Caleres, Inc. reported a decline in financial performance for the fiscal year ending February 1, 2025, with consolidated net sales of $2.72 billion, a decrease of 3.4% from $2.82 billion in the previous year. The Famous Footwear segment saw net sales drop to $1.56 billion, down 3.3% from $1.61 billion, while the Brand Portfolio segment's sales fell 3.5% to $1.23 billion from $1.27 billion. The company's gross profit also decreased by 3.2% to $1.22 billion, resulting in a gross margin of 44.9%, slightly up from 44.8% in the prior year. Operating earnings fell significantly by 22.9% to $149.9 million, and diluted earnings per share decreased by 35.6% to $3.09.
The company experienced several strategic developments during the year, including the announcement of a definitive agreement to acquire the luxury footwear brand Stuart Weitzman from Tapestry, Inc. for $105 million, expected to close in summer 2025. This acquisition aims to enhance Caleres' Brand Portfolio segment and expand its direct-to-consumer reach. Additionally, Caleres continued to optimize its retail footprint, closing 14 Famous Footwear stores while converting 12 locations to the new FLAIR store concept, which has shown promising sales growth.
Operationally, Caleres reported a total employee headcount of approximately 9,400 as of February 1, 2025, with 4,800 full-time and 4,600 part-time employees. The company also noted an increase in its backlog of unfilled wholesale orders, which rose to $260.2 million from $234.5 million the previous year. The Famous Footwear segment's e-commerce sales penetration increased to 14% of net sales, up from 13% in 2023, indicating a shift towards online shopping amidst challenging retail conditions.
Looking ahead, Caleres aims to improve sales trends and achieve its financial targets in 2025, despite the challenges posed by macroeconomic factors such as inflation and consumer spending patterns. The company plans to continue its strategic investments while maintaining discipline in expense management. The anticipated acquisition of Stuart Weitzman is expected to be a pivotal milestone, enhancing Caleres' presence in the contemporary footwear market and premium price points.
About CALERES INC
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