Caleres Inc, a leading footwear retailer in the United States, reported its financial results for the first quarter of 2024. The company operates through two main segments: Famous Footwear and Brand Portfolio. Famous Footwear includes retail stores and online platforms, while Brand Portfolio encompasses wholesale operations and various branded stores and e-commerce businesses.
Performance Overview
For the first quarter of 2024, Caleres Inc (CAL, Financial) reported net sales of $659.2 million, a slight decrease of 0.5% compared to the same period last year. Despite the challenging consumer demand environment, the company achieved a gross profit of $309.1 million, with a gross margin of 46.9%, up 120 basis points from the previous year.
Financial Achievements
Caleres Inc (CAL, Financial) reported earnings per share (EPS) of $0.88, surpassing the analyst estimate of $0.88. The company's consolidated gross margin reached a record high for the first quarter, reflecting strong margin performance across its Brand Portfolio segment. This segment contributed more than half of the company's operating earnings, with a 13% operating margin.
Income Statement Highlights
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales | $659.2 million | $662.7 million |
| Gross Profit | $309.1 million | $302.7 million |
| Operating Earnings | $42.8 million | $49.6 million |
| Net Earnings | $30.8 million | $34.8 million |
| Diluted EPS | $0.88 | $0.97 |
Balance Sheet and Cash Flow
As of May 4, 2024, Caleres Inc (CAL, Financial) reported total assets of $1.86 billion, with cash and cash equivalents amounting to $30.7 million. The company continued to focus on reducing debt, with borrowings under its revolving credit agreement decreasing to $191 million from $291.5 million in the previous year.
Capital Allocation and Strategic Initiatives
During the quarter, Caleres Inc (CAL, Financial) repurchased 416,000 shares of common stock for $15.1 million and returned $2.4 million to shareholders through dividends. The company remains committed to investing in growth opportunities while managing its debt levels.
“Caleres began 2024 in strong fashion, achieving earnings per share ahead of expectations, generating record first quarter consolidated gross margin, and making significant progress on our key strategic initiatives, all while investing for the long-term,” said Jay Schmidt, president and chief executive officer.
Fiscal 2024 Outlook
Caleres Inc (CAL, Financial) reaffirmed its fiscal 2024 guidance, expecting consolidated net sales to be flat to up 2% compared to 2023, and earnings per diluted share to range between $4.30 and $4.60. The company also anticipates a consolidated operating margin of 7.3% to 7.5% and capital expenditures of $60 million to $70 million for the year.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Caleres Inc for further details.
