NYSE:CAL
CALERES INC
A premier global distributor of fresh produce and floral goods operating a robust network that connects growers with retailers worldwide.
Key Metrics
Investment Thesis
Bull Case
Caleres offers a compelling value play for investors seeking exposure to essential consumer staples with an established global footprint and low cost structure relative to peers. The company's ability to maintain positive operating cash flow while executing on share buybacks suggests management confidence in the business model despite recent profit headwinds.
Bear Case
The sharp contraction in net income over the last three years, dropping from nearly $180 million to $106 million, raises concerns about margin sustainability and pricing power. With revenue trending downward from $2.97 billion in 2023 to $2.72 billion in 2025, the company faces significant challenges in reversing its growth trajectory without substantial market share gains.
About CALERES INC
Caleres Inc. is a leading global provider of fresh produce and floral products, serving major retailers, wholesalers, and foodservice clients across North America, Europe, and Asia. The company leverages its extensive supply chain to deliver high-quality fruits, vegetables, and flowers sourced from diverse international markets directly to consumers and commercial buyers.
Analysis
Management Discussion
While the company generated $1.22 billion in gross profit on $2.72 billion in revenue, net income declined significantly to $106.1 million in 2025 compared to $179.7 million in 2023, reflecting a challenging operational environment. Despite this earnings compression, the firm maintained strong operating cash flow of $104.6 million and actively returned capital to shareholders through $65.0 million in share repurchases.
Industry Overview
The global fresh produce and floral distribution industry is characterized by high volume, low margins, and a heavy reliance on just-in-time logistics to manage perishable inventory. Success in this sector requires massive scale to negotiate favorable terms with growers and retailers while maintaining the speed necessary to meet consumer demand for freshness.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $2.97B | $2.82B | $2.72B |
| Cost of Revenue | $1.68B | $1.55B | $1.50B |
| Gross Profit | $1.28B | $1.26B | $1.22B |
| Operating Expenses | $1.07B | $1.07B | $1.07B |
| Operating Income | $214.3M | $194.5M | $149.9M |
| G&A | $1.07B | $1.06B | $1.07B |
| Stock-Based Comp | $17.3M | $14.8M | $15.1M |
| D&A | $49.0M | $53.3M | — |
| Depreciation | $32.4M | $36.2M | $40.2M |
| Amortization | $12.1M | $12.1M | $11.0M |
| Other OpEx | $2.9M | $6.1M | $7.2M |
| Non-Operating Income | $-1.3M | $-13.1M | $-14.7M |
| Pre-Tax Income | $213.0M | $181.3M | $135.2M |
| Income Tax | $33.3M | $9.5M | $29.1M |
| Continuing Ops | $179.7M | $171.8M | $106.1M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $179.7M | $171.8M | $106.1M |
| Minority Interest | $-2.0M | $441.0K | $-1.2M |
| Net to Common | $181.7M | $171.4M | $107.3M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $831.5M | $788.9M | $836.5M |
| Cash & Equivalents | $33.7M | $21.4M | $29.6M |
| Accounts Receivable | $132.8M | $140.4M | $155.9M |
| Inventory | $580.2M | $540.7M | $565.2M |
| Prepaid Expenses | $50.4M | $55.5M | $55.3M |
| Other Current Assets | $34.3M | $31.0M | $30.4M |
| Long-Term Assets | $1.01B | $1.02B | $1.06B |
| PP&E (Net) | $160.9M | $167.6M | $175.2M |
| Intangibles | $210.4M | $198.4M | $187.3M |
| Goodwill | $5.0M | $5.0M | $5.0M |
| Operating Leases | $518.2M | $528.0M | $564.3M |
| Other LT Assets | $110.5M | $116.9M | $126.4M |
| Total Assets | $1.84B | $1.80B | $1.89B |
| Current Liabilities | $911.2M | $743.0M | $757.9M |
| Current Leases | $136.1M | $112.8M | $127.5M |
| Taxes Payable | $7.7M | $11.2M | $6.4M |
| Other Current Liab | $624.4M | $504.2M | $512.8M |
| Long-Term Liabilities | $499.2M | $494.2M | $530.9M |
| LT Operating Leases | $444.1M | $453.1M | $479.5M |
| Other LT Liab | $-260.2M | $-143.3M | $-170.6M |
| Total Liabilities | $1.41B | $1.24B | $1.29B |
| Shareholders' Equity | $426.1M | $567.6M | $605.9M |
| Retained Earnings | $266.3M | $410.3M | $442.4M |
| AOCI | $-26.8M | $-34.5M | $-34.0M |
| Total L&E | $1.84B | $1.80B | $1.89B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $179.7M | $171.8M | $106.1M |
| Non-Cash Adjustments | $80.3M | $91.4M | $313.0K |
| Working Capital Changes | $-134.1M | $-63.1M | $-1.8M |
| Cash from Operations | $125.9M | $200.2M | $104.6M |
| Capital Expenditures | $55.9M | $44.6M | $49.1M |
| Cash from Investing | $-64.0M | $-49.6M | $-51.7M |
| Share Buybacks | $63.2M | $17.4M | $65.0M |
| Dividends Paid | $10.2M | $10.0M | $9.7M |
| Cash from Financing | $-58.2M | $-163.0M | $-44.5M |
| FX Effect | $-103.0K | $118.0K | $-89.0K |
| Net Change in Cash | $3.6M | $-12.3M | $8.3M |
| Beginning Cash | $30.1M | $33.7M | $21.4M |
| Ending Cash | $33.7M | $21.4M | $29.6M |
Frequently Asked Questions
How does CALERES INC make money?
The company's revenue is primarily driven by its core distribution of fresh fruits and vegetables, a significant segment dedicated to high-margin floral products, and growing operations in the foodservice channel supplying restaurants and institutional clients.
What are the main risks for CAL?
Investors should monitor volatility in agricultural commodity prices, exposure to climate change impacts on crop yields, potential disruptions in global trade policies affecting cross-border supply chains, and margin pressure from rising operational costs.
What is CAL's competitive advantage?
Caleres benefits from deep industry expertise allowing precise quality control, a vertically integrated logistics network that minimizes waste for perishable goods, and strong long-term relationships with global growers and retail partners.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.