On March 20, 2025, Caleres Inc (CAL, Financial) released its 8-K filing, detailing its financial performance for the fourth quarter and full year of 2024. The company, a prominent footwear retailer in the United States, operates through two main segments: Famous Footwear and Brand Portfolio. Despite efforts to maintain market share, Caleres Inc reported a decline in both quarterly and annual sales, missing analyst revenue estimates.
Performance Overview and Challenges
Caleres Inc reported fourth-quarter sales of $639.2 million, representing an 8.3% decrease year-over-year, falling short of the analyst estimate of $653.86 million. For the full year, sales were $2,722.7 million, a 3.4% decline compared to the previous year. The company's earnings per diluted share (EPS) for the fourth quarter were $0.15, significantly below the estimated $0.79. The full-year EPS was $3.09, also missing the annual estimate of $3.81.
The company faced challenges in its Famous Footwear segment, which experienced a softening in business during the quarter. Despite these challenges, Caleres Inc managed to maximize key selling periods and invested in long-term growth strategies, including supply chain evolution to mitigate tariff impacts.
Financial Achievements and Strategic Initiatives
Despite the disappointing overall performance, Caleres Inc achieved several financial milestones. The company returned $74.7 million to shareholders through share repurchases and quarterly dividends in fiscal 2024. Additionally, Caleres Inc announced plans to acquire Stuart Weitzman for $105 million, a strategic move expected to enhance its brand portfolio and drive future growth.
Key Financial Metrics
Caleres Inc's adjusted earnings per diluted share for the fourth quarter were $0.33, and $3.30 for the full year, aligning with the high end of the company's guidance. These adjusted figures exclude certain gains, charges, and recoveries, providing a clearer picture of the company's core operating results.
| Metric | Q4 2024 | FY 2024 |
|---|---|---|
| Reported Sales | $639.2 million | $2,722.7 million |
| Reported EPS | $0.15 | $3.09 |
| Adjusted EPS | $0.33 | $3.30 |
Analysis and Outlook
Caleres Inc's performance highlights the challenges faced by the retail sector, particularly in the footwear industry, amidst economic uncertainties and changing consumer preferences. The company's strategic initiatives, including the acquisition of Stuart Weitzman and efforts to diversify sourcing away from China, are crucial steps towards mitigating risks and positioning for future growth.
“Our fourth quarter earnings were at the high end of our most recent guidance. We gained market share in women’s fashion footwear, our Lead Brands outperformed, and we grew our sneaker penetration,” said Jay Schmidt, president and chief executive officer.
Looking ahead, Caleres Inc expects fiscal 2025 consolidated net sales to range from a 1% decrease to a 1% increase compared to fiscal 2024, with earnings per diluted share projected between $2.80 and $3.20. The company's cautious outlook reflects the ongoing macroeconomic challenges, including persistent inflation and tariffs.
Explore the complete 8-K earnings release (here) from Caleres Inc for further details.
