CAL Caleres, Inc.

Risks

• 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.
• We operate in a highly competitive industry.
• We rely primarily on foreign sources of production, which subjects our business to risks associated with international trade.
• The imposition of tariffs on our products may result in higher costs and decreased gross profits.
• Our operating results depend on preparing accurate sales forecasts and properly managing our inventory levels.
• 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.
• Customer concentration and other trends in customer behavior may lead to a reduction in or loss of sales.
• Transitional challenges with acquisitions could result in unexpected expenditures of time and resources.
• A disruption in the effective functioning of our distribution centers could adversely affect our ability to deliver inventory on a timely basis.
• Foreign currency fluctuations may result in higher costs and decreased gross profits.
• Changes in tax laws may result in increased volatility in our effective tax rates.
• Our success depends on our ability to retain senior management and recruit and retain other key associates.
• Our business, sales and brand value could be harmed by violations of labor, trade or other laws.
• Our retail business depends on our ability to secure affordable and desirable leased locations without creating a competitive concentration of stores.
• If we are unable to maintain working relationships with our major branded suppliers, our business, results of operations, financial condition and cash flows may be adversely impacted.
• 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.
• Our quarterly sales and earnings may fluctuate, which may result in volatility in, or a decline in, our stock price.
• We are subject to periodic litigation and other regulatory proceedings, which could result in the unexpected expenditure of time and resources.
• A significant portion of our Famous Footwear sales are dependent on our Famous Footwear loyalty program, Rewards, and any decrease in sales from Rewards could have a material adverse impact on our sales.
• 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.
• If we are unable to maintain our credit rating, our ability to access capital and interest rates may be negatively impacted.