Quick Highlights:
- Caleres (CAL, Financial) reported a 6.8% drop in Q1 sales, failing to meet targets.
- Efforts to cut SG&A expenses by $15 million to counteract reduced gross margins.
- Uncertainties lead to suspension of forward guidance.
Caleres Inc. (CAL) navigates a challenging fiscal environment as its Q1 sales declined by 6.8% to $614.2 million, falling short of market expectations. This setback was largely influenced by compressed gross margins and ongoing inventory issues. To mitigate these impacts, the company has announced strategic measures to reduce Selling, General and Administrative (SG&A) expenses by $15 million. Meanwhile, a slight uptick in sales from Famous Footwear offers a silver lining, although the broader financial forecast is withheld due to persistent uncertainties.
Wall Street Analysts Forecast
According to the one-year price targets set by three analysts, Caleres Inc. (CAL, Financial) is predicted to reach an average price of $20.00. The projections range from a high of $23.00 to a low of $16.00, suggesting a potential upside of 46.20% from its current trading price of $13.68. Investors can delve deeper into these projections on the Caleres Inc (CAL) Forecast page.
The consensus recommendation from three brokerage firms assigns Caleres Inc. (CAL, Financial) an average rating of 2.7, which corresponds to a "Hold" status. This rating is derived from a scale where 1 indicates a Strong Buy and 5 signifies Sell, providing investors with a balanced view on the stock's potential.
In terms of valuation, GuruFocus estimates the GF Value for Caleres Inc. (CAL, Financial) at $27.73 for the upcoming year. This estimation points to an astonishing 102.7% potential upside from the current price of $13.68. The GF Value is an intrinsic value estimate calculated by GuruFocus, factoring in the stock's historical trading multiples, past business growth, and projected future performance. For additional insights, investors can visit the Caleres Inc (CAL) Summary page.
