Q2 2024 Caleres Inc Earnings Call Transcript
Key Points
- Caleres Inc (CAL) achieved a strong gross margin rate increase of 30 basis points, driven by the brand portfolio.
- The company saw a 1.5% increase in total sales for Famous Footwear, with a notable 10% year-over-year growth in Famous.com business.
- Caleres Inc (CAL) reported a 140 basis point improvement in segment gross margin for the brand portfolio.
- The company has successfully addressed ERP system issues and is now operational in all areas that caused disruptions.
- Caleres Inc (CAL) announced a restructuring that will save approximately $7.5 million annually and $2 million in the current fiscal year.
- Second quarter sales declined 1.8% year-over-year, leading to earnings per share of $0.85, which was below expectations.
- The ERP upgrade caused significant visibility and execution issues, contributing to the sales decline.
- Seasonal product categories, particularly sandals, underperformed with a high-single-digit decline.
- Famous Footwear's comparable sales declined 2.9%, despite a 1.5% increase in total sales.
- The company experienced late shipments and carrier failures, further impacting sales negatively.
Good morning, and welcome to the Caleres second-quarter 2024 earnings call. My name is Rob, and I'll be your conference coordinator. (Operator Instructions) As a reminder, this conference is being recorded.
At this time, I'll turn the call over to Liz Dunn, Senior Vice President, Corporate Development and Strategic Communications. Please go ahead.
Thank you, Rob. Good morning. I'd like to thank you for joining our second-quarter 2024 earnings call and webcast. A press release with the detailed financial tables as well as our quarterly slide presentation are available at Caleres.com.
Please be aware today's discussion contains forward-looking statements which are subject to a number of risks and uncertainties. Actual results may differ materially due to various risk factors including, but not limited to, the factors disclosed in the company's Form 10-K and other filings with the US Securities and Exchange Commission. Please refer to today's press
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