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Caleres (NYSE:CAL) shares slumped nearly 10% on Thursday after catching a downgrade at Piper Sandler
Equity analyst Abbie Zvejnieks cut her rating on the stock due to its status as the stock “most
exposed to pressures on discretionary spending” in her coverage.
“We are downgrading CAL to Neutral from Overweight due to macro pressures on consumer discretionary spending,” Zvejnieks told clients. “Inflation, increasing interest rates, a reduction in SNAP benefits, and lower tax refunds are putting pressure on consumers which is creating a headwind for footwear spending as evidenced by 1Q results at not-covered SCVL and FL.”
She added that Famous Footwear is likely to see slower traffic akin to those retailers while caution on orders from wholesalers is also a concern. As such, Zvejnieks cut her rating from Overweight to Neutral and trimmed her price target to $25 from $35.
Shares of Caleres (CAL) ran 9.52% lower on Thursday.
More on footwear sales trends:
Shoe Carnival stock slips on Q1 miss, lowered full-year outlook
Foot Locker stock falls 20% on soft Q1 report, slashed full-year forecasts
Foot Locker falls after UBS downgrades due to recession risk
Electronics, department stores lead declines in weak retail sales report
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