Shares of Caleres Inc (NYSE: CAL) tumbled 12.09% in pre-market trading on Thursday following the company's release of disappointing first-quarter results for 2025 and the suspension of its annual forecast. The footwear retailer reported earnings that fell short of analyst expectations and announced a significant decline in sales, prompting concerns among investors about the company's near-term prospects.

Caleres reported quarterly adjusted earnings of $0.22 per share, 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. This move, coupled with the weak financial results, appears to have shaken investor confidence in the company's ability to navigate the challenging retail environment. In response to these headwinds, Caleres 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. The company also 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.