Caleres Faces Earnings Shortfall and Stock Slide Amid Operational Hurdles

Published 5 hours agoCAL

Caleres Faces Earnings Shortfall and Stock Slide Amid Operational Hurdles

Caleres, a leading footwear retailer, is currently grappling with a tough financial period marked by disappointing third-quarter earnings and a sharp plunge in its stock value. The company revealed that its adjusted earnings per share reached $1.23, which fell short of the $1.38 expected by analysts. Likewise, Caleres' revenue figure of $740.9 million was below the anticipated $753.81 million and noted a 2.8% year-over-year decline.

Following these results, Caleres revised its fiscal 2024 earnings guidance, now projecting earnings per share in the range of $3.45 to $3.55, a decrease from the former range of $4.00 to $4.15. Moreover, it expects net sales to shrink by 2.5% to 3%, a revision from its earlier forecast of a low single-digit percentage drop. These challenges were compounded by several operational obstacles, including reduced demand for boots, delayed athletic product shipments, and a specific customer credit issue. Additionally, CEO Jay Schmidt noted that business in China did not meet expectations.

Reflecting this challenging environment, Caleres' stock tumbled 15.66% in premarket trading following the earnings announcement, as reported by Investing.com. These developments have also stirred interest from short sellers, indicating growing market skepticism regarding Caleres' immediate performance prospects.

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