Financial Data and Key Metrics Changes - The company achieved earnings per share of $0.88, slightly below last year's $0.97, with consolidated sales of $659 million, down less than 1% year-over-year [26][35][60] - Consolidated gross margin reached a record 47%, representing a 120 basis point increase compared to the previous year [26][60] - Operating earnings were $43 million, with an operating margin of 6.5% [37] Business Line Data and Key Metrics Changes - Brand Portfolio sales declined by 2.6%, while Famous Footwear sales were flat, with comparable sales down 2.3% [14][60] - Famous Footwear gross margin improved to 46.1%, up 50 basis points from last year, driven by lower freight costs and improved shrink [36][60] - The Brand Portfolio delivered a strong operating margin of 13.1%, contributing significantly to the company's operating earnings [37][60] Market Data and Key Metrics Changes - The company gained 1.9 points of market share in shoe chains, particularly in the kids' category, which saw high-single-digit sales growth [33][56] - The kids' category has outpaced the total business for 13 consecutive quarters, indicating strong demand [56] Company Strategy and Development Direction - The company is focusing on enhancing its marketing ecosystem and expanding its international presence, including opening new stores in Southeast Asia [6][29] - Investments in marketing and design are aimed at driving growth in key brands, with a particular emphasis on casual and athletic footwear [28][60] - The company plans to continue leveraging its speed to market capabilities to align inventory with consumer demand [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver earnings per share in line with guidance, with expectations for sales growth in the mid-single digits for Famous Footwear in Q2 [39][42] - The company anticipates continued improvement in gross margins, particularly in the Brand Portfolio, driven by cleaner inventory and a favorable channel mix [89] - Management noted a shift in consumer preferences towards casual and athletic footwear, which is expected to continue throughout the year [68][69] Other Important Information - The company returned $18 million to shareholders through share repurchases and dividends during the quarter [6] - Inventory at quarter-end was $531 million, down 5.2% year-over-year, reflecting disciplined inventory management [38] Q&A Session Summary Question: Guidance for second quarter and fiscal year expectations - Management expects Famous to provide mid-single-digit sales growth due to a critical back-to-school week shift into Q2, while the Brand Portfolio is anticipated to generate low-single-digit comp growth [42] Question: Planning for back-to-school - Management emphasized the importance of newness in product offerings and expressed confidence in inventory availability, particularly for sneakers [49][50] Question: Current state of the consumer - Management noted strength in athletic brands and a focus on item-driven sales, with a continued pivot towards casual and athletic products [70][72] Question: Performance of FLAIR stores - FLAIR stores are performing well, with adjustments made to store layouts to enhance visibility and consumer experience [83] Question: Expectations for gross margin and SG&A in Q2 - Management anticipates continued improvement in gross margin for the Brand Portfolio, while SG&A investments will continue into Q2 [88][89]

15 CALCULATION OF EBITDA AND DEBT/EBITDA LEVERAGE RATIO (NON-GAAP METRICS) CVFERES FIRST Q U A R T E R 2024 4 Exceptional capabilities in sourcing and logistics, digital, marketing and analytics, and technology Passionate and ambitious team in a valuedriving culture | --- | --- | |----------------------------------------------|-------| | | | | | | | 3 % - | 5 % | | | | | R E V E N U E G R O W T H C A G R 11 % - | 13 % | | E P S G R O W T H C A G R L O W -T O TEENS | | | A N N U A L T S R T A R G E T | | 1 | ...

Core Insights - Caleres Inc. reported revenue of $659.2 million for the quarter ended April 2024, a decrease of 0.5% year-over-year, and EPS of $0.88, down from $0.97 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $665.45 million, resulting in a surprise of -0.94%, while the EPS exceeded the consensus estimate of $0.86 by +2.33% [1] Revenue Performance - Net Sales for Famous Footwear were $349.55 million, slightly above the estimated $347.26 million, reflecting a year-over-year increase of +0.1% [3] - Net Sales for the Brand Portfolio were reported at $317.21 million, below the average estimate of $332.86 million, indicating a year-over-year decline of -2.6% [3] - Net Sales for Eliminations and Other were -$7.57 million, better than the estimated -$12.32 million, showing a significant year-over-year change of -36.6% [3] Profitability Metrics - Gross profit for the Brand Portfolio was $147.81 million, slightly below the estimated $148.19 million [3] - Gross profit for Famous Footwear was $161.01 million, exceeding the estimated $158.43 million [3] Stock Performance - Over the past month, shares of Caleres Inc. have returned +1.6%, compared to a +3.2% change in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

