Shares of Caleres Inc (NYSE: CAL) plummeted 12.76% in pre-market trading on Thursday following the release of disappointing first-quarter results for 2025 and the suspension of its annual forecast. The footwear retailer's performance fell short of analyst expectations, raising concerns about the company's near-term prospects in a challenging retail environment.

Caleres reported quarterly adjusted earnings of $0.22 per share, significantly missing the analyst consensus estimate of $0.36 by 38.89%. This represents a substantial 75% decrease from earnings of $0.88 per share in the same period last year. The company's quarterly sales also disappointed, coming in at $614.22 million, below the analyst estimate of $622.05 million and marking a 6.82% decrease from the $659.20 million reported in the previous year.

Adding to investor concerns, Caleres announced the suspension of its annual guidance due to market uncertainty. In response to these headwinds, the company outlined structural cost-cutting actions aimed at reducing Selling, General and Administrative (SG&A) expenses by $15 million annually, with $7.5 million in savings anticipated for fiscal 2025. Additionally, Caleres plans to reduce its sourcing from China to 10% or less in the second half of 2025, signaling a strategic shift in its supply chain management. Despite these challenges, the company noted that its brands continue to resonate with consumers, with both its Famous Footwear and Brand Portfolio segments gaining market share during the period.