Caleres(CAL) - 2023 Q4 - Annual Report

Financial Performance - Net sales for 2022 reached $2,968,138 thousand, an increase of 6.9$2,777,604 thousand in 2021[103] - Gross profit for 2022 was $1,284,873 thousand, up from$1,227,317 thousand in 2021, reflecting a gross margin improvement[103] - Operating earnings for 2022 were $214,327 thousand, compared to$205,807 thousand in 2021, indicating a slight increase[103] - Net earnings attributable to Caleres, Inc. for 2022 were $181,742 thousand, a significant recovery from a loss of$(439,114) thousand in 2020[103] - Basic earnings per share for 2022 were $4.98, up from$3.59 in 2021, showing a 38.7% increase[103] - The company reported net earnings of $181.7 million for the fiscal year ending January 28, 2023, compared to a net loss of$439.1 million in the previous period[109] - Comprehensive income for the fiscal year 2022 was $138.8 million, reflecting a significant recovery from the previous year's comprehensive loss of$416.4 million[109] - The Company reported domestic earnings before income taxes of $168.0 million in 2022, up from$152.5 million in 2021, while international earnings before income taxes increased to $45.0 million from$36.7 million in the same period[201] - The total income tax provision for 2022 was $33.339 million, a decrease from$51.081 million in 2021, with federal income tax provision at $18.481 million[202] Assets and Liabilities - As of January 28, 2023, the company reported total assets of$1,836.5 million, a decrease from $1,843.9 million as of January 29, 2022[101] - Current liabilities decreased to$911.2 million from $1,025.6 million in the previous year, primarily due to a reduction in trade accounts payable[101] - The company reported a decrease in total equity to$426.1 million from $323.4 million, reflecting changes in accumulated other comprehensive loss[101] - The total equity of Caleres, Inc. as of January 28, 2023, was$426.1 million, a decrease from $649.1 million in February 2020[109] - The fair value of plan assets at the end of 2022 was$356.745 million, down from $444.091 million at the beginning of the year[150] - The accumulated benefit obligation for the United States pension plans was$280.5 million as of January 28, 2023, down from $348.8 million in the previous year, representing a decrease of approximately 19.5$125,879 thousand, down from $168,441 thousand in 2021[107] - Cash and cash equivalents at the end of 2022 were$33,700 thousand, an increase from $30,115 thousand at the end of 2021[107] - The company incurred restructuring and other special charges of$2,910 thousand in 2022, significantly lower than $13,482 thousand in 2021[103] - The company plans to continue investing in new product development and market expansion strategies to drive future growth[107] - The company repurchased 2,622,845 shares at a cost of$63.2 million in the year ended January 28, 2023, under its share repurchase programs[263] Inventory and Sales - The company's inventories amounted to $580.2 million, including finished goods of$558.5 million, net of markdown reserves of $43.9 million[97] - The company recognized provisions for customer allowances of$27.6 million in 2022, up from $26.1 million in 2021, showing an increase in reserves for customer-related expenses[123] - The Company recorded a markdown reserve of$4.7 million in 2022 due to product cost inflation in the Famous Footwear segment[135] - The Company’s warehousing and distribution costs totaled $121.0 million in 2022, up from$99.5 million in 2021 and $84.0 million in 2020[137] - The Company generated$2,123.7 million in direct-to-consumer sales in 2022, up from $2,086.6 million in 2021, marking an increase of about 1.8$62.6 million on advertising and marketing for Famous Footwear in 2022[165] - Total advertising and marketing expense was $138.0 million in 2022, an increase of 16.8$118.1 million in 2021[188] - The Company has a customer loyalty program, Famously You Rewards, which offers members free shipping, bonus points, and product previews, enhancing customer engagement[205] - Approximately 77% of net sales in the Famous Footwear segment were made to loyalty program members in 2022, a slight decrease from 78% in 2021[184] Operational Insights - Caleres, Inc. operates 965 retail shoe stores across the U.S., Canada, China, and Guam, indicating a strong retail presence[112] - The Company operates in two segments: Famous Footwear with 873 retail stores and Brand Portfolio, which includes wholesale operations and e-commerce[247] - Famous Footwear employs an omni-channel approach, fulfilling approximately two-thirds of e-commerce orders from retail store inventory, enhancing delivery times[251] - The Company incurred COVID-19-related costs totaling $114.3 million in 2020, which equates to$3.10 per diluted share[269] Pension and Employee Benefits - The Company’s self-insurance reserves were $9.7 million as of January 28, 2023, down from$11.4 million as of January 29, 2022[144] - The projected benefit obligation for pension plans was $12.223 million at the end of 2022, up from$10.334 million in 2021[151] - The Company’s defined contribution 401(k) plan expenses were $4.6 million in 2022, down from$5.5 million in 2021[158] - The Company’s funding policy for pension plans is to make the minimum annual contributions required by applicable regulations, ensuring compliance with regulatory standards[171] Strategic Initiatives - The company is exposed to foreign currency exchange risks and may enter into hedging transactions to mitigate these risks[70] - The Company has options in approximately 35% of its leases to extend the lease term, reflecting strategic flexibility in its real estate commitments[192] - The Company continues to enhance its digital technology and e-commerce platform to improve customer experience[251] - The Company acquired Allen Edmonds in 2016 to strengthen its position in the men's footwear market, with products priced between $245 and$495[213]