Caleres, Inc. reported its financial results for the thirteen and twenty-six weeks ended August 3, 2024, revealing a mixed performance compared to the previous fiscal period. Total net sales for the thirteen weeks were $683.3 million, a decrease of $12.2 million (1.8%) from $695.5 million in the same period last year. The decline was primarily attributed to a 5.1% drop in the Brand Portfolio segment, which saw sales fall to $285.5 million from $300.9 million. In contrast, the Famous Footwear segment experienced a slight increase, with sales rising to $420.3 million, up from $414.2 million.

For the twenty-six weeks, net sales totaled $1.342 billion, down $15.8 million (1.2%) from $1.358 billion in the prior year. Direct-to-consumer sales represented approximately 75% of consolidated net sales in Q2 2024, an increase from 74% in Q2 2023. Gross profit for the second quarter was $310.9 million, a decrease of $3.3 million, but the gross profit margin improved to 45.5% from 45.2% due to lower freight costs.

Operating earnings for the second quarter fell to $42.5 million, down 14.4% from $49.7 million in Q2 2023, with operating earnings as a percentage of net sales declining to 6.2% from 7.1%. Net earnings attributable to Caleres, Inc. for the quarter were $30.0 million, compared to $33.9 million in the same period last year, resulting in a basic earnings per share of $0.85, down from $0.95.

The company’s total current assets increased to $939.7 million as of August 3, 2024, from $914.8 million a year earlier, while total assets rose to $2.020 billion from $1.904 billion. Shareholders’ equity also improved significantly, reaching $613.5 million, up from $471.6 million.

Caleres is actively marketing its nine-acre corporate headquarters in Clayton, Missouri, and expects to complete the sale within the next year. The company has also invested $19.6 million in a multi-year cloud-based ERP implementation, which has caused operational challenges and delays in key reports, adversely impacting net sales in the Brand Portfolio segment.

The company’s liquidity position remains strong, with $51.8 million in cash and cash equivalents and $344.1 million available under its revolving credit agreement. Total debt obligations decreased to $146.5 million, down from $244.0 million a year earlier. The company reported a favorable impact on borrowings due to a significant payment shift to the third quarter of 2024 for a major vendor.