Caleres Reports Third Quarter Results and Updates Guidance

Rhea-AI Summary

Caleres (NYSE: CAL) reported third quarter 2024 financial results with net sales of $740.9 million, down 2.8% year-over-year. Famous Footwear sales declined 4.8% while Brand Portfolio sales increased 0.7%. The company reported earnings per diluted share of $1.19 and adjusted earnings of $1.23, below expectations.

The company revised its fiscal 2024 outlook, now expecting net sales to decline 2.5% to 3% compared to previous guidance of low-single-digits decrease. Earnings guidance was lowered to $3.35-$3.45 per diluted share from $3.94-$4.09, with adjusted earnings now expected at $3.45-$3.55 versus prior $4.00-$4.15.

Performance was impacted by softer seasonal boot demand, late athletic product receipts, customer credit issues affecting shipments, and weaker Chinese market performance.

Positive

• Brand Portfolio sales increased 0.7% year-over-year
• Famous Footwear comparable store sales up 2.5%
• Direct-to-consumer sales represented 72% of total net sales
• Brand Portfolio segment gross margin improved 15 basis points to 43.8%

Negative

• Overall net sales declined 2.8% to $740.9 million
• Famous Footwear sales decreased 4.8%
• Consolidated gross margin declined 55 basis points to 44.1%
• Inventory levels increased 5% year-over-year
• Borrowings increased $16.5 million to $238.5 million
• Downward revision of full-year sales and earnings guidance
• Net earnings decreased to $41.4 million from $46.9 million year-over-year

Insights

Financial Analyst

The Q3 results and guidance revision signal significant headwinds for Caleres. Net sales declined 2.8% to $740.9 million, with Famous Footwear sales down 4.8%. The adjusted EPS of $1.23 missed expectations, leading to a substantial downward revision in full-year guidance from $4.00-$4.15 to $3.45-$3.55.

Key concerns include inventory levels up 5% year-over-year, increased borrowings of $238.5 million and margin pressure from necessary inventory clearance. The reduced outlook, with sales now expected to decline 2.5-3% and operating margin dropping to 6.1-6.3%, reflects ongoing challenges in seasonal demand and supply chain timing.

Despite these challenges, the company maintains strong direct-to-consumer sales at 72% of total revenue and continues shareholder returns through dividends and share repurchases. The commitment to reduce debt below $100 million by 2026 shows financial discipline.

Market Research Analyst

The footwear market dynamics revealed in Caleres' results highlight several industry-wide challenges. The weakness in boot category sales suggests shifting consumer preferences and possibly weather-related impacts on seasonal purchasing patterns. The late receipt of key athletic products at Famous Footwear indicates ongoing supply chain disruptions affecting inventory management.

The positive comparable store sales growth of 2.5% at Famous Footwear, despite overall revenue decline, suggests effective customer retention strategies but potential issues with new customer acquisition. The Brand Portfolio's slight growth of 0.7% and improved margins demonstrate resilience in the branded segment, though China market weakness remains a concern for international expansion.

ST. LOUIS--(BUSINESS WIRE)-- Caleres (NYSE: CAL), a market-leading portfolio of consumer-driven footwear brands, today reported financial results for the third quarter 2024.

• Reported sales of $740.9 million, down 2.8% year-on-year;
  • Famous Footwear sales declined 4.8% versus the third quarter of 2023 with comparable store sales up 2.5%;
  • Brand Portfolio sales increased 0.7% versus the third quarter of 2023;
• Third quarter consolidated gross margin rate of 44.1%, down 55 basis points year-on-year;
• Reported earnings per diluted share of $1.19 and adjusted earnings per diluted share of $1.23 for the third quarter, below expectations;
• Generated third quarter EBITDA of $71.4 million;
• Fiscal 2024 outlook of net sales down 2.5% to 3% versus previous guidance of down low-single-digits percent;
• Revises fiscal 2024 outlook for earnings per diluted share to $3.35 to $3.45 versus prior guidance of $3.94 to $4.09, and adjusted earnings per diluted share to $3.45 to $3.55 versus prior guidance of $4.00 to $4.15, which excludes $0.10 per diluted share in restructuring costs.

