CAL - Earnings call 2 2024

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Operator

Good morning, and welcome to the Caleres Second Quarter 2023 Earnings Conference Call. My name is Daryl, and I will be your conference coordinator for today.

[Operator Instructions]

As a reminder, this conference is being recorded. would Vice turn President I to call time, Bonacorsi, Logan of this like the to over At Investor Relations. ahead. go Please

Logan Bonacorsi

may Good uncertainties. factors, well to, forward-looking are impact risk number and risk caleres.com. release as Please and the disclosed and our various factors statements, statements. in Please U.S. joining including, quarterly slide and forward-looking which release with Securities you Commission. which these aware Actual to available XXXX risks of differ our detailed Copies on press filings today's of Thank our available at are XX-K other factors, Form with as SEC Call materially press Webcast. a reports factors refer today's but Second tables subject not financial be to results are to presentation Exchange Earnings due and and filings limited A the morning. for online. Quarter for could other the discussion information company's contains more

the results of non-GAAP providing certain to discussing measures. we'll operations, referring financial and be our In

and The You presentation section to these additional information release measures the discussed at financial well on update others company in website. undertakes find information used no today's of time. any earnings non-GAAP our as Investors in call any can as regarding our obligation this

call Vice the Jay CEO; Schmidt, are on today CFO. President and Senior me Jack Joining President Calandra, and and

We we take questions. your this will call to happy thereafter, will be begin morning's and prepared our with remarks,

turn the call I to would Jay? over to now Jay. like

John Schmidt

morning, good and Thank you, Logan, everyone.

per delivering generated consolidated the we financial achieved initial second earnings at profitability diversified operating demand a high modestly and We challenging and guidance This our our leveraged and quarter range. Caleres with drive end operational team of level high Once our to despite brands strong performed during even powerful prioritize our expectations gain the share because again, structure, was above environment. our of capabilities sales omni consumer results enhanced the strong below margins. XXXX the

Our ability across and our the deliver consumer choppy businesses. inventory market promotion reduce of results of line a efforts bottom to demonstrates to and our our desirability the tighten brands success in

sustainable conditions. our commitment across focus value The our We also market discipline and actions Indeed, over last improvements in healthier control These on variety expenses believe reduced positions years of structural strategic model operational us a the our have a enterprise. up implemented coupled to we've have Caleres. yielded diversified drive to sets we the and long-term cost growth. well for initiatives several us with fundamentally

increased turn record We share earnings We Now from market per quarter. highlights in generated Vionic. Famous in improvement in key sequential $X.XX. Footwear's Brand achieved chains. Allen our We margins the Lead Edmonds, gross second second the quarter both market Edelman, Naturalizer adjusted sales trend in quarter delivered in year-over-year and let's We grew We Brand Portfolio. the and at the shoe Portfolio. first share Sam of share to Brands, some Famous

invested and to XXXX. strategic growth our experience, levels the accelerate are areas managed inventory them our ending approximately XX% key below maximized that in We We well, initiatives. period marketing and analytics consumer

borrowings. asset-based to million and the of by from million And our reduce returned revolving in XXXX. share flow our quarter We approximately facility shareholders represents to $XXX first via million utilized borrowings $XX year-over-year free credit the $XX also repurchases cash we This quarterly decline our a dividend. under

have our we In after debt top the as reduction recent cash dividend flow. years, prioritized priority free funding for

few strong to our levels We will generation, capital in a detail ratio of anticipate target quarter, EBITDA. debt During cover more we priorities and in the leverage second cash reached of our Xx Jack moments.

results. consolidated operating expectations, consolidated were quarter of to Overall, Brand was below well in as as while in we softer Now with expectations. over about somewhat declined gross the Portfolio by Footwear second X.X%, initial chose improvement This than driven generated management sales line were our our with strong Brand both Portfolio's our sales short margins XX%. falling continued Despite we more let's to demand, prioritize this, rigorous revenues Famous move gross across Faced of margin cost promotions. our segments. view. profitability

a of we achieved quarter earnings. solid these all efforts, of As result second operating

