CALERES INC SEC 10-Q Report

Caleres Inc., a global footwear company known for its diversified portfolio of leading footwear brands, has released its Form 10-Q report for the first quarter of 2025. The report highlights the company's financial performance, operational activities, and strategic initiatives amidst a challenging macroeconomic environment.

Financial Highlights

• Net Sales: $614.2 million, a decrease of 6.8% compared to the first quarter of 2024, reflecting declines in both Famous Footwear and Brand Portfolio segments.
• Gross Profit: $278.7 million, a decrease of 9.8% from the first quarter of 2024, with a gross margin decline to 45.4% due to lower merchandise margins and higher inventory markdowns.
• Operating Earnings: $11.6 million, a significant decrease of 72.9% from the first quarter of 2024, primarily due to lower net sales and increased selling and administrative expenses.
• Net Earnings Attributable to Caleres, Inc.: $6.9 million, a substantial drop from $30.9 million in the first quarter of 2024, impacted by lower operating earnings.
• Diluted Earnings Per Share: $0.21, a decrease of 76.1% from $0.88 in the first quarter of 2024, reflecting the decline in net earnings.

Business Highlights

• Business Overview: Caleres Inc. operates retail stores and e-commerce websites, designing, developing, sourcing, manufacturing, and distributing footwear for all ages. The company serves both retail and wholesale markets with a diversified portfolio of leading footwear brands.
• Acquisition of Stuart Weitzman: In February 2025, Caleres signed an agreement to acquire Stuart Weitzman, a luxury women's footwear brand, for $105 million. This acquisition aims to enhance the Brand Portfolio segment with a broader global and direct-to-consumer reach, expected to close in summer 2025.
• Macroeconomic Environment Impact: The company faced challenges due to macroeconomic factors affecting consumer discretionary spending, including recent tariff announcements and trade policy uncertainties, leading to lighter consumer traffic and lower net sales.
• Famous Footwear Segment Performance: Net sales decreased by 6.3% in the first quarter of 2025, with a 4.6% decline in comparable sales. Despite slower traffic, e-commerce sales grew, with penetration increasing to 14% of net sales.
• Brand Portfolio Segment Performance: Net sales decreased by 6.9% in the first quarter of 2025. Direct-to-consumer sales represented 35% of net sales, up from 33% in the previous year, with solid demand in fashion, flats, sandals, and sneakers.
• Store Operations: The company closed 11 Famous Footwear stores, ending the quarter with 835 stores. It also expanded its international presence, with 54 stores in East Asia and 116 international franchise locations.
• Future Outlook: Caleres is focused on international growth, direct-to-consumer penetration, and enhancing the consumer experience at Famous Footwear. The company plans to add nine more FLAIR concept stores in the second quarter of 2025.

SEC Filing: CALERES INC [ CAL ] - 10-Q - Jun. 10, 2025