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Feb 01
Caleres Q4 2024 Earnings Report
Caleres reported its Q4 2024 earnings, reflecting a decline in net sales but achieving adjusted earnings at the high end of guidance.
Key Takeaways
In Q4 2024, Caleres reported net sales of $639.2 million, down 8.3% year-over-year. Adjusted earnings per diluted share were $0.33, with gross profit at $275.1 million and gross margin of 43%. The Famous Footwear segment saw declines while the Brand Portfolio maintained solid performance. Despite challenges, the company remains optimistic with strategic plans for 2025.
Q4 net sales totaled $639.2 million, a decline of 8.3% year-over-year.
Gross margin came in at 43.0%, down 80 basis points compared to Q4 2023.
Adjusted EPS reached $0.33, aligning with the high end of guidance.
Net income was $4.9 million, significantly down from $55.8 million in the prior year quarter.
Caleres
Caleres
Caleres Revenue by Segment
Revenue by Segment
Famous Footwear Revenue
CapyFin.comBrand Portfolio Revenue
CapyFin.com Forward Guidance
For fiscal 2025, Caleres expects net sales to range from down 1% to up 1% versus fiscal 2024, with GAAP EPS between $2.80 and $3.20, and operating margins between 5.1% and 5.6%.
Positive Outlook
- GAAP EPS guidance of $2.80 to $3.20.
- Operating margin expected between 5.1% and 5.6%.
- 75% of Brand Portfolio sourcing expected to be outside China by H2 2025.
- Continued investment in strategic brand partnerships.
- Strong market share gains in women's fashion footwear.
Challenges Ahead
- Persistent inflationary pressures affecting consumer spending.
- Impact from additional tariffs likely to weigh on margins.
- Softness in Famous Footwear business anticipated to continue.
- Expense deleverage from sales decline in Q4 may continue into early 2025.
- Guidance excludes potential disruption from Stuart Weitzman acquisition integration.
Revenue & Expenses
Visualization of income flow from segment revenue to net income