Caleres Inc (NYSE: CAL)

Caleres Inc., a global footwear company that operates under the ticker symbol CAL, has a rich history dating back to 1878. The company's mission is to inspire people to feel great, "feet first," and it achieves this by providing a wide range of footwear products for people of all ages.

Caleres operates two reportable segments: Famous Footwear and Brand Portfolio. The Famous Footwear segment is comprised of retail stores, e-commerce websites, and wholesale operations that sell branded footwear for the entire family. This segment offers a wide range of products from various brands, including Nike, Skechers, Crocs, and Dr. Martens, among others. The segment employs an omni-channel approach to reach consumers, including e-commerce and mobile apps.

The Brand Portfolio segment offers a diverse range of footwear brands, each with its unique style and target market. Sam Edelman, for example, is a luxury brand that offers high-end footwear with a focus on quality and style. Naturalizer, on the other hand, is a comfort brand that offers machine-washable footwear designed to provide comfort and support.

Caleres has a strong presence in the global footwear market, with a significant presence in the United States, Canada, and other countries. The company's products are sold through a network of distributors, licensees, and franchisees, and it has a strong relationship with its suppliers.

The company's position within the industry is competitive, with key competitors including other footwear retailers and manufacturers. Caleres faces competition from local, regional, and national shoe store chains, department stores, discount stores, mass merchandisers, numerous independent retail operators of various sizes, and e-commerce businesses. Quality of products and services, store location, trend-right merchandise selection, and availability of brands, pricing, marketing, advertising, and consumer service are all factors that impact retail competition.

Caleres' customers include various department stores, specialty retailers, and online retailers. Some of its significant customers include Dillard's, JCPenney, and Nordstrom. Caleres also sells its products directly to consumers through its e-commerce platforms and retail stores.

In terms of product development, Caleres has a global network of design and product development teams that work closely with retailers and consumers to identify trends and preferences. The company's design teams create collections of footwear, and its sourcing and product development offices convert those designs into new footwear styles.

Caleres also faces risks associated with cybersecurity, including the risk of a cybersecurity breach, which could result in the loss of sensitive consumer and associate information, damage to its reputation, and increased costs associated with addressing the breach. The company is reliant on its information technology systems, and any major disruption of these systems could adversely impact its ability to effectively operate its business.

In addition, Caleres is undergoing a multi-year enterprise resource planning (ERP) implementation, which will require significant financial and human capital resources. The implementation of the new ERP system may be more difficult, costly, or time-consuming than anticipated, and it is possible that the system will not yield the expected benefits. Any disruptions, delays, or deficiencies related to the new ERP system could have a material adverse effect on its business operations, including its ability to process orders, manage its inventory, ship products to its customers, maintain its financial records, and perform other business functions.

Caleres is also exposed to risks associated with its ESG initiatives, including the risk of increased scrutiny from stakeholders or regulators with respect to its ESG goals and objectives. The company may not be able to achieve its ESG goals within the timelines established, or at all. Failure to successfully achieve its ESG goals may damage its reputation, or the reputation of its brands. Caleres' reputation may also be damaged if it does not act, or is perceived by its consumers to not act, responsibly with respect to its impact on the environment or other social or governance matters.