Store Operations - The Famous Footwear segment operated 846 stores at the end of 2024, selling primarily branded footwear for the entire family[15]. - The company operated 114 retail stores at the end of 2024, up from 98 in 2023, with plans to open approximately five new Allen Edmonds stores and 13 net new Sam Edelman stores in 2025[44]. - The company anticipates opening approximately eight new retail store locations and closing about 18 in 2025[22]. - The company operates 60 retail stores in the U.S. and 54 in East Asia under the Brand Portfolio segment[15]. - The company has 120 international branded stores operated by third parties through franchise agreements at the end of 2024[15]. Sales and Revenue - Net sales for women's footwear accounted for 60% in 2024, while men's footwear represented 21%, children's footwear 12%, and clothing and accessories 7%[16]. - The Brand Portfolio segment sold approximately 32 million pairs of shoes on a wholesale basis during 2024, with licensed products accounting for about 14% of sales[42]. - The backlog of unfilled wholesale orders as of February 1, 2025, was approximately $260.2 million, an increase from $234.5 million on February 3, 2024[53]. - The Famous Footwear segment's retail price points typically range from $20 for shoes to $300 for boots[19]. - Approximately 5% of Famous Footwear's net sales come from company-owned and licensed products sold by the Brand Portfolio segment[18]. Marketing and Advertising - Famous Footwear's marketing expenses in 2024 were approximately $56.4 million, aimed at reinforcing brand connection with consumers[24]. - The company invested approximately $78.3 million in advertising and marketing support for its Brand Portfolio segment in 2024[46]. Sourcing and Inventory - In 2024, the sourcing operations sourced approximately $494.4 million of shoes, with China and Vietnam being the largest sourcing countries at $244.7 million and $210.2 million, respectively[51]. - Approximately 25% of inventory receipts were sourced through speed programs during 2024, with expectations for continued growth in 2025[43]. - The Famous Footwear segment's distribution systems allow for weekly merchandise deliveries to stores, ensuring adequate stock[23]. Employee and Workforce - The company employs approximately 9,400 individuals, with 4,800 full-time and 4,600 part-time employees as of February 1, 2025[55]. - The company offers a comprehensive benefits package, including competitive salaries, health insurance, retirement plans, and education assistance[56]. - The company emphasizes health and safety training for newly hired associates, ensuring compliance with its Occupational Health and Safety Program[57]. - The company has no employees under union contracts in the U.S., with only 25 warehouse employees in Canada under a union contract expiring in October 2025[55]. Business Strategy and Goals - The Company signed a definitive agreement to acquire Stuart Weitzman for $105 million, expected to close in summer 2025, enhancing the Brand Portfolio segment[16]. - The company anticipates expanding its Naturalizer presence in East Asia with the opening of approximately five new stores in 2025[44]. - The company anticipates expanding the Sam Edelman presence in East and Southeast Asia with approximately 13 net new stores in 2025[44]. - The company aims to achieve its responsible business goals by 2025, focusing on eco-conscious products and practices[59]. - The company is committed to responsible business initiatives, focusing on sustainable practices and waste elimination in manufacturing[58]. - The company aims to use environmentally preferred materials and ensure compliance with global labor standards in its supply chain[59]. - The business is seasonal, with higher sales during back-to-school and holiday seasons, although earnings distribution has become more balanced in recent years[64]. - The company competes in a highly fragmented market with various retail formats, including traditional stores and e-commerce[60]. - The company has a steering committee to manage responsible business goals and metrics, with a report expected in spring 2025[59]. Product Offerings - The Brand Portfolio segment includes a variety of owned and licensed brands, with products sold at various price points ranging from $50 to $2,995[26][29]. - The Favorite Daughter Shoes line is set to launch in Fall 2025, with price points ranging from $195 to $495[39].

FOURTH QUARTER & FULL YEAR 2024 MARCH 20, 2025 SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation contains certain forward-looking statements and expectations regarding the company's future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) changes in United States and international trade policies, including tariffs and trade restricti ...

