American footwear firm Caleres' net sales at $2.82 bn in FY23

The brand portfolio segment witnessed a more moderate sales decline of 3.9 per cent. Despite these challenges, direct-to-consumer sales continued to dominate, representing approximately 72 per cent of total net sales, the company said in a press release.

Gross profit for the year stood at $1.26 billion, with a gross margin of 44.8 per cent. Segment-wise, Famous Footwear reported a gross margin of 44.7 per cent, slightly edging out the Brand Portfolio's margin of 43.0 per cent. Operational efficiency was highlighted by a selling, general, and administrative expense rate of 37.7 per cent of net sales.

Net earnings for the fiscal were reported at $171.4 million, or $4.80 per diluted share, a slight dip from $181.7 million, or $4.92 per diluted share, in fiscal 2022. The adjusted net earnings were $149.3 million, translating to $4.18 per diluted share, compared to $167.1 million, or $4.52 per diluted share, in the previous year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at $253.5 million, with adjusted EBITDA reaching $259.6 million, or 9.2 per cent of sales. A strategic focus on inventory management led to a 6.8 per cent reduction in inventory levels, particularly within the Brand Portfolio segment, showcasing the company's commitment to efficient operations.

In the fourth quarter of fiscal 2024 (Q4 FY23), Caleres reported a slight uptick in net sales to $697.1 million, up 0.1 per cent from the same quarter last year. However, the Famous Footwear segment saw a 1.5 per cent decrease in net sales, with a notable 5.9 per cent drop in comparable sales on a 13-week basis. Conversely, the Brand Portfolio segment's net sales rose by 4.5 per cent.

The quarter's gross profit was $305.7 million, with a gross margin of 43.9 per cent. Net earnings for the quarter improved significantly to $55.8 million, or $1.57 per diluted share, from $40.8 million, or $1.13 per diluted share, in Q4 FY22.

“The Caleres team delivered another strong operational performance in the fourth quarter, culminating in a third consecutive year of adjusted earnings per share in excess of our $4 baseline and underscoring the durability of our earnings power,” said Jay Schmidt, president and chief executive officer. “Our fourth quarter results were led by our brand portfolio, which achieved a record-setting performance across key financial metrics. Complementing that strong result, Famous Footwear leaned into its competitive advantages to expand market share, particularly in kids, which has outpaced the total business for 12 straight quarters.”

Fibre2Fashion News Desk (DP)