-
Achieved
$0.88 in earnings per share, exceeding expectations - Generated record first quarter consolidated gross margin of 47 percent
-
Reiterates fiscal 2024 outlook of net sales flat to up 2 percent and earnings per share of
$4.30 to$4.60
“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
“Looking ahead, we are confident in our ability to deliver earnings per share in line with our guidance range in 2024,” said Schmidt. “Longer-term, we believe we are exceptionally well positioned to execute our clear and actionable strategic plan, invest to fuel our growth initiatives, and drive sustained value for our shareholders.”
First Quarter 2024 Results
(13-weeks ended
-
Net sales were
$659.2 million , down 0.5 percent from the first quarter of 2023;- Famous Footwear segment net sales increased 0.1 percent, with comparable sales down 2.3 percent
- Brand Portfolio segment net sales declined 2.6 percent
- Direct-to-consumer sales represented approximately 69 percent of total net sales
-
Gross profit was
$309.1 million , while gross margin was 46.9 percent, up 120 basis points versus last year;- Famous Footwear segment gross margin of 46.1 percent, up 50 basis points versus last year
- Brand Portfolio segment gross margin of 46.6 percent, up 240 basis points versus last year
- SG&A as a percentage of net sales was 40.4 percent, reflecting planned investment in marketing at certain Lead Brands, international expansion and the implementation of the integrated SAP platform;
-
Net earnings of
$30.9 million , or earnings per diluted share of$0.88 , compared to net earnings of$34.7 million , or earnings per diluted share of$0.97 in the first quarter 2023. -
Earnings before interest, taxes, depreciation, and amortization (EBITDA) of
$57.4 million , or 8.7 percent of sales; - Inventory was down 5.2 percent from the first quarter 2023, due to strategic inventory management – primarily in the Brand Portfolio segment; and
-
Borrowings under the asset-based revolving credit facility were
$191.0 million at the end of the period, down about$100 million from the first quarter of 2023.
Capital Allocation Update
During the quarter,
In the near term, the company expects to continue to focus on reducing debt and still expects borrowings under its asset-based revolving credit facility will be less than
Fiscal 2024 Outlook:
In addition, for fiscal 2024, the company still expects:
- Consolidated operating margin of 7.3 percent to 7.5 percent;
- Effective tax rate of about 24 percent; and
-
Capital expenditures of
$60 million to$70 million .
For second quarter 2024 the company expects:
-
Consolidated net sales to be up 3 percent to 4 percent. This includes an estimated
$20 to$25 million benefit in Famous Footwear as a result of the calendar shift of an important back-to-school week into second quarter 2024 from third quarter 2023; and -
Earnings per diluted share of
$1.20 to$1.25 .
Investor Conference Call
Definitions
All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings attributable to
Non-GAAP Financial Measures and Metrics
In this press release, the company’s financial results are provided both in accordance with generally accepted accounting principles (GAAP) and using certain non-GAAP financial measures and metrics. In particular, the company provides earnings before interest, taxes, depreciation and amortization (EBITDA), which is a non-GAAP financial measure, and the debt to EBITDA leverage ratio, which is a non-GAAP financial metric. These results are included as a complement to results provided in accordance with GAAP because management believes this non-GAAP financial measure and metric help identify underlying trends in the company’s business and provide useful information to both management and investors by excluding certain items that may not be indicative of the company’s core operating results. This measure and metric should not be considered a substitute for or superior to GAAP results.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking statements and expectations regarding the company’s future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) changing consumer demands, which may be influenced by general economic conditions and other factors; (ii) inflationary pressures and supply chain disruptions (iii) rapidly changing consumer preferences and purchasing patterns and fashion trends; (iv) supplier concentration, customer concentration and increased consolidation in the retail industry; (v) intense competition within the footwear industry; (vi) foreign currency fluctuations; (vii) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from
