LOS ANGELES, Sept. 12, 2024 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Caleres, Inc. ("Caleres" or "the Company") (NYSE: CAL) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Caleres reported its second quarter 2024 on September 12, 2024. The Company repor ...

Key Takeaways Caleres, the parent of discount shoe retailer Famous Footwear, said weak demand, a later back-to-school period, and challenges with its resource planning system hurt second-quarter results. The footwear company missed quarterly profit and sales estimates, and cut its full-year outlook. The news sent Caleres shares into negative territory for 2024. Caleres (CAL) shares plunged Thursday when the footwear company significantly missed estimates and slashed its outlook on soft demand, a later back- ...

Core Insights - Caleres, Inc. reported disappointing second-quarter results for fiscal 2024, with adjusted earnings of 85 cents per share, missing the Zacks Consensus Estimate of $1.21 and down from 98 cents per share year over year [1][2]. Financial Performance - Consolidated net sales were $683.3 million, a decline of 1.8% year over year, and below the Zacks Consensus Estimate of $716 million [3]. - The Famous Footwear segment saw a 1.5% increase in net sales, while the Brand Portfolio segment experienced a 5.1% drop in sales [3]. - Gross profit decreased by 1.1% to $310.9 million, with a gross margin increase of 30 basis points to 45.5% [4]. - Adjusted EBITDA fell 12.4% to $57.2 million, with an adjusted EBITDA margin contraction of 100 basis points to 8.4% [5]. Segment Performance - The Famous Footwear segment's gross margin decreased by 120 basis points to 45%, while the Brand Portfolio segment's gross margin increased by 140 basis points to 42.7% [4]. - Direct-to-consumer sales accounted for approximately 75% of total quarterly sales [3]. Balance Sheet and Cash Flow - At the end of the quarter, Caleres had cash and cash equivalents of $51.8 million and total shareholders' equity of $613.5 million [6]. - Cash generated from operating activities was $115.7 million for the 26 weeks ended August 3, 2024 [6]. - The company had borrowings of $146.5 million under its asset-based revolving credit facility [6]. Future Outlook - For Q3, Caleres expects sales to be flat to down 2% year over year, with adjusted EPS projected between $1.30 and $1.40 [7]. - For fiscal 2024, the company anticipates consolidated net sales to decline in the low single digits, down from previous guidance of flat to up 2% [8]. - The projected consolidated operating margin is now expected to be in the range of 7-7.1%, compared to earlier projections of 7.3-7.5% [8].

CALERES 1 SECOND QUARTER 2024 September 12, 2024 | --- | --- | |------------------------------------------------------------------------------|-------| | | | | SAFE HARBOR | | | UNDER THE P RIVATE S ECURITIES LITIGATION REFORM ACT OF 1995 | | 2 FrancoSarto PORT WASHINGTON LifeStride CALERES vince. E S T VERONICA BEARD rykö NAT VIONIC R m CALERES IS UNIQUELY POSITIONED TO DRIVE LONG-TERM SHAREHOLDER VALUE 4 Merchant driven organization with powerful brand assets Exceptional capabilities in sourcing & logisti ...

The footwear retailer's latest results disappointed the market. Shares of Caleres (CAL -18.60%), the parent of Famous Footwear and other footwear brands, were tumbling today after the company posted disappointing results in its second-quarter earnings report. As of 11:34 a.m. ET, the stock was down 19.1% on the news. Caleres misses the mark Caleres said revenue in the quarter was down 1.8% to $683.3 million, well below estimates at $723.8 million. Famous Footwear sales rose 1.5%, which included a later-than ...

Caleres Inc. (CAL) came out with quarterly earnings of $0.85 per share, missing the Zacks Consensus Estimate of $1.21 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -29.75%. A quarter ago, it was expected that this footwear wholesaler and retailer would post earnings of $0.86 per share when it actually produced earnings of $0.88, delivering a surprise of 2.33%. Over the last four ...

