Caleres (CAL) PT Lowered to $22 at Susquehanna

Susquehanna analyst Sam Poser lowered the price target on Caleres (NYSE: CAL) to $22.00 (from $24.00) while maintaining a Neutral rating following the company's 1Q earnings report. CAL reported 1Q19 EPS of $0.36 vs. the Street's $0.35 estimate. Gross margin contracted 114bps, worse than the Street's -48bps estimate. The gross margin miss was driven by pressure at Famous Footwear and to a lesser extent the variable costs associated with the Brand Portfolio's e-commerce business.

Management indicated, for the first time in recent memory, a willingness to separate the Brand Portfolio and FF into two distinct companies/entities, once the current short- and long-term debt on the balance sheet is paid down.

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