Caleres(US:CAL)2024-09-12 20:02Financial Performance - Net sales for the thirteen weeks ended August 3, 2024, were $683.3 million, a decrease of 1.7% compared to $695.5 million for the same period last year[5]. - Gross profit for the same period was $310.9 million, resulting in a gross margin of 45.5%, slightly down from 45.2% year-over-year[5]. - Operating earnings decreased to $42.5 million, down 14.4% from $49.7 million in the prior year[5]. - Net earnings for the thirteen weeks were $30.3 million, a decline of 12.3% compared to $34.4 million in the same period last year[5]. - Basic and diluted earnings per share attributable to Caleres, Inc. shareholders were both $0.85, down from $0.95 in the prior year[5]. - Comprehensive income for the period was $34.8 million, compared to $34.7 million in the same period last year[7]. - For the twenty-six weeks ended August 3, 2024, total net sales reached $1,342.5 million, a decrease from $1,358.3 million for the same period in the prior year, representing a decline of approximately 1.2%[26][27]. - Operating earnings for the twenty-six weeks ended August 3, 2024, were $85.3 million, compared to $99.3 million for the same period in 2023, reflecting a decline of approximately 14.1%[43]. - Net earnings attributable to Caleres, Inc. for the twenty-six weeks ended August 3, 2024, were $60.9 million, a decrease of 11.3% from $68.7 million in the same period in 2023[5]. Cash Flow and Investments - Net cash provided by operating activities was $115.7 million, a decrease from $125.2 million in the prior year[9]. - Cash and cash equivalents at the end of the period increased to $51.8 million from $47.1 million year-over-year[9]. - The company reported a net cash used for investing activities of $21.8 million, compared to $16.9 million in the prior year[9]. - Borrowings under the revolving credit agreement increased to $306.9 million, up from $252.0 million in the previous year[9]. - Cash used for investing activities increased by $4.9 million to $21.8 million for the twenty-six weeks ended August 3, 2024, primarily due to higher capital expenditures[147]. - Cash used for financing activities decreased by $31.6 million to $63.4 million for the twenty-six weeks ended August 3, 2024, compared to $95.0 million in the prior year[148]. Equity and Shareholder Information - The total equity as of August 3, 2024, was $613,484 thousand, an increase from $471,581 thousand as of July 29, 2023, representing a growth of approximately 30%[10]. - The company declared dividends of $0.07 per share, totaling $2,456 thousand for the quarter ended August 3, 2024[10]. - The company repurchased 416,000 shares during the twenty-six weeks ended August 3, 2024, compared to 763,000 shares during the same period in 2023[39]. - The total equity for Caleres, Inc. was reported at $570,304,000, compared to $451,881,000 in the previous year, showing a significant increase of approximately 26.2%[10]. Inventory and Accounts Payable - The net inventory balance as of August 3, 2024, was $661.1 million, slightly up from $660.7 million as of July 29, 2023[45]. - The company had $15.8 million in accounts payable subject to the supplier finance program as of August 3, 2024, down from $32.9 million the previous year[18]. - The company recorded a returns reserve of $13,229,000 as of August 3, 2024, indicating expected returns of merchandise[35]. Segment Performance - Direct-to-consumer sales for the same period totaled $966.5 million, compared to $963.1 million in the prior year, indicating a slight increase of approximately 0.4%[26][27]. - Retail store sales for the twenty-six weeks ended August 3, 2024, were $709.3 million, down from $709.9 million in the previous year, reflecting a decrease of about 0.1%[26][27]. - The Company reported a total of $51.5 million in wholesale e-commerce sales for the twenty-six weeks ended August 3, 2024[24]. - The Famous Footwear segment net sales increased by $6.1 million, or 1.5%, while the Brand Portfolio segment net sales decreased by $15.4 million, or 5.1%[99]. Operational Challenges and Strategic Initiatives - The implementation of a multi-year cloud-based ERP system has caused operational challenges, negatively impacting net sales during the second quarter of 2024[96]. - The company continues to focus on cost control and strategic initiatives to position itself for sustainable, long-term growth despite macroeconomic challenges[97]. Other Financial Metrics - The loyalty programs liability increased by $15.5 million during the twenty-six weeks ended August 3, 2024, due to points earned on purchases[35]. - The allowance for expected credit losses decreased to $8.4 million as of August 3, 2024, from $9.9 million as of July 29, 2023[36]. - The company recognized share-based compensation expense of $4.2 million for the thirteen weeks ended August 3, 2024, compared to $4.0 million for the same period in 2023[12]. - The company incurred restructuring costs of approximately $1.7 million during the thirteen weeks ended July 29, 2023, with no corresponding costs for the period ended August 3, 2024[40].