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Caleres(CAL) - 2024 Q4 - Annual Report
CALCaleres(CAL)2024-04-02 20:29
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Financial Performance - The aggregate market value of the stock held by non-affiliates was approximately 892.2millionasofJuly28,2023[13].−ThebacklogofunfilledwholesaleordersasofFebruary3,2024,wasapproximately892.2 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 284.6millioninJanuary2023[68].−Thecompanyspentapproximately284.6 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 59.0milliononadvertisingandmarketingforFamousFootwearin2023[30].−Thecompanyanticipatesthattheretailstorecountin2024willbeapproximatelyflatcomparedtotheendingstorecountfor2023[28].StoreOperations−TheFamousFootwearsegmentoperated860storesattheendof2023,sellingprimarilybrandedfootwearfortheentirefamily[20].−ThetotalnumberofFamousFootwearstoresdecreasedfrom894in2021to860in2023[33].−Thecompanyoperated57AllenEdmondsstoresintheU.S.attheendof2023,withplanstoopensixnewstoresandclosefourin2024[61].−Thecompanyoperates62retailstoresintheUnitedStatesand36storesinEastAsiaundertheBrandPortfoliosegment[20].−Newstorestypicallyreachanormallevelofprofitabilitywithinapproximatelyfouryearsofoperation[28].ProductSalesandCategories−Women′sfootwearaccountedfor6159.0 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 300forboots[23].SourcingandInventory−Thesourcingoperationssourcedapproximately34.9millionpairsofshoesin2023,primarilyfrom62manufacturersacross118facilities[66].−Approximately20300 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].