In This Article:
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Fourth Quarter Revenue: $639.2 million, down 8.3% year-over-year.
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Full Year Revenue: $2.72 billion, down 3.4% year-over-year.
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Fourth Quarter Adjusted Earnings Per Share (EPS): $0.33.
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Full Year Adjusted Earnings Per Share (EPS): $3.30.
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Fourth Quarter Gross Margin: 43%, a decrease of 80 basis points year-over-year.
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Full Year Gross Margin: 44.9%, an increase of 10 basis points year-over-year.
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Fourth Quarter Operating Earnings: $13.4 million, 2.1% of sales.
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Full Year Operating Earnings: $157 million, 5.8% of sales.
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Fourth Quarter SG&A Expenses: $261.7 million, 40.9% of sales.
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Full Year SG&A Expenses: $1.07 billion, 39.1% of sales.
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Fourth Quarter Net Interest Expense: $3.9 million.
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Full Year Net Interest Expense: $14 million.
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Inventory at Year-End: $565 million, up 4.5% year-over-year.
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Debt-to-EBITDA Ratio: 1 times.
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Cash Flow from Operations: $105 million.
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2025 Revenue Guidance: Consolidated sales expected to be down 1% to up 1%.
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2025 Earnings Per Share Guidance: $2.80 to $3.20.
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2025 Capital Expenditures Guidance: $50 million to $55 million.
Release Date: March 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Caleres Inc (NYSE:CAL) was honored with the Nordstrom Vendor Partner and Excellence Award for Footwear in 2024, highlighting the strength of its brands and products.
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Fourth quarter earnings were at the high end of guidance, with market share gains in women's fashion footwear.
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The company successfully reduced its reliance on China for direct product sourcing, expecting 75% of sourcing to be outside China by mid-2025.
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Lead Brands such as Sam Edelman, Allen Edmonds, Naturalizer, and Vionic outperformed, reinforcing their strategic importance.
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Caleres Inc (NYSE:CAL) returned approximately $75 million to shareholders through buybacks and dividends in 2024.
Negative Points
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Fourth quarter sales were down approximately 4% year-over-year, excluding the impact of the 53rd week, due to weak boot sales and softer wholesale demand.
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Brand Portfolio sales declined 7.2% in the fourth quarter, with weakness in boots and value-oriented brands.
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Famous Footwear's comp-store sales were down 2.9%, with brick-and-mortar sales declining 4.1%.
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The company faces challenges from persistent inflation and new tariffs, impacting its 2025 outlook.
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Caleres Inc (NYSE:CAL) anticipates continued headwinds with value-based consumers and cautious retail partner inventory management.
Q & A Highlights
Q: Could you elaborate on the assumptions within the EPS guidance for the balance of the year, and how do you plan to return to the $4 EPS threshold? A: Jack Calandra, CFO, explained that they expect sequential quarterly improvement throughout the year. For Famous Footwear, improvement is expected from new product introductions and new leadership. For the Brand Portfolio, improvement is anticipated from anniversarying the SAP upgrade challenges, international growth, the launch of Favorite Daughter, and wholesale door growth for Allen Edmonds. These initiatives provide confidence in achieving the guidance.