Portfolio, segments, remains earnings rate. operating increased track Brand on Now deliver this dollars starting with let's contribution year turn an and to which to both our the in

as in sneakers. flats we experienced sandals consumers casual prioritize some and quarter, seasonal the During weakness

our We also patterns conservative ordering by saw wholesale partners.

last As were partners demand as built you their and consumer year, wholesale inventories. surged lifted restrictions remember may our

quarter. into more move sneaker comparisons the inventory though, contrast, consumers the these ease, in with are half and in second we desire. of we and XXXX channels performed year-over-year flat difficult styles well own our In back ready strong As that our loafer,

Lead sales year-over-year Allen Edmonds Vionic. from standout X% with Brands, e-commerce were own up performances Our and

our prior In brick-and-mortar than more XX% addition, compared the climbed to business year.

and they Win We consumer our by and and get enable want initiative representing continue environment, It's what selling items speed dynamic leaning utilizing faster speed that our recovered on program into this our chain quickly the are to inventory maximize network. advantage market orders purchases. to in our and of here pivot supply the takes top our us noting capabilities of worth fully we that Edit to of closing XX% goal speed in

and line for for inventory benefits to believe our to trends planning, due partners in inventory management. $XX channels well, due point sets category Portfolio is all margins, achieved result, across healthier second costs this and of initial this gross the delivered XXX strong lower operating a driven quarter This higher aligned X% and earnings second freight this a As adjusted operating Brand leading stronger segment. careful our margin. We to basis our was stage the with a margins top wholesale half business as a performance million improvement a by

Brands. to our Now the performance of Lead

growth our investing significant strategically have quarter, power we potential, Brands growth. As are we these and last in Brands to Lead indicated Lead

revenue We increase a higher represent vectors. the growth of XXXX will total opportunities expect that number different via our in over with Caleres penetration of term long further these to brands a percent

Edmonds. pleased driven up lot There's average Starting to to traffic e-commerce I unit a XX%, broad-based significant Edmonds. with that The retails pre-pandemic and We year. Allen and its strength excited about in note our across all the consecutive brand with levels. Improvement by with increases conversion. in to be channels XXth seen delivered growth. up we've quarter up mid-single of compared to brick-and-mortar channels am second last quarter increased was brand's sales Allen compared X% the digits saw direct at

brand to saw increase nice marketing its e-commerce business Fresh Vionic. with now improvement routes, percent the and California a driving in newness, new the Turning during Northern white X-plus its second its e-commerce deliver Early particularly sneakers year-over-year emphasizing a loafers off quarter. catalog helped campaign, in performance the uplift.

and harness Uptown to during Naturalizer fall. strength XX-style Sam of spring moc a new their launch out capture sold be will their for top significant continued One the share. and its to brand market styles, And Edelman

at consumer sneaker as retail reaction Sam we Layla to performance as new brand's well impressive an with For saw their flats. the Edelman, strong

spring, Morrison accelerate sports #X I in of Lace the capabilities the on a Naturalizer Up speed-to-market the delivery to earlier Naturalizer best-selling style the grown Launched the mentioned Caleres sneaker early shoe. to brand. sneaker, of new X.X capitalized had in its evolution

addition, margin contribution the operating out during had stand In Naturalizer gross quarter. and

had Franco Dr. Sarto also Scholl's. profitability we portfolio and Now brands, sales growth from improvements our and especially LifeStride,

and the assets portfolio growing As Caleres within these served from currently benefit segments not that Lead brands a Brands are our reminder, One key consumer capabilities. our serve by

during these brand viral in which with of the we was a brands, Dr. Scholl's TikTok and second the XX,XXX quarter. of responded pairs may each and to And style, add, Time In Off value. had even a the favorite, consumer sold a I success comfort sneaker, retail

performing with Brand a the build. first on solid of foundation the is to half XXXX, providing Overall, which well Portfolio

As company's the a this operating will will improve meaningful importantly, sales Brand performance more contribution more and we year. to expect and trends year-over-year ease, comparisons total the Portfolio [ make larger ]

to Famous now Turning Footwear.

