Caleres Inc. (NYSE: CAL) shares tumbled 12.09% in pre-market trading on Thursday following the release of disappointing first-quarter results 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 compared to the previous year.

For the first quarter of 2025, Caleres reported adjusted earnings per share of $0.22, missing the analyst consensus estimate of $0.36 by 38.89%. This represents a sharp 75% decrease from the $0.88 per share earned in the same period last year. The company's quarterly sales came in at $614.22 million, falling short of the expected $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. The company also revealed structural cost-cutting actions aimed at reducing Selling, General and Administrative (SG&A) expenses by $15 million on an annualized basis, with $7.5 million in savings anticipated for fiscal 2025. Additionally, Caleres projects that dollars sourced from China will be reduced to 10% or less in the second half of 2025, signaling a shift in its supply chain strategy. 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.