“The third quarter saw progress toward our strategy highlighted by the Brand Portfolio delivering growth, Famous Footwear delivering positive comparable store sales, and both segments increasing market share. That said, performance was below our expectations reflecting softer seasonal demand in the boot category, late receipts of key athletic product at Famous Footwear, and a discrete customer credit issue that impacted shipments. In addition, our business in China was also weaker than planned,” said Jay Schmidt, President and Chief Executive Officer.

“As we begin the fourth quarter, our strategies are working to drive market share and we are aligning our expenses with expected sales, while appropriately investing behind areas of the business that are expected to deliver a strong ROI. However, we have reduced our outlook as we expect our season-to-date sales trend to continue in the final quarter of the year and anticipate pressure on our gross margin as we take action to move through excess inventory and position ourselves well for 2025,” said Schmidt. “Longer term, we believe we are well-positioned to execute our strategic plan, invest to fuel our ambition, and drive sustained value for our shareholders.”

Third Quarter 2024 Results

(13-weeks ended November 2, 2024, compared to 13-weeks ended October 28, 2023)

• Net sales were $740.9 million, down 2.8% from the third quarter of 2023;
  • Famous Footwear segment net sales decreased 4.8%, with comparable store sales up 2.5%
  • Brand Portfolio segment net sales increased 0.7%
  • Direct-to-consumer sales represented approximately 72% of total net sales
• Gross profit was $327.0 million, while gross margin was 44.1%, down 55 basis points versus last year;
  • Famous Footwear segment gross margin of 42.9%, down 130 basis points versus last year
  • Brand Portfolio segment gross margin of 43.8%, up 15 basis points versus last year
• SG&A as a percentage of net sales was 36.3%, up 30 basis points versus the prior year and reflecting expense deleverage on the decline in sales;
• Net earnings of $41.4 million, or earnings per diluted share of $1.19, compared to net earnings of $46.9 million, or earnings per diluted share of $1.32 in the third quarter 2023;
• Adjusted net earnings of $42.6 million, or adjusted earnings per diluted share of $1.23, which excludes $0.04 related to charges associated with restructuring initiatives completed during the third quarter, compared to adjusted net earnings of $48.6 million, or adjusted earnings per diluted share of $1.37 in the third quarter of 2023;
• Inventory was up 5% to the third quarter 2023 in total, but up 2.7% when accounting for the shift in the retail calendar;
• Borrowings under the asset-based revolving credit facility were $238.5 million at the end of the period, up $16.5 million from the third quarter of 2023.

Capital Allocation Update

During the quarter, Caleres continued to invest in value-driving growth opportunities while at the same time returning cash to shareholders through our dividend. In addition, the company repurchased approximately 1.5 million shares for a total of $50 million during the quarter. In the near term, the company expects to continue to focus on reducing debt and still expects borrowings under its asset-based revolving credit facility will be less than $100 million by the end of 2026. Caleres will continue to consider business performance and market conditions as it evaluates all opportunities for free cash flow for the remainder of the year.

Fiscal 2024 Outlook:

Caleres is revising its fiscal 2024 financial outlook. As previously noted, its fiscal 2024 is a 52-week year and compares to a 53-week year in fiscal 2023. The revised assumptions are summarized in the table below.

Metric	Prior 2024 Annual Guidance	Revised 2024 Annual Guidance
Sales Change	Down low single digits	Down 2.5% - 3%
Operating Margin	7.0% - 7.1%	6.1% - 6.3%
Tax Rate	~24%	~24%
GAAP EPS	$3.94 - $4.09	$3.35 - $3.45
Adjusted EPS*	$4.00 - $4.15	$3.45 - $3.55
Capital Expenditures	$50 - $55 million	$50 - $55 million

*Adjusted EPS guidance excludes estimated restructuring charges incurred in the second half of 2024

Investor Conference Call

Caleres will host a conference call at 10:00 a.m. ET today, Thursday, December 5, 2024. The webcast and associated slides will be available at: https://investor.caleres.com/events-and-presentations/. A live conference call will be available at (877) 704-4453 for North America participants or (201) 389-0920 for international participants, no passcode necessary. A replay will be also available at https://investor.caleres.com/events-and-presentations/ for a limited period. Investors may also access the replay by dialing (844) 512-2921 in North America or (412) 317-6671 internationally and using the conference pin 13749800.

