What Happened?
Shares of footwear company Caleres (NYSE: CAL) jumped 3.1% in the afternoon session after Kohl's reported strong second-quarter earnings.
The footwear company's stock appears to be benefiting from broader optimism following the department store chain's impressive results. Kohl's (KSS) reported earnings per share of $0.56, significantly beating analysts' estimates of $0.29. The company also raised its full-year earnings forecast, signaling momentum in its strategy and suggesting healthy consumer spending. This positive news sent Kohl's shares surging nearly 20% and fueled investor confidence that other retailers, including Caleres, could see similar strength. The overall market backdrop was also favorable for the sector, with the Consumer Discretionary Select Sector SPDR (XLY) trading higher during the session.
After the initial pop the shares cooled down to $15.65, up 4.1% from previous close.
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What Is The Market Telling Us
Caleres’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock gained 3.3% on the news that the company announced an expanded partnership with Cash App's Afterpay service.
The partnership will bring flexible 'Buy Now, Pay Later' payment options to shoppers across Caleres' portfolio of footwear brands, including Famous Footwear, Sam Edelman, Allen Edmonds, and Naturalizer. The collaboration allows customers to use Afterpay's 'Pay in 4' and 'Pay Monthly' services for online purchases and at select retail locations across the United States. This move, arriving just in time for the fall shopping season, is designed to cater to modern consumer preferences. Willis Hill, Chief Information Officer of Caleres, stated that the partnership reflects the company's 'appreciation of how today's customers want to shop and pay,' suggesting the initiative aims to enhance the customer experience and potentially drive sales by offering greater payment flexibility.
Caleres is down 30.4% since the beginning of the year, and at $15.65 per share, it is trading 64.3% below its 52-week high of $43.83 from August 2024. Investors who bought $1,000 worth of Caleres’s shares 5 years ago would now be looking at an investment worth $2,171.
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