Caleres(CAL) - 2025 Q4 - Annual Results

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]