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Caleres(CAL) - 2026 Q1 - Quarterly Results
CALCaleres(CAL)2025-05-29 11:21
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Financial Performance - Reported sales for Q1 2025 were 614.2million,down6.8614.2 million, down 6.8% year-on-year, and below expectations [3] - Famous Footwear sales decreased by 6.3%, with comparable sales down 4.6% compared to Q1 2024 [4] - Net earnings were 6.9 million, or 0.21perdilutedshare,comparedto0.21 per diluted share, compared to 30.9 million, or 0.88perdilutedshareinQ12024[4]−Thetotalnetsalesfortheconsolidatedsegmentdecreasedto0.88 per diluted share in Q1 2024 [4] - The total net sales for the consolidated segment decreased to 614,221,000 in Q1 2025 from 659,198,000inQ12024,reflectingadeclineofapproximately6.8659,198,000 in Q1 2024, reflecting a decline of approximately 6.8% [18] - For the thirteen weeks ended May 3, 2025, Caleres, Inc. reported net earnings of 6,943,000, a decrease from 30,939,000forthesameperiodin2024,resultinginadilutedearningspershareof30,939,000 for the same period in 2024, resulting in a diluted earnings per share of 0.21 compared to 0.88[21]−Grossprofitwas0.88 [21] - Gross profit was 278.7 million, with a gross margin of 45.4%, down 150 basis points from the previous year [4] - Gross profit for the consolidated segment was 278,694,000,downfrom278,694,000, down from 309,095,000 in the prior year, leading to a gross margin of 45.4%, down from 46.9% [18] - Operating earnings for the consolidated segment were 11,584,000,significantlylowerthan11,584,000, significantly lower than 42,758,000 in the same quarter of 2024, resulting in an operating margin of 1.9% compared to 6.5% [18] - For the thirteen weeks ended May 3, 2025, Caleres, Inc. reported EBITDA of 28,051,000,downfrom28,051,000, down from 57,381,000 for the same period in 2024, reflecting a decrease in EBITDA margin from 8.7% to 4.6% [23] - Adjusted net earnings attributable to Caleres, Inc. for the thirteen weeks ended May 3, 2025, were 7,409,000,comparedto7,409,000, compared to 30,939,000 in the same period of 2024, with an adjusted diluted earnings per share of 0.22 [22] Expenses and Cost Management - SG&A expenses as a percentage of net sales increased to 43.4%, up 300 basis points year-on-year [4] - The company announced structural cost-cutting actions to reduce SG&A by 15 million on an annualized basis [3] - The company implemented expense reduction initiatives that resulted in a positive impact of 6,103,000onearnings[19]−TheadjustedoperatingearningsfortheFamousFootwearsegmentwere6,103,000 on earnings [19] - The adjusted operating earnings for the Famous Footwear segment were 12,211,000, down from 42,758,000intheprioryear[19]DebtandBorrowings−Borrowingsundertheasset−basedrevolvingcreditfacilitywere42,758,000 in the prior year [19] Debt and Borrowings - Borrowings under the asset-based revolving credit facility were 258.5 million, up 67.5millionfromQ12024[11]−Caleres,Inc.reportedborrowingsundertherevolvingcreditagreementof67.5 million from Q1 2024 [11] - Caleres, Inc. reported borrowings under the revolving credit agreement of 258,500,000, an increase from 191,000,000inthepreviousyear[23]−Thedebt/EBITDAleverageratioincreasedto1.5from0.8year−over−year,indicatingahigherlevelofdebtrelativetoearnings[23]InventoryandStoreOperations−Inventoryincreasedby8.1191,000,000 in the previous year [23] - The debt/EBITDA leverage ratio increased to 1.5 from 0.8 year-over-year, indicating a higher level of debt relative to earnings [23] Inventory and Store Operations - Inventory increased by 8.1% compared to Q1 2024 [11] - The company ended the period with 950 company-operated stores, a slight decrease from 954 stores in the previous year [18] Market Outlook - The company has suspended guidance due to market uncertainty [6] - Total charges related to acquisition and integration costs for the Stuart Weitzman brand amounted to 627,000 for the quarter [19] Trailing Twelve Months Performance - For the trailing twelve months ended May 3, 2025, net earnings attributable to Caleres, Inc. were 83,259,000,adecreasefrom83,259,000, a decrease from 167,603,000 in the previous year [23] - The trailing twelve months EBITDA was reported at 177,371,000,withamarginof6.6177,371,000, with a margin of 6.6%, down from 247,157,000 and 8.8% respectively [23] - The adjusted EBITDA for the trailing twelve months was 187,882,000,withanadjustedEBITDAmarginof7.0187,882,000, with an adjusted EBITDA margin of 7.0%, compared to 253,260,000 and 9.0% in the prior year [23]