Caleres Inc. First Quarter 2024 Financial Results

Company: Caleres Inc (Ticker: CAL)

Exchange: NYSE

Sector: Consumer Cyclical

Industry: Apparel - Footwear & Accessories

Report Date: June 12, 2024

Report Period: Q1 2024

Link: SEC Filing

Overview

Caleres Inc presented its financial performance for the first quarter of 2024, reporting solid results despite a slightly challenging consumer demand environment. Strategic investments and strong market offerings from key brands have helped maintain a stable financial standing.

Key Financial Metrics

Revenue: $659.2M

Gross Profit: $309.1M (46.89%)

Operating Income: $42.76M (6.49%)

Net Income: $29.73M (4.51%)

Earnings Per Share (EPS): $0.88

EBITDA: $56.25M (8.53%)

Balance Sheet Highlights

Total Assets: $1.86B

Total Liabilities: $1.28B

Total Stockholders' Equity: $570.3M

Cash and Cash Equivalents: $30.71M

Inventory: $530.57M

Total Debt: $794.04M

Net Debt: $763.33M

Cash Flow Highlights

Net Cash Provided by Operating Activities: $36.07M

Capital Expenditures: $10.33M

Free Cash Flow: $25.75M

Net Cash Used for Financing Activities: $16.36M

Net Change in Cash: $9.35M

Cash at End of Period: $30.71M

Segment Performance

Brand Portfolio

The Brand Portfolio faced a slight decline in sales but delivered a strong operating margin. Sales declined by 2.6%, yet the segment achieved an impressive 13.1% operating margin. The segment benefited from higher initial margins, reduced closeouts, and a significant increase in e-commerce sales.

Famous Footwear

Famous Footwear reported flat total sales with a 2.3% decline in comparable sales. Despite the weak performance in seasonal products such as boots, Famous Footwear outperformed its competitive set, particularly in the kids' category, which reported high-single-digit growth. The e-commerce business also saw an 11% increase year-over-year.

2024 Guidance

Caleres Inc. reiterated its guidance for the full year 2024, expecting sales to be flat to up 2% versus last year, with EPS ranging between $4.30 and $4.60. Significant growth is anticipated through strategic investments in marketing, international expansion, and system upgrades.

For the second quarter, the company expects a 3-4% increase in net sales and EPS of $1.20 to $1.25.

Conclusion

Caleres Inc. continues to demonstrate resilience amidst market uncertainties. The company's strong financial foundation, strategic initiatives, and robust brand portfolio position it well for sustained growth and shareholder value creation.