Footwear Company Caleres Faces Tough Q2 With Lowered FY24 Forecast As Back-To-School Sales Lag
Portfolio Pulse from Lekha Gupta
Caleres, Inc. (NYSE:CAL) reported disappointing Q2 results, missing revenue and EPS expectations, and lowered its FY24 outlook. The company faced challenges from a delayed back-to-school season and operational issues with its SAP ERP implementation. Despite a slight increase in Famous Footwear sales, Brand Portfolio sales declined. Caleres plans restructuring actions to save costs and aims to reduce debt by 2026. CAL shares dropped 18.7% following the news.
September 12, 2024 | 2:40 pm
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NEGATIVE IMPACT
Caleres reported lower-than-expected Q2 results and reduced its FY24 outlook, leading to an 18.7% drop in share price. The company faced challenges from delayed back-to-school sales and ERP implementation issues.
Caleres' Q2 results missed expectations, and the company lowered its FY24 guidance, which is a negative signal for investors. The operational challenges and delayed sales further contribute to the negative outlook, causing a significant drop in share price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Cambria Micro and SmallCap Shareholder Yield ETF (BATS:MYLD) may experience indirect effects from Caleres' Q2 performance, as it includes small-cap stocks like Caleres.
MYLD, which includes small-cap stocks, may be indirectly impacted by Caleres' disappointing results and outlook, but the effect is less pronounced than on individual stockholders.
CONFIDENCE 75
IMPORTANCE 30
RELEVANCE 20
NEGATIVE IMPACT
The SPDR S&P Retail ETF (NYSE:XRT) may be indirectly impacted by Caleres' disappointing Q2 results and lowered outlook, as it includes retail stocks like Caleres.
As an ETF that includes retail stocks, XRT may be indirectly affected by Caleres' poor performance and outlook, though the impact is less direct compared to individual stockholders.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 30