Definitions

All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings attributable to Caleres, Inc. and diluted earnings per common share attributable to Caleres, Inc. shareholders, are presented as net earnings and earnings per diluted share, respectively.

Non-GAAP Financial Measures and Metrics

In this press release, the company’s financial results are provided both in accordance with generally accepted accounting principles (GAAP) and using certain non-GAAP financial measures and metrics. In particular, the company provides earnings before interest, taxes, depreciation and amortization (EBITDA) and estimated and future operating earnings, net earnings and earnings per diluted share, adjusted to exclude certain gains, charges and recoveries, which are non-GAAP financial measures, and the debt to EBITDA leverage ratio, which is a non-GAAP financial metric. These results are included as a complement to results provided in accordance with GAAP because management believes this non-GAAP financial measure and metric help identify underlying trends in the company’s business and provide useful information to both management and investors by excluding certain items that may not be indicative of the company’s core operating results. This measure and metric should not be considered a substitute for or superior to GAAP results.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains certain forward-looking statements and expectations regarding the company’s future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) changing consumer demands, which may be influenced by general economic conditions and other factors; (ii) inflationary pressures and supply chain disruptions (iii) rapidly changing consumer preferences and purchasing patterns and fashion trends; (iv) supplier concentration, customer concentration and increased consolidation in the retail industry; (v) intense competition within the footwear industry; (vi) foreign currency fluctuations; (vii) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (viii) cybersecurity threats or other major disruption to the company’s information technology systems including those related to our ERP upgrade; (ix) the ability to accurately forecast sales and manage inventory levels; (x) a disruption in the company’s distribution centers; (xi) the ability to recruit and retain senior management and other key associates; (xii) the ability to secure/exit leases on favorable terms; (xiii) the ability to maintain relationships with current suppliers; (xiv) transitional challenges with acquisitions and divestitures; (xiv) changes to tax laws, policies and treaties; (xvi) our commitments and shareholder expectations related to environmental, social and governance considerations; (xvii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xvii) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights. The company's reports to the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation, the information under the caption Risk Factors in Item 1A of the company’s Annual Report on Form 10-K for the year ended February 3, 2024, which information is incorporated by reference herein and updated by the company’s Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change.

SCHEDULE 1   CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
		(Unaudited)
		Thirteen Weeks Ended								Thirty-Nine Weeks Ended
($ thousands, except per share data)		November 2, 2024				October 28, 2023				November 2, 2024				October 28, 2023
Net sales		$	740,941			$	761,904			$	2,083,456			$	2,120,171
Cost of goods sold			413,981				421,530				1,136,522				1,162,942
Gross profit			326,960				340,374				946,934				957,229
Selling and administrative expenses			268,669				273,652				803,355				789,570
Restructuring and other special charges, net			1,593				2,304				1,593				3,951
Operating earnings			56,698				64,418				141,986				163,708
Interest expense, net			(2,914	)			(4,488	)			(10,025	)			(15,240	)
Other income, net			34				1,552				2,202				4,660
Earnings before income taxes			53,818				61,482				134,163				153,128
Income tax provision			(12,699	)			(14,467	)			(31,973	)			(36,956	)
Net earnings			41,119				47,015				102,190				116,172
Net (loss) earnings attributable to noncontrolling interests			(308	)			101				(135	)			588
Net earnings attributable to Caleres, Inc.		$	41,427			$	46,914			$	102,325			$	115,584
Basic earnings per common share attributable to Caleres, Inc. shareholders		$	1.20			$	1.32			$	2.93			$	3.23
Diluted earnings per common share attributable to Caleres, Inc. shareholders		$	1.19			$	1.32			$	2.92			$	3.23

