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ST. LOUIS - Caleres (NYSE:CAL) reported first quarter earnings and revenue that fell short of analyst estimates on Thursday.
The company’s shares plunged 10.07% in pre-market trading after the earnings release.
Caleres posted adjusted earnings per share of $0.22 for the first quarter, missing the consensus forecast of $0.37. Revenue came in at $614.2 million, below expectations of $622.92 million and down 6.8% YoY.
The company cited weak February sales and lower gross margins as key factors impacting results. Famous Footwear sales decreased 6.3% with comparable sales down 4.6% versus Q1 2024. Brand Portfolio sales declined 6.9% YoY.
"While our brands continue to resonate with consumers and both segments of our business gained market share in the period, our first quarter results fell short of expectations," said CEO Jay Schmidt.
Caleres announced structural cost-cutting actions aimed at reducing SG&A expenses by $15 million annually. The company also suspended its full-year guidance due to market uncertainty.
Gross margin contracted to 45.4%, down 150 basis points from the prior year quarter. Inventory levels increased 8.1% YoY.
"The operating environment has become more challenging, and we must redouble our efforts to drive growth and profitability," Schmidt added. "We are viewing this as an opportunity to strengthen Caleres and position our company for the future."
Caleres will need to demonstrate improved execution in coming quarters to rebuild market confidence.
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