During its and environment, to expected in saw We overall. we spending QX. the trends delivered macroeconomic quarter, we Famous set improvement target Even in sales consumer increased the and an market chain. share sequential outperformed this strengthening its continued move quarter, in through difficult navigate trends as shoe second and Famous competitive challenging quarterly among backdrop the

rate its In growing continue be X%, generated Our excluded the over to down sales an is nearly nearly in prioritize return of important a increasing from total, footwear. $XX Kids the is and sales sustained quarter a of About BOGO business about business, was bright Famous XX% net as heading our essential Kids for to first around adjusted margin pre-pandemic. for and from into continue of is Famous category approach. XX% spot a families back-to-school differentiator XX%. Famous we as promotions, of particularly paid now This earnings strength operating XX% promotional from of our now off our quarter, key in and million up last Famous resulting this season. kids again strategic year. focus purchases X% gross

Brand of capture to we quality the prioritizing at lower our are Famous the health with Portfolio, trying are Footwear we over As sales. business

capitalize at opportunity. back-to-school, closely important more to this of strategies executed on number a demand Looking we

approached to relevance; a drive inventory focused we and and measured manner. First, on newness amplifying we excitement, interest agile in second,

season. behind inventory our brands, have key X% to patterns, In up last managed to to react overall order styles built and sellers aggressively in year. compared tightly position, we inventory capacity to While declined which we best the

store Finally, we the new experience prototype energize and our continue modernize through to enhance, stores.

record positioned in its anticipate While deliver performance. comping is don't we solid leadership Famous do a uniquely and period, chains back-to-school shoe maintain status believe last we to year's

and segment. expense continue in focused expect XXXX the the and Famous, we we to strong ahead, working and to great product, we our leverage can and a long-term power Looking beyond. our this our perspective in believe potential agility competitive advantages in maximize and is earnings of while team In short, managing Overall, Famous inventory growth fueling levels. outlook for from to digital in and the brand accelerate have the we extremely marketing confidence believe what's earnings on

store brands our and off-mall assortment of retail the and our elevated in online. These leadership consumer experience and include position largely with are millennial kids national nationwide family, our and footprint leading

our again of the proud diversified I'm So annual our we the guidance the year. operational most recent extremely in our sales the performance one our quarter underscored remain strong advantages I to the We quarter. believe in for second the discipline in structure achieve financial earnings model. ability and delivered and summary, of confident Caleres and yet

and are enduring. brands strong Our

and dynamic our consumers of and expectations exceeding actionable Our this teams strategies are our in the dedicated to clear are marketplace.

deliver our more consistently strong earnings while continue long-term cash to the strong per of share generating value financial for will baseline $X built we of enable our annual levels creating to believe we've Moreover, shareholders. and foundation us free flow than

And view it with Jack that, over hand financials. our now of Jack? a more to detailed for I'll

Jack Calandra

Thanks, Jay, everyone. and good morning,

press We our capital upper will performance, Please of cash My the to second and end maintained the and an company our financial in This In on shareholders. across us on critical today's share year. call, quarter for comments per enabled of third initiatives, resulted flow, today's details our I'll healthy reduce share priorities our basis. for in we've quarter be plan adjusted earnings results. our the discuss additional provide made growth exceeded and adjusted cash see debt, allocation on initiatives update a strong which cost the discipline second the reconciliation our to progress and invest full returning that you in on quarter. guidance release reduction and outlook

versus $XXX last each down the improved X.X% sales million, decrease Consolidated behavior X.X% were million, sales channel. sandals $XXX sales seasonal Portfolio X.X%, year, down were sales versus due Starting in comparable last At QX. were in softness last to and declines of the a quarter. Famous, to with year. month and were cautious buying wholesale sales categories, X.X% year namely Brand down

sales were able While markdowns allowances. fewer and margin we protect down, to with were

