Caleres streamlines board, reducing directors to eleven

Published 23/05/2025, 16:04
Caleres streamlines board, reducing directors to eleven

ST. LOUIS, MO – Caleres Inc. (NYSE:CAL), a global footwear company currently trading at $15.83 and identified as undervalued by InvestingPro analysts, announced amendments to its corporate governance structure, effective May 22, 2025. The company, which has maintained dividend payments for 55 consecutive years, has seen its stock decline by 54% over the past year. The company’s Board of Directors has decided to decrease the number of directors from twelve to eleven. This change was disclosed in a Form 8-K filed with the Securities and Exchange Commission on May 23, 2025.

The amendment to the Bylaws was approved by the Board on May 22, 2025, and the revised Bylaws have been included as Exhibit 3.1 in the 8-K filing. The adjustment reflects Caleres’ ongoing efforts to optimize its governance practices.

In addition to the Bylaws amendment, Caleres held its Annual Meeting of Shareholders on May 22, 2025, where several items were submitted to a vote. The election of directors resulted in the approval of all eleven nominees. Each director will serve a one-year term. The detailed voting results for each director are available in the 8-K filing.

Furthermore, shareholders ratified the appointment of Ernst & Young LLP as the company’s independent registered public accountants for the year. The advisory resolution on executive compensation, also known as "say on pay," was approved as well.

These corporate actions are part of Caleres’ commitment to maintaining high standards of corporate governance and accountability to its shareholders. The company continues to focus on strategic initiatives to enhance shareholder value, maintaining a healthy 44.88% gross profit margin despite market challenges. According to InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ US stocks, Caleres trades at an attractive P/E ratio of 5.12, suggesting potential value opportunity.

For detailed information on the voting outcomes and other matters discussed at the Annual Meeting, stakeholders can refer to the Form 8-K filed by Caleres. The document provides comprehensive insights into the company’s corporate governance decisions and shareholder voting results. Investors should note that Caleres will report its next earnings on May 29, 2025. For deeper analysis and additional insights, including 8 more exclusive ProTips, visit InvestingPro.

In other recent news, Caleres Inc. reported its Q4 2024 earnings, which fell short of expectations. The company posted an adjusted earnings per share (EPS) of $0.33, missing the anticipated $0.40, and revenue of $639.2 million, below the forecast of $651.24 million. Additionally, Caleres announced a definitive agreement to acquire Stuart Weitzman from Tapestry (NYSE:TPR) Inc. for $105 million, a move expected to add approximately $230 million in revenue. S&P Global Ratings downgraded Caleres’ credit rating to ’BB-’ from ’BB’ due to high leverage and weak performance in fiscal year 2024, with leverage expected to rise further in fiscal year 2025. The company also experienced a 3.4% revenue decline in 2024, with comparable sales in its Famous Footwear segment falling by 1.3%. In leadership changes, Michael R. Edwards will step down as Division President of Famous Footwear, effective May 2, 2025, with no successor named yet. Analysts from KeyBanc Capital Markets and Loop Capital Markets are closely monitoring Caleres’ strategy and operations, particularly in light of the upcoming leadership transition and acquisition.

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