Caleres reported net sales for FY23 (53 weeks ended 3 February 2024) were down 5.1% from $2.97bn to $2.82bn with gross profit of $1.2bn and gross margin at 44.8%.

Operating earnings declined to to $194.4m, down from last year's $214.3m. While net earnings declined to $171.8m from $179.7m.

The company was keen to point out that in FY23 it continued to invest in value-driving growth opportunities while at the same time reducing its short-term borrowings by $125.5m. Caleres also shared that it ended FY23 with $182.0m of borrowings - its lowest total indebtedness since its fiscal first quarter of 2010.

Caleres FY23 results

• Net sales for FY23 were down 5.1% from $2.97bn to $2.82bn.
• EBITDA of $253.5m in FY23 compared to $278.3m in FY22 and adjusted EBITDA. of $259.6m compared to $281.2m in FY22.
• Net loss of $441m in FY23 compared to profit of $2.05bn in FY22.

"I am proud of the Caleres team and the tremendous progress we have made across a wide range of strategic objectives,” said Caleres president and chief executive officer Jay Schmidt.

He added: “The transformation in earnings power that we have achieved in recent years – combined with our value-driving organisational structure, powerful brands, and best-in-class capabilities – positions us exceptionally well for growth in 2024 and beyond."

Schmidt believes the company's brand portfolio, powered by its lead brands, has tremendous growth potential. He explained that Famous is poised to strengthen its position as the "number one footwear destination for the millennial family."

Caleres FY24 outlook

Looking ahead, Schmidt added: "We are confident in our ability to execute on our growth strategy, deliver on our long-term financial targets, and create sustained value for our shareholders.”

Caleres expects consolidated net sales to be flat to up 2% compared to 2023, and earnings per diluted share to be in the range of $4.30 to $4.60. 

The company expects consolidated operating margin of 7.3% to 7.5%, effective tax rate of about 24% and capital expenditures of $60m to $70m.

In September 2023 Caleres reiterated its full-year sales and adjusted earnings per share outlook after what it described as an underwhelming performance in Q2 due to the "choppy macro environment".