SCHEDULE 2

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

		(Unaudited)
($ thousands)		November 2, 2024			October 28, 2023
ASSETS
Cash and cash equivalents		$	33,685		$	34,031
Receivables, net			176,080			161,544
Inventories, net			585,877			556,034
Property and equipment, held for sale			16,777			16,777
Prepaid expenses and other current assets			57,888			54,487
Total current assets			870,307			822,873
Lease right-of-use assets			589,141			508,736
Property and equipment, net			176,428			167,681
Goodwill and intangible assets, net			195,033			206,275
Other assets			125,030			121,328
Total assets		$	1,955,939		$	1,826,893
LIABILITIES AND EQUITY
Borrowings under revolving credit agreement		$	238,500		$	222,000
Trade accounts payable			258,258			257,224
Lease obligations			117,523			132,461
Other accrued expenses			192,149			216,236
Total current liabilities			806,430			827,921
Noncurrent lease obligations			506,336			431,474
Other liabilities			36,867			47,326
Total other liabilities			543,203			478,800
Total Caleres, Inc. shareholders’ equity			598,284			513,382
Noncontrolling interests			8,022			6,790
Total equity			606,306			520,172
Total liabilities and equity		$	1,955,939		$	1,826,893

SCHEDULE 3

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

		(Unaudited)
		Thirty-Nine Weeks Ended
($ thousands)		November 2, 2024				October 28, 2023
OPERATING ACTIVITIES:
Net cash provided by operating activities		$	75,855			$	157,183
INVESTING ACTIVITIES:
Purchases of property and equipment			(38,410	)			(33,976	)
Capitalized software			(1,918	)			(3,404	)
Net cash used for investing activities			(40,328	)			(37,380	)
FINANCING ACTIVITIES:
Borrowings under revolving credit agreement			537,368				365,000
Repayments under revolving credit agreement			(480,868	)			(450,500	)
Dividends paid			(7,342	)			(7,483	)
Acquisition of treasury stock			(65,039	)			(17,445	)
Issuance of common stock under share-based plans, net			(8,820	)			(10,035	)
Contributions by noncontrolling interests			1,500				1,000
Net cash used for financing activities			(23,201	)			(119,463	)
Effect of exchange rate changes on cash and cash equivalents			1				(9	)
Increase in cash and cash equivalents			12,327				331
Cash and cash equivalents at beginning of period			21,358				33,700
Cash and cash equivalents at end of period		$	33,685			$	34,031

SCHEDULE 4

CALERES, INC.

RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS)

		(Unaudited)
		Thirteen Weeks Ended
		November 2, 2024									October 28, 2023
		Pre-Tax			Net Earnings						Pre-Tax			Net Earnings
		Impact of			Attributable				Diluted		Impact of			Attributable			Diluted
		Charges/Other			to Caleres,				Earnings		Charges/Other			to Caleres,			Earnings
($ thousands, except per share data)		Items			Inc.				Per Share		Items			Inc.			Per Share
GAAP earnings					$	41,427		$	1.19					$	46,914		$	1.32
Charges/other items:
Restructuring costs		$	1,593			1,183			0.04		$	—			—			—
Expense reduction initiatives			—			—			—			2,304			1,710			0.05
Total charges/other items		$	1,593		$	1,183		$	0.04		$	2,304		$	1,710		$	0.05
Adjusted earnings					$	42,610		$	1.23					$	48,624		$	1.37

		(Unaudited)
		Thirty-Nine Weeks Ended
		November 2, 2024									October 28, 2023
		Pre-Tax			Net Earnings						Pre-Tax			Net Earnings
		Impact of			Attributable			Diluted			Impact of			Attributable			Diluted
		Charges/Other			to Caleres,			Earnings			Charges/Other			to Caleres,			Earnings
($ thousands, except per share data)		Items			Inc.			Per Share			Items			Inc.			Per Share
GAAP earnings					$	102,325		$	2.92					$	115,584		$	3.23
Charges/other items:
Restructuring costs		$	1,593			1,183			0.03		$	—			—			—
Expense reduction initiatives			—			—			—			3,951			2,934			0.08
Total charges/other items		$	1,593		$	1,183		$	0.03		$	3,951		$	2,934		$	0.08
Adjusted earnings					$	103,508		$	2.95					$	118,518		$	3.31

