Caleres announces board member resignation

Caleres Inc. (NYSE:CAL), a footwear company previously known as Brown Shoe Co., reported that Carla C. Hendra, a member of the company's Board of Directors, has resigned from her position. The departure was disclosed in a recent 8-K filing with the Securities and Exchange Commission.

According to the filing, Hendra's decision to step down will take effect immediately after the next scheduled Board meeting, which is set for August 28-29, 2024. The company has stated that her resignation is not due to any disagreements with Caleres on matters of operations, policies, or practices.

The company has not yet announced a successor or provided details on the process for filling the soon-to-be-vacant seat on the Board.

The information provided in this article is based on the statements in the press release.

In other recent news, Caleres Inc. reported robust financial results for the first quarter of 2024, exceeding earnings per share (EPS) expectations with a figure of $0.88 and achieving a record-high gross margin of 47%. Despite a slight miss in sales, the company reiterated its full-year earnings guidance. Notably, the Brand Portfolio segment, including brands like Sam Edelman and Allen Edmonds, maintained a strong operating margin even with a dip in sales.

Meanwhile, Famous Footwear reported flat sales, with the kids category showing a notable performance.

Caleres' e-commerce platforms continued to grow, backed by investments in marketing, international expansion, and systems upgrades. The company also returned $18 million to shareholders through share repurchases and dividends.

Looking ahead, Caleres anticipates full-year sales to be flat to up 2% and projects earnings per diluted share to be between $4.30 and $4.60 for the full year. The company also expects a 3% to 4% increase in Q2 consolidated net sales and improvement in operating margins throughout the year.

These recent developments reflect a positive outlook for Caleres, despite some challenges in sales performance.

InvestingPro Insights

As Caleres Inc. (NYSE:CAL) faces the departure of Board member Carla C. Hendra, investors may be considering the company's financial health and market performance. With a market capitalization of $1.29 billion and a P/E ratio standing at 7.8, Caleres presents itself as a company trading at a low earnings multiple. The company's price relative to its book value, at a ratio of 2.25, indicates a potentially reasonable valuation in terms of its assets.

InvestingPro Tips highlight that Caleres has maintained dividend payments for an impressive 54 consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, analysts predict the company will be profitable this year, which is reinforced by the fact that it has been profitable over the last twelve months. These insights suggest a foundation of financial stability as the company navigates its board transition.

For investors seeking more comprehensive analysis and additional InvestingPro Tips, which can further aid in making informed decisions about Caleres, the full suite of tips is available at InvestingPro. To access these insights, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With several more tips available, including insights on stock price volatility and near-term earnings growth, InvestingPro offers valuable resources for a deeper understanding of Caleres' investment potential.

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