Stock Story -
What Happened:Shares of footwear company Caleres (NYSE:CAL) fell 21.1% in the morning session after the company reported second-quarter earnings results. Its revenue unfortunately missed, and its EPS fell short of Wall Street's estimates. Unpacking the drivers for the underwhelming sales results, the company called out delayed contributions from the back-to-school season, which impacted Famous Footwear sales. In addition, brand portfolio sales fell 5.1% due to operational reporting challenges in connection with its SAP ERP implementation and weak seasonal demand. Moving on, guidance was also underwhelming, which means that Wall Street analysts will be reducing their projections. Overall, this quarter could have been better.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Caleres? Find out by reading the original article on StockStory, it’s free.
What is the market telling us:Caleres’s shares are somewhat volatile and over the last year have had 12 moves greater than 5%. But moves this big are very rare even for Caleres and that is indicating to us that this news had a significant impact on the market’s perception of the business.
Caleres is down 2.1% since the beginning of the year, and at $30.22 per share it is trading 31.3% below its 52-week high of $43.97 from August 2024. Investors who bought $1,000 worth of Caleres’s shares 5 years ago would now be looking at an investment worth $1,361.
