British stone. LOUIS – Caleres (NYSE: Caleres), a diversified portfolio of global footwear brands, reported first-quarter earnings that were slightly above Wall Street expectations, but revenue fell slightly.
The company announced first-quarter adjusted earnings per share (EPS) of $0.88, slightly above analysts’ expectations of $0.87. However, revenue for the quarter came in at $659.2 million, missing the consensus estimate of $665.5 million.
The company’s comprehensive gross profit margin hit a record high in the first quarter, reaching 47%, a significant increase from the previous year. Despite a challenging consumer demand environment, Caleres’ leading brands grew sales and profitability, with strong margin performance across the brand portfolio.
The Brand Portfolio segment’s operating profit accounted for more than half of the company’s operating profit in the quarter, with an operating profit margin of 13%. Famous Footwear maintained year-over-year sales levels and generated solid gross margins, with significant sales and market share gains in the children’s category.
President and CEO Jay Schmidt expressed confidence in the company’s ability to achieve earnings per share within its fiscal 2024 guidance. This will deliver continued value to shareholders.
Looking ahead to fiscal 2024, Caleres reiterated its financial outlook, expecting consolidated net sales to be flat from the prior year and up 2%, with adjusted earnings per share expected to be in the range of $4.30 to $4.60. The company expects consolidated net sales to grow 3% to 4% in the second quarter of 2024, including a $20 to $25 million gain from Famous Footwear due to calendar changes during the critical back-to-school week. Second-quarter adjusted earnings per share are expected to be in a range of $1.20 to $1.25.
Caleres also highlighted its strategic inventory management, which resulted in a 5.2% inventory reduction compared to last year’s first quarter. Additionally, the company continues to invest in value-driven opportunities and return cash to shareholders through share repurchases and dividends.
The company’s near-term capital allocation strategy remains focused on reducing debt, with borrowings expected to be below $100 million under its asset-based revolving credit facility by 2026. market conditions.
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