Financial Performance - Net sales for the thirteen weeks ended May 4, 2024, were $659,198 thousand, a decrease from $662,734 thousand for the same period in 2023, representing a decline of approximately 0.8%[72] - Gross profit for the period was $309,095 thousand, compared to $302,682 thousand in the prior year, indicating an increase of about 2.0%[72] - Operating earnings decreased to $42,758 thousand from $49,587 thousand year-over-year, reflecting a decline of approximately 13.7%[72] - Net earnings attributable to Caleres, Inc. were $30,939 thousand, down from $34,727 thousand in the previous year, a decrease of about 10.3%[72] - Basic and diluted earnings per share attributable to Caleres, Inc. shareholders were both $0.88, compared to $0.97 in the same quarter last year, a decline of approximately 9.3%[72] - Comprehensive income for the period was $31,322 thousand, compared to $35,217 thousand in the prior year, reflecting a decrease of approximately 11.0%[76] - Selling and administrative expenses rose to $266,337 thousand from $253,095 thousand, an increase of about 5.2% year-over-year[72] - Operating earnings for the same period were $42,758 thousand, down from $49,587 thousand in the prior year, reflecting a decrease of approximately 15.5%[93] - Net sales for the first quarter of 2024 were $659.2 million, a slight decrease of 0.5% compared to $662.7 million in the first quarter of 2023[175] - Gross profit increased by $6.4 million, or 2.1%, to $309.1 million for the first quarter of 2024, with a gross margin of 46.9%, up from 45.7% in the prior year[176] - Operating earnings for the first quarter of 2024 were $42.8 million, representing 6.5% of net sales, compared to $49.6 million or 7.5% of net sales in the first quarter of 2023[175] - Net earnings attributable to Caleres, Inc. were $30.9 million for the first quarter of 2024, down from $34.7 million in the same period last year[180] Sales and Revenue - Net sales for the thirteen weeks ended May 4, 2024, were $659,198 thousand, a slight decrease from $662,734 thousand for the same period in 2023[93] - Net sales decreased by $3.5 million, or 0.5%, to $659.2 million for the first quarter of 2024 compared to $662.7 million for the first quarter of 2023[144] - The Brand Portfolio segment net sales declined by $8.3 million, or 2.6%, primarily due to lower wholesale sales[147] - Comparable sales for the Famous Footwear segment decreased by 2.3%, while the Brand Portfolio segment experienced a decline of 8.5%[135] - Direct-to-consumer sales represented approximately 69% of consolidated net sales for the first quarter of 2024, up from 68% in the prior year[147] - The company experienced a 9.4% increase in sales from owned e-commerce businesses compared to the first quarter of 2023[147] - E-commerce sales improved, with e-commerce penetration at approximately 13% of net sales in Q1 2024, up from 12% in Q1 2023[265] - The kids category continued to perform well, exceeding last year's volume[265] Expenses and Liabilities - Selling and administrative expenses increased by $2.1 million, or 1.5%, to $144.1 million for the first quarter of 2024, with expenses as a percentage of net sales rising to 41.3%[184] - The loyalty programs liability increased by $9.7 million during the thirteen weeks ended May 4, 2024, due to points earned on purchases[89] - Cash paid for lease liabilities during the thirteen weeks ended May 4, 2024, was $42.2 million, compared to $41.2 million for the same period in 2023[99] - Operating lease expense increased to $40.023 million from $39.142 million in the prior year[154] - Selling and administrative expenses rose by $5.2 million, or 5.1%, to $106.4 million for Q1 2024, representing 33.5% of net sales, compared to 31.1% in Q1 2023[190] Assets and Inventory - The total segment assets as of May 4, 2024, amounted to $1,861,110 thousand, compared to $1,818,083 thousand as of April 29, 2023, indicating an increase of about 2.4%[93] - The net inventory balance as of May 4, 2024, was $530,570 thousand, down from $559,467 thousand a year earlier, representing a decrease of approximately 5.1%[120] - The goodwill and intangible assets, net, as of May 4, 2024, were $200,551 thousand, down from $212,353 thousand as of April 29, 2023, reflecting a decrease of about 5.5%[121] - Customer allowances and discounts as of May 4, 2024, were $17,090 thousand, a decrease from $19,076 thousand as of April 29, 2023[116] - The loyalty programs liability decreased to $8,350 thousand as of May 4, 2024, from $16,993 thousand a year earlier, indicating a significant reduction of approximately 50.8%[116] Shareholder Actions - The company repurchased 416,000 shares during the thirteen weeks ended May 4, 2024, under its publicly announced share repurchase program[92] - The company declared and paid dividends of $0.07 per share in both Q1 2024 and Q1 2023, with future dividends subject to Board discretion[200] Tax and Remediation - The effective tax rate for the first quarter of 2024 was 23.0%, slightly down from 23.5% in the first quarter of 2023[179] - The reserve for anticipated future remediation activities is $9.2 million, with $4.8 million allocated for off-site remediation and $4.4 million for on-site remediation[168] Operational Changes - The company opened 3 new stores and closed 8 stores, resulting in a total of 855 ending stores[135] - The company is undergoing a multi-year cloud-based ERP implementation, with the first phase scheduled to go live in Q2 2024[225]

Core Insights - The article emphasizes the importance of the Zacks Rank system and Style Scores in identifying strong stocks, particularly for value investors [1][3] - Value investing is highlighted as a preferred strategy for finding undervalued stocks across various market conditions [2] Company Analysis: Caleres (CAL) - Caleres currently holds a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4] - The stock has a Forward P/E ratio of 7.92, significantly lower than the industry average of 22.31, suggesting it may be undervalued [4] - Over the past 52 weeks, CAL's Forward P/E has fluctuated between a high of 9.17 and a low of 4.02, with a median of 6.59 [4] - The P/S ratio for CAL is 0.43, compared to the industry's average of 0.91, reinforcing its undervaluation [5] - CAL's P/CF ratio stands at 5.48, well below the industry average of 21.73, indicating strong cash flow relative to its valuation [6] - The P/CF ratio has varied from a high of 6.22 to a low of 2.75 over the past year, with a median of 4.82 [6] - Overall, these metrics suggest that CAL is likely undervalued and presents an attractive investment opportunity for value investors [7]

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 ...