Caleres Shares Plunge 6.91% on Earnings Miss

Caleres (CAL) shares plunged 6.91% intraday, marking the third consecutive day of decline, with a cumulative drop of 14.10% over the past three days. The stock price hit its lowest level since December 2020.

The strategy of buying CAL shares after they reached a recent low and holding for 1 week showed poor performance over the past 5 years. The annualized return was -4.47%, significantly underperforming the market. This indicates that this strategy failed to capitalize on the potential rebounds following short-term lows, suggesting a need for a more robust or adaptive approach to trading CAL or similar stocks.

Caleres reported its first-quarter 2026 earnings, which fell short of market expectations. The company's revenue decreased by 6.8% compared to the same period last year, and net income plummeted by 78%. This disappointing financial performance has raised concerns among investors about the company's future prospects.

In addition to the earnings miss, Caleres has been the worst-performing stock in the XRT (SPDR S&P Retail ETF) over the past month, with shares down 24%. This underperformance has further dampened investor sentiment, contributing to the recent decline in the stock price.

The combination of weak financial results and poor stock performance has led to a significant sell-off in Caleres shares. Investors are likely to remain cautious until the company can demonstrate a clear path to recovery and improved profitability.