分组1 - Caleres Inc. reported quarterly earnings of $0.88 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, but down from $0.97 per share a year ago, representing an earnings surprise of 2.33% [1] - The company posted revenues of $659.2 million for the quarter ended April 2024, missing the Zacks Consensus Estimate by 0.94%, and down from $662.73 million year-over-year [2] - Caleres Inc. shares have increased approximately 19.4% since the beginning of the year, outperforming the S&P 500's gain of 10.4% [3] 分组2 - The earnings outlook for Caleres Inc. is mixed, with the current consensus EPS estimate for the coming quarter at $1.27 on revenues of $711.35 million, and $4.40 on revenues of $2.84 billion for the current fiscal year [7] - The Zacks Industry Rank for Shoes and Retail Apparel is currently in the top 15% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Net sales for the first quarter of 2024 were $659.2 million, a decrease of 0.5% compared to the same period in 2023[12] - Gross profit was $309.1 million, with a gross margin of 46.9%, an increase of 120 basis points year-over-year[12] - Net earnings attributable to Caleres, Inc. were $30.9 million, or $0.88 per diluted share, compared to $34.7 million, or $0.97 per diluted share in the first quarter of 2023[12] - EBITDA for the first quarter was $57.4 million, representing 8.7% of sales, down from 9.6% in the prior year[12] - Famous Footwear segment net sales increased by 0.1%, while Brand Portfolio segment net sales declined by 2.6%[12] - Net sales for the first quarter of 2024 were $349,553 thousand, a slight increase from $349,158 thousand in the same period last year[24] - Gross profit reached $161,005 thousand with a gross margin of 46.1%, compared to $159,133 thousand and 45.6% in the prior year[24] - Operating earnings were $16,855 thousand, resulting in an operating margin of 4.8%, down from $17,056 thousand and 4.9% year-over-year[24] - Net earnings attributable to Caleres, Inc. were $30,939 thousand, compared to $34,727 thousand in the previous year[25] - Basic earnings per common share were $0.88, a decrease from $0.97 in the same quarter last year[25] - The company achieved a record first quarter consolidated gross margin of 47%[28] Future Outlook - The company expects fiscal 2024 consolidated net sales to be flat to up 2% compared to 2023, with earnings per diluted share projected between $4.30 and $4.60[14] - For fiscal 2024, Caleres expects net sales to be flat to up 2% and earnings per share to be between $4.30 and $4.60[28] Inventory and Debt Management - Inventory decreased by 5.2% from the first quarter of 2023 due to strategic inventory management[12] - Borrowings under the asset-based revolving credit facility were $191.0 million at the end of the period, down approximately $100 million from the first quarter of 2023[12] - The debt/EBITDA leverage ratio improved to 0.8 from 1.1 year-over-year, with borrowings under the revolving credit agreement decreasing to $191,000 thousand from $291,500 thousand[26] Capital Expenditures and Share Repurchase - Capital expenditures for fiscal 2024 are estimated to be between $60 million and $70 million[14] - The company repurchased 416,000 shares of common stock for $15.1 million at an average price of $36.23 per share during the quarter[31] SG&A Expenses - SG&A expenses as a percentage of net sales were 40.4%, reflecting planned investments in marketing and international expansion[12]

Core Insights - Analysts project Caleres Inc. (CAL) will report quarterly earnings of $0.86 per share, reflecting an 11.3% decline year over year, with revenues expected to reach $665.45 million, a 0.4% increase from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised 2.3% higher in the last 30 days, indicating a collective reevaluation by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3]. Key Metrics Projections - Consensus estimate for 'Net Sales- Famous Footwear' is $347.26 million, indicating a -0.5% change from the previous year [5]. - 'Net Sales- Brand Portfolio' is projected to reach $332.86 million, reflecting a year-over-year increase of 2.3% [5]. - Analysts estimate 'Gross profit / (loss)- Brand Portfolio' at $148.19 million, compared to $143.86 million reported in the same quarter last year [5]. - 'Gross profit / (loss)- Famous Footwear' is expected to be $158.43 million, slightly down from $159.13 million a year ago [6]. Stock Performance - Shares of Caleres Inc. have decreased by 0.6% over the past month, contrasting with a 4% increase in the Zacks S&P 500 composite [6].

