Caleres CAL 2026Q1 Earnings Preview Downside Risk Amid Revenue Decline Forecast

Forward-Looking Analysis
Caleres is set to release its 2026Q1 earnings report on May 29th, 2025, following a challenging fiscal year in 2025. Analysts expect the company's sales to continue declining, as projected in the cautious outlook for FY2025, where net sales are anticipated to decrease by 1% to 1% growth. The company has projected an EPS range of $2.80 to $3.20 for the year, though consensus estimates are slightly higher at $3.21. This discrepancy indicates potential downside risk. Caleres's quarterly revenue in Q4 2025 fell 8.3% year-over-year to $639.20 million, missing Wall Street expectations. The company's full-year revenue of $2.72 billion was a 3.4% decrease from FY2024, accompanied by a significant drop in net income by 37%. Analysts remain cautious as Caleres navigates market challenges and aims to enhance its brand focus through strategic initiatives.

Historical Performance Review
In Q4 2025, Caleres reported revenue of $639.23 million, a notable decline from prior periods. Net income stood at $3.91 million, leading to earnings per share of $0.15. The gross profit for the quarter was $275.11 million. These figures reflect a downward trend compared to previous quarters, with a significant drop in net income and EPS, indicating financial struggles. The company faced challenges in maintaining its profitability amid declining sales.

Additional News
Caleres, the parent company of Famous Footwear, is undergoing strategic shifts to enhance brand focus. The company oversees brands like Naturalizer, Vionic, Allen Edmonds, Blowfish Malibu, and Sam Edelman. Despite missing Wall Street revenue expectations, Caleres continues to prioritize strengthening its market position through strategic initiatives. The company's stock performance reflects fluctuations, with a market capitalization of $545.25 million. The stock's 50-day simple moving average is $16.21, while the 200-day average is $20.40. Caleres's shares have seen a 12-month low of $14.25 and a high of $44.51, indicating volatility amid the current market environment.

Summary & Outlook
Caleres faces a challenging financial landscape, reflected in its declining revenue and net income for Q4 2025. The company has projected cautious earnings amid continued sales decline. Despite strategic shifts to focus on brand enhancement, Caleres's financial health remains under pressure. The stock's volatility and missed revenue expectations signal potential risks ahead. Analysts maintain a bearish stance on future prospects as the company navigates market challenges and attempts to stabilize its performance through strategic initiatives. The outlook for Caleres hinges on its ability to adapt and compete effectively in a changing retail environment.