Caleres(US:CAL)2025-05-29 11:21Financial Performance - Reported sales for Q1 2025 were $614.2 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 $0.21 per diluted share, compared to $30.9 million, or $0.88 per diluted share in Q1 2024 [4] - The total net sales for the consolidated segment decreased to $614,221,000 in Q1 2025 from $659,198,000 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 $30,939,000 for the same period in 2024, resulting in a diluted earnings per share of $0.21 compared to $0.88 [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, 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, 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, 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, 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 $6,103,000 on earnings [19] - The adjusted operating earnings for the Famous Footwear segment were $12,211,000, down from $42,758,000 in the prior year [19] Debt and Borrowings - Borrowings under the asset-based revolving credit facility were $258.5 million, up $67.5 million from Q1 2024 [11] - Caleres, Inc. reported borrowings under the revolving credit agreement of $258,500,000, an increase from $191,000,000 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, a decrease from $167,603,000 in the previous year [23] - The trailing twelve months EBITDA was reported at $177,371,000, 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, with an adjusted EBITDA margin of 7.0%, compared to $253,260,000 and 9.0% in the prior year [23]