Financial Performance - The aggregate market value of the stock held by non-affiliates was approximately $892.2 million as of July 28, 2023[13]. - The backlog of unfilled wholesale orders as of February 3, 2024, was approximately $234.5 million, down from $284.6 million in January 2023[68]. - The company spent approximately $74.3 million on advertising and marketing support for the Brand Portfolio segment in 2023[63]. - The company spent approximately $59.0 million on advertising and marketing for Famous Footwear in 2023[30]. - The company anticipates that the retail store count in 2024 will be approximately flat compared to the ending store count for 2023[28]. Store Operations - The Famous Footwear segment operated 860 stores at the end of 2023, selling primarily branded footwear for the entire family[20]. - The total number of Famous Footwear stores decreased from 894 in 2021 to 860 in 2023[33]. - The company operated 57 Allen Edmonds stores in the U.S. at the end of 2023, with plans to open six new stores and close four in 2024[61]. - The company operates 62 retail stores in the United States and 36 stores in East Asia under the Brand Portfolio segment[20]. - New stores typically reach a normal level of profitability within approximately four years of operation[28]. Product Sales and Categories - Women's footwear accounted for 61% of net sales in 2023, while men's footwear represented 21%[21]. - The Brand Portfolio segment sold approximately 35.2 million pairs of shoes on a wholesale basis during 2023[50]. - The Famous Footwear segment's company-owned and licensed products represent approximately 5% of its net sales[23]. - The Famous Footwear e-commerce platform fulfills approximately two-thirds of all e-commerce orders not picked up in-store[25]. - The retail price points for Famous Footwear typically range from $20 for shoes to $300 for boots[23]. Sourcing and Inventory - The sourcing operations sourced approximately 34.9 million pairs of shoes in 2023, primarily from 62 manufacturers across 118 facilities[66]. - Approximately 20% of inventory receipts were sourced through speed programs during 2023, with expectations for continued growth in 2024[58]. Marketing and Advertising - In 2023, the company spent approximately $59.0 million on advertising and marketing for Famous Footwear[30]. - The company spent approximately $74.3 million on advertising and marketing support for the Brand Portfolio segment in 2023[63]. Employee and Corporate Governance - As of February 3, 2024, the company had approximately 9,200 employees, including 5,100 full-time and 4,100 part-time[72]. - The company's compensation programs are designed to encourage superior performance and drive long-term shareholder value, offering competitive salaries, comprehensive health insurance, and retirement plans[73]. - The Diversity, Equity and Inclusion Council aims to enhance awareness and recruit diverse talent, with 55% of the Board of Directors being female and 18% racially or ethnically diverse[75]. - The company has a strong executive team, with key positions held by experienced professionals in finance, sourcing, and technology[96][97][98]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to ambitious ESG targets, focusing on sustainable materials and supply chain labor standards, with a goal to achieve identified targets by 2025[77]. - The company emphasizes its commitment to Environmental, Social, and Governance (ESG) initiatives, aiming to achieve identified target goals by 2025[77]. - The company has been recognized on Newsweek's Most Responsible Companies list for its ESG strategy and progress towards sustainable products and practices[77]. - The company plans to publish another ESG report in spring 2024, detailing progress on sustainability goals[78]. Market Conditions and Competition - The business is seasonal, with higher sales during back-to-school and holiday seasons, although earnings distribution has become more balanced across quarters in recent years[82]. - The company faces competition from various retail formats, including e-commerce, requiring improvements in shipping costs and speeds[80]. - Economic uncertainties, including inflation and geopolitical tensions, may impact consumer spending and demand for the company's products[93]. - The company’s supply chain is heavily reliant on China, making it vulnerable to negative developments in U.S.-China relations[95]. - The wholesale footwear business has low barriers to entry, intensifying competition from various footwear suppliers[81].

Caleres Inc. (CAL) reported $697.12 million in revenue for the quarter ended January 2024, representing a year- over-year increase of 0.1%. EPS of $0.86 for the same period compares to $0.65 a year ago. The reported revenue represents a surprise of -0.03% over the Zacks Consensus Estimate of $697.31 million. With the consensus EPS estimate being $0.86, the company has not delivered EPS surprise. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expe ...

Caleres Inc. (CAL) came out with quarterly earnings of $0.86 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this footwear wholesaler and retailer would post earnings of $1.28 per share when it actually produced earnings of $1.37, delivering a surprise of 7.03%.Over the last four quarters, the company has surpassed consensus EPS estimates three times.Caleres I ...

