Footwear Giant Caleres' Q4: Flat Sales, Expanding Margins, Moderate Guidance & More

Caleres Inc CAL reported fourth-quarter FY23 sales growth of 0.1% year-on-year to $697.12 million, beating the analyst consensus estimate of $694.33 million.

Net sales in the Famous Footwear segment declined 1.5% Y/Y, and the Brand Portfolio segment rose 4.5%.

The gross profit increased 8.7% Y/Y to $305.7 million, with the margin expanding 350 points to 43.9%.

The operating margin was 4.4%, and operating income for the quarter was $30.7 million versus $25.8 million last year.

Adjusted EPS of $0.86 beat the analyst consensus of $0.85.

Caleres held $21.4 million in cash and equivalents as of February 3, 2024. Net cash provided by operating activities for the year totaled $200.2 million.

Inventory decreased 6.8% Y/Y due to strategic inventory management – primarily in the Brand Portfolio segment.

Outlook: Caleres expects first-quarter FY24 net sales to be flat to +1%. EPS to be in line with the fourth quarter of 2023 on an adjusted basis.

Caleres sees FY24 net sales to be flat to +2% and EPS of $4.30 – $4.60 versus an estimate of $4.51.

Price Action: CAL shares are trading lower by 3.28% at $37.50 in premarket on the last check Tuesday.