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ST. LOUIS - Footwear company Caleres (NYSE:CAL), currently trading near its 52-week low at $12.54 compared to its high of $44.51, announced Monday it has amended its credit agreement, extending its senior secured asset-based revolving credit facility to June 2030 while increasing borrowing capacity by $200 million to $700 million.
The amended agreement includes an accordion feature allowing the company to potentially increase the facility size to $950 million in total.
"The expanded facility provides Caleres with enhanced liquidity and flexibility, and further strengthens the balance sheet," said Jack Calandra, senior vice president and CFO of Caleres.
Calandra noted that after continuing to pay dividends - which the company has maintained for an impressive 55 consecutive years - the company’s near-term capital allocation priorities include completing the acquisition of Stuart Weitzman and investing in growth areas. Longer-term plans will balance investment priorities with debt reduction and shareholder returns. For deeper insights into Caleres’ financial health and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
Bank of America, N.A. is serving as the administrative agent, collateral agent and lead issuing bank for the credit facility. Truist Bank, Wells Fargo Bank and U.S. Bank acted as joint lead arrangers and joint bookrunners, with Fifth Third Bank, Regions Bank and TD Bank also participating.
Caleres operates a portfolio of footwear brands including Famous Footwear, Sam Edelman, Allen Edmonds, Naturalizer and Vionic. The company sells products through nearly 1,000 company-operated retail stores, department stores, specialty retailers, branded e-commerce sites and third-party platforms, generating annual revenues of $2.68 billion with a gross profit margin of 44.5%.
This information is based on a press release statement from Caleres.
In other recent news, Caleres reported its first-quarter 2025 earnings, revealing a significant earnings miss. The company’s earnings per share (EPS) were $0.22, falling short of the $0.37 forecast, while revenue was reported at $614.2 million, slightly below the expected $622.92 million. This decline reflects broader challenges in the retail sector, including tariff uncertainties and softening consumer demand. As a result, Caleres suspended its full-year guidance. Additionally, KeyBanc Capital Markets maintained a Sector Weight rating on Caleres stock, noting the company’s challenging first quarter and decision to withdraw financial guidance for fiscal year 2025. Despite these difficulties, Caleres’ Lead Brands, including Famous Footwear and Allen Edmonds, performed well, and the addition of Stuart Weitzman as a Lead Brand is expected to be finalized in the summer of 2025. The company also announced the retirement of its Chief Accounting Officer, Todd E. Hasty, effective October 17, 2025, with no successor named yet.
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