Caleres(US:CAL)2024-06-11 17:27Financial 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]