Footwear retailer Caleres' Q2 sales beat estimates

Overview

• Caleres Q2 sales fall 3.6% but beat analyst expectations, per LSEG data
• Adjusted EPS of $0.35 misses analyst estimates, per LSEG data
• Co completes acquisition of Stuart Weitzman, enhancing brand portfolio
  Outlook
• Caleres suspends annual guidance due to market uncertainty
  Result Drivers
• TARIFF IMPACT - Brand Portfolio sales decreased 3.5%, with a $10 mln impact from tariffs
• DIRECT-TO-CONSUMER GROWTH - Growth in higher-margin direct-to-consumer channels partially offset gross margin decline
• STRUCTURAL COST SAVINGS - Achieved cost savings targets expected to generate annualized savings of $15 mln
  Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
• The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
• Wall Street's median 12-month price target for Caleres Inc is $19.50, about 23.3% above its September 3 closing price of $14.95
• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago