Here are 1-3 brief analogies to describe Caleres:

• It's like a Foot Locker combined with Gap Inc., but focused entirely on shoes.
• Imagine DSW (for its wide selection of shoe brands) combined with a company like Skechers (which designs, makes, and sells its own popular shoe brands).

• Retail Footwear: Caleres sells a wide variety of athletic, casual, and dress footwear directly to consumers through its physical stores and e-commerce platforms.
• Wholesale Footwear: The company designs, sources, manufactures, and markets diverse footwear brands, including its own and licensed labels, for distribution to other retail stores.
• Wholesale Men's Apparel, Leather Goods, and Accessories: Caleres distributes men's apparel, leather goods, and accessories under the Allen Edmonds brand to various retailers.

• General Family Footwear Shoppers: This category includes customers of all ages seeking a wide variety of athletic, casual, and dress shoes for women, men, and children. These shoppers often frequent Famous Footwear stores and websites, valuing convenience, selection of major national brands (e.g., Nike, Skechers, adidas, Vans, Crocs), and accessible pricing.
• Fashion-Forward Adults: Primarily women, these customers are interested in contemporary fashion trends, stylish designs, and specific aesthetics for dress, casual, and seasonal footwear. They are served by brands such as Sam Edelman, Franco Sarto, Vince, Zodiac, Blowfish Malibu, Circus by Sam Edelman, and Veronica Beard, often seeking pieces that align with current styles and personal expression.
• Comfort and Quality-Focused Adults: This group includes individuals prioritizing comfort, support, and craftsmanship in their footwear. It encompasses customers looking for ergonomic designs, health-conscious options (e.g., Dr. Scholl's Shoes, Naturalizer, LifeStride, Rykä, Bzees), as well as those seeking premium quality and durability, such as customers of Allen Edmonds, who purchase high-end men's footwear and accessories.

• Nike (NKE)
• Skechers (SKX)
• adidas (ADS.DE)
• VF Corporation (VFC)
• Crocs (CROX)
• Puma (PUM.DE)
• Birkenstock (BIRK)
• New Balance
• Asics (7936.T)
• Under Armour (UAA)
• Bearpaw
• Wolverine World Wide (WWW)
• Dr. Martens (DOCS.L)

Jay Schmidt, President and Chief Executive Officer

Jay Schmidt became President and Chief Executive Officer of Caleres in January 2023. He initially joined the company in 2008 as Senior Vice President/General Manager Image Brands. He then served as President of Contemporary Fashion starting in 2010 and President of Brand Portfolio from 2016. In 2020, he was named President, taking on responsibility for the consumer and brand strategy across the entire Caleres portfolio. Before his tenure at Caleres, Schmidt amassed over 25 years of extensive experience in merchandising, portfolio management, and brand marketing, including a decade with Nine West Group and positions at Lord & Taylor, May Merchandising Corporation, and Macy's.

Dan Karpel, Interim Chief Financial Officer and Chief Accounting Officer

Dan Karpel was appointed Interim Chief Financial Officer, effective January 2026. He rejoined Caleres in October 2025 as Chief Accounting Officer. Karpel brings over 30 years of experience in accounting and finance to his role. His prior positions include serving as Chief Financial Officer of Club Car Wash Operating, LLC, and CW Holdings, LLC, a legacy entity that owned the brands Soft Surroundings and Coldwater Creek. He also held the role of chief accounting officer at Eyecare Partners LLC and Spectrum Brands Holdings, Inc.

Diane Sullivan, Chairman

Diane Sullivan serves as the Chairman of Caleres, a position she has held since January 2023, transitioning from her role as Executive Chairman. She was the President and Chief Executive Officer of Caleres from May 2011 until January 2023, having joined the company as President in 2003. She also became chairwoman of the board in February 2014.

Natelle Baddeley, Chief Design and Product Officer

Natelle Baddeley holds the title of Chief Design and Product Officer at Caleres.

Dan Friedman, Chief Sourcing and Supply Chain Officer

Dan Friedman is the Chief Sourcing and Supply Chain Officer at Caleres. He is also identified as the Division President of Global Supply Chain.

Key Risks to Caleres' Business

Caleres, Inc. (CAL) faces several significant risks, primarily driven by the volatile retail landscape and global economic factors. The most prominent risks include:

1. Macroeconomic Headwinds, Shifting Consumer Demand, and Intense Competition: Caleres is highly susceptible to macroeconomic pressures, such as inflation and tariffs, which have led to softening sales, declining revenue, and gross margin compression, particularly as consumers, especially lower-income segments, reduce discretionary spending. The footwear market is intensely competitive and dynamic, with Caleres facing pressure from other multi-brand retailers, online pure-plays, and major athletic brands (like Nike and Adidas) that are expanding their direct-to-consumer (DTC) channels. The company also faces inherent fashion and execution risks, where failing to anticipate or respond to rapidly changing consumer preferences and trends can lead to over-assortment and markdowns, negatively impacting profitability.
2. Supply Chain Disruptions and Rising Costs (including Tariffs): Caleres' global operations and reliance on third-party manufacturing, historically concentrated in regions like China, expose it to significant supply chain risks. Tariffs have already resulted in order cancellations, delayed receipts, and direct impacts on sales and gross margins. Beyond tariffs, the company contends with rising production costs, volatile raw material prices, and potential logistics shocks, all of which contribute to higher costs of goods sold and pressure on overall profitability. Caleres is actively working to diversify its sourcing locations, aiming to source 75% of its Brand Portfolio products outside of China by the second half of 2025 to mitigate these geopolitical and supply chain concentrations.
3. Inventory Management and Profitability Pressures: Continuous gross margin compression is a key risk for Caleres, exacerbated by tariff-related expenses, the need for promotional activities to move products, and increased provisions for inventory markdowns. The company has experienced elevated inventory levels, which can necessitate deeper discounting to clear stock, thereby eroding margins. This challenge is reflected in the significant pressure on its operating and net margins, with the net profit margin falling considerably below the footwear retail industry average. Effective inventory management is critical to mitigate these profitability pressures, especially in a market characterized by volatile demand and rapid trend changes.

Major athletic and fashion footwear brands, many of which Caleres sells through its Famous Footwear segment and relies on as key suppliers, are increasingly prioritizing and investing in their own direct-to-consumer (DTC) sales channels. This strategic shift could reduce the availability of popular products for multi-brand retailers like Caleres, limit their ability to secure favorable terms, and divert customer traffic and sales directly to the brands' own websites and stores, thereby diminishing the competitive advantage and profitability of Caleres' retail operations.

The addressable markets for Caleres, Inc.'s main products and services encompass the footwear retail and wholesale sectors across the United States, Canada, and China, with offerings in athletic, casual, and dress footwear for women, men, and children.

United States Footwear Market

• The overall footwear market in the United States was valued at approximately USD 97.72 billion in 2024 and is projected to reach around USD 141.89 billion by 2034, demonstrating a Compound Annual Growth Rate (CAGR) of 3.80% from 2025 to 2034. Other estimates place the market size at USD 106.6 billion in 2024.

• By Product Type (2024):

  • Non-athletic footwear held the largest market share, accounting for 45% of the U.S. shoe and footwear market.
  • The U.S. athletic footwear market was valued at approximately USD 15 billion in 2023. It is projected to reach USD 33.3 billion in 2024.

• By End User (2024-2025):

  • The women's footwear market in the United States was valued at USD 53.70 billion in 2025 and is projected to reach USD 72.87 billion by 2035, growing at a CAGR of 3.10% from 2026 to 2035.
  • The men's category held the largest market share in the U.S. shoe and footwear market in 2024, at 40%.
  • The children's footwear market in the U.S. reached around USD 12 billion in 2025. It is anticipated to be valued at USD 13.14 billion in 2026.

Canada Footwear Market

• The footwear market in Canada was estimated at USD 8,576.4 million (USD 8.58 billion) in 2024 and is expected to reach USD 10,906.8 million (USD 10.91 billion) by 2030, with a CAGR of 4.1% from 2025 to 2030. Another estimate valued the market at USD 5.04 billion in 2024, projected to reach USD 7.59 billion by 2033, exhibiting a CAGR of 4.18% during 2025-2033.

