Caleres(US:CAL)2023-12-04 16:00Financial Performance - Net sales for the thirteen weeks ended October 28, 2023, were $761.9 million, a decrease of 4.5% compared to $798.3 million for the same period in 2022[102]. - Gross profit for the same period was $340.4 million, slightly up from $339.9 million year-over-year, resulting in a gross margin of 44.7%[102]. - Operating earnings increased to $64.4 million, compared to $53.8 million in the prior year, reflecting a growth of 19.0%[102]. - Net earnings for the thirteen weeks ended October 28, 2023, were $47.0 million, up from $39.0 million in the same period last year, representing a 20.0% increase[102]. - Basic earnings per share attributable to Caleres, Inc. shareholders rose to $1.32, compared to $1.09 for the same period in 2022, marking a 21.1% increase[102]. - Total net sales for the thirty-nine weeks ended October 28, 2023, were $2,271,704,000, compared to $2,271,704,000 for the same period in 2022, showing no growth year-over-year[143]. - Earnings before income taxes for the thirty-nine weeks ended October 28, 2023, were $153,128 thousand, down from $189,212 thousand in the prior year, indicating a decrease of 19.1%[154]. Cash Flow and Liquidity - The company reported net cash provided by operating activities of $157.2 million, significantly higher than $46.3 million in the prior year[105]. - Cash and cash equivalents at the end of the period were $34.0 million, up from $32.8 million at the end of the previous year[105]. - The Company maintains a revolving credit facility for working capital needs, with borrowings under the credit agreement approximating $222.0 million as of October 28, 2023[175]. - The Company had $222.0 million in borrowings outstanding under its Credit Agreement, with an additional borrowing availability of $267.4 million[137]. Sales and Marketing - Total direct-to-consumer sales reached $1.5 billion, with retail stores contributing $1.1 billion and e-commerce sales totaling $308.7 million[116]. - Direct-to-consumer sales totaled $588.5 million, with e-commerce sales from company websites contributing $119.2 million, while wholesale e-commerce sales accounted for $59.0 million[142]. Inventory and Restructuring - The company experienced a decrease in inventories, with a net change of $23.8 million compared to a decrease of $53.0 million in the previous year[105]. - As of October 28, 2023, the company's net inventory balance was $9,974,000, an increase from $8,998,000 on October 29, 2022, reflecting a growth of approximately 10.8%[122]. - The Company incurred restructuring costs of $3.9 million during the thirty-nine weeks ended October 28, 2023, primarily related to organizational changes and integration efforts[152]. Shareholder Actions - The company repurchased 763,000 shares during the thirty-nine weeks ended October 28, 2023, compared to 2,622,845 shares repurchased in the same period of the previous year[124]. - The company had a total of 1,609,313 shares outstanding as of October 28, 2023, with a fair value of $21.62[188]. Tax and Interest - The consolidated effective tax rates were 23.5% for the thirteen weeks ended October 28, 2023, compared to 26.2% for the same period in 2022[198]. - Interest expense for the thirteen weeks ended October 28, 2023, was $(4,488) thousand, compared to $(4,003) thousand in the same period of 2022[154]. Assets and Liabilities - The company's goodwill and intangible assets as of October 28, 2023, had a carrying value of $210,436,000, reflecting a stable asset base[131]. - The carrying amount of goodwill as of October 28, 2023, was $415.7 million, net of accumulated impairment charges[155]. - The loyalty programs liability decreased to $13,770,000 as of October 28, 2023, down from $17,690,000 a year earlier, representing a decline of approximately 22.3%[123]. - The Company recorded no impairment charges for indefinite-lived intangible assets during the thirty-nine weeks ended October 28, 2023, indicating stable asset valuation[132]. Future Outlook - The company plans to continue expanding its e-commerce capabilities and enhancing its product offerings to drive future growth[110]. - The company expects to complete the sale of its nine-acre corporate headquarters campus within the next year, which has been classified as property and equipment held for sale[140]. - The company expects to spend approximately $0.6 million in 2023 and $12.2 million in total thereafter related to on-site remediation activities[201]. Other Financial Metrics - The service cost for the pension plan was $3,767,000 for the thirteen weeks ended October 28, 2023, compared to $5,358,000 for the same period in 2022[191]. - The company reported a net periodic benefit income of $(847,000) for the thirteen weeks ended October 28, 2023, compared to $(4,227,000) for the same period in 2022[191]. - The company experienced a foreign currency translation loss of $(1,313,000) for the period ending October 28, 2023[186]. - Long-lived asset impairment charges totaled $175,000 for the thirteen weeks ended October 28, 2023, and $589,000 for the thirty-nine weeks ended[197].