		(Unaudited)
		Trailing Twelve Months Ended
		November 2, 2024								October 28, 2023
		Pre-Tax			Net Earnings (Loss)					Pre-Tax			Net Earnings (Loss)
		Impact of			Attributable					Impact of			Attributable
		Charges/Other			to Caleres,					Charges/Other			to Caleres,
($ thousands)		Items			Inc.					Items			Inc.
GAAP earnings					$	158,132							$	156,393
Charges/other items:
Deferred tax valuation allowance adjustments		$	—			(26,654	)			$	—			(17,374	)
Restructuring costs			1,593			1,183					—			—
Expense reduction initiatives			2,152			1,598					3,951			2,934
Total charges/other items		$	3,745		$	(23,873	)			$	3,951		$	(14,440	)
Adjusted earnings					$	134,259							$	141,953

SCHEDULE 5
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
SUMMARY FINANCIAL RESULTS

		(Unaudited)
		Thirteen Weeks Ended
		Famous Footwear						Brand Portfolio						Eliminations and Other						Consolidated
		November 2,			October 28,			November 2,			October 28,			November 2,			October 28,			November 2,			October 28,
($ thousands)		2024			2023			2024			2023			2024			2023			2024			2023
Net sales		$	428,264		$	449,773		$	322,936		$	320,775		$	(10,259	)	$	(8,644	)	$	740,941		$	761,904
Gross profit			183,825			198,809			141,559			140,155			1,576			1,410			326,960			340,374
Gross margin			42.9	%		44.2	%		43.8	%		43.7	%		(15.4	)%		(16.3	)%		44.1	%		44.7	%
Operating earnings (loss)			29,568			46,600			34,052			38,211			(6,922	)		(20,393	)		56,698			64,418
Adjusted operating earnings (loss)			29,761			47,767			35,145			39,055			(6,615	)		(20,100	)		58,291			66,722
Operating margin			6.9	%		10.4	%		10.5	%		11.9	%		n/m	%		n/m	%		7.7	%		8.5	%
Adjusted operating earnings %			6.9	%		10.6	%		10.9	%		12.2	%		n/m	%		n/m	%		7.9	%		8.8	%
Comparable sales % (on a 13-week basis)			2.5	%		(6.9	)%		(2.7	)%		(2.0	)%		—	%		—	%		—	%		—	%
Company-operated stores, end of period			851			862			111			96			—			—			962			958
n/m – Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

		(Unaudited)
		Thirteen Weeks Ended
		Famous Footwear						Brand Portfolio						Eliminations and Other								Consolidated
		November 2,			October 28,			November 2,			October 28,			November 2,				October 28,				November 2,			October 28,
($ thousands)		2024			2023			2024			2023			2024				2023				2024			2023
Operating earnings (loss)		$	29,568		$	46,600		$	34,052		$	38,211		$	(6,922	)		$	(20,393	)		$	56,698		$	64,418
Charges/Other Items:
Restructuring costs			193			—			1,093			—			307				—				1,593			—
Expense reduction initiatives			—			1,167			—			844			—				293				—			2,304
Total charges/other items			193			1,167			1,093			844			307				293				1,593			2,304
Adjusted operating earnings (loss)		$	29,761		$	47,767		$	35,145		$	39,055		$	(6,615	)		$	(20,100	)		$	58,291		$	66,722

SCHEDULE 5
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
SUMMARY FINANCIAL RESULTS

