Caleres (CAL) investor relations material

Executive summary

• First quarter sales rose 8.5% to $667 million, with adjusted EPS of $0.38 exceeding guidance and gross margin expanding 200 basis points to 47.3%.

• Brand Portfolio delivered 20.6% sales growth (5.8% organic), with lead brands and international business outperforming; Famous Footwear sales declined 2.5% and comp sales fell 2.3%, but e-commerce grew nearly 10%.

• Stuart Weitzman contributed $43.9 million in net sales, exceeded internal expectations, and supported improved segment profitability.

• Market share gains achieved in total footwear, especially in women's fashion and shoe chains.

• Strategic initiatives included integrating Stuart Weitzman, expanding Flair store remodels, and focusing on elevated brands and products.

Financial highlights

• Consolidated gross margin improved 200 basis points to 47.3%, led by a 520 basis point increase in Brand Portfolio gross margin to 49.0%; Famous Footwear gross margin declined 150 basis points to 43.8%.

• Adjusted operating earnings were $22 million (3.3% of sales), up 130 basis points year-over-year.

• GAAP net earnings were $14.3 million ($0.42 per diluted share); adjusted net earnings were $12.7 million ($0.38 per diluted share).

• Inventory at quarter-end was $609.1 million, up $35 million year-over-year; excluding Stuart Weitzman, inventory was down $22.7 million.

• SG&A expenses rose 10.2% to $293.7 million, mainly due to Stuart Weitzman integration.

Outlook and guidance

• Full-year consolidated sales expected to rise low to mid-single digits; Brand Portfolio up low double digits, Famous Footwear down low to mid-single digits.

• Consolidated gross margin projected to increase 220–260 basis points for the year.

• GAAP EPS guidance of $1.44–$1.69; adjusted EPS of $1.40–$1.65; capital expenditures planned at $50–$55 million.

• Second quarter sales expected to increase mid to high single digits, with Brand Portfolio up mid-20s% and Famous Footwear down mid-single digits; gross margin projected to improve 345–375 basis points; GAAP EPS expected between $0.32 and $0.38.