Caleres Reports Fourth Quarter & Full Year Results and Provides 2025 Outlook

• Reported fourth quarter sales of $639.2 million, down 8.3% year-on-year, and full-year sales of $2,722.7 million, down 3.4% year-on-year and in line with our most recent guidance;
• Reported fourth quarter and full year earnings per diluted share of $0.15 and $3.09, respectively, and fourth quarter and full year adjusted earnings per diluted share of $0.33 and $3.30, respectively, at the high end of our most recent guidance;
• Returned $74.7 million to shareholders in fiscal 2024 through share repurchases and quarterly dividends;
• Now expects 75% of our Brand Portfolio, and an even greater percentage of our Lead Brands' sourcing to be outside of China by the second half of 2025
• Expects fiscal 2025 consolidated net sales to be down 1% to up 1% compared to fiscal 2024;
• Expects fiscal 2025 earnings per diluted share of $2.80 to $3.20;
• Guidance excludes the previously announced acquisition of Stuart Weitzman, which is expected to close in the summer of 2025.

Caleres (NYSE:CAL), a market-leading portfolio of consumer-driven footwear brands, today reported its financial results for the fourth quarter and full year 2024 and provided guidance for first quarter and full year 2025.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250319156056/en/

Sam Edelman Sarita Sneaker and Miles Sneaker

"Our fourth quarter earnings were at the high end of our most recent guidance. We gained market share in women's fashion footwear, our Lead Brands outperformed, and we grew our sneaker penetration. Famous Footwear's business softened in the quarter, but we maximized key selling periods. We invested to support our long-term growth while continuing to evolve our supply chain and further mitigate the impact of additional tariffs," said Jay Schmidt, president and chief executive officer. "While 2024 overall was disappointing relative to our initial expectations, we made meaningful progress in advancing our strategic priorities and positioning our brands for sustainable growth. We also returned $75 million to shareholders in the form of dividends and share repurchases."

"As we look forward to 2025 and the macroeconomic environment with persistent inflation and newer tariffs, we believe it is prudent to take a conservative view for the year. Despite this posture, I am optimistic about what we have in store for 2025. Our Lead Brands remain strong and are collectively gaining market share, and we have expanded our customer reach with greater focus on the significant opportunity we see in contemporary," said Schmidt. "The hard work of our talented teams and the impact of new leadership across several areas of our business, along with strategic brand partnerships and the planned acquisition of Stuart Weitzman, position us well to drive significant value in 2025 and beyond."

Fourth Quarter 2024 Results

(13 weeks ended February 1, 2025, compared to 14 weeks ended February 3, 2024)

• Net sales: $639.2 million, down 8.3% year-over-year, with net sales excluding the impact of the 53^rd week down 4.0%
  • Famous Footwear segment: Net sales decreased 9.6%, with comparable sales down 2.9%
  • Brand Portfolio segment: Net sales decreased 7.2%
• Direct-to-consumer sales: Represented about 73% of total net sales
• Gross profit: $275.1 million, with gross margin at 43.0%, down 80 basis points year-over-year
  • Famous Footwear segment gross margin: 42.5%, down 40 basis points
  • Brand Portfolio segment gross margin: 41.6%, down 100 basis points
• SG&A expenses: 40.9% of net sales, up 180 basis points compared to the prior year, reflecting expense deleverage due to the decline in sales
• Net earnings: $4.9 million, or earnings per diluted share of $0.15, compared to net earnings of $55.8 million, or earnings per diluted share of $1.57 in the fourth quarter of 2023. Adjusted net earnings were $11.1 million, or adjusted earnings per diluted share of $0.33, compared to adjusted net earnings of $30.8 million, or adjusted earnings per diluted share of $0.86, in the fourth quarter of 2023.