		(Unaudited)
		Thirty-Nine Weeks Ended
		Famous Footwear						Brand Portfolio						Eliminations and Other						Consolidated
		November 2,			October 28,			November 2,			October 28,			November 2,			October 28,			November 2,			October 28,
($ thousands)		2024			2023			2024			2023			2024			2023			2024			2023
Net sales		$	1,198,105		$	1,213,169		$	925,644		$	947,164		$	(40,293	)	$	(40,162	)	$	2,083,456		$	2,120,171
Gross profit			534,166			549,420			411,255			408,137			1,513			(328	)		946,934			957,229
Gross profit rate			44.6	%		45.3	%		44.4	%		43.1	%		(3.8	)%		0.8	%		45.5	%		45.1	%
Operating earnings (loss)			80,808			104,286			99,097			107,708			(37,919	)		(48,286	)		141,986			163,708
Adjusted operating earnings (loss)			81,001			105,653			100,190			109,433			(37,612	)		(47,427	)		143,579			167,659
Operating earnings %			6.7	%		8.6	%		10.7	%		11.4	%		n/m	%		n/m	%		6.8	%		7.7	%
Adjusted operating earnings %			6.8	%		8.7	%		10.8	%		11.6	%		n/m	%		n/m	%		6.9	%		7.9	%
Comparable sales % (on a 39-week basis)			(0.9	)%		(6.5	)%		0.2	%		3.5	%		—	%		—	%		—	%		—	%
Company-operated stores, end of period			851			862			111			96			—			—			962			958
n/m – Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

		(Unaudited)
		Thirty-Nine Weeks Ended
		Famous Footwear						Brand Portfolio						Eliminations and Other								Consolidated
		November 2,			October 28,			November 2,			October 28,			November 2,				October 28,				November 2,			October 28,
($ thousands)		2024			2023			2024			2023			2024				2023				2024			2023
Operating earnings (loss)		$	80,808		$	104,286		$	99,097		$	107,708		$	(37,919	)		$	(48,286	)		$	141,986		$	163,708
Charges/Other Items:
Restructuring costs			193			—			1,093			—			307				—				1,593			—
Expense reduction initiatives			—			1,367			—			1,725			—				859				—			3,951
Total charges/other items			193			1,367			1,093			1,725			307				859				1,593			3,951
Adjusted operating earnings (loss)		$	81,001		$	105,653		$	100,190		$	109,433		$	(37,612	)		$	(47,427	)		$	143,579		$	167,659

SCHEDULE 6

CALERES, INC.

BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION

		(Unaudited)
		Thirteen Weeks Ended								Thirty-Nine Weeks Ended
		November 2,				October 28,				November 2,				October 28,
		2024				2023				2024				2023
($ thousands, except per share data)
Net earnings attributable to Caleres, Inc.:
Net earnings		$	41,119			$	47,015			$	102,190			$	116,172
Net loss (earnings) attributable to noncontrolling interests			308				(101	)			135				(588	)
Net earnings attributable to Caleres, Inc.			41,427				46,914				102,325				115,584
Net earnings allocated to participating securities			(1,417	)			(2,121	)			(3,721	)			(5,103	)
Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities		$	40,010			$	44,793			$	98,604			$	110,481
Basic and diluted common shares attributable to Caleres, Inc.:
Basic common shares			33,435				33,933				33,704				34,206
Dilutive effect of share-based awards			106				—				106				—
Diluted common shares attributable to Caleres, Inc.			33,541				33,933				33,810				34,206
Basic earnings per common share attributable to Caleres, Inc. shareholders		$	1.20			$	1.32			$	2.93			$	3.23
Diluted earnings per common share attributable to Caleres, Inc. shareholders		$	1.19			$	1.32			$	2.92			$	3.23

SCHEDULE 7

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION

		(Unaudited)
		Thirteen Weeks Ended								Thirty-Nine Weeks Ended
		November 2,				October 28,				November 2,				October 28,
		2024				2023				2024				2023
($ thousands, except per share data)
Adjusted net earnings attributable to Caleres, Inc.:
Adjusted net earnings		$	42,302			$	48,725			$	103,373			$	119,106
Net loss (earnings) attributable to noncontrolling interests			308				(101	)			135				(588	)
Adjusted net earnings attributable to Caleres, Inc.			42,610				48,624				103,508				118,518
Net earnings allocated to participating securities			(1,458	)			(2,199	)			(3,765	)			(5,234	)
Adjusted net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities		$	41,152			$	46,425			$	99,743			$	113,284
Basic and diluted common shares attributable to Caleres, Inc.:
Basic common shares			33,435				33,933				33,704				34,206
Dilutive effect of share-based awards			106				—				106				—
Diluted common shares attributable to Caleres, Inc.			33,541				33,933				33,810				34,206
Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders		$	1.23			$	1.37			$	2.96			$	3.31
Diluted adjusted earnings per common share attributable to Caleres, Inc. shareholders		$	1.23			$	1.37			$	2.95			$	3.31

SCHEDULE 8

CALERES, INC.

