Caleres(US:CAL)2025-12-09 12:41Financial Performance - Consolidated sales for Q3 2025 were $790.1 million, an increase of 6.6% compared to Q3 2024, with Brand Portfolio sales rising 18.8% and Famous Footwear sales declining 2.2%[4] - GAAP earnings per diluted share were $0.07, down from $1.19 in Q3 2024; adjusted earnings per diluted share were $0.38, compared to $1.23 last year[6] - Gross profit for Q3 2025 was $329.9 million, with a gross margin of 41.8%, down 230 basis points from the previous year[5] - Selling and administrative expenses were $311.3 million, representing 39.4% of net sales, an increase of 310 basis points year-over-year[11] - Adjusted operating earnings for the thirteen weeks ended November 1, 2025, were $26.3 million, compared to $58.3 million in the same period of 2024, reflecting a significant decrease[21] - The operating margin for the thirteen weeks ended November 1, 2025, was 1.5%, down from 7.7% in the same period of 2024[21] - The adjusted operating margin for the thirty-nine weeks ended November 1, 2025, was 2.6%, down from 6.9% in 2024[25] - The company reported a net loss attributable to Caleres, Inc. of $1,602 for the thirty-nine weeks ended November 1, 2025, compared to net earnings of $102,190 in 2024[28] Acquisition and Integration - The acquisition of Stuart Weitzman was completed for a preliminary purchase price of $108.9 million, contributing $45.8 million to Brand Portfolio sales[4] - The impact of the Stuart Weitzman acquisition and integration costs on adjusted earnings was $14,379 thousand for the thirty-nine weeks ended November 1, 2025[19] - Total charges related to the Stuart Weitzman acquisition and integration costs amounted to $7,669,000 for the thirteen weeks ended November 1, 2025[22] - The acquisition and integration costs related to Stuart Weitzman amounted to $7,669 for the thirty-nine weeks ended November 1, 2025[26] Cash Flow and Investments - Net cash provided by operating activities for the thirty-nine weeks ended November 1, 2025, was $40,454 thousand, a decrease of 46.5% compared to $75,855 thousand for the same period in 2024[18] - Total net cash used for investing activities increased significantly to $155,667 thousand, compared to $40,328 thousand in the prior year, primarily due to the acquisition of Stuart Weitzman for $108,858 thousand[18] - The company had borrowings under the revolving credit agreement of $748,500 thousand for the thirty-nine weeks ended November 1, 2025, an increase from $537,368 thousand in the previous year[18] - Cash and cash equivalents at the end of the period were $33,963 thousand, slightly up from $33,685 thousand at the end of the previous year[18] Sales and Inventory - Direct-to-consumer sales accounted for approximately 71% of total net sales, indicating a strong eCommerce performance across both segments[5] - Inventory at the end of the quarter was $678.2 million, up $92 million year-over-year, with a 2.6% increase excluding Stuart Weitzman inventory[11] - Net sales for the thirteen weeks ended November 1, 2025, were $790.1 million, an increase of 6.6% compared to $740.9 million for the same period in 2024[21] - Net sales excluding Stuart Weitzman were $744.2 million, compared to $740.9 million in the prior year, indicating a slight growth[21] - Comparable sales decreased by 1.2% on a 13-week basis compared to the prior year[21] - Comparable sales for the thirty-nine weeks on a year-over-year basis decreased by 3.0%[25] Earnings Guidance - The company expects continued tariff pressure on gross margin and earnings dilution from Stuart Weitzman, projecting a GAAP loss per diluted share of $0.13 to $0.18 for the full year[7] - Adjusted earnings per diluted share for FY25 are anticipated to be in the range of $0.55 to $0.60, including $0.60 to $0.65 dilution from Stuart Weitzman[8] - The guidance for fiscal 2025 indicates a GAAP diluted earnings per share range of $(0.18) to $(0.13) and an adjusted diluted earnings per share range of $0.55 to $0.60[33] - The company reported a diluted adjusted earnings per share, excluding Stuart Weitzman, of $1.15 to $1.25 for fiscal 2025 guidance[33] Profitability Metrics - Adjusted earnings for the thirty-nine weeks ended November 1, 2025, were $32,204 thousand, or $0.95 per diluted share, reflecting a decrease from $103,508 thousand, or $2.95 per diluted share, in the prior year[19] - The adjusted gross profit, excluding Stuart Weitzman, was $880,989 for the thirty-nine weeks ended November 1, 2025, compared to $946,934 in 2024[26] - The gross margin for the thirty-nine weeks ended November 1, 2025, was 43.4%, down from 45.5% in 2024, representing a decrease of 2.1 percentage points[25] - Total charges/other items for the thirty-nine weeks ended November 1, 2025, were $21,757, significantly higher than $1,593 in 2024[26]