Caleres Inc ( (CAL) ) has released its Q1 earnings. Here is a breakdown of the information Caleres Inc presented to its investors.
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Caleres Inc. is a leading company in the footwear industry, known for its diverse portfolio of consumer-driven brands. The company operates in both retail and wholesale segments, with a focus on expanding its international business.
In the first quarter of 2025, Caleres reported financial results that fell short of expectations. Despite gaining market share and experiencing improved trends in March and April, the company faced challenges with weak February sales and pressure on operating earnings due to lower gross margins and increased costs related to inventory management.
Key financial metrics for the quarter included net sales of $614.2 million, a decrease from $659.2 million in the same period last year. Gross profit also declined to $278.7 million from $309.1 million, and net earnings attributable to Caleres, Inc. dropped to $6.9 million from $30.9 million. The company also repurchased 300,000 shares to offset dilution from stock-based compensation.
Looking ahead, Caleres is focused on optimizing its sourcing strategy and reducing SG&A expenses by $15 million annually. The company is also re-evaluating its capital spending plans in light of the challenging environment and its planned acquisition of Stuart Weitzman. Despite the current challenges, Caleres remains confident in its ability to execute its strategic plan and drive long-term value for shareholders.