FMP
May 29, 2025
Caleres Inc. (NYSE:CAL), a prominent player in the footwear industry, known for its diverse portfolio of consumer-driven brands, recently announced its financial results for the first quarter of 2025, revealing some challenges in meeting market expectations. Despite its established presence, Caleres faces competition from other major footwear retailers, which adds pressure to its financial performance.
On May 29, 2025, Caleres reported earnings per share (EPS) of $0.22, which was below the estimated $0.37. This represents a significant decline from the $0.88 per share reported in the same quarter last year, as highlighted by Zacks. The earnings report reflects a negative surprise of 40.54%, indicating that the company's performance fell short of market expectations.
In terms of revenue, Caleres posted $614.2 million for the quarter ending April 2025, slightly below the estimated $622.1 million. This marks a 6.8% decrease compared to the same period last year, when the company reported $659.2 million in revenue. Over the past four quarters, Caleres has consistently failed to meet consensus revenue estimates, which may concern investors.
Despite these challenges, Caleres maintains a relatively low valuation with a price-to-earnings (P/E) ratio of approximately 4.21. The company's price-to-sales ratio is 0.17, suggesting that investors are paying 17 cents for every dollar of sales. Additionally, the enterprise value to sales ratio is 0.46, reflecting the company's total valuation relative to its sales.
Caleres' financial health is further supported by an enterprise value to operating cash flow ratio of 12.10, indicating efficient cash flow generation. The company's debt-to-equity ratio stands at 1.38, showing a moderate level of debt financing. With a current ratio of 1.10, Caleres has a slightly higher level of current assets compared to its current liabilities, suggesting reasonable short-term financial stability.
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