[Caleres Q2 2024 Earnings Release](index=1&type=section&id=Caleres%20Reports%20Second%20Quarter%20Results%20and%20Updates%20Guidance) [Overview and Key Highlights](index=1&type=section&id=Overview%20and%20Key%20Highlights) The company reported lower-than-expected Q2 results due to operational challenges but saw improved gross margins Q2 2024 Key Performance Indicators | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Net Sales | $683.3 million | -1.8% | | Famous Footwear Sales | - | +1.5% | | Brand Portfolio Sales | - | -5.1% | | Consolidated Gross Margin | 45.5% | +30 bps | | Earnings Per Share (EPS) | $0.85 | - | | EBITDA | $57.2 million | - | - CEO Jay Schmidt attributed underperformance to systems implementation, weak seasonal demand, and a late back-to-school season, but noted that **back-to-school sales surged in August**[3](index=3&type=chunk) - The company is implementing restructuring actions expected to generate **$7.5 million in annualized SG&A savings**, with $2 million anticipated in fiscal 2024[2](index=2&type=chunk) [Second Quarter 2024 Financial Performance](index=1&type=section&id=Second%20Quarter%202024%20Results) Net sales declined 1.8% to $683.3 million, with Famous Footwear growing while the Brand Portfolio segment contracted Q2 2024 Financial Results vs. Q2 2023 | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net Sales | $683.3M | $695.5M | | Gross Profit | $310.9M | $314.2M | | Gross Margin | 45.5% | 45.2% | | Net Earnings | $30.0M | $33.9M | | Diluted EPS | $0.85 | $0.95 | Q2 2024 Segment Performance | Segment | Net Sales Change (YoY) | Gross Margin | Gross Margin Change (YoY) | | :--- | :--- | :--- | :--- | | Famous Footwear | +1.5% | 45.0% | -120 bps | | Brand Portfolio | -5.1% | 42.7% | +140 bps | - SG&A expenses as a percentage of net sales were **39.3%**, reflecting planned investments in marketing, international expansion, and the SAP platform[4](index=4&type=chunk) - Borrowings under the asset-based revolving credit facility were **reduced by $98 million** year-over-year to $146.5 million, while inventory levels remained flat[4](index=4&type=chunk) [Capital Allocation and Debt Management](index=2&type=section&id=Capital%20Allocation%20Update) The company prioritizes near-term debt reduction, targeting borrowings below $100 million by 2026 - The company's near-term capital allocation strategy is focused on **reducing debt**[5](index=5&type=chunk) - A key long-term target is to have borrowings under the asset-based revolving credit facility be **less than $100 million by 2026**[5](index=5&type=chunk) - Caleres will continue returning cash to shareholders via **dividends** and will evaluate **share repurchases** as the year progresses[5](index=5&type=chunk) [Fiscal 2024 Outlook](index=2&type=section&id=Fiscal%202024%20Outlook%3A) The company lowered its full-year 2024 guidance, now expecting a low-single-digit sales decline and adjusted EPS of $4.00-$4.15 Revised Fiscal 2024 Annual Guidance | Metric | Prior Guidance | Revised Guidance | | :--- | :--- | :--- | | Sales Change | Flat to up 2% | Down low single digits | | Operating Margin | 7.3% - 7.5% | 7.0% - 7.1% | | GAAP EPS | $4.30 - $4.60 | $3.94 - $4.09 | | Adjusted EPS | $4.30 - $4.60 | $4.00 - $4.15* | | Capital Expenditures | $60 - $70 million | $50 - $55 million | Third Quarter 2024 Guidance | Metric | Q3 2024 Guidance | | :--- | :--- | | Sales Change | Flat to down 2% | | GAAP EPS | $1.24 - $1.34 | | Adjusted EPS | $1.30 - $1.40* | - The adjusted EPS guidance excludes **$0.06 per share** associated with restructuring costs expected in the third quarter[7](index=7&type=chunk) [Financial Statements and Schedules](index=5&type=section&id=Financial%20Statements%20and%20Schedules) [Condensed Consolidated Statements of Earnings (Schedule 1)](index=5&type=section&id=SCHEDULE%201) Net sales were $683.3 million and net earnings fell to $30.0 million from $33.9 million year-over-year Statement of Earnings Highlights (Thirteen Weeks Ended) | ($ thousands) | Aug 3, 2024 | July 29, 2023 | | :--- | :--- | :--- | | Net sales | 683,317 | 695,533 | | Gross profit | 310,878 | 314,173 | | Operating earnings | 42,529 | 49,703 | | Net earnings attributable to Caleres, Inc. | 29,958 | 33,943 | | Diluted EPS | $0.85 | $0.95 | [Condensed Consolidated Balance Sheets (Schedule 2)](index=6&type=section&id=SCHEDULE%202) Total assets grew to $2.02 billion, while borrowings under the revolving credit agreement were significantly reduced Balance Sheet Highlights | ($ thousands) | Aug 3, 2024 | July 29, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | 51,753 | 47,098 | | Inventories, net | 661,146 | 660,690 | | Total assets | 2,019,985 | 1,903,960 | | Borrowings under revolving credit agreement | 146,500 | 244,000 | | Total Caleres, Inc. shareholders' equity | 606,062 | 464,992 | [Condensed Consolidated Statements of Cash Flows (Schedule 3)](index=7&type=section&id=SCHEDULE%203) Net cash from operations was $115.7 million, a decrease from the prior-year period Cash Flow Highlights (Twenty-Six Weeks Ended) | ($ thousands) | Aug 3, 2024 | July 29, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | 115,696 | 125,176 | | Net cash used for investing activities | (21,808) | (16,877) | | Net cash used for financing activities | (63,426) | (94,952) | | Increase in cash and cash equivalents | 30,395 | 13,398 | [Reconciliation of GAAP to Non-GAAP Earnings (Schedule 4)](index=8&type=section&id=SCHEDULE%204) Q2 2024 GAAP and Adjusted EPS were identical at $0.85, with no adjustments made during the quarter Q2 GAAP vs. Adjusted EPS Reconciliation | Per Share Data | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | GAAP diluted EPS | $0.85 | $0.95 | | Adjustments (Expense reduction) | $— | $0.03 | | Adjusted diluted EPS | $0.85 | $0.98 | [Summary Financial Results by Segment (Schedule 5)](index=9&type=section&id=SCHEDULE%205) Famous Footwear sales grew 1.5% while Brand Portfolio sales fell 5.1%, though the latter saw improved gross margin Q2 2024 Segment Results (Thirteen Weeks Ended) | ($ thousands) | Famous Footwear | Brand Portfolio | | :--- | :--- | :--- | | Net sales | $420,289 | $285,497 | | Gross profit | $189,337 | $121,883 | | Gross margin | 45.0% | 42.7% | | Operating earnings | $34,384 | $23,620 | [Basic and Diluted EPS Reconciliation (Schedules 6 & 7)](index=11&type=section&id=SCHEDULE%206%20%26%207) These schedules detail the calculation of basic and diluted EPS, arriving at a diluted EPS of $0.85 for Q2 2024 Q2 2024 Diluted EPS Calculation | Metric | Value | | :--- | :--- | | Net earnings attributable to Caleres, Inc. | $29,958 thousand | | Diluted common shares | 33,989 thousand | | Diluted EPS | $0.85 | [EBITDA and Debt/EBITDA Leverage Ratio (Schedule 8)](index=13&type=section&id=SCHEDULE%208) The Debt/EBITDA leverage ratio improved significantly to 0.6x from 1.0x year-over-year, reflecting lower debt EBITDA and Leverage Ratio | Metric | Aug 3, 2024 | July 29, 2023 | | :--- | :--- | :--- | | **Q2 EBITDA ($ thousands)** | $57,209 | $63,631 | | **TTM EBITDA ($ thousands)** | $240,737 | $239,958 | | **Debt/EBITDA Ratio** | 0.6x | 1.0x | [Reconciliation of GAAP to Non-GAAP EPS Guidance (Schedule 9)](index=15&type=section&id=SCHEDULE%209) The forward-looking guidance reconciliation shows a $0.06 per share adjustment for restructuring costs Fiscal 2024 EPS Guidance Reconciliation | Per Share Data | Low | High | | :--- | :--- | :--- | | GAAP diluted EPS | $3.94 | $4.09 | | Restructuring costs | $0.06 | $0.06 | | Adjusted diluted EPS | $4.00 | $4.15 | [Other Information](index=2&type=section&id=Other%20Information) This section contains conference call details, definitions, and the Safe Harbor statement outlining forward-looking risks - The company will host an investor conference call and webcast to discuss the results[8](index=8&type=chunk) - Non-GAAP measures like **EBITDA** and **adjusted EPS** are used to help management and investors identify underlying business trends[10](index=10&type=chunk) - The Safe Harbor statement lists potential risks including **economic conditions**, **supply chain issues**, and **cybersecurity threats** related to the ERP upgrade[11](index=11&type=chunk)

Group 1: Company Performance - Caleres Inc. (CAL) has returned approximately 10.7% year-to-date, outperforming the average return of -1.7% for Consumer Discretionary companies [3] - Within the Shoes and Retail Apparel industry, which includes 12 companies, Caleres Inc. is performing better as this group has lost about 27.7% so far this year [4] - The Zacks Consensus Estimate for Caleres Inc.'s full-year earnings has increased by 0.6% over the past quarter, indicating an improving earnings outlook [6] Group 2: Industry and Sector Context - Caleres Inc. is part of the Consumer Discretionary sector, which consists of 281 individual stocks and currently holds a Zacks Sector Rank of 13 [5] - The Shoes and Retail Apparel industry, where Caleres operates, is ranked 49 in the Zacks Industry Rank [4] - Another notable stock in the Consumer Discretionary sector, Hasbro (HAS), has a year-to-date return of 15.6%, indicating strong performance within the sector [9]

What's the Price-to-Sales Ratio? The price-to-sales ratio is often preferred over price-to-earnings, as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable. Screening Parameters Debt to Equity (Most Recent) less than the Median Debt to Equity for its Industry: A company with less debt should have a stable price-to-sales ratio. Here are five of the 17 stocks that qualified after the screening: Caleres expects to contin ...

Investing in stocks, after analyzing the valuation metrics, is considered one of the best practices. The price-toearnings ratio has always been the obvious choice when considering valuation metrics. This is because calculations based on earnings are easy and come in handy. However, the price-to-sales ratio is convenient for determining the value of stocks that are incurring losses or in an early development cycle, generating meager or no profit. What's the Price-to-Sales Ratio? While a loss-making company w ...