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Caleres expands board with two new directors

Published 11/08/2024, 05:40 AM
CAL
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ST. LOUIS - Caleres (NYSE: NYSE:CAL), a diversified portfolio of global footwear brands, has increased its board of directors to twelve members with the addition of Kyle Gendreau and Molly Langenstein. Gendreau, currently the CEO of Samsonite International S.A., brings extensive experience in global brand building, mergers and acquisitions, and financial strategy. His tenure as CEO and former CFO at Samsonite has been marked by consumer-centric growth and sustainability efforts.

Langenstein, a seasoned retail strategist, most recently led Chico’s FAS as CEO and president until its acquisition in January 2024. Her strategic focus on customer-led, product-centric, and digital-first initiatives has been credited with revitalizing the brand's sales and profitability. Her previous experience includes nearly three decades at Macy’s, Inc., where she held various executive roles.

Diane Sullivan, executive chairman of Caleres, highlighted the critical expertise that Gendreau and Langenstein bring to the board, including their experience with global brand management and omnichannel retail strategies, which are expected to be valuable as Caleres pursues growth and aims to deliver shareholder value.

Caleres has been recognized by the Women’s Forum of New York for achieving gender parity on its board, being named a Corporate Champion for advancing women in the boardroom. Currently, the company boasts a 50% representation of women on its board.

Caleres' portfolio includes brands such as Famous Footwear, Sam Edelman, Allen Edmonds, Naturalizer, and Vionic. The company operates nearly 1,000 retail stores, with its products also available in hundreds of department and specialty stores, branded e-commerce sites, and on various third-party retail websites. With over 140 years of history, Caleres continues to focus on craftsmanship and a passion for fit, while also aiming to inspire people through their footwear. This announcement is based on a press release statement.

In other recent news, Caleres, a global footwear company, reported a 1.8% year-over-year decline in sales, totaling $683 million, in its second quarter 2024 earnings call. The company's earnings per share were reported at $0.85, both figures falling short of expectations. KeyBanc maintained a Sector Weight rating on Caleres' shares following these results and Loop Capital revised its price target for the company, reducing it to $30.00 from the previous $45.00.

Caleres has faced operational challenges, particularly due to an ERP system upgrade, which contributed to an estimated $10 million to $15 million in lost sales. However, the company has announced restructuring plans to enhance profitability and remains optimistic about growth strategies.

Despite a slower start to the Back-to-School season at its Famous Footwear segment, Caleres saw an increase in revenue in August, thanks to strategic marketing efforts. The company also reported a 6-point year-over-year increase in the retail selling of sneakers and sports-related footwear. These are some of the recent developments in the company's operations and financial performance.

InvestingPro Insights

As Caleres (NYSE: CAL) expands its board of directors with strategic appointments, InvestingPro data provides additional context to the company's financial position. Caleres currently has a market capitalization of $1.07 billion, reflecting its significant presence in the footwear industry.

The company's P/E ratio of 6.6 suggests that it is trading at a relatively low earnings multiple, which aligns with one of the InvestingPro Tips indicating that Caleres is "Trading at a low P/E ratio relative to near-term earnings growth." This could be particularly interesting for value-oriented investors considering the company's growth initiatives and board enhancements.

Another noteworthy InvestingPro Tip is that Caleres "Has maintained dividend payments for 54 consecutive years." This impressive track record of consistent dividends speaks to the company's financial stability and commitment to shareholder returns, which may be appealing to income-focused investors.

The company's revenue for the last twelve months stands at $2.8 billion, with a gross profit margin of 45.19%. These figures demonstrate Caleres' substantial market presence and ability to maintain healthy margins in the competitive footwear industry.

For investors seeking more comprehensive insights, InvestingPro offers additional tips and metrics that could provide a deeper understanding of Caleres' financial health and market position. There are 7 more InvestingPro Tips available for Caleres, which could offer valuable perspectives on the company's potential and risks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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