CALERES INC

CALERES INC Material Event - Investor Summary

CALERES INC (NYSE: CAL), the company behind popular footwear brands like Famous Footwear, Sam Edelman, and Naturalizer, recently disclosed two key events impacting its leadership and financial outlook. This summary cuts through the details to provide investors with the essential facts about these significant changes.

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1. Event Description

CALERES INC announced two significant developments:

• CFO Transition: Jack P. Calandra, Senior Vice President and Chief Financial Officer, will step down from his position at the end of January 2026 to pursue other opportunities. The company clarified his departure is not due to any disagreements regarding operations, policies, or accounting practices. CALERES appointed Daniel L. Karpel, its current Senior Vice President and Chief Accounting Officer, as Interim CFO. Mr. Karpel brings over 30 years of finance and accounting experience, including previous CFO roles. He previously served with CALERES for eight years and rejoined the company in October 2025. CALERES has initiated an external search for a permanent CFO.
• Updated Financial Outlook Due to Saks Global Bankruptcy: CALERES revised its financial outlook for the fourth quarter and full fiscal year 2025 following the bankruptcy of Saks Global, a significant wholesale customer. This bankruptcy is expected to reduce CALERES' fourth-quarter diluted earnings per share (EPS). The anticipated impact comes from potential uncollectible payments, inventory adjustments, and other restructuring charges related to this customer's insolvency.

2. Event Date/Timeline

Here is a timeline of these key events:

• 8-K Filing Date: Caleres, Inc. filed a Current Report on Form 8-K on January 21, 2026, to disclose these significant events.
• CFO Transition Dates:
  • CALERES appointed Daniel L. Karpel Interim CFO, effective immediately on January 21, 2026.
  • Jack P. Calandra will officially step down at the end of January 2026.
• Financial Outlook Revision: The revised financial outlook for the fourth quarter and full fiscal year 2025 reflects the impact of the Saks Global bankruptcy, which occurred prior to the announcement of the updated guidance.

3. Impact Assessment

These events carry specific implications for the company and its financial health:

• CFO Leadership: The CFO transition impacts the company's financial leadership, strategy, reporting, and capital allocation. While a change can introduce uncertainty, Daniel Karpel's appointment, as a seasoned executive with prior experience at CALERES, provides continuity and stability during this period. His familiarity with the company's operations and financial structure should positively influence the search for a permanent replacement.
• Financial Performance: Saks Global's bankruptcy directly impacts CALERES' short-term earnings, primarily affecting the fourth quarter and full fiscal year 2025. CALERES will manage bad debt from uncollectible payments, adjust inventory intended for Saks Global, and incur other costs to unwind this business relationship.
• Core Business Resilience: CALERES clarified that, excluding the specific impacts from the Saks Global bankruptcy, its sales and earnings outlook for the fourth quarter and full fiscal year 2025 remains consistent with its previously issued guidance. This suggests CALERES' core business, including its owned brands and Famous Footwear retail operations, performs as expected. The Saks Global issue appears to be an isolated external shock, not a sign of broader operational weakness.
• Future Operations: CALERES will focus on mitigating the financial impact of the Saks Global bankruptcy. This may involve adjusting inventory, managing wholesale relationships, and potentially diversifying its customer base. The company will also identify and appoint a permanent Chief Financial Officer, a crucial leadership role for long-term financial strategy and investor confidence.

4. Financial Impact

The financial implications of these events are particularly important for investors:

• Saks Global Bankruptcy Impact: The Saks Global bankruptcy will reduce CALERES' fourth-quarter diluted earnings per share (EPS) by up to $0.06.
• Revised Financial Guidance:
  • Previous Guidance (issued November 2025):
    • Fourth Quarter 2025: Diluted EPS between $0.56 and $0.61.
    • Full Fiscal Year 2025: Diluted EPS between $2.55 and $2.60.
  • Revised Guidance (including Saks Global impact):
    • Fourth Quarter 2025: CALERES now expects diluted EPS to be between $0.50 and $0.55 (reflecting the up to $0.06 reduction).
    • Full Fiscal Year 2025: CALERES now expects diluted EPS to be between $2.49 and $2.54 (reflecting the up to $0.06 reduction).

5. Key Takeaways for Investors

Given these developments, here are several important considerations for investors:

• Monitor Stock Volatility: Investors can expect potential short-term volatility in CALERES' stock price (NYSE: CAL) as the market processes the updated financial outlook, particularly given the specific $0.06 EPS risk.
• Distinguish Core vs. External Impact: While the Saks Global bankruptcy is a negative development, investors should differentiate this specific, external event from CALERES' core business performance. The company's statement that its outlook remains otherwise consistent with previous guidance suggests underlying operational stability.
• Key Metrics to Watch: Investors should closely watch CALERES' actual Q4 and full fiscal year 2025 results, particularly gross margin, inventory levels, and cash flow, to assess how effectively CALERES manages the Saks Global fallout. Also, monitor announcements about the permanent CFO appointment.
• Long-Term Perspective: Investors should consider if CALERES can absorb and move past this one-off event, or if it signals broader risks within its wholesale segment. Evaluate CALERES' historical resilience and brand strength in navigating market challenges.
• Future Disclosures: Investors can expect more detailed information regarding the full financial implications of the Saks Global situation during CALERES' upcoming Q4 and full fiscal year 2025 earnings call, usually held in late February or early March.