Caleres Reports Strong Q1 Performance Despite Slight Sales Dip: ‘Achieving Earnings Per Share Ahead of Expectations,’ Says CEO
Caleres reported net sales of $659.2 million for the first quarter, reflecting a slight decrease of 0.5 percent compared to the previous year. Despite this marginal dip, the company saw mixed performance across its segments. The Famous Footwear segment experienced a small net sales increase of 0.1 percent, although comparable sales were down by 2.3 percent. Conversely, the brand portfolio segment saw a 2.6 percent decline in net sales. Direct-to-consumer sales, however, were a bright spot, representing approximately 69 percent of total net sales.
“Caleres began 2024 in strong fashion, achieving earnings per share ahead of expectations, generating record first-quarter consolidated gross margin, and making significant progress on our key strategic initiatives, all while investing for the long-term,” said Jay Schmidt, Caleres president and chief executive officer.
The company’s gross profit for the quarter was $309.1 million, with a gross margin of 46.9 percent, an increase of 120 basis points compared to the previous year. However, net earnings decreased to $30.9 million, translating to earnings per diluted share of 88 cents. EBITDA for the quarter was $57.4 million, representing 8.7 percent of sales.
Looking ahead, Caleres is reiterating its fiscal 2024 financial outlook. The company continues to expect consolidated net sales to remain flat or increase by up to 2 percent compared to 2023, with earnings per diluted share projected to be in the range of $4.30 to $4.60.
For the second quarter of 2024, Caleres anticipates net sales to rise by 3 percent to 4 percent and earnings per diluted share to fall between $1.20 and $1.25.
Schmidt’s optimism reflects the company’s strategic positioning and ongoing initiatives to bolster long-term growth, even as they navigate the challenges of fluctuating market conditions. This forward-looking approach, coupled with robust direct-to-consumer performance, positions Caleres to achieve its financial goals for the year.