Caleres(US:CAL)2025-12-11 21:18Financial Performance - Net sales for the thirteen weeks ended November 1, 2025, were $790,051,000, an increase from $740,941,000 for the same period in 2024, representing a growth of 6.4%[5] - Gross profit for the thirty-nine weeks ended November 1, 2025, was $894,438,000, down from $946,934,000 in 2024, indicating a decrease of 5.5%[5] - Operating earnings for the thirteen weeks ended November 1, 2025, were $11,968,000, significantly lower than $56,698,000 in the same period last year, reflecting a decline of 78.9%[5] - Net earnings attributable to Caleres, Inc. for the thirty-nine weeks ended November 1, 2025, were $16,042,000, compared to $102,325,000 in 2024, a decrease of 84.3%[5] - Basic earnings per share attributable to Caleres, Inc. shareholders for the thirteen weeks ended November 1, 2025, were $0.07, down from $1.20 in the same period last year, a decline of 94.2%[5] - Total comprehensive income attributable to Caleres, Inc. for the thirty-nine weeks ended November 1, 2025, was $23,412,000, down from $108,050,000 in 2024, a decrease of 78.3%[7] - The company reported net earnings attributable to Caleres, Inc. of $11.3 million for the thirteen weeks ended November 1, 2025, down from $37.1 million in the prior year[31] - Basic earnings per share attributable to Caleres, Inc. shareholders for the thirty-nine weeks ended November 1, 2025, was $0.47, down from $2.93 in the prior year, representing a decline of approximately 83.9%[46] Cash Flow and Liquidity - Net cash provided by operating activities for the thirty-nine weeks ended November 1, 2025, was $40,454,000, a decrease from $75,855,000 in 2024, reflecting a decline of 46.4%[9] - The company reported a net cash increase of $4,327,000 for the thirty-nine weeks ended November 1, 2025, compared to an increase of $12,327,000 in the same period last year[9] - Cash and cash equivalents at the end of the period on November 1, 2025, were $33,963,000, slightly up from $33,685,000 at the end of the same period in 2024[9] - The company had $355.0 million of borrowings outstanding and $8.6 million in letters of credit under the Credit Agreement as of November 1, 2025[78] - The revolving credit facility was increased by $200.0 million to a total of $700.0 million, maturing on June 27, 2030[73] - The company has total additional borrowing availability of $278.1 million as of November 1, 2025[78] Acquisitions and Investments - The acquisition of Stuart Weitzman resulted in a cash outflow of $108,858,000, impacting the investing activities significantly[9] - The company completed the acquisition of Stuart Weitzman for an aggregate purchase price of $108.9 million on August 4, 2025[24] - Stuart Weitzman contributed net sales of $45.8 million and reported an operating loss of $18.9 million for the thirteen weeks ended November 1, 2025[29] - The company expects to finalize the purchase price allocation for the Stuart Weitzman acquisition within one year from the acquisition date[27] - The company’s total current assets from the acquisition of Stuart Weitzman were valued at $122.5 million, including inventories of $86.8 million[26] - The company’s total liabilities from the acquisition included current liabilities of $36.2 million[26] Sales and Revenue Breakdown - Total net sales for the thirty-nine weeks ended November 1, 2025, were $2,062,791 thousand, a decrease from $2,083,456 thousand for the same period in 2024, representing a decline of approximately 1%[34] - Direct-to-consumer sales reached $1,485,526 thousand for the thirty-nine weeks ended November 1, 2025, compared to $1,502,046 thousand in the prior year, indicating a decrease of about 1.1%[34] - Retail store sales for Famous Footwear were $975,223 thousand for the thirty-nine weeks ended November 1, 2025, down from $1,040,313 thousand in 2024, reflecting a decline of approximately 6.3%[34] - E-commerce sales from company websites totaled $356,538 thousand for the thirty-nine weeks ended November 1, 2025, compared to $324,561 thousand in 2024, marking an increase of about 9.8%[34] Restructuring and Special Charges - The company incurred restructuring and other special charges of $6,705,000 for the thirteen weeks ended November 1, 2025, compared to $1,593,000 in the same period last year[5] - The Company incurred approximately $2.9 million in costs for expense reduction initiatives during the thirteen weeks ended November 1, 2025, and $7.4 million for the thirty-nine weeks ended November 1, 2025, impacting earnings by $0.06 and $0.16 per diluted share respectively[50] Shareholder Equity and Dividends - The balance of shareholders' equity as of November 1, 2025, was $625,330 thousand, reflecting an increase from previous periods[10] - The company declared dividends of $2,375 thousand, equating to $0.07 per share, for the period ending November 1, 2025[10] - The company reported a net loss of $1,602 thousand attributable to noncontrolling interests for the thirteen weeks ended November 1, 2025[16] Inventory and Assets - The net inventory balance as of November 1, 2025, was $678.2 million, an increase from $585.9 million as of November 2, 2024[58] - The Company reported total intangible assets of $357.6 million as of November 1, 2025, with accumulated amortization of $166.0 million[59] - As of November 1, 2025, the company's total intangible assets amounted to $463.8 million, with a net carrying value of $191.6 million after accumulated amortization and impairment[63] Tax and Compliance - The consolidated effective tax rate for the thirteen weeks ended November 1, 2025, was 76.7%, significantly higher than 23.6% for the same period in 2024[104] - The company is currently evaluating the impact of new accounting standards on its financial statement disclosures, with ASU 2023-09 effective for fiscal year 2025[21] Employee Compensation and Benefits - Share-based compensation expense for the period was $3,117 thousand, contributing to the overall equity[10] - The total net periodic benefit expense for pension benefits was $671,000 for the thirteen weeks ended November 1, 2025, compared to $432,000 for the same period in 2024[88] - The company granted long-term incentive awards with a target value of $6.7 million for the 2025-2027 performance period, with a maximum value of $13.4 million[85]