XXXX. to points Famous was a in That last segment This and basis initial clearance increase a said, margin. year's second decrease versus to costs in which initial year gross XX.X%, was expenses lower by expense basis than SG&A gross reflects last lower lower XX.X% million a more decline and for costs. ocean reflected pricing clearance a from Brand favorably disciplined an quarter normalized incentive and and expense higher continue $X.X was point $XXX basis gross increase inventory sales. activity margin, margins, activity XX.X%, freight XXX XXX compare offset position. point margins margin to SG&A due the to compensation variable of and inventory This gross margin XX.X%, Portfolio gross Consolidated XX margin the decline year. clean level a was million given decreased Portfolio management. lower margin Famous versus last last Brand or for pricing was record was and year. gross of

and Net million, X.X% last Operating Portfolio margin $X.X higher interest million earnings X.X% interest year. $XX average weighted in Famous. at Operating operating The X.X%. a margin versus QX were Brand rate. at double borrowing and last year X.X% was was given expense was was versus X.X% rate

per X.X% sales. excess of of the $XX million EBITDA in was our guidance, earnings share or were end Diluted $X.XX and high of

versus second long-term the debt. We quarter quarter Turning $XXX ended at the $XXX cash million, in second end XX% no borrowings down was the million now to and of and Inventory the with balance flow. both chain receipts sheet last across Brand Portfolio both management on-hand in last in in reductions and due started disciplined to accelerated business. reflecting inventory supply as transit and year, year to the resolve inventory challenges

year. of general, segment, was inventory composition By the we Portfolio, in about inventory feel segments. down versus down amount last year. In of At both versus inventory and Brand last X% was XX% good Famous

during Regarding dividend, business, borrowings the our strategic deployed for $XX our flow in paid operations, from revolver quarterly million cash we generated reduced quarter and the and investments shares. repurchased asset-based cash on

to spent shares borrowings. and million reduce quarterly expenditures, average $XX.X million our million $XX.X of million on Specifically, our an capital we on $XX.XX buy $X.X back $XX.X price to XXX,XXX at dividend,

paydown, the year-to-date. below last With million down $XXX million borrowings are $XX year QX QX approximately and

on As we reached of Xx Jay target basis. XX-month ratio trailing to mentioned, our EBITDA leverage a debt

continue borrowings. us believe reduce allow continue is we and expense free interest maintain we flow That best to While attractive will investment. to rate metrics returning our flexible time, capital a below and valuation of our historical this approach, the use maximize to higher still options view well and at evaluate to stock view allocation cash with capital This as buybacks an of environment reduce this Caleres in we shareholders liquidity. means effective as said, an we levels, our to

remaining consider conditions. we'll our share We market to authorization, current based X.X have shares million Board continue repurchases and under on

Now turning outlook. to our

performance $X.XX expect our our share Given to $X.XX. year-to-date to the year for second half, we per and of full forecast continue earnings

week, annualized consolidated million anticipate of We impact be $XX down X.X%. addition, of on expect X% generate X% consolidated X.X% to from actions. savings the margin of our operating sales $XX In to to still to we to still cost an including in-year the reduction basis XXrd million $XX and million

realized the For the $XX the was in-year realized will $X million be QX, realized savings, million QX was remaining in and in half. million in second $X

remaining quarter this expect onetime of outstanding repurchases of took effective the a year. about charge $X to share continue XX.X take $XX initiative. tax million this rate million, charge expect of in We $X.X which associated cash additional We of of QX. and with the an charge that in XX% approximately second still $XX We about expect interest to million to no million assumes net expense million, shares and

to addition, committed guidance $XX of in to adjustments strategic expenditures In we million. This capital our remain our of $XX we previous initiatives. $XX million of and $XX revised expect timing to now million decline versus projects, certain reflects of investing an million

following quarter. for guidance the providing Finally, are we the third

and sales questions. to earnings that, $X.XX. expect per low to operator like share to turn to Operator? We over be the call I'd single With $X.XX net down the digits of for

Operator

Instructions] [Operator

line the Telsey first Group. with Advisory questions Our from Dana of Telsey come