• By Product Type (2024):

  • Non-athletic footwear was the largest revenue-generating product segment in Canada in 2024.

China Footwear Market

• The footwear market in China generated a revenue of USD 70,720.2 million (USD 70.72 billion) in 2024 and is expected to reach USD 95,699.6 million (USD 95.70 billion) by 2030, growing at a CAGR of 5.2% from 2025 to 2030. It is estimated at USD 72.35 billion in 2025.

• By Product Type (2024-2025):

  • Non-athletic footwear was the largest revenue-generating product segment in China in 2024.
  • The China athletic footwear market is projected to grow from USD 78.4 billion in 2025 to USD 153.7 billion by 2032, registering a CAGR of 10.2% during the forecast period.

• By End User (2025):

  • Women's footwear grabbed a market share of 45% in China in 2025.

Caleres (NYSE: CAL) anticipates several key drivers to fuel its revenue growth over the next two to three years, focusing on its robust brand portfolio, digital acceleration, strategic acquisitions, and optimization of its Famous Footwear segment.

1. Expansion of Lead Brands and International Growth: Caleres is prioritizing the scaling of its "Lead Brands," such as Vionic, Sam Edelman, Naturalizer, and Allen Edmonds. Vionic, for instance, is specifically targeted for significant growth, with expectations to become a multi-hundred-million-dollar brand with double-digit growth potential through 2025. This expansion includes international wholesale and marketplace growth, particularly in the EU/UK and selective Asia-Pacific markets. The company aims for its Brand Portfolio segment to contribute approximately 50% of total earnings by 2026.

2. Direct-to-Consumer (DTC) and E-commerce Acceleration: A significant focus for Caleres is on digital growth and deepening its direct-to-consumer presence across its brand portfolio. DTC sales represented nearly 69% of total net sales in the first quarter of 2024. E-commerce has shown strong performance, achieving double-digit growth in both the Brand Portfolio and Famous Footwear segments in Q3 2025. The company is enhancing the omnichannel experience to better connect with consumers.

3. Strategic Acquisitions: Caleres is leveraging strategic acquisitions to enhance its market position and brand portfolio. A notable example is the planned acquisition of Stuart Weitzman, expected to close in the summer of 2025. This acquisition is central to Caleres's strategy for achieving premium positioning and expanding its international footprint. The Stuart Weitzman acquisition is anticipated to contribute to Brand Portfolio sales.

4. Famous Footwear Store Optimization and Enhanced Customer Engagement: The Famous Footwear chain is undergoing optimization, with a strategy to right-size its approximately 860 doors towards off-mall and smaller, more productive formats, prioritizing remodels and relocations over net unit growth. Furthermore, Caleres aims to strengthen Famous Footwear's connection with the millennial generation by improving the omnichannel experience and leveraging consumer analysis.

Share Repurchases

• In fiscal year 2024 (which ended around January 2025), Caleres returned $74.7 million to shareholders through a combination of share repurchases and quarterly dividends.
• Share buyback activity noted for portions of fiscal year 2025 (ending January 2026) includes $8.11 million in April 2025, $263.46 thousand in July 2025, and $186.71 thousand in October 2025.
• Caleres's 5-Year Share Buyback Ratio was reported as 3.30% as of October 2025, indicating an annualized reduction in outstanding shares.

Share Issuance

• The number of common shares outstanding has decreased over the last few years, indicating net share repurchases rather than significant share issuance. As of March 1, 2025, there were 33,612,063 common shares outstanding, down from 35,631,002 shares as of February 24, 2023, and 40,031,400 shares as of February 29, 2020.

Outbound Investments

• Caleres announced plans to acquire Stuart Weitzman for $105 million, with the transaction expected to close in the summer of 2025. Caleres intends to fund this acquisition through its revolving credit agreement.

Capital Expenditures

• Capital expenditures were reported as $74 million for fiscal year 2024 (ending January 2025).
• In prior fiscal years, capital expenditures were $60 million in 2023, $51 million in 2022, and $64 million in 2021.