Caleres, Inc. (NYSE:CAL) Q3 2024 Earnings Conference Call December 5, 2024 10:00 AM ET

Company Participants

Liz Dunn - SVP, Corporate Development and Strategic Communications
Jay Schmidt - President and CEO
Jack Calandra - SVP and CFO

Conference Call Participants

Chandana Madaka - KeyBanc Capital Markets
Laura Champine - Loop Capital Markets
Mitch Kummetz - Seaport Research
Dana Telsey - Telsey Advisory Group

Operator

Good morning. And welcome to the Caleres Third Quarter 2024 Earnings Conference Call. My name is Daryl, and I'll be your conference coordinator. At this time, all participants are in listen-only mode. A question-and-answer session will follow the prepared remarks [Operator Instructions]. As a reminder, this conference is being recorded. At this time, I'll turn the call over to Liz Dunn, Senior Vice President of Strategic Communications and Corporate Development. Please go ahead.

Liz Dunn

Thank you, Daryl. Good morning. And thank you for joining our third quarter 2024 earnings call and webcast. A press release with detailed financial tables as well as our quarterly slide presentation are available at caleres.com. Please be aware today's discussion contains forward-looking statements, which are subject to several risks and uncertainties. Actual results may differ materially due to various risk factors, including those disclosed in the company's Form 10-K and other filings with the US Securities and Exchange Commission. Please refer to today's press release and our SEC filings for more information on risk factors and other factors, which could impact forward-looking statements. Copies of these reports are available online. In discussing our operating results, we will be providing and referring to certain non-GAAP financial measures. Additional details on these measures as well as others featured in today's earnings release and presentation are available at caleres.com. The company undertakes no obligation to update any information discussed in this call at any time. Joining me today are Jay Schmidt, President and CEO; and Jack Calandra, Senior Vice President and CFO. Our call will begin with prepared remarks followed by a Q&A session to address any questions you have. With that, I'll turn the call over to Jay.

Jay Schmidt

Thank you. And good morning, everyone. As we reported earlier today, our third quarter saw progress toward our strategy, highlighted by the brand portfolio reporting growth, Famous Footwear delivering positive comp store sales and both segments increasing market share. However, our earnings were clearly below our expectations. There were a number of challenges in the quarter that impacted our results; we saw a soft boot sales in both segments of our business; we had discrete issues with late receipts of trending athletic product at Famous Footwear; we had a credit issue associated with one customer in the brand portfolio that resulted in lower shipments; and finally, our China business has softened. While this was not the result we wanted, there were several areas of strength on both sides of our business that leave us cautiously optimistic for the future. Our brands and products are resonating with consumers. We are gaining market share in both segments of our business. And we remain confident in our growth strategies and long term vision. In total, for the third quarter, sales declined 2.8% year-over-year and we reported adjusted earnings per share of $1.23.