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Financial Data and Key Metrics Changes - The company achieved earnings per share of $0.88, slightly below last year's $0.97, with consolidated sales of $659 million, down less than 1% year-over-year [26][35][60] - Consolidated gross margin reached a record 47%, representing a 120 basis point increase compared to the previous year [26][60] - Operating earnings were $43 million, with an operating margin of 6.5% [37] Business Line Data and Key Metrics Changes - Brand Portfolio sales declined by 2.6%, while Famous Footwear sales were flat, with comparable sales down 2.3% [14][60] - Famous Footwear gross margin improved to 46.1%, up 50 basis points from last year, driven by lower freight costs and improved shrink [36][60] - The Brand Portfolio delivered a strong operating margin of 13.1%, contributing significantly to the company's operating earnings [37][60] Market Data and Key Metrics Changes - The company gained 1.9 points of market share in shoe chains, particularly in the kids' category, which saw high-single-digit sales growth [33][56] - The kids' category has outpaced the total business for 13 consecutive quarters, indicating strong demand [56] Company Strategy and Development Direction - The company is focusing on enhancing its marketing ecosystem and expanding its international presence, including opening new stores in Southeast Asia [6][29] - Investments in marketing and design are aimed at driving growth in key brands, with a particular emphasis on casual and athletic footwear [28][60] - The company plans to continue leveraging its speed to market capabilities to align inventory with consumer demand [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver earnings per share in line with guidance, with expectations for sales growth in the mid-single digits for Famous Footwear in Q2 [39][42] - The company anticipates continued improvement in gross margins, particularly in the Brand Portfolio, driven by cleaner inventory and a favorable channel mix [89] - Management noted a shift in consumer preferences towards casual and athletic footwear, which is expected to continue throughout the year [68][69] Other Important Information - The company returned $18 million to shareholders through share repurchases and dividends during the quarter [6] - Inventory at quarter-end was $531 million, down 5.2% year-over-year, reflecting disciplined inventory management [38] Q&A Session Summary Question: Guidance for second quarter and fiscal year expectations - Management expects Famous to provide mid-single-digit sales growth due to a critical back-to-school week shift into Q2, while the Brand Portfolio is anticipated to generate low-single-digit comp growth [42] Question: Planning for back-to-school - Management emphasized the importance of newness in product offerings and expressed confidence in inventory availability, particularly for sneakers [49][50] Question: Current state of the consumer - Management noted strength in athletic brands and a focus on item-driven sales, with a continued pivot towards casual and athletic products [70][72] Question: Performance of FLAIR stores - FLAIR stores are performing well, with adjustments made to store layouts to enhance visibility and consumer experience [83] Question: Expectations for gross margin and SG&A in Q2 - Management anticipates continued improvement in gross margin for the Brand Portfolio, while SG&A investments will continue into Q2 [88][89]

15 CALCULATION OF EBITDA AND DEBT/EBITDA LEVERAGE RATIO (NON-GAAP METRICS) CVFERES FIRST Q U A R T E R 2024 4 Exceptional capabilities in sourcing and logistics, digital, marketing and analytics, and technology Passionate and ambitious team in a valuedriving culture | --- | --- | |----------------------------------------------|-------| | | | | | | | 3 % - | 5 % | | | | | R E V E N U E G R O W T H C A G R 11 % - | 13 % | | E P S G R O W T H C A G R L O W -T O TEENS | | | A N N U A L T S R T A R G E T | | 1 | ...

For the quarter ended April 2024, Caleres Inc. (CAL) reported revenue of $659.2 million, down 0.5% over the same period last year. EPS came in at $0.88, compared to $0.97 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $665.45 million, representing a surprise of -0.94%. The company delivered an EPS surprise of +2.33%, with the consensus EPS estimate being $0.86. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

Caleres Inc. (CAL) came out with quarterly earnings of $0.88 per share, beating the Zacks Consensus Estimate of $0.86 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of 2.33%. A quarter ago, it was expected that this footwear wholesaler and retailer would post earnings of $0.86 per share when it actually produced earnings of $0.86, delivering no surprise. Over the last four quarters ...