CALCULATION OF EBITDA AND DEBT/EBITDA LEVERAGE RATIO (NON-GAAP METRICS)

		(Unaudited)
		Thirteen Weeks Ended
($ thousands)		November 2, 2024				October 28, 2023
EBITDA:
Net earnings attributable to Caleres, Inc.		$	41,427			$	46,914
Income tax provision			12,699				14,467
Interest expense, net			2,914				4,488
Depreciation and amortization (1)			14,364				12,957
EBITDA		$	71,404			$	78,826
EBITDA margin			9.6	%			10.3	%
Adjusted EBITDA:
Adjusted net earnings attributable to Caleres, Inc. (2)		$	42,610			$	48,624
Income tax provision (3)			13,109				15,061
Interest expense, net			2,914				4,488
Depreciation and amortization (1)			14,364				12,957
Adjusted EBITDA		$	72,997			$	81,130
Adjusted EBITDA margin			9.9	%			10.6	%

		(Unaudited)
		Trailing Twelve Months Ended
($ thousands)		November 2, 2024				October 28, 2023
EBITDA:
Net earnings attributable to Caleres, Inc.		$	158,132			$	156,393
Income tax provision			4,507				21,612
Interest expense, net			14,128				20,618
Depreciation and amortization (1)			56,547				50,722
EBITDA		$	233,314			$	249,345
EBITDA margin			8.4	%			8.9	%
Adjusted EBITDA:
Adjusted net earnings attributable to Caleres, Inc. (2)		$	134,259			$	141,953
Income tax provision (3)			32,125				40,003
Interest expense, net			14,128				20,618
Depreciation and amortization (1)			56,547				50,722
Adjusted EBITDA		$	237,059			$	253,296
Adjusted EBITDA margin			8.5	%			9.0	%
		(Unaudited)
($ thousands)		November 2, 2024				October 28, 2023
Debt/EBITDA leverage ratio:
Borrowings under revolving credit agreement (4)		$	238,500			$	222,000
EBITDA (trailing twelve months)			233,314				249,345
Debt/EBITDA			1.0				0.9

________________________________________
(1)		Includes depreciation and amortization of capitalized software and intangible assets.
(2)		Refer to Schedule 4 for the consolidated reconciliation of net earnings attributable to Caleres, Inc. to adjusted net earnings attributable to Caleres, Inc.
(3)		Excludes the income tax impacts of the adjustments on Schedule 4.
(4)		Total availability under the revolving credit agreement was $252.1 million and $267.4 million as of November 2, 2024 and October 28, 2023, respectively. Total liquidity, which includes cash and cash equivalents and availability under the revolving credit agreement, was $285.8 million and $301.4 million for the respective periods.

SCHEDULE 9

CALERES, INC.

RECONCILIATION OF DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) – GUIDANCE

		(Unaudited)
		Fiscal 2024 Guidance
		Low			High
GAAP diluted earnings per share		$	3.35		$	3.45
Charges/other items:
Restructuring costs			0.10			0.10
Adjusted diluted earnings per share		$	3.45		$	3.55

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241204574061/en/

Investor Contact:

Liz Dunn

ldunn@caleres.com

Source: Caleres

FAQ

What were Caleres (CAL) Q3 2024 earnings per share?

Caleres reported earnings of $1.19 per diluted share and adjusted earnings of $1.23 per diluted share in Q3 2024.

What is Caleres (CAL) revised sales guidance for fiscal 2024?

Caleres revised its fiscal 2024 sales guidance to expect a decline of 2.5% to 3%, compared to previous guidance of a low-single-digits decrease.

How much did Caleres (CAL) sales decline in Q3 2024?

Caleres reported net sales of $740.9 million in Q3 2024, representing a 2.8% decline compared to Q3 2023.

What was Caleres (CAL) Q3 2024 gross margin?

Caleres reported a gross margin of 44.1% in Q3 2024, down 55 basis points compared to the previous year.