Caleres(US:CAL)2023-09-04 16:00Financial Performance - Net sales for the thirteen weeks ended July 29, 2023, were $695.5 million, a decrease of 5.8% compared to $738.3 million for the same period in 2022[8] - Gross profit for the thirteen weeks ended July 29, 2023, was $314.2 million, down from $336.8 million in the prior year, reflecting a gross margin of 45.1%[8] - Operating earnings decreased to $49.7 million for the thirteen weeks ended July 29, 2023, compared to $68.4 million in the same period last year, representing a decline of 27.4%[8] - Net earnings attributable to Caleres, Inc. for the thirteen weeks ended July 29, 2023, were $33.9 million, down from $51.2 million in the prior year, a decrease of 33.8%[8] - Basic earnings per share attributable to Caleres, Inc. shareholders were $0.95 for the thirteen weeks ended July 29, 2023, compared to $1.40 for the same period in 2022, a decline of 32.1%[8] - Comprehensive income for the thirteen weeks ended July 29, 2023, was $34.7 million, down from $52.2 million in the prior year[10] Cash Flow and Liquidity - Net cash provided by operating activities for the twenty-six weeks ended July 29, 2023, was $125.2 million, significantly higher than $27.3 million in the same period last year[14] - Cash and cash equivalents at the end of the period were $47.1 million, compared to $46.0 million at the end of the same period in 2022[14] Expenses and Charges - The company incurred restructuring and other special charges of $1.6 million during the thirteen weeks ended July 29, 2023[8] - Selling and administrative expenses for the thirteen weeks ended July 29, 2023, were $262.8 million, slightly down from $268.4 million in the prior year[8] - The Company incurred costs of approximately $1.7 million related to expense reduction initiatives during the second quarter of 2023, with additional costs expected to be around $2.3 million in the second half of 2023[64] Sales and Market Trends - The company noted that its business is seasonal, with higher sales typically occurring during back-to-school and holiday seasons, although recent years have shown more balanced quarterly distributions[19] - Comparable sales declined by 6.3% in the six months ended July 29, 2023, primarily due to reduced customer traffic in retail stores[89] - Total direct-to-consumer sales for the twenty-six weeks ended July 29, 2023, were $963,088 thousand, an increase from $1,014,009 thousand for the same period in 2022, indicating a decrease of 5.0%[34] Shareholder Returns - The company declared dividends of $0.07 per share, totaling $2,515 thousand for the quarter[16] - The company repurchased 763,000 shares under its share repurchase program during the thirteen weeks ended July 29, 2023[1] Assets and Liabilities - The total equity as of July 29, 2023, was $471,581 thousand, an increase from $384,877 thousand as of July 30, 2022, representing a growth of approximately 22.6%[16] - The company had $32.9 million in accounts payable subject to supply chain financing arrangements as of July 29, 2023, down from $39.9 million as of July 30, 2022[27] - The unfilled order position at the end of the period was $246.8 million, down from $360.4 million in the previous year[1] Accounting and Compliance - The company adopted new accounting standards related to supplier finance programs in fiscal year 2023, enhancing transparency in financial reporting[29] - The company was in compliance with all covenants and restrictions under the Credit Agreement as of July 29, 2023[155] Other Financial Metrics - Interest expense, net increased by $2.6 million, or 98.5%, to $5.1 million for Q2 2023, reflecting higher interest rates[78] - The effective tax rate for the six months ended July 29, 2023, was 24.5%, compared to 25.5% for the same period in 2022[86] - The company assessed long-lived assets with a carrying amount of $552.4 million for impairment indicators as of July 29, 2023[190]