Footwear company Caleres reported a drop in sales for both the fourth quarter and the full year of 2024. Despite the decline, the company remains hopeful for 2025, citing strong brand performance and new growth plans.
In the fourth quarter of 2024, Caleres made $639.2 million in sales, which is 8.3% less than the same period last year.
The drop is mainly due to fewer shopping weeks and a softer performance from Famous Footwear, one of its key brands.
For the entire year, Caleres earned $2.72 billion, down 3.4% compared to 2023. Despite this, the company kept its profit margins fairly stable and returned $74.7 million to shareholders through stock buybacks and dividends.
Key Highlights:
- Direct-to-consumer sales made up about 72%–73% of total sales.
- Famous Footwear sales dropped 9.6% in Q4 and 3.3% for the year.
- Brand Portfolio sales were also down 7.2% in Q4 and 3.5% for the year.
- Gross margin stayed strong at 43.0% for Q4 and 44.9% for the year.
CEO Jay Schmidt said the company still managed to gain market share in women’s fashion footwear, improve sneaker sales, and invest in its future despite the tough conditions.
One major step is shifting sourcing away from China. Caleres now expects 75% of its products to be sourced outside China by mid-2025, helping avoid risks like tariffs and supply disruptions.
Looking ahead to 2025, Caleres has set a cautious target. It expects sales to stay flat or grow slightly, with earnings per share between $2.80 and $3.20. This doesn’t include the impact of its planned $105 million acquisition of Stuart Weitzman, which is expected to close in summer 2025.
