Plume Creative/DigitalVision via Getty Images Caleres, Inc. ( NYSE: CAL ) is a footwear retailer and manufacturer. The company owns the Famous Footwear retail chain and a portfolio of footwear brands, such as Sam Edelman, Naturalizer, Allen Edmonds, and Vionic.
This article covers the company's 1Q24 results , reported today, and the 1Q24 earnings call . The company posted a slight miss in the top line of $5.6 million, with EPS in line with expectations at $0.
88. The stock was down 2% in the afternoon. Overall, I believe the results show some end-market challenges, particularly in the branded portfolio.
In terms of margins, the company is sustaining margins thanks to more DTC revenue and lower freight costs, but promotions are increasing, also indicating market challenges. I started covering Caleres in March 2024 with a Hold rating. I liked the fact that the company owns a brand portfolio from where to build intangible brand value.
Particularly, this brand portfolio focuses on higher-end segments of the market, where brand equity is easier to build than in more value-conscious segments. However, my rating was based on the company's valuation, which was reasonable considering the maintenance of margins, but it would be high if we forecast a return to pre-pandemic margins. Since March, the company's valuation has not changed meaningfully, so I maintain my Hold rating.
Q1 2024 results Caleres 1Q24 results were not very good. Sales were down 0.6% on an absolute basis, and operatin.