Financial Performance - Fourth quarter sales were reported at $639.2 million, down 8.3% year-over-year, with full-year sales of $2,722.7 million, down 3.4% year-over-year[4] - Fourth quarter earnings per diluted share were $0.15, compared to $1.57 in the same quarter of the previous year, while full-year earnings per diluted share were $3.09, down from $4.80[8] - Fiscal 2025 consolidated net sales are expected to be down 1% to up 1% compared to fiscal 2024, with earnings per diluted share guidance of $2.80 to $3.20[9] - Adjusted net earnings for the fifty-two weeks ended February 1, 2025, were $114,595 thousand, compared to $149,269 thousand for the fifty-three weeks ended February 3, 2024, reflecting a decline of 23.2%[19] - For the 52 weeks ended February 1, 2025, net sales reached $1,556,456 thousand, a decrease of 3.3% compared to $1,609,396 thousand for the 53 weeks ended February 3, 2024[23] - Operating earnings for the 52 weeks ended February 1, 2025, were $87,076 thousand, compared to $123,838 thousand for the 53 weeks ended February 3, 2024, reflecting a decline of 29.8%[23] - Adjusted operating earnings for the 52 weeks ended February 1, 2025, were $87,715 thousand, down from $125,204 thousand in the previous year, indicating a decrease of 30%[24] Shareholder Returns - The company returned $74.7 million to shareholders in fiscal 2024 through share repurchases and dividends[4] Sales and Market Trends - Direct-to-consumer sales represented approximately 73% of total net sales in the fourth quarter[5] - The Famous Footwear segment saw a net sales decrease of 9.6%, with comparable sales down 2.9%[5] - Net sales for the Famous Footwear segment were $358,351 thousand for the thirteen weeks ended February 1, 2025, down 9.6% from $396,227 thousand in the same period last year[20] - Comparable sales on a 52-week basis decreased by 1.3% for the Famous Footwear segment[23] Profitability Metrics - The gross profit for the fourth quarter was $275.1 million, with a gross margin of 43.0%, down 80 basis points year-over-year[5] - The company reported a gross margin of 42.5% for the Famous Footwear segment in the thirteen weeks ended February 1, 2025, slightly down from 42.9% in the prior year[20] - Gross profit for the same period was $686,627 thousand, resulting in a gross profit rate of 44.1%, down from 44.7% in the previous year[23] - The gross profit rate for the Famous Footwear segment was 44.1%, slightly lower than the 44.7% reported in the previous year[23] Expenses and Liabilities - SG&A expenses were 40.9% of net sales in the fourth quarter, up 180 basis points compared to the prior year[8] - Total current liabilities rose to $757,933 thousand as of February 1, 2025, from $742,956 thousand, marking an increase of 2.0%[17] Cash Flow and Liquidity - Net cash provided by operating activities for the fifty-two weeks ended February 1, 2025, was $104,562 thousand, a decrease of 47.7% compared to $200,151 thousand for the previous year[18] - Cash and cash equivalents at the end of the period increased to $29,636 thousand, up from $21,358 thousand, showing a growth of 38.8%[18] - Total liquidity, including cash and cash equivalents, was $301.9 million as of February 1, 2025, down from $329.9 million the previous year[30] Store Operations - The company operated 846 stores at the end of the period, down from 860 stores a year ago, representing a decrease of 1.6%[20] - The company operated 846 stores at the end of the period, a decrease from 860 stores in the previous year[23] Debt and Financing - Borrowings under the revolving credit agreement increased to $219,500 thousand as of February 1, 2025, compared to $182,000 thousand a year earlier, indicating a rise of 20.6%[17] - The debt/EBITDA leverage ratio increased to 1.1 as of February 1, 2025, from 0.7 the previous year, with borrowings under the revolving credit agreement at $219,500 thousand[28] - Total availability under the revolving credit agreement was $272.3 million as of February 1, 2025, down from $308.5 million the previous year[30] Future Plans - The company plans to acquire Stuart Weitzman for $105 million, expected to close in summer 2025[7] - The company expects 75% of its Brand Portfolio sourcing to be outside of China by the second half of 2025[4] Earnings