Caleres Inc (CAL) 2023