- Caleres (CAL, Financial) reported a 6.8% year-on-year decline in first-quarter sales to $614.2 million.
- Famous Footwear segment sales decreased 6.3%, while Brand Portfolio sales fell 6.9% from Q1 2024.
- Annualized structural cost-cutting efforts are expected to reduce SG&A by $15 million.
Caleres Inc. (CAL), noted for its comprehensive array of consumer-driven footwear brands, announced its financial results for the first quarter of 2025, revealing a challenging operating environment marked by a 6.8% decrease in net sales to $614.2 million compared to the same period in 2024. This downturn was primarily attributable to lower-than-expected performance across key segments.
The Famous Footwear segment experienced a 6.3% reduction in net sales, with comparable sales down by 4.6%. Similarly, the Brand Portfolio segment observed a 6.9% decline in sales compared to Q1 2024, reflecting broader market challenges.
Caleres reported earnings per diluted share of $0.21 and adjusted earnings per diluted share of $0.22, both falling short of expectations. In response to these results, the company announced significant structural cost-cutting measures aimed at trimming $15 million from selling, general, and administrative (SG&A) expenses on an annualized basis, with $7.5 million in savings expected for fiscal 2025.
Despite these setbacks, CEO Jay Schmidt highlighted the gain in market share and improved sales trends observed in March and April. The company plans to optimize its sourcing strategy, emphasizing reducing reliance on China to 10% or less of its sourcing in the second half of 2025.
Caleres will continue to monitor business performance and market conditions to assess opportunities for free cash flow, including potential share repurchases. However, due to ongoing market uncertainties, the company has suspended its fiscal 2025 guidance.