Caleres delivered mixed first-quarter earnings on Thursday as the company continued to show momentum in its brand division and captured more market share in the kids’ segment at Famous Footwear.
According to the St. Louis-based footwear company, net sales in the first quarter of 2024 were $659.2 million, down 0.5 percent from the same time last year. Net earnings in the period were $30.9 million, with earnings per diluted share of 88 cents, compared to net earnings of $34.7 million, or earnings per diluted share of 97 cents in the first quarter 2023.
By business segment, Caleres reported that net sales at Famous Footwear increased 0.1 percent in Q1, with comparable sales down 2.3 percent. The company’s brand portfolio segment saw net sales declined 2.6 percent in the period.
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Jay Schmidt, president and chief executive officer of Caleres, said in a statement on Thursday that the company started of the year “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.
“While the consumer demand environment remained challenging, we achieved growth in sales and profitability from our lead brands and strong margin performance across the brand portfolio,” Schmidt said. “Notably, the segment delivered more than half of the company’s operating earnings during the quarter, with a 13 percent operating margin, and is once again expected to lead the financial performance of Caleres this year. At the same time, Famous Footwear maintained total year-over-year sales levels and generated solid gross margins, with sales and market share up significantly in the strategically important kids’ category.”
As a result of this quarter’s performance, Caleres reiterated its fiscal 2024 financial outlook. Specifically, the company still expects consolidated net sales to be flat to up 2 percent, compared to 2023, and earnings per diluted share to be in the range of $4.30 to $4.60.
Moving into the second quarter, the company said it expects consolidated net sales to be up 3 percent to 4 percent. This includes an estimated $20 to $25 million benefit in Famous Footwear as a result of the calendar shift of an important back-to-school week into second quarter 2024 from third quarter 2023, Caleres noted. Earnings per diluted share in Q2 are expected to be between $1.20 to $1.25.
“Looking ahead, we are confident in our ability to deliver earnings per share in line with our guidance range in 2024,” Schmidt added. “Longer-term, we believe we are exceptionally well positioned to execute our clear and actionable strategic plan, invest to fuel our growth initiatives, and drive sustained value for our shareholders.”
