Tue, Jun 10, 9:11 PM (33 days ago)
**Caleres, Inc. (CAL) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $614.2 million, down 6.8% YoY due to declines in both Famous Footwear and Brand Portfolio segments. - **Gross Profit:** $278.7 million, down 9.8% YoY, with gross margin decreasing to 45.4% from 46.9%. - **Operating Earnings:** $11.6 million, down 72.9% YoY, reflecting lower net sales and higher expenses. - **Net Earnings:** $6.9 million, down 77.3% YoY, with diluted EPS at $0.21, down from $0.88. - **Cash Flow:** Negative operating cash flow of $5.7 million, primarily due to lower net earnings and changes in working capital. **Segment Performance:** - **Famous Footwear:** Net sales decreased 6.3% to $327.7 million, with comparable sales down 4.6%. Gross profit decreased 7.8% to $148.4 million. - **Brand Portfolio:** Net sales decreased 6.9% to $295.4 million. Gross profit decreased 12.5% to $129.3 million. **Trends and Uncertainties:** - **Macroeconomic Factors:** Tariffs and trade policy uncertainty continue to impact consumer spending and supply chain management. - **Liquidity:** Strong liquidity position with $33.1 million in cash and $233.4 million in excess availability on the revolving credit agreement. - **Future Operations:** Expect to refinance the revolving credit facility in 2025. Planned acquisition of Stuart Weitzman for $105 million, expected to close in summer 2025. **Key Metrics:** - **Comparable Sales:** Down 4.6% for Famous Footwear, reflecting slower consumer traffic. - **Direct-to-Consumer Sales:** Represented approximately 70% of consolidated net sales, with growth in e-commerce penetration. - **Store Count:** Famous Footwear closed 11 stores, ending with 835 stores. Brand Portfolio opened 3 and closed 2 stores in North America. **Outlook:** - Focus on cost control and strategic initiatives to drive sustainable growth. - Expect to decrease selling and administrative expenses by approximately $15 million annually through structural expense reductions. - Continued focus on optimizing sourcing strategy and managing inventory levels.