Dana Telsey

margin how the seeing of year you're half across and the half is full And in the as Can you versus category? planning what back it thinking and by into of back we go the terms difference businesses, promo there about puts talk takes both a about and any gross you're the little on bit price? in

Jack Calandra

for is this you Thank Dana, question. Jack. your

of it take by terms In -- business segment. I'll

we have half would management include there lower go in back earlier. margin the to We the gross inventory but promotion, that and normalized activity So on include, the fewer clearance mentioned demonstrated. and level pricing the disciplined of days do that the I we've initial tailwinds headwinds in of more Famous, as think, terms into margins I expect

profitable as I But would is also more for tailwinds include we've a we in the consumer, there there have higher Portfolio, disciplined that headwinds. say channel. more business that Brand The ocean a there, you inventory management For from of there's tailwinds continued us margins, and than demonstrated. savings initial to which higher contribution freight direct know, sales

Dana Telsey

wholesale as what to this side, ] on accounts back-to-school learnings holiday open in Got can this those for branded with merchandising back-to-school portfolio on division do [ or that thinking tightening, anything it. through some you're any you from you either went thoughts again as And you're inform season, wholesale -- saw of about the any from and getting orders then portfolio you what seeing particular? as bigger see with the in the

John Schmidt

Okay.

Jay. question. with this Portfolio is Dana, Brand I start will your So

ongoing to management speed chase season walk of we've we kind some the to meaningful disciplined inventory our of able selling enough on saw actually these behavior. make of And inventory through quarter, shifts approach that programs. helps been trend in to the we're able second mitigate to Our get We and to lot sneaker into really us as went positivity in and items top QX. business into as a we navigate a

really particularly finally, and really seeing so newness on particularly sell-throughs some progress includes and loafers. dress in heels. And good on being category business on nice and Slingbacks the strong. Our business We're that, is Hardware with coming really there Classics on flats that and in low with Classic

to business all help to getting on categories right focused move really and back. really the the items we're down then these way So this

from of continue The similar we business really selling. do think are continues people to to them, get items trying we're it, is and to on still strong with saw biggest some conversation Famous well working Nike that Footwear. we get our kids. our brands strength perform When we that reorders over at really these And good about into back very

Our Converse with some excited is as business is nice get And New we really the quarter. strong. period. and which Balance, Dude expand during brand very Hey about to then through looking for we're really that progress well this third into working

delta on. look as that have that seeing you really So that that there's to there. try-ons almost going when in reaction on been that Famous, outpace that Clearly, also work And on see lot shoe really and lot really and points, excited seeing the our focus in we working that category. a competitive a has good our whole some we is of differentiator, we're which outpace though, a as there we're in marketing is by through We We've continued organization and done stores channel kids the chain at XX then place. business. of kids on

really So that's biggest so seen. we've learning the far that

Dana Telsey

it. credit, that debt Jack, And the revolving Got seeing are What the for paydown. nice forward? going on you then, progress

Jack Calandra

Yes. Yes.

hit as we've Xx Dana, outlined. have target that we that mentioned, debt-to-EBITDA So I

think macro rates I and that the higher just paying. given just certainly uncertainty the interest demand continued also consumer uncertainty we're and

rate versus in I say we the average borrowings I last to would now mentioned, this are most QX our closer As recent year, year X%. interest paid

you get pay on based nice And from continuing continuing near EPS again, between that second down. $X.XX in think shares expense we to argument we'll so we our know, in of continue reasons as the guidance, a focus headwind for really we'll benefit the that some interest on $X.XX reduce Obviously, to those X so compelling that present EPS I and quarter. somewhere interest back to as of and But term. bought have expense

think flexible balance are be now And ability. and gives always I And opportunistic have, so looking sheet to we that us that we the there.

