Caleres Inc ( (CAL) ) has released its Q4 earnings. Here is a breakdown of the information Caleres Inc presented to its investors.
Caleres Inc., a leading portfolio of consumer-driven footwear brands, operates in the fashion industry, known for its diverse range of footwear offerings. In its latest earnings report, Caleres Inc. revealed a decline in both fourth-quarter and full-year sales for 2024, with figures standing at $639.2 million and $2.72 billion, respectively. Despite the downturn, the company managed to meet the high end of its earnings guidance, reporting adjusted earnings per diluted share of $0.33 for the fourth quarter and $3.30 for the full year.
Key financial metrics highlighted a challenging year for Caleres, with a notable 8.3% drop in fourth-quarter sales and a 3.4% decrease for the year. The Famous Footwear segment saw a 9.6% decline in sales, while the Brand Portfolio segment experienced a 7.2% drop. Gross margins also faced pressure, with the overall gross margin for the fourth quarter at 43.0%, down 80 basis points from the previous year. Despite these challenges, direct-to-consumer sales accounted for a significant 73% of total net sales.
Strategically, Caleres is shifting its sourcing strategy, aiming for 75% of its Brand Portfolio sourcing to be outside China by the second half of 2025. The company also announced plans to acquire Stuart Weitzman, a move expected to close in the summer of 2025, which is anticipated to bolster its brand portfolio. Additionally, Caleres returned $74.7 million to shareholders through dividends and share repurchases in fiscal 2024.
Looking ahead, Caleres maintains a cautious outlook for 2025, projecting net sales to fluctuate between a 1% decrease and a 1% increase compared to 2024. The company anticipates earnings per diluted share to range from $2.80 to $3.20. Despite the conservative forecast, Caleres remains optimistic about its strategic initiatives and the potential for growth, driven by strong performance from its Lead Brands and expanded customer reach in the contemporary segment.