2 CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) | --- | --- | --- | --- | --- | |-----------------------------------------------------|-------|-----------|-------|-----------| | | | | | | | LIABILITIES AND EQUITY | | | | | | Borrowings under revolving credit agreement | $ | 191,000 | $ | 291,500 | | Trade accounts payable | | 267,388 | | 261,753 | | Lease obligations | | 120,872 | | 136,297 | | Other accrued expenses | | 185,105 | | 189,727 | | Total current liabilities | | 764,365 ...

Analysts on Wall Street project that Caleres Inc. (CAL) will announce quarterly earnings of $0.86 per share in its forthcoming report, representing a decline of 11.3% year over year. Revenues are projected to reach $665.45 million, increasing 0.4% from the same quarter last year. The consensus EPS estimate for the quarter has been revised 2.3% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this ...

Financial Performance - The aggregate market value of the stock held by non-affiliates was approximately $892.2 million as of July 28, 2023[13]. - The backlog of unfilled wholesale orders as of February 3, 2024, was approximately $234.5 million, down from $284.6 million in January 2023[68]. - The company spent approximately $74.3 million on advertising and marketing support for the Brand Portfolio segment in 2023[63]. - The company spent approximately $59.0 million on advertising and marketing for Famous Footwear in 2023[30]. - The company anticipates that the retail store count in 2024 will be approximately flat compared to the ending store count for 2023[28]. Store Operations - The Famous Footwear segment operated 860 stores at the end of 2023, selling primarily branded footwear for the entire family[20]. - The total number of Famous Footwear stores decreased from 894 in 2021 to 860 in 2023[33]. - The company operated 57 Allen Edmonds stores in the U.S. at the end of 2023, with plans to open six new stores and close four in 2024[61]. - The company operates 62 retail stores in the United States and 36 stores in East Asia under the Brand Portfolio segment[20]. - New stores typically reach a normal level of profitability within approximately four years of operation[28]. Product Sales and Categories - Women's footwear accounted for 61% of net sales in 2023, while men's footwear represented 21%[21]. - The Brand Portfolio segment sold approximately 35.2 million pairs of shoes on a wholesale basis during 2023[50]. - The Famous Footwear segment's company-owned and licensed products represent approximately 5% of its net sales[23]. - The Famous Footwear e-commerce platform fulfills approximately two-thirds of all e-commerce orders not picked up in-store[25]. - The retail price points for Famous Footwear typically range from $20 for shoes to $300 for boots[23]. Sourcing and Inventory - The sourcing operations sourced approximately 34.9 million pairs of shoes in 2023, primarily from 62 manufacturers across 118 facilities[66]. - Approximately 20% of inventory receipts were sourced through speed programs during 2023, with expectations for continued growth in 2024[58]. Marketing and Advertising - In 2023, the company spent approximately $59.0 million on advertising and marketing for Famous Footwear[30]. - The company spent approximately $74.3 million on advertising and marketing support for the Brand Portfolio segment in 2023[63]. Employee and Corporate Governance - As of February 3, 2024, the company had approximately 9,200 employees, including 5,100 full-time and 4,100 part-time[72]. - The company's compensation programs are designed to encourage superior performance and drive long-term shareholder value, offering competitive salaries, comprehensive health insurance, and retirement plans[73]. - The Diversity, Equity and Inclusion Council aims to enhance awareness and recruit diverse talent, with 55% of the Board of Directors being female and 18% racially or ethnically diverse[75]. - The company has a strong executive team, with key positions held by experienced professionals in finance, sourcing, and technology[96][97][98]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to ambitious ESG targets, focusing on sustainable materials and supply chain labor standards, with a goal to achieve identified targets by 2025[77]. - The company emphasizes its commitment to Environmental, Social, and Governance (ESG) initiatives, aiming to achieve identified target goals by 2025[77]. - The company has been recognized on Newsweek's Most Responsible Companies list for its ESG strategy and progress towards sustainable products and practices[77]. - The company plans to publish another ESG report in spring 2024, detailing progress on sustainability goals[78]. Market Conditions and Competition - The business is seasonal, with higher sales during back-to-school and holiday seasons, although earnings distribution has become more balanced across quarters in recent years[82]. - The company faces competition from various retail formats, including e-commerce, requiring improvements in shipping costs and speeds[80]. - Economic uncertainties, including inflation and geopolitical tensions, may impact consumer spending and demand for the company's products[93]. - The company’s supply chain is heavily reliant on China, making it vulnerable to negative developments in U.S.-China relations[95]. - The wholesale footwear business has low barriers to entry, intensifying competition from various footwear suppliers[81].

Financial Data and Key Metrics Changes - In Q4 2023, the company reported sales of $697 million, a slight increase from the previous year, with adjusted earnings per share of $0.86, representing a 32% increase over Q4 2022 [10][71] - Annual consolidated sales were $2.82 billion, down 5.1% compared to fiscal 2022, with adjusted operating earnings of $201 million and a consolidated adjusted operating margin of more than 7% [22][32] - The company generated approximately $260 million in adjusted EBITDA, with a net interest expense of $19 million for the year [32][23] Business Line Data and Key Metrics Changes - The Brand Portfolio achieved a 4.5% increase in sales compared to Q4 2022, with a record annual adjusted operating earnings topping $148 million [11][34] - Famous Footwear experienced a 1.5% decline in total sales and a 5.9% decline in comparable sales, although it gained market share in Shoe Chains [15][22] - The Naturalizer brand saw double-digit sales growth and improved operating margins, gaining 1 point of market share during the quarter [13] Market Data and Key Metrics Changes - The company gained market share in both women's fashion footwear and Shoe Chains for Famous Footwear, particularly in the Kids segment, which saw a 2% increase in sales year-over-year [9][39] - The footwear market is expected to decline by 1% in 2024, impacting the company's growth outlook [25][51] Company Strategy and Development Direction - The company is focused on expanding its direct-to-consumer business and enhancing its e-commerce capabilities, with plans to invest in international expansion and consumer experience [18][20] - The Brand Portfolio is expected to contribute about half of total sales and 60% of operating profit within the next three years, with a strong emphasis on its Lead Brands [38][43] - The company plans to continue its SPEED programs to align inventory with consumer demand, aiming for more than 20% of Brand Portfolio receipts to come through this initiative [42] Management's Comments on Operating Environment and Future Outlook - Management noted a mixed demand environment as they transitioned from Q4 to Q1, with a focus on trend-driven consumer preferences [77] - The company anticipates modest growth in 2024, with guidance for consolidated net sales to be flat to up 1% and earnings per diluted share in line with Q4 2023 [26][73] - Management expressed optimism about the performance of key brands and the potential for improved consumer engagement through loyalty programs [18][56] Other Important Information - The company reduced borrowings by $126 million from 2022, maintaining a debt-to-trailing-12-month-EBITDA ratio of 0.7 times [33][72] - SG&A expenses for Q4 were $273 million, or 39.1% of sales, reflecting effective expense management initiatives [113] Q&A Session Summary Question: What is behind the expectation that the footwear industry will decline this year? - Management indicated that Circana projects the market to be down about 1%, with fashion expected to be the weakest segment [51] Question: How is the company positioned in terms of its own brands in Famous Footwear? - Management noted strong results from brands like Dr. Scholl's and Naturalizer, with plans for significant growth in the coming year [56] Question: What are the expectations for sales growth in the Brand Portfolio for 2024? - The company anticipates low-single digit positive growth for the Brand Portfolio, with Lead Brands expected to perform stronger [61] Question: How does the company plan to manage SG&A expenses throughout the year? - Management mentioned investments in SG&A for Q1, particularly related to marketing campaigns and platform implementation, but expects cost reductions to be built into the 2024 plan [55] Question: What is the outlook for the Kids segment in Famous Footwear? - Management highlighted strong performance in the Kids segment, particularly in athletic shoes, and noted a focus on key brands that resonate with consumers [96][107]

Caleres Inc. (CAL) reported $697.12 million in revenue for the quarter ended January 2024, representing a year- over-year increase of 0.1%. EPS of $0.86 for the same period compares to $0.65 a year ago. The reported revenue represents a surprise of -0.03% over the Zacks Consensus Estimate of $697.31 million. With the consensus EPS estimate being $0.86, the company has not delivered EPS surprise. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expe ...