Caleres(CAL) - 2025 Q3 - Quarterly Report

Financial Performance - Net sales for the thirteen weeks ended November 2, 2024, were $740,941 thousand, a decrease of 2.7$761,904 thousand for the same period in the previous year[9]. - Gross profit for the same period was $326,960 thousand, down from$340,374 thousand, reflecting a decline of 3.8%[9]. - Operating earnings decreased to $56,698 thousand, compared to$64,418 thousand in the prior year, a decline of 12.6%[9]. - Net earnings attributable to Caleres, Inc. were $41,427 thousand, down from$46,914 thousand, a decrease of 11.8%[11]. - Basic earnings per share attributable to Caleres, Inc. shareholders were $1.20, compared to$1.32 in the previous year, a decline of 9.1%[9]. - The company reported a comprehensive income of $42,121 thousand for the thirteen weeks ended November 2, 2024, compared to$46,848 thousand in the prior year, a decrease of 10.0%[11]. - The Company reported net earnings of $41.4 million for the thirteen weeks ended November 2, 2024, compared to$46.9 million for the same period in 2023, reflecting a decrease of approximately 3.2%[49]. - For the thirty-nine weeks ended November 2, 2024, net earnings attributable to Caleres, Inc. were $102.3 million, down from$115.6 million in the prior year, indicating a decline of about 11.5%[49]. Sales and Revenue - Total net sales for the thirty-nine weeks ended November 2, 2024, were $2,083,456 thousand, a decrease of 1.7$2,120,171 thousand in the same period of 2023[6]. - The Famous Footwear segment reported net sales of $428,264 thousand, a decrease of 4.8$449,773 thousand in the previous year[6]. - The Brand Portfolio segment achieved net sales of $322,936 thousand, an increase of 0.5$320,775 thousand in the prior year[6]. - Total direct-to-consumer sales for the thirteen weeks ended November 2, 2024, were $535.6 million, down from$554.8 million in the prior year, representing a decrease of 3.5%[34]. - Consolidated net sales decreased by $21.0 million, or 2.8$740.9 million for Q3 2024 compared to $761.9 million for Q3 2023[131]. - Famous Footwear segment net sales declined by$21.5 million, or 4.8%, primarily due to a retail calendar shift and softer seasonal demand[131]. - Brand Portfolio segment net sales increased by $2.2 million, or 0.7$1,955,939 thousand as of November 2, 2024, up from $1,826,893 thousand on October 28, 2023, representing a growth of 7.1$870,307 thousand, up from $822,873 thousand, an increase of 5.4$806,430 thousand, down from $827,921 thousand, a reduction of 2.0$606,306,000, reflecting changes in retained earnings and other comprehensive income[16]. - The company's net inventory balance as of November 2, 2024, was $585,877 thousand, an increase from$556,034 thousand as of October 28, 2023[6]. - The company had $33.4 million in cash and cash equivalents and$252.1 million in excess availability on its revolving credit agreement, with borrowings increasing by $53.8 million to$238.5 million during the nine months ended November 2, 2024[124]. Cash Flow and Financing - Net cash provided by operating activities was $75,855,000, down from$157,183,000 in the prior period[15]. - Net cash used for investing activities was $40,328,000, compared to$37,380,000 in the prior period[15]. - Cash used for financing activities decreased by $96.3 million to$23.2 million for the thirty-nine weeks ended November 2, 2024, compared to $119.5 million in the same period in 2023[192]. - The company repurchased$65.0 million of common stock during the nine months ended November 2, 2024, compared to $17.4 million in the same period in 2023[192]. - The company expects capital expenditures for property and equipment and capitalized software to be between$50 million and $55 million in 2024, up from$49.6 million in 2023[191]. Operational Highlights - The company is actively marketing its nine-acre corporate headquarters campus in Clayton, Missouri, and expects to complete the sale within the next year[28]. - The company is in the process of a multi-year cloud-based ERP implementation, with capitalized costs of $20.3 million as of November 2, 2024[29]. - The company experienced operational disruptions due to the launch of a new cloud-based ERP system, impacting sales visibility[165]. - The company continues to implement its strategic initiatives focused on cost control to drive sustainable long-term growth despite challenging market conditions[123]. Shareholder Information - The Company repurchased 1,522,324 shares during the thirteen weeks ended November 2, 2024, and 1,938,324 shares during the thirty-nine weeks ended November 2, 2024[49]. - The company granted 2,783 restricted shares during the thirteen weeks ended November 2, 2024, with a weighted-average grant date fair value of$32.62[89]. - The company granted performance share awards for a targeted 165,854 shares, with a weighted-average grant date fair value of $41.05[90]. - The company recognized$0.5 million in excise taxes on share repurchases during the thirty-nine weeks ended November 2, 2024, due to the Inflation Reduction Act[50]. Tax and Compliance - The company's consolidated effective tax rates were 23.6% and 23.5% for the thirteen weeks ended November 2, 2024, and October 28, 2023, respectively, with a lower effective tax rate of 23.8% for the thirty-nine weeks ended November 2, 2024, compared to 24.1% in the previous year[112]. - The Company is in compliance with all covenants and restrictions under the Credit Agreement as of November 2, 2024[82].