Adjustments - Adjusted diluted earnings per share for the thirteen weeks ended February 1, 2025, were $0.33, compared to $0.86 for the fourteen weeks ended February 3, 2024, reflecting a decline of 61.0%[19] - Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders for the thirteen weeks ended February 1, 2025, was $0.33, compared to $0.87 for the fourteen weeks ended February 3, 2024[26] - Diluted adjusted earnings per common share for the same period was also $0.33, compared to $0.86 the previous year[26] - The company reported a net earnings attributable to Caleres, Inc. of $4,765 thousand for the 13 weeks ended February 1, 2025, compared to $53,394 thousand for the 14 weeks ended February 3, 2024[25] - Net earnings attributable to Caleres, Inc. for the thirteen weeks ended February 1, 2025, were $4,930 thousand, significantly lower than $55,808 thousand for the fourteen weeks ended February 3, 2024[28] - The company reported a net loss attributable to noncontrolling interests of $1,023 thousand for the thirteen weeks ended February 1, 2025, compared to a gain of $148 thousand the previous year[26] Restructuring Costs - The company incurred total charges/other items of $639 thousand related to restructuring costs for the 52 weeks ended February 1, 2025[24] EBITDA Metrics - Adjusted EBITDA for the thirteen weeks ended February 1, 2025, was $28,996 thousand, with an adjusted EBITDA margin of 4.5%, down from $49,471 thousand and 7.1% for the fourteen weeks ended February 3, 2024[28] - The trailing twelve months EBITDA as of February 1, 2025, was $206,701 thousand, with an EBITDA margin of 7.6%, compared to $253,504 thousand and 9.0% for the prior year[28]

The holiday season is a make-or-break period for retailers, as consumer spending trends during this time can significantly impact performance. For Caleres Inc. (CAL) , this period brought unforeseen challenges, leading the company to revise its financial outlook. While Caleres faced setbacks, other retailers such as Five Below, Inc. (FIVE) , Genesco Inc. (GCO) and Abercrombie & Fitch Co. (ANF) had varying experiences.What Led Caleres to Revisit Its Guidance?Caleres, a prominent player in the consumer-driven ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended November 2, 2024 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____________ to _____________ Commission file number: 1-2191 CALERES, INC. (Exact name of registrant as specified in its charter) New York 4 ...

Group 1 - Caleres, Inc. reported its Q3 2024 results, showing revenue growth in both retail and wholesale branded sectors on a comparable basis [1] - The company maintained strong operating margins despite a decrease in absolute terms [1] Group 2 - The analysis emphasizes a long-only investment approach, focusing on operational aspects and long-term earnings potential rather than market-driven dynamics [1] - The investment strategy suggests that only a small fraction of companies should be considered for buying at any given time, with most recommendations being holds [1]

Financial Data and Key Metrics Changes - Total sales for Q3 2024 were $741 million, down 2.8% year-over-year, with a decline of $21 million, including an unfavorable calendar shift of about $29 million at Famous Footwear [36][37] - Adjusted earnings per diluted share were $1.23, compared to $1.37 in the previous year [42] - Consolidated gross margin was 44.1%, a decrease of 55 basis points, driven by lower margins in Famous Footwear [39] - SG&A expenses were $269 million, or 36.3% of sales, up 30 basis points [41] - Operating earnings were $58 million, with an operating margin of 7.9% [41] Business Segment Data and Key Metrics Changes - Brand portfolio sales increased approximately 1%, with lead brands outperforming portfolio brands [10][11] - Famous Footwear total sales declined 5%, while comparable sales increased 2.5% [21][37] - The brand portfolio gross margin was 43.8%, up 15 basis points, while Famous Footwear's gross margin was 42.9%, down 130 basis points [39] - The Sam Edelman brand saw strength driven by positive responses to fashion newness, particularly in sneakers and tall shaft boots [15] Market Data and Key Metrics Changes - The footwear industry overall was down about 1%, with the fashion segment