SCHEDULE 1 |
||||||||
CALERES, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
||||||||
|
|
(Unaudited) |
||||||
|
|
Thirteen Weeks Ended |
||||||
($ thousands, except per share data) |
|
|
|
|
||||
Net sales |
|
$ |
659,198 |
|
|
$ |
662,734 |
|
Cost of goods sold |
|
|
350,103 |
|
|
|
360,052 |
|
Gross profit |
|
|
309,095 |
|
|
|
302,682 |
|
Selling and administrative expenses |
|
|
266,337 |
|
|
|
253,095 |
|
Operating earnings |
|
|
42,758 |
|
|
|
49,587 |
|
Interest expense, net |
|
|
(3,778 |
) |
|
|
(5,623 |
) |
Other income, net |
|
|
992 |
|
|
|
1,492 |
|
Earnings before income taxes |
|
|
39,972 |
|
|
|
45,456 |
|
Income tax provision |
|
|
(9,174 |
) |
|
|
(10,664 |
) |
Net earnings |
|
|
30,798 |
|
|
|
34,792 |
|
Net (loss) earnings attributable to noncontrolling interests |
|
|
(141 |
) |
|
|
65 |
|
Net earnings attributable to |
|
$ |
30,939 |
|
|
$ |
34,727 |
|
|
|
|
|
|
|
|
||
Basic earnings per common share attributable to |
|
$ |
0.88 |
|
|
$ |
0.97 |
|
|
|
|
|
|
|
|
||
Diluted earnings per common share attributable to |
|
$ |
0.88 |
|
|
$ |
0.97 |
|
SCHEDULE 2 |
||||||||
CALERES, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
|
(Unaudited) |
||||||
($ thousands) |
|
|
|
|
||||
ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
30,709 |
|
$ |
36,151 |
||
Receivables, net |
|
|
164,865 |
|
|
148,068 |
||
Inventories, net |
|
|
530,570 |
|
|
559,467 |
||
Property and equipment, held for sale |
|
|
16,777 |
|
|
16,777 |
||
Prepaid expenses and other current assets |
|
|
62,415 |
|
|
60,417 |
||
Total current assets |
|
|
805,336 |
|
|
820,880 |
||
|
|
|
|
|
|
|
||
Lease right-of-use assets |
|
|
565,822 |
|
|
513,817 |
||
Property and equipment, net |
|
|
168,154 |
|
|
157,730 |
||
|
|
|
200,551 |
|
|
212,353 |
||
Other assets |
|
|
121,247 |
|
|
113,303 |
||
Total assets |
|
$ |
1,861,110 |
|
$ |
1,818,083 |
||
|
|
|
|
|
|
|
||
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 |
|
|
879,277 |
||
|
|
|
|
|
|
|
||
Noncurrent lease obligations |
|
|
482,163 |
|
|
437,171 |
||
Other liabilities |
|
|
37,553 |
|
|
49,754 |
||
Total other liabilities |
|
|
519,716 |
|
|
486,925 |
||
|
|
|
|
|
|
|
||
|
|
|
570,304 |
|
|
446,317 |
||
Noncontrolling interests |
|
|
6,725 |
|
|
5,564 |
||
Total equity |
|
|
577,029 |
|
|
451,881 |
||
Total liabilities and equity |
|
$ |
1,861,110 |
|
$ |
1,818,083 |
SCHEDULE 3 |
||||||||
CALERES, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
|
(Unaudited) |
||||||
|
|
Thirteen Weeks Ended |
||||||
($ thousands) |
|
|
|
|
||||
OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net cash provided by operating activities |
|
$ |
36,074 |
|
|
$ |
37,497 |
|
|
|
|
|
|
|
|
||
INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(9,802 |
) |
|
|
(5,750 |
) |
Capitalized software |
|
|
(524 |
) |
|
|
(798 |
) |
Net cash used for investing activities |
|
|
(10,326 |
) |
|
|
(6,548 |
) |
|
|
|
|
|
|
|
||
FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Borrowings under revolving credit agreement |
|
|
118,500 |
|
|
|
126,000 |
|
Repayments under revolving credit agreement |
|
|
(109,500 |
) |
|
|
(142,000 |
) |
Dividends paid |
|
|
(2,442 |
) |
|
|
(2,482 |
) |
Acquisition of treasury stock |
|
|
(15,070 |
) |
|
|
— |
|
Issuance of common stock under share-based plans, net |
|
|
(7,847 |
) |
|
|
(10,006 |
) |
Net cash used for financing activities |
|
|
(16,359 |
) |
|
|
(28,488 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(38 |
) |
|
|
(10 |
) |
Increase in cash and cash equivalents |
|
|
9,351 |
|
|
|
2,451 |
|
Cash and cash equivalents at beginning of period |
|
|
21,358 |
|
|
|
33,700 |
|
Cash and cash equivalents at end of period |
|
$ |
30,709 |
|
|
$ |
36,151 |
|
SCHEDULE 4 |
||||||||||||||||||||||||||||||||
CALERES, INC. |
