Caleres (CAL)

Risks

• Supply chain disruptions and inflationary pressures may adversely impact our gross margin and earnings.
• The coronavirus pandemic continues to impact our business operations and financial condition.
• Consumer demand for our products may be adversely impacted by economic conditions and other factors.
• If we are unable to anticipate and respond to consumer preferences and fashion trends and successfully apply new technology, we may not be able to maintain or increase our net sales and earnings.
• Customer concentration and other trends in customer behavior may lead to a reduction in or loss of sales.
• We operate in a highly competitive industry.
• Our quarterly sales and earnings may fluctuate, which may result in volatility in, or a decline in, our stock price.
• Certain branded suppliers are becoming more selective. The loss of one or more of our major branded suppliers may adversely impact our business, results of operations, financial condition and cash flows.
• Foreign currency fluctuations may result in higher costs and decreased gross profits.
• We rely primarily on international sources of production, which subjects our business to risks associated with international trade.
• We are reliant upon our information technology systems, and any major disruption of these systems could adversely impact our ability to effectively operate our business.
• A cybersecurity breach may adversely affect our sales and reputation.
• Our operating results depend on preparing accurate sales forecasts and properly managing our inventory levels.
• A disruption in the effective functioning of our distribution centers could adversely affect our ability to deliver inventory on a timely basis.
• Our success depends on our ability to retain senior management and recruit and retain other key associates.
• A significant portion of our Famous Footwear sales are dependent on our Famous Footwear loyalty program, Famously You Rewards ("Rewards"), and any decrease in sales from Rewards could have a material adverse impact on our sales.
• Transitional challenges with acquisitions and divestitures could result in unexpected expenditures of time and resources.
• Changes in tax laws may result in increased volatility in our effective tax rates.
• Our business, sales and brand value could be harmed by violations of labor, trade or other laws.
• Our reputation and competitive position are dependent on our ability to license well-recognized brands, license our own brands under successful licensing arrangements and protect our intellectual property rights.
• We are subject to periodic litigation and other regulatory proceedings, which could result in the unexpected expenditure of time and resources.
• Our business, results of operations, financial condition and cash flows could be adversely affected by the failure of financial institutions to fulfill their commitments under our Credit Agreement.