Fiscal Year 2024 Results

(52-weeks ended February 1, 2025, compared to 53-weeks ended February 3, 2024)

• Net sales: $2.72 billion, down 3.4% from 2023
  • Famous Footwear segment: Net sales declined 3.3%
  • Brand Portfolio segment: Net sales declined 3.5%
  • Direct-to-consumer sales: Represented about 72% of total net sales
• Gross profit: $1.22 billion with a gross margin of 44.9%, up 10 basis points to 2023
  • Famous Footwear segment gross margin: 44.1%, down 60 basis points to 2023
  • Brand Portfolio segment gross margin: 43.7%, up 80 basis points to 2023
• SG&A expenses: 39.1% of net sales, up 140 basis points compared to the prior year, reflecting inflationary factors and strategic investments
• Net earnings: $107.3 million, down $64.1 million from 2023 and adjusted net earnings of $114.6 million, down $34.7 million from 2023
• Earnings per diluted share of $3.09 as compared with earnings per diluted share of $4.80 in 2023, and adjusted earnings per diluted share of $3.30 versus $4.18 in 2023
• EBITDA: $206.7 million, or 7.6% of sales, and adjusted EBITDA of $216.6 million or 8.0% of sales
• Inventory: Up 4.5% compared to 2023
• Borrowings: Under the asset-based revolving credit facility, borrowings were $219.5 million at the end of the period

Fiscal 2024 & Fourth Quarter Negative Impact from 53^rd Week

Capital Allocation Update

During fiscal 2024, Caleres continued to invest in value-driving growth opportunities while at the same time returning $74.7 million in cash to shareholders through our dividend and share repurchases. Subsequent to quarter end, the company announced plans to acquire Stuart Weitzman for $105 million, subject to customary adjustments. The transaction is expected to close in the summer of 2025, and Caleres will fund the acquisition through the company's revolving credit agreement. Caleres will continue to consider business performance and market conditions as it evaluates all opportunities for free cash flow.

Fiscal 2025 Outlook

First Quarter 2025 Outlook

Investor Conference Call

Caleres company executives will host a conference call at 10:00 a.m. ET today, Thursday, March 20, 2025. The webcast and associated slides will be available at investor.caleres.com/events-and-presentations. A live conference call will be available at (877) 704-4453 for North America participants or (201) 389-0920 for international participants, no passcode necessary. A replay of the call will be available through Thursday, April 3, 2025, and can be accessed by dialing (844) 512-2921 in North America, or (412) 317-6671 internationally, and using the pin 13751796. A webcast replay will also be archived for a limited period on investor.caleres.com/events-and-presentations.

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 Caleres, Inc. and diluted earnings per common share attributable to Caleres, Inc. shareholders, are presented as net earnings and earnings per diluted share, respectively.

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) and estimated and future operating earnings, net earnings and earnings per diluted share, adjusted to exclude certain gains, charges and recoveries, which are non-GAAP financial measures, 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) changes in United States and international trade policies, including tariffs and trade restrictions; (ii) changing consumer demands, which may be influenced by general economic conditions and other factors; (iii) inflationary pressures and supply chain disruptions; (iv) rapidly changing consumer preferences and purchasing patterns and fashion trends; (v) supplier concentration, customer concentration and increased consolidation in the retail industry; (vi) intense competition within the footwear industry; (vii) foreign currency fluctuations; (viii) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (ix) cybersecurity threats or other major disruption to the company's information technology systems including those related to our ERP upgrade; (x) transitional challenges with acquisitions and divestitures; (xi) the ability to accurately forecast sales and manage inventory levels; (xii) a disruption in the company's distribution centers; (xiii) the ability to recruit and retain senior management and other key associates; (xiv) the ability to secure/exit leases on favorable terms; (xv) the ability to maintain relationships with current suppliers; (xvi) changes to tax laws, policies and treaties; (xvii) our commitments and shareholder expectations related to responsible business initiatives; (xviii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xix) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights. The company's reports to the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation, the information under the caption Risk Factors in Item 1A of the company's Annual Report on Form 10-K for the year ended February 3, 2024, which information is incorporated by reference herein and updated by the company's Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250319156056/en/

Investor Contact:

Liz Dunn

[email protected]