Financial Performance - Fourth quarter earnings per share reached $1.57, with adjusted earnings per share of $0.86, reflecting a 32% year-over-year increase[2] - For fiscal 2023, net sales totaled $2.82 billion, down 5.1% from fiscal 2022, with Famous Footwear segment net sales declining 5.6%[7] - Fiscal 2023 adjusted net earnings were $149.3 million, or adjusted earnings per diluted share of $4.18, compared to $167.1 million or $4.52 in fiscal 2022[7] - Fiscal 2024 net sales are expected to be flat to up 2% compared to fiscal 2023, with earnings per diluted share projected between $4.30 and $4.60[13] - The company reported net earnings attributable to Caleres, Inc. of $55,808 thousand for the 14 weeks ended February 3, 2024, compared to $40,808 thousand in the prior year[42] - Adjusted net earnings attributable to Caleres, Inc. for the fourteen weeks ended February 3, 2024, were $30,751 thousand, compared to $23,434 thousand for the same period in 2023, representing a 31.4% increase[47] Sales and Revenue - The Brand Portfolio segment achieved a 4.5% increase in year-over-year net sales and delivered record annual adjusted operating earnings exceeding $148 million[3] - Direct-to-consumer sales represented approximately 74% of total net sales in Q4 2023[6] - For the 14 weeks ended February 3, 2024, consolidated net sales were $697,123 thousand, a slight increase from $696,434 thousand for the 13 weeks ended January 28, 2023[35] - For the 53 weeks ended February 3, 2024, net sales totaled $2,817,294 thousand, down from $2,968,138 thousand in the previous year[38] Profitability - Gross profit increased to $305,728 for the fourteen weeks ended February 3, 2024, from $281,188 for the thirteen weeks ended January 28, 2023, representing a growth of 8.7%[23] - Operating earnings rose to $30,747 for the fourteen weeks ended February 3, 2024, compared to $25,865 for the same period last year, marking an increase of 18.5%[23] - The adjusted operating earnings for the 53 weeks ended February 3, 2024, were $200,558 thousand, with an adjusted operating margin of 6.9%[39] - The gross profit for the 53 weeks ended February 3, 2024, was $1,262,957 thousand, with a gross margin of 44.8%[38] Expenses and Liabilities - The company reduced revolver borrowings by $40 million in Q4 2023 and over $125 million from fiscal 2022, ending fiscal 2023 with $182 million in borrowings[9][10] - Total current assets decreased to $788,909 as of February 3, 2024, from $831,455 as of January 28, 2023, a decline of 5.1%[24] - Total liabilities decreased to $1,237,176 as of February 3, 2024, from $1,362,359 as of January 28, 2023, a reduction of 9.2%[24] - The company reported a net cash used for financing activities of $162,993 for the fifty-three weeks ended February 3, 2024, compared to $58,154 for the previous year, indicating increased cash outflows[25] Future Outlook - The company anticipates a consolidated operating margin of 7.3% to 7.5% for fiscal 2024[14] - Capital expenditures for fiscal 2024 are expected to be between $60 million and $70 million[14] - The company plans to continue its market expansion and product development strategies to enhance future performance[35] Earnings Metrics - Basic earnings per share attributable to Caleres, Inc. shareholders increased to $1.57 for the fourteen weeks ended February 3, 2024, compared to $1.14 for the same period last year, a rise of 38.0%[23] - Diluted earnings per common share attributable to Caleres, Inc. shareholders for the fourteen weeks ended February 3, 2024, were $1.57, up from $1.13 in the prior year, reflecting a 39% increase[49] - Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders for the fourteen weeks ended February 3, 2024, were $0.87, up from $0.66 in the same period of 2023[49] - The diluted adjusted earnings per common share attributable to Caleres, Inc. shareholders for the fourteen weeks ended February 3, 2024, were $0.86, compared to $0.65 for the same period in 2023[49] Cash Flow and Liquidity - Net cash provided by operating activities for the fifty-three weeks ended February 3, 2024, was $200,151, compared to $125,879 for the fifty-two weeks ended January 28, 2023, an increase of 58.8%[25] - Total liquidity, including cash and cash equivalents and availability under the revolving credit agreement, was $329.9 million as of February 3, 2024, compared to $215.6 million a year earlier[53] - The debt/EBITDA leverage ratio improved to 0.7 as of February 3, 2024, compared to 1.1 as of January 28, 2023[53]