Caleres To Buy Stuart Weitzman For $105 Mln, Backs Annual Outlook; CAL Pre-Market Stock Up

(RTTNews) - Caleres, Inc. (CAL), a footwear company, said on Wednesday that it has inked a deal to acquire Stuart Weitzman from Tapestry, Inc. (TPR), a fashion firm, for $105 million. The acquisition is expected to boost Caleres' position in women's fashion footwear, particularly in the contemporary segment of the market.

Jay Schmidt, CEO of Caleres, said: "The acquisition of Stuart Weitzman advances our strategic agenda to grow our Brand Portfolio segment with more global and direct-to-consumer reach. Stuart Weitzman will be a lead brand for Caleres, and with this combination the Brand Portfolio segment will generate nearly half of our total revenue and will continue to generate over half of our operating profit."

The transaction, expected to be closed this summer, will be funded through CAL's revolving credit agreement. 

In addition, for the full-year 2024, Caleres has confirmed its annual guidance. On January 13, Caleres had announced its expectations for annual net income in the range of $3.10 to $3.20 per share, on sales decline of 3 to 3.5 percent from last year.

Caleres plans to release its annual earnings report on March 19.

CAL was up by 4.25 percent at $17.19 in the pre-market trade on the New York Stock Exchange.