Operator

with Our Markets. next Champine questions line from the Loop come Laura of Capital

Laura Champine

quarter. you what I as trend to you comment channels within have QX. Can side about of Maybe comment seeing wholesale on expect sell the follow-on note this far the and different you're you can a anything so to Portfolio on into question the that Brand how we you -- that business. head on if

John Schmidt

Consumers We it's Brand our customers. our Portfolio, and Lead seeing taking as voting Laura, to the prioritization lead will dynamic towards are where I we Yes. yes, think, our way newness -- in sell on continuing seeing, I there. share. Jay. we to said, -- the a Brands we're are some that's are of

a both So do do upfront. we of them, online then basis. sell direct-to-consumer and brick-and-mortar work a replenishment we We on with on lot

demand seeing and hasn't So our selling year, if we're it shift to that's changed. did last but model sandals we things dynamic lot that really and see, you ankle-strap We're for where far. compare see of obviously, continuing to so a a what We were newness, dress mode customers now. now to in seeing versatile toward, flats for say, shift our sure, terms a to that. a continuing to very go more other But I'd right at looking of in very we're respond out, we're are these footwear it dynamic and styles

Lastly, up direct-to-consumer as nicely our our Portfolio toward and work that. we business quarter, the Brand in was continue we said, to on

it how does just working the everyone, but with We're partners So we're that's -- way. in our same with a very similar concept. it's working

Laura Champine

channels, in how I meant the to as a you at significant was specialty? hoping the about is more direction off-pricers and with to difference continue stores using trends That's is department are go. -- guess meaning, who to your business grow opposed how I retail there I

John Schmidt

Okay.

for that, store would So say just than other brick-and-mortar little to in department a QX ones was refresh more down our on piece. I business the

was nice. then more our And was business closeout is which business us chain now. the a quarter, for up off-price piece shoe really in right Our of

So not us. big a piece as that for been has

So quarter That's we we'll as forward. for saw right that's watch and to say where we the would now. continue in go QX, what I

Operator

the Mitch line from Research. Kummetz come with of Seaport Our next questions

Mitchel Kummetz

maybe Famous broke Famous as then whole. think dress rest question just if you does you it that Can take Jay, business up, that points was you was said tell casual few the the and on better us Famous mentioned And -- out, have versus than how on of My first. you parts. also versus a Kids could first XX X%, is I maybe a that athletic? kind of

John Schmidt

Okay.

was performance So for adult than sure, our business, side. the casual business our athletic better

businesses, As I piece we then significantly. strong. of then, a our was that which our lifestyle And said, should break was down, -- And [indiscernible] was was smaller think, though, we other particularly business, total. were that our kids strong a the out small Mitch, performance business was I particularly lifestyle XX% was say, right versus business then up as was our and down called the have, total piece out across now. really shipments. a and Famous of And our the finally, we sandal similar Portfolio was both channels, did it weakness amount in I beginning, Brand down the in it similar in in was but

Mitchel Kummetz

each it Okay. can attribute comp, improved lastly, you Is sales you're that both the minus a XQ, it more in improvement And that of even would ended August? function Or said product. terms And more have X.X%, in seen some of or XQ in guess quarter? comp the you And into continued newness that an you then I say of where the July? to? what Like declines you improving was is course the then improvement, you over just what on XQ versus macro? month, of

John Schmidt

we've there. for at we of quarter. when too, June July know, we trend of improve we based Mitch, kind and our in go out was May as but certainly do against so on comps we trend significantly look think we move we'll and as month. We into quarter. worst far, our improved, -- through where the And we've what historic we everything put more guidance that hold Famous really our against of been, third So did deliver that improved reflects that ahead this really the then

Jack Calandra

add to I would just comments. Yes. -- to just Jay's

year our last reminder, performance. back-to-school was performance a record a As

And decent so the some Famous we're back-to-school. up business against comp some of -- for that comps in

Mitchel Kummetz

of, I business maybe your, sales any to year that that said, how those didn't change you little the any there maybe overall said you Famous how guide, outlook the single on being for think is whole X about Okay. about a BP on color XQ. that low businesses? Can you between in And the like for you don't BP? if down Jack, And kind that was It and digits. between XQ year. slower sound thinking with changed know And expected you're than a as provide

Jack Calandra

Mitch. Yes,

So we've in of guidance continuation basically -- would what Famous saw for is I in base say our our we case a QX.