||||||||||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT |
||||||||||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
(Unaudited) |
||||||||||||||||||||||||||||||
|
|
Thirteen Weeks Ended |
||||||||||||||||||||||||||||||
|
|
Famous Footwear |
|
Brand Portfolio |
|
Eliminations and Other |
|
Consolidated |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
($ thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||
Net sales |
|
$ |
349,553 |
|
$ |
349,158 |
|
$ |
317,211 |
|
$ |
325,516 |
|
$ |
(7,566 |
) |
$ |
(11,940 |
) |
$ |
659,198 |
|
$ |
662,734 |
|
|||||||
Gross profit |
|
|
161,005 |
|
|
159,133 |
|
|
147,812 |
|
|
143,858 |
|
|
278 |
|
|
(309 |
) |
|
309,095 |
|
|
302,682 |
|
|||||||
Gross margin |
|
|
46.1 |
% |
|
45.6 |
% |
|
46.6 |
% |
|
44.2 |
% |
|
(3.7 |
)% |
|
2.6 |
% |
|
46.9 |
% |
|
45.7 |
% |
|||||||
Operating earnings (loss) |
|
|
16,855 |
|
|
17,056 |
|
|
41,425 |
|
|
42,669 |
|
|
(15,522 |
) |
|
(10,138 |
) |
|
42,758 |
|
|
49,587 |
|
|||||||
Operating margin |
|
|
4.8 |
% |
|
4.9 |
% |
|
13.1 |
% |
|
13.1 |
% |
|
n/m |
% |
|
n/m |
% |
|
6.5 |
% |
|
7.5 |
% |
|||||||
Comparable sales % (on a 13-week basis) |
|
|
(2.3 |
)% |
|
(8.5 |
)% |
|
0.1 |
% |
|
9.4 |
% |
|
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
|||||||
Number of stores |
|
|
855 |
|
|
866 |
|
|
99 |
|
|
93 |
|
|
— |
|
|
— |
|
|
954 |
|
|
959 |
|
n/m – Not meaningful |
SCHEDULE 5 |
||||||||
CALERES, INC. |
||||||||
BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION |
||||||||
|
|
(Unaudited) |
||||||
|
|
Thirteen Weeks Ended |
||||||
|
|
|
|
|
||||
($ thousands, except per share data) |
|
|
|
|
|
|
||
Net earnings attributable to |
|
|
|
|
|
|
||
Net earnings |
|
$ |
30,798 |
|
|
$ |
34,792 |
|
Net loss (earnings) attributable to noncontrolling interests |
|
|
141 |
|
|
|
(65 |
) |
Net earnings attributable to |
|
|
30,939 |
|
|
|
34,727 |
|
Net earnings allocated to participating securities |
|
|
(1,208 |
) |
|
|
(1,478 |
) |
Net earnings attributable to |
|
$ |
29,731 |
|
|
$ |
33,249 |
|
|
|
|
|
|
|
|
||
Basic and diluted common shares attributable to |
|
|
|
|
|
|
||
Basic common shares |
|
|
33,793 |
|
|
|
34,407 |
|
Dilutive effect of share-based awards |
|
|
106 |
|
|
|
— |
|
Diluted common shares attributable to |
|
|
33,899 |
|
|
|
34,407 |
|
|
|
|
|
|
|
|
||
Basic earnings per common share attributable to |
|
$ |
0.88 |
|
|
$ |
0.97 |
|
|
|
|
|
|
|
|
||
Diluted earnings per common share attributable to |
|
$ |
0.88 |
|
|
$ |
0.97 |
|
SCHEDULE 6 |
||||||||
CALERES, INC. |
||||||||
CALCULATION OF EBITDA AND DEBT/EBITDA LEVERAGE RATIO (NON-GAAP METRICS) |
||||||||
|
|
(Unaudited) |
||||||
|
|
Thirteen Weeks Ended |
||||||
($ thousands) |
|
|
|
|
||||
EBITDA: |
|
|
|
|
|
|
||
Net earnings attributable to |
|
$ |
30,939 |
|
|
$ |
34,727 |
|
Income tax provision |
|
|
9,174 |
|
|
|
10,664 |
|
Interest expense, net |
|
|
3,778 |
|
|
|
5,623 |
|
Depreciation and amortization (1) |
|
|
13,490 |
|
|
|
12,714 |
|
EBITDA |
|
$ |
57,381 |
|
|
$ |
63,728 |
|
|
|
|
|
|
|
|
||
EBITDA margin |
|
|
8.7 |
% |
|
|
9.6 |
% |
|
|
|
|
|
|
|
||
|
|
(Unaudited) |
||||||
|
|
Trailing Twelve Months Ended |
||||||
($ thousands) |
|
|
|
|
||||
EBITDA: |
|
|
|
|
|
|
||
Net earnings attributable to |
|
$ |
167,603 |
|
|
$ |
165,960 |
|
Income tax provision |
|
|
8,000 |
|
|
|
26,670 |
|
Interest expense, net |
|
|
17,498 |
|
|
|
17,588 |
|
Depreciation and amortization (1) |
|
|
54,056 |
|
|
|
49,368 |
|
EBITDA |
|
$ |
247,157 |
|
|
$ |
259,586 |
|
|
|
|
|
|
|
|
||
EBITDA margin |
|
|
8.8 |
% |
|
|
9.0 |
% |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
(Unaudited) |
||||||
($ thousands) |
|
|
|
|
||||
Debt/EBITDA leverage ratio: |
|
|
|
|
|
|
||
Borrowings under revolving credit agreement (2) |
|
$ |
191,000 |
|
|
$ |
291,500 |
|
EBITDA (trailing twelve months) |
|
|
247,157 |
|
|
|
259,586 |
|
Debt/EBITDA |
|
|
0.8 |
|
|
|
1.1 |
|
__________________________________ | |
(1) |
Includes depreciation and amortization of capitalized software and intangible assets. |
(2) |
Total availability under the revolving credit agreement was |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240529537132/en/
Investor Contact:
lbonacorsi@caleres.com
Source: