Caleres Inc. Reports Q3 Results and Revises Outlook

Caleres Inc ( (CAL) ) has released its Q3 earnings. Here is a breakdown of the information Caleres Inc presented to its investors.

Caleres Inc., a prominent player in the footwear industry, operates a diverse portfolio of consumer-driven footwear brands. The company has reported its third-quarter results for 2024, showing a slight decline in overall sales. Sales were $740.9 million, reflecting a 2.8% decrease compared to the same period last year. The Famous Footwear segment experienced a sales decline of 4.8%, while the Brand Portfolio segment saw a modest increase of 0.7%. Despite these challenges, comparable store sales rose by 2.5% for Famous Footwear.

Caleres reported a gross profit margin of 44.1%, slightly lower than the previous year, and earnings per diluted share came in at $1.19, below expectations. The adjusted earnings per share stood at $1.23. The company generated EBITDA of $71.4 million during the quarter. As part of its strategic initiatives, Caleres repurchased approximately 1.5 million shares and continues to focus on reducing debt, with a goal to lower borrowings under its revolving credit facility to below $100 million by 2026.

The company’s management has revised its fiscal 2024 outlook, expecting net sales to decline by 2.5% to 3% and lowering the earnings per share guidance range. Caleres attributes the weaker-than-expected performance to softer seasonal demand, delayed product receipts, and challenges in the Chinese market. The company is taking action to address excess inventory and align expenses with expected sales while investing in areas poised for strong returns.

Looking ahead, Caleres remains committed to its strategic plan, with a focus on driving market share and creating sustained value for shareholders. Despite current market pressures, management believes it is well-positioned for long-term growth and success.