Caleres(CAL) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter earnings per share reached $1.57, with adjusted earnings per share of $0.86, reflecting a 32% year-over-year increase[2] - For fiscal 2023, net sales totaled $2.82 billion, down 5.1% from fiscal 2022, with Famous Footwear segment net sales declining 5.6%[7] - Fiscal 2023 adjusted net earnings were $149.3 million, or adjusted earnings per diluted share of $4.18, compared to $167.1 million or $4.52 in fiscal 2022[7] - Fiscal 2024 net sales are expected to be flat to up 2% compared to fiscal 2023, with earnings per diluted share projected between $4.30 and $4.60[13] - The company reported net earnings attributable to Caleres, Inc. of $55,808 thousand for the 14 weeks ended February 3, 2024, compared to $40,808 thousand in the prior year[42] - Adjusted net earnings attributable to Caleres, Inc. for the fourteen weeks ended February 3, 2024, were $30,751 thousand, compared to $23,434 thousand for the same period in 2023, representing a 31.4% increase[47] Sales and Revenue - The Brand Portfolio segment achieved a 4.5% increase in year-over-year net sales and delivered record annual adjusted operating earnings exceeding $148 million[3] - Direct-to-consumer sales represented approximately 74% of total net sales in Q4 2023[6] - For the 14 weeks ended February 3, 2024, consolidated net sales were $697,123 thousand, a slight increase from $696,434 thousand for the 13 weeks ended January 28, 2023[35] - For the 53 weeks ended February 3, 2024, net sales totaled $2,817,294 thousand, down from $2,968,138 thousand in the previous year[38] Profitability - Gross profit increased to $305,728 for the fourteen weeks ended February 3, 2024, from $281,188 for the thirteen weeks ended January 28, 2023, representing a growth of 8.7%[23] - Operating earnings rose to $30,747 for the fourteen weeks ended February 3, 2024, compared to $25,865 for the same period last year, marking an increase of 18.5%[23] - The adjusted operating earnings for the 53 weeks ended February 3, 2024, were $200,558 thousand, with an adjusted operating margin of 6.9%[39] - The gross profit for the 53 weeks ended February 3, 2024, was $1,262,957 thousand, with a gross margin of 44.8%[38] Expenses and Liabilities - The company reduced revolver borrowings by $40 million in Q4 2023 and over $125 million from fiscal 2022, ending fiscal 2023 with $182 million in borrowings[9][10] - Total current assets decreased to $788,909 as of February 3, 2024, from $831,455 as of January 28, 2023, a decline of 5.1%[24] - Total liabilities decreased to $1,237,176 as of February 3, 2024, from $1,362,359 as of January 28, 2023, a reduction of 9.2%[24] - The company reported a net cash used for financing activities of $162,993 for the fifty-three weeks ended February 3, 2024, compared to $58,154 for the previous year, indicating increased cash outflows[25] Future Outlook - The company anticipates a consolidated operating margin of 7.3% to 7.5% for fiscal 2024[14] - Capital expenditures for fiscal 2024 are expected to be between $60 million and $70 million[14] - The company plans to continue its market expansion and product development strategies to enhance future performance[35] Earnings Metrics - Basic earnings per share attributable to Caleres, Inc. shareholders increased to $1.57 for the fourteen weeks ended February 3, 2024, compared to $1.14 for the same period last year, a rise of 38.0%[23] - Diluted earnings per common share attributable to Caleres, Inc. shareholders for the fourteen weeks ended February 3, 2024, were $1.57, up from $1.13 in the prior year, reflecting a 39% increase[49] - Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders for the fourteen weeks ended February 3, 2024, were $0.87, up from $0.66 in the same period of 2023[49] - The diluted adjusted earnings per common share attributable to Caleres, Inc. shareholders for the fourteen weeks ended February 3, 2024, were $0.86, compared to $0.65 for the same period in 2023[49] Cash Flow and Liquidity - Net cash provided by operating activities for the fifty-three weeks ended February 3, 2024, was $200,151, compared to $125,879 for the fifty-two weeks ended January 28, 2023, an increase of 58.8%[25] - Total liquidity, including cash and cash equivalents and availability under the revolving credit agreement, was $329.9 million as of February 3, 2024, compared to $215.6 million a year earlier[53] - The debt/EBITDA leverage ratio improved to 0.7 as of February 3, 2024, compared to 1.1 as of January 28, 2023[53]