experiencing a decline greater than that [98] - Famous Footwear's market share gained 0.5 percentage points in shoe chains according to Circana data [24] - The kids category at Famous Footwear has outperformed the rest of the chain for 15 consecutive quarters, with a penetration of 25% in the total business [23] Company Strategy and Development Direction - The company is focusing on international expansion, particularly in China and other markets like the Middle East and EU [57] - A tactical decision was made to delay additional remodels until Q1 2025 to prevent lost holiday sales [27] - The company plans to take aggressive action on poor-performing items to end the year with a clean inventory position [30] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the future, noting that brands and products are resonating with consumers and gaining market share [9] - The company expects lower sales and earnings than previous guidance due to several negative trends impacting top-line performance [28][29] - Management acknowledged that the fashion segment of footwear has been softer than anticipated, impacting overall performance [52] Other Important Information - The company ended Q3 with $239 million in borrowings, up about $17 million from last year [43] - Inventory at quarter-end was $586 million, up 5.4% year-over-year [44] - The company expects to source about 70% of its products outside of China by the back half of 2025 [48] Q&A Session Summary Question: Can you provide thoughts around the confidence levels for top-line growth and scaling to that in next year and beyond? - Management believes they have the brand, strategies, capabilities, and people to return to previous earnings power, despite this year being a setback [52][54] Question: What is contributing to the softness in China? - Management is cautious on China in the near term but sees it as an important market with significant long-term opportunity [57][58] Question: How much of the guidance shift is due to markdowns to clear inventory in Q4? - Management expects a gross margin decline driven by markdowns to address slow-moving inventory [60][61] Question: How large is China as a percentage of total sales? - International sales, including China, are less than 5% of total sales, with China being the largest part of that [70][71] Question: What are the expectations for Famous Footwear's comp in Q4? - Management expects a marginally positive comp of about 1 to 1.5% for Q4 [77] Question: How significant was the impact of boots on the third quarter? - Boots accounted for about two-thirds of the sales drop in Q3, and similar declines are expected in Q4 [84]

Caleres Inc. (CAL) came out with quarterly earnings of $1.23 per share, missing the Zacks Consensus Estimate of $1.34 per share. This compares to earnings of $1.37 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -8.21%. A quarter ago, it was expected that this footwear wholesaler and retailer would post earnings of $1.21 per share when it actually produced earnings of $0.85, delivering a surprise of -29.75%. Over the last four ...

Sales Performance - Reported sales of $740.9 million, down 2.8% year-on-year[3] - Famous Footwear sales declined 4.8%, with comparable store sales up 2.5%[3] - Brand Portfolio sales increased 0.7% compared to the third quarter of 2023[3] - Consolidated net sales for the thirteen weeks ended November 2, 2024, were $740,941 thousand, down from $761,904 thousand for the same period in 2023, a decline of 2.7%[25] - Net sales for the Famous Footwear segment were $1,198,105 thousand for the thirteen weeks ended November 2, 2024, compared to $1,213,169 thousand for the same period in 2023, reflecting a decrease of 1.2%[28] - The company experienced a comparable sales decline of 0.9% in company-operated stores for the thirty-nine weeks ended November 2, 2024, compared to a 3.5% increase for the same period in 2023[28] Earnings and Profitability - Reported earnings per diluted share of $1.19, down from $1.32 in Q3 2023[6] - Adjusted earnings per diluted share of $1.23, down from $1.37 in Q3 2023[7] - Fiscal 2024 earnings per diluted share guidance revised to $3.35 to $3.45[10] - Adjusted diluted earnings per share for the thirteen weeks ended November 2, 2024, were $1.23, down from $1.37 in the same period last year, a decrease of 10.2%[23] - Basic earnings per share attributable to Caleres, Inc. shareholders were $1.20 for the thirteen weeks ended November 2, 2024, down from $1.32 for the same period in 2023, a decline of 9.1%[31] - Adjusted operating earnings for the Famous segment were $29,568 thousand, down from $46,600 thousand in the prior year, a decrease of 36.6%[25] - Adjusted operating earnings for the consolidated results were $143,579 thousand for the thirty-nine weeks ended November 2, 2024, down from $167,659 thousand for the same period in 2023, representing a decline of 14.4%[29] - The gross profit margin for the consolidated results was 45.5% for the thirteen weeks ended November 2, 2024, compared to 45.1% for the same period in 2023, indicating an improvement of 0.4 percentage points[28] - The gross profit for the consolidated results was $946,934 thousand for the thirteen weeks ended November 2, 2024, compared to $957,229 thousand for the same period in 2023, a decrease of 1.1%[28] Financial Position - Total assets increased to $1,955,939 thousand as of November 2, 2024, up from $1,826,893 thousand on October 28, 2023, representing a growth of 7.1%[19] - Total current liabilities decreased to $806,430 thousand from $827,921 thousand, a reduction of 2.0%[19] - Cash and cash equivalents at the end of the period were $33,685 thousand, slightly down from $34,031 thousand at the end of the previous period[21] - Borrowings under revolving credit agreements increased to $238,500 thousand from $222,000 thousand, an increase of 7.5%[19] - Total equity increased to $606,306 thousand from $520,172 thousand, reflecting a growth of 16.5%[19] - Total liquidity, including cash and cash equivalents and availability under the revolving credit agreement, was $285.8 million as of November 2, 2024, down from $301.4 million as of October 28, 2023[37] Cash Flow - Net cash provided by operating activities for the thirty-nine weeks ended November 2, 2024, was $75,855 thousand, compared to $157,183 thousand for the same period in the previous year, a decrease of 51.8%[21] Guidance and Outlook - Fiscal 2024 outlook revised to net sales down 2.5% to 3%[3] - Caleres, Inc. provided guidance for fiscal 2024, projecting GAAP diluted earnings per share to be between $3.35 and $3.45, with adjusted diluted earnings per share expected to be between $3.45 and $3.55[39] Other Financial Metrics - The EBITDA for the thirteen weeks ended November 2, 2024, was $71,404 thousand, resulting in an EBITDA margin of 9.6%, compared to $78,826 thousand and an EBITDA margin of 10.3% for the same period last year[37] - Adjusted EBITDA for the same period was $72,997 thousand, with an adjusted EBITDA margin of 9.9%, down from $81,130 thousand and 10.6% in the prior year[37] - The debt/EBITDA leverage ratio improved to 1.0 as of November 2, 2024, compared to 0.9 as of October 28, 2023[37]

Core Viewpoint - Caleres Inc. is anticipated to report a year-over-year decline in earnings due to lower revenues, which could significantly influence its near-term stock price depending on how actual results compare to consensus estimates [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for December 5, 2024, with an expected quarterly earnings of $1.34 per share, reflecting a year-over-year decrease of 2.2% [3][4]. - Revenues are projected to be $756.83 million, down 0.7% from the same quarter last year [4]. Estimate Revisions - The consensus EPS estimate has been revised 1.06% higher in the last 30 days, indicating a collective reassessment by analysts [5]. - The Most Accurate Estimate for Caleres Inc. is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.12%, suggesting a bearish outlook from analysts [11][12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [8][9]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically produced positive surprises nearly 70% of the time [9]. Historical Performance - In the last reported quarter, Caleres Inc. was expected to post earnings of $1.21 per share but only achieved $0.85, resulting in a surprise of -29.75% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Conclusion - Caleres Inc. does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding this stock ahead of its earnings release [17].