However, guidance has now been withdrawn, margins have continued to deteriorate, and the company plans to increase debt to acquire Stuart Weitzman. I continue to believe Caleres is a Hold despite ...

As a result, the amount of debt increased to $220 million from $190 million in the last year. The latest acquisition of Stuart Weitzman will further cost $105 million, increasing debt by 50%.

Forward-Looking Guidance During the earnings call, Caleres reported a 6.8% year-over-year decline in sales to $614.2 million, with adjusted earnings per share at $0.22. Despite financial pressures ...

At Stuart Weitzman, revenue fell 18% to $46 million in the third quarter. Tapestry agreed in February to sell the brand to Caleres in a $105 million cash deal, which is expected to close this summer.

Stuart Weitzman, which is an unprofitable brand, will require significant investment, which is likely to also pressure margins. Overall, CAL ranks 12th on our list of underperforming stocks ...