Caleres, Inc. ( CAL ) shares are trading higher on Wednesday after the company inked a deal to acquire Stuart Weitzman from Tapestry, Inc. ( TPR ) for $105 million. 

This acquisition strengthens Caleres’ position in women’s fashion footwear, especially in the contemporary market segment.

Jay Schmidt, President and CEO of Caleres ( CAL ) said, “The acquisition of Stuart Weitzman advances our strategic agenda to grow our Brand Portfolio segment with more global and direct-to-consumer reach.”

”Stuart Weitzman will be a lead brand for Caleres ( CAL ), and with this combination the Brand Portfolio segment will generate nearly half of our total revenue and will continue to generate over half of our operating profit.” 

The deal is set to close in the summer of 2025, with Caleres ( CAL ) financing the acquisition through its revolving credit agreement.

Joanne Crevoiserat, Chief Executive Officer of Tapestry, added, “Importantly, as diligent stewards of our portfolio and disciplined allocators of capital, this transaction ensures that all our brands are positioned for long-term success and that we maintain a sharp focus on our largest value creation opportunities.”

As of November 2, 2024, Caleres’ cash and equivalents stood at $33.7 million.

Caleres ( CAL ) anticipates reporting net sales and earnings per share in line with its latest guidance provided last month. 

Caleres’ recent guidance was for FY24 net sales decline of 3.0% to 3.5% and adjusted EPS of $3.20-$3.30 (vs. consensus of $3.23).

Caleres ( CAL ) plans to release earnings on March 19, 2025, before the market opens.

Price Action: CAL shares are up 4.15% at $17.18 at the last check Wednesday.

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