽¹⁾		(Loss) Income
Balance at February 1, 2025	$	(5,789)	$	(28,233)	$	(34,022)
Other comprehensive income before reclassifications		5,761		—		5,761
Reclassifications:
Amounts reclassified from accumulated other comprehensive loss		—		1,464		1,464
Tax benefit		—		(376)		(376)
Net reclassifications		—		1,088		1,088
Other comprehensive income		5,761		1,088		6,849
Balance at May 3, 2025	$	(28)	$	(27,145)	$	(27,173)

Balance at February 3, 2024	$	(1,098)	$	(33,406)	$	(34,504)
Other comprehensive loss before reclassifications		(757)		—		(757)
Reclassifications:
Amounts reclassified from accumulated other comprehensive loss		—		1,535		1,535
Tax benefit		—		(395)		(395)
Net reclassifications		—		1,140		1,140
Other comprehensive (loss) income		(757)		1,140		383
Balance at May 4, 2024	$	(1,855)	$	(32,266)	$	(34,121)


	Pension Benefits				Other Postretirement Benefits
	Thirteen Weeks Ended				Thirteen Weeks Ended
($ thousands)	May 3, 2025		May 4, 2024		May 3, 2025		May 4, 2024
Service cost	$	1,224	$	1,192	$	—	$	—
Interest cost		3,621		3,732		13		13
Expected return on assets		(5,556)		(6,076)		—		—
Amortization of:
Actuarial loss (gain)		1,477		1,539		(20)		(28)
Prior service cost		7		24		—		—
Total net periodic benefit expense (income)	$	773	$	411	$	(7)	$	(15)


	Fair Value Measurements
($ thousands)	Total		Level 1		Level 2		Level 3
Asset (Liability)
May 3, 2025:
Non-qualified deferred compensation plan assets	$	11,037		11,037	$	—	$	—
Non-qualified deferred compensation plan liabilities		(11,037)		(11,037)		—		—
Non-qualified restoration plan assets		447		447		—		—
Non-qualified restoration plan liabilities		(447)		(447)		—		—
Deferred compensation plan liabilities for non-employee directors		(922)		(922)		—		—
Restricted stock units for non-employee directors		(988)		(988)		—		—
May 4, 2024:
Non-qualified deferred compensation plan assets		10,169		10,169		—		—
Non-qualified deferred compensation plan liabilities		(10,169)		(10,169)		—		—
Non-qualified restoration plan assets		256		256		—		—
Non-qualified restoration plan liabilities		(256)		(256)		—		—
Deferred compensation plan liabilities for non-employee directors		(2,204)		(2,204)		—		—
Restricted stock units for non-employee directors		(3,023)		(3,023)		—		—
February 1, 2025:
Non-qualified deferred compensation plan assets		10,939		10,939		—		—
Non-qualified deferred compensation plan liabilities		(10,939)		(10,939)		—		—
Non-qualified restoration plan assets		444		444		—		—
Non-qualified restoration plan liabilities		(444)		(444)		—		—
Deferred compensation plan liabilities for non-employee directors		(1,039)		(1,039)		—		—
Restricted stock units for non-employee directors		(1,130)		(1,130)		—		—


	Thirteen Weeks Ended
($ millions, except per share amounts)	May 3, 2025		May 4, 2024		Change ⁽¹⁾
Consolidated net sales	$614.2		$659.2		($45.0)	(6.8)	%
Famous Footwear segment net sales	$327.7		$349.6		($21.9)	(6.3)	%
Famous Footwear comparable sales % change	(4.6)	%	(2.3)	%	n/m	n/m
Brand Portfolio segment net sales	$295.4		$317.2		($21.8)	(6.9)	%
Gross profit	$278.7		$309.1		($30.4)	(9.8)	%
Gross margin	45.4	%	46.9	%	n/m	(152 bps)
Operating earnings	$11.6		$42.8		($31.2)	(72.9)	%
Diluted earnings per share	$0.21		$0.88		($0.67)	(76.1)	%


	Thirteen Weeks Ended
($ thousands)	May 3, 2025		May 4, 2024
Confirmed obligations outstanding at the beginning of the period	$	21,970	$	12,954
Invoices confirmed during the period		26,324		28,525
Confirmed invoices paid during the period		36,497		25,476
Confirmed obligations outstanding at the end of the period	$	11,797	$	16,003


($ thousands)	May 3, 2025		May 4, 2024		February 1, 2025
Customer allowances and discounts	$	15,135	$	17,090	$	16,147
Loyalty programs liability		8,568		8,350		7,776
Returns reserve		15,861		15,100		9,584
Gift card liability		5,876		5,841		6,338


	Thirteen Weeks Ended
($ thousands)	May 3, 2025		May 4, 2024
Balance, beginning of period	$	8,323	$	8,820
Adjustment for expected credit losses		1,969		(1,038)
Uncollectible account (write-offs) recoveries, net		(28)		319
Balance, end of period	$	10,264	$	8,101


	Thirteen Weeks Ended

($ millions)	May 3, 2025		May 4, 2024		Change
Net cash (used for) provided by operating activities	$	(5.7)	$	36.1	$	(41.8)
Net cash used for investing activities		(21.1)		(10.3)		(10.8)
Net cash provided by (used for) financing activities		30.3		(16.4)		46.7
Effect of exchange rate changes on cash and cash equivalents		0.0		(0.0)		0.0
Increase in cash and cash equivalents	$	3.5	$	9.4	$	(5.9)


				Total Number	Maximum Number
				Purchased as Part	of Shares that May
	Total Number of			of Publicly	Yet be Purchased
	Shares	Average Price Paid		Announced	Under the
Fiscal Period	Purchased⁽¹⁾		per Share ⁽¹⁾	Program ⁽²⁾	Program ⁽²⁾
February 2, 2025 - March 1, 2025	—	$	—	—	3,666,055

March 2, 2025 - April 5, 2025	417,586		16.56	225,000	3,441,055

April 6, 2025 - May 3, 2025	76,949		15.58	75,000	3,366,055
Total	494,535	$	16.41	300,000	3,366,055


Exhibit No.
2.1		Sale and Purchase Agreement, dated February 16, 2025, by and between Caleres, Inc. (the “Company”) and Tapestry, Inc. incorporated herein by reference to Exhibit 2.1 to the Company’s Form 8-K filed February 19, 2025.
3.1		Restated Certificate of Incorporation of the Company incorporated herein by reference to Exhibit 3.1 to the Company’s Form 8-K filed June 1, 2020.
3.2		Bylaws of the Company as amended through May 22, 2025, incorporated herein by reference to Exhibit 3.1 to the Company’s Form 8-K filed May 23, 2025.
31.1	†	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	†	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	†	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	†	iXBRL Instance Document
101.SCH	†	iXBRL Taxonomy Extension Schema Document
101.CAL	†	iXBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	†	iXBRL Taxonomy Extension Label Linkbase Document
101.PRE	†	iXBRL Taxonomy Presentation Linkbase Document
101.DEF	†	iXBRL Taxonomy Definition Linkbase Document
104	†	Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101.

		CALERES, INC.

Date: June 10, 2025		/s/ Jack P. Calandra
		Jack P. Calandra Senior Vice President and Chief Financial Officer on behalf of the Registrant and as the Principal Financial Officer