X%. the Obviously, guidance that it call range. provides a minus So

And higher of range, little better, end the towards we're of does worse, bit Famous a and that little so that towards if the a range. be lower end bit we'd

and if would what for well I So down QX at pretty if say, was because set also Famous that consistently seen we year take down the pretty QX, look on March we've of quarter is X% then you out out X%.

pretty So we've I that's say and would what consistent modeled. performance

in in the Portfolio, Brand In half. up of mean where quarter really case I up the that's some they're really -- compares first tough the were first against -- we against some

of the XXXX, much about all business half just half of confidence, easier management on talked then back is comps the XX%. and Brand up our of than X% half into only Portfolio. was back other and against But in Brand up first in operating things that part so of we've in the of our things Portfolio So XXXX, up we're year like going that, this terms inventory the

Operator

Our next with questions from come Abbie line Piper the Sandler. Zvejnieks of

Abigail Zvejnieks

inventory balance macro? So are the like about given be that's we the driving on uncertain for the versus newness keeping the levels thinking managing, about controlled you of thinking inventory year? how inventory, bringing in then And demand the levels should just how

John Schmidt

Jay. So Abbie, it's

turn. really new new managing how we're inventory to inventory -- a is of really in a we're we're managing normal setting kind Just up and for us,

chasing it, at looking this, speed the in consumer of really think is are demands towards Continually, which we receipts. at we program, our So XX% our -- that newness. product moving we more to driving that and are running

as detraction now. right it aren't terms we in any back us holding really So seeing of

the than the then thing second in is, Brand year show product into earlier our we quarter in had last had I'll up way particular, planned. And we say way, Portfolio, lot last of a

balanced more in flow the going but you're more now what it that deliver aggressively. amounts is disciplined working able we'll, us and turn importantly, more react I to with So management allow inventory continue that chase newness, be and to to this pivot through And kind really on see to a think, quickly. we're of us

Jack, of numbers you'd some And I think, the too. then, there share

Jack Calandra

for thanks Abbie, the question. Yes,

last add the lower the to comments, quarter. quarter third inventory to half, versus both fourth have Jay's Just in this expect and the to we back for year year

down that won't Now half in the year-over-year inventory continued of as improvement were first certainly the maintaining inventory of importance down quality they the and metric. as the in be both healthy they We're low on sales much appreciate always focused to they when teens, relationship. that and were we expect quantity but

Abigail Zvejnieks

on capabilities have in wholesale this And just your are would and that wholesale as then it. Portfolio. have if what you you're ship more the ship. as that guess I environment, like tightened? the you Got partners of that about assume for I good talk just a in doing orders business drop X increase Can Brand percentage a like drop

John Schmidt

Yes.

are very to portion we're want reacting so our seeing working. to our drop continue is are they again, real There product fully. conservatively, to in timely toward that And react Most acting important a the they ship -- of it. our can is more business. it's yes, is we So newness funding continued wholesale what receive a partners more way but likely,

similar with dynamic drop both with very continues a how QX versus us ship this. of going in and think being for model a important I And then with portion QX. replenishment it been be and to it's piece we've it So operated our has as very

as seeing not for a I'm that go So different QX. we into shift

Operator

turn now no would back for Jay like Schmidt to are comments. at any floor closing this There the over I to you. time. questions Thank further

John Schmidt

like to Okay. this everyone morning. for us joining Well, thank I'd

like consumers' Before the we close today, I'd Caleres confident exceed dedication. hard their talented team We create drive to thank exceptional for and for remain ability expectations our to value to and in shareholders. our product work our

some growth you forward our with We to October. Day at also long-term detail in additional Investor look strategies providing upcoming our around

to have holiday we'll great So you. like with talk say I'd that, Thank a just soon. and

Operator

your today's conclude appreciate Thank participation. teleconference. We you. This does

time. this at your the lines You day. Enjoy of may rest disconnect your

Caleres (CAL) 31 Aug 232024 Q2 Earnings call transcript