Q1 2025 Caleres Inc Earnings Call Transcript
Key Points
- Caleres Inc (CAL) reported growth in its strategically important international business, particularly with the Sam Edelman brand experiencing double-digit growth internationally.
- The company plans to decrease SG&A expenses by $15 million on an annualized basis through structural expense cuts, which are expected to strengthen the company.
- Caleres Inc (CAL) gained market share in women's fashion footwear during the period, according to Zirkana.
- The Sam Edelman brand delivered a solid quarter with sales growth domestically and internationally, driven by strong response to sneaker assortments and expansion in the Middle East.
- Famous Footwear's e-commerce sales were up 2.5% in the quarter, and the company saw strength in the athletic category and kids' segment, gaining market share in shoe chains.
- Caleres Inc (CAL) reported a 6.8% decline in first-quarter sales year over year, falling short of expectations.
- Operating earnings were pressured by lower gross margins, increased reserves, and costs to cancel and move inventory.
- The company faced challenges due to tariff escalation and sourcing disruption, which reduced gross margin profit by nearly $1.9 million during the quarter.
- Higher than planned inventories and worsening customer credit issues impacted profitability, with bad debt write-downs hitting profit by almost $3.1 million compared to last year.
- Famous Footwear's total sales were down 6.3% during the first quarter, with comparable sales declining 4.6%.
Greetings and welcome to Caleres first-quarter 2025 earnings conference call. (Operator Instructions)
As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Liz Dunn, Senior Vice President, Corporate Development and Strategic Communication. Thank you
You may begin.
Thanks Rob. Good morning and thank you for joining our first quarter 2025 earnings call and webcast. A press release with detailed financial tables as well as our quarterly slide presentation are available at caleres.com.
Please be aware today's discussion contains forward-looking statements which are subject to several risks and uncertainties.
Actual results may differ materially due to various risk factors, including those disclosed in the company's Form 10-K and other filings with the US Securities and Exchange Commission. Please refer to today's press release and our SEC filings for more information on risk
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