Caleres Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ashley Owens - KeyBanc Capital Markets - Analyst : Hey, good morning. Thanks for taking the question. So I want to start by touching on the EPS guide a little bit. I guess, could you elaborate on some of the assumptions you're making within that guide for the balance of the year as we look to 2Q, 3Q and 4Q? I believe each quarter last year also had some headwinds that were at the time considered one-time. So are those embedded at all in your assumptions? And then, additionally, how do you think about the path and timeline back to that $4 threshold from here without any of the store contributions being baked in? Is that something that can be achieved in the near term? Thanks.

Question: Ashley Owens - KeyBanc Capital Markets - Analyst : Okay, great. And maybe just to dial down on contemporary a little bit because it sounds like it's been a bright spot for you. If you could just discuss the trends, you're seeing within that. And maybe why or your thoughts as to why it's been holding given it is a higher price point? There's a couple of different things I think could be driving this, but do you think the consumer there isn't as at risk? Is there a shift down maybe from luxury to more affordable, but still elevated footwear, dress shoes kind of making a comeback at all, but just anything you could maybe comment on this, shed some light as to the resilience there would be helpful.

Question: Laura Champagne - Loop Capital Markets - Analyst : Thanks for taking my question. It's a follow up on the expectation that the brand portfolio improves throughout the year. And Jack, I think you mentioned lots of sort of small things the international growth, the Allan Edmonds and so forth. Can you hit your full year guidance without seeing an improvement in trend in the sort of same doors business or sort same store sales equivalent in the brand portfolio group?

Question: Laura Champagne - Loop Capital Markets - Analyst : Got it. And then the Q1, I know you don't guide to gross margin, but it does seem like perhaps the EPS are being impacted by not just the tariffs but also markdowns. Can you comment on how you expect your markdowns to progress through the year from what seems like it's going to be pretty tough base in Q1?

Question: Laura Champagne - Loop Capital Markets - Analyst : Got it. Thank you.

Question: Mitch Kummetz - Seaport Research Partners - Analyst : Yes, thanks for taking my questions. I guess I just have a few around the guide. Maybe starting with Jack, you gave us the full-year outlook kind of by operating group, Famous versus BP in terms of the sales. Is there anything more you can say in terms of the split for 1Q?

Question: Mitch Kummetz - Seaport Research Partners - Analyst : Okay. And then, also on the first quarter, like on the year, you're giving us the op margin of 5.1% to 5.6%. Unless I missed it, you haven't said anything about op margin in the first quarter. You're just giving us sales and earnings. Is there anything you can say on the op margin for the first quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 20, 2025 / 2:00PM, CAL.N - Q4 2024 Caleres Inc Earnings Call

Question: Mitch Kummetz - Seaport Research Partners - Analyst : And then, on the earnings guide for both the year and the full year, in the press release, it's characterized as GAAP. EPS, I don't recall if that's how you've done it in the past, but is there -- should pro-forma basically be the same? Is there anything happening in those numbers that would make your pro forma earnings different than your GAAP earnings?

Question: Mitch Kummetz - Seaport Research Partners - Analyst : Okay. And then, maybe one last one, just on the tariffs. Because you said -- and this is I think in the presentation that you're passing some of this to the consumer, but then you're also absorbing some of it yourself in terms of gross margin. Is there any way to maybe kind of parse that out a little bit? I mean, are you thinking about sort of low-single-digit price increases? And can you say kind of what sort of hit you expect to take on gross margin? Is it 10 basis points, 20 basis points, 30 basis points?

Question: Mitch Kummetz - Seaport Research Partners - Analyst : All right. Thanks again and good luck.

Question: Dana Telsey - Telsey Advisory Group - Analyst : Hi, good morning, everyone. Just following up on the gross margins, as you look at the other levers in gross margins like freight or discount, how you're planning for those as we go through the year, and what you're seeing? And then Jay, you mentioned the weakness in Sam Edelman with booties. What are you seeing from the brands overall in terms of category performance going forward and how are you planning? And then just lastly on the wholesale -- two things, wholesale accounts, how are order trends going? And then, in your remodeled stores with Famous Footwear, is there any performance differential versus the base and how many remodels will you do this year? Thank you.

Question: Dana Telsey - Telsey Advisory Group - Analyst : Got it. Thank you.