What Caleres, Inc. told the SEC could break it.

Caleres, which imports most of its footwear, remained subject to tariffs ranging from 19% to 50% along with vendor price increases, which compressed merchandise margins (Brand Portfolio gross-profit rate fell to 40.8% from 43.7%); although the February 20, 2026 Supreme Court ruling struck down certain IEEPA tariffs, the availability of refunds and the impact of any additional tariff actions remain uncertain, leaving ongoing cost and margin risk.

“we continued to be subject to tariffs ranging from 19% to 50% and price increases from our vendors.”

Caleres funds working capital and strategic initiatives (including its 2025 Stuart Weitzman acquisition) with a variable-rate revolving Credit Agreement: at January 31, 2026 it had $296.5 million of borrowings and $8.6 million of letters of credit outstanding (with $207.7M additional availability) on a facility of up to $700 million, at a weighted-average rate of 5.7% (SOFR/prime-based); average daily borrowings rose to $297.5M from $201.5M, so rising rates or reduced availability would increase financing costs and constrain liquidity.

“As of January 31, 2026, the Company had $ 296.5 million of borrowings outstanding and $ 8.6 million in letters of credit outstanding under the Credit Agreement, with total additional borrowing availability of $ 207.7 million.”

Beyond its owned brands, Caleres relies on relationships with licensors of strong, well-recognized brands and trade names, and products sold under license agreements were approximately 14% of Brand Portfolio segment sales in 2025; because these license agreements typically run only two to four years with no assurance of renewal, loss or non-renewal of a key brand license (or unfavorable renewal terms) could reduce sales and disrupt its portfolio.

“we also rely on our ability to attract, retain and maintain good relationships with licensors that have strong, well-recognized brands and trade names. Our license agreements are generally for an initial term of two to four years, subject to renewal, and there can be no assurance that we will be able to ren”

Caleres does not manufacture most of its own footwear: in 2025 it sourced approximately $451.0 million of shoes through a global network of third-party independent manufacturers, with the majority provided by only ~49 manufacturers operating ~107 facilities (and a sample-making facility in Dongguan, China), concentrating its supply in a limited Asia-heavy manufacturer base; disruption, capacity constraints or quality/delivery failures at these suppliers could impair its ability to stock product.

“the sourcing operations sourced approximately $451.0 million of shoes through a global network of third-party independent footwear manufacturers. The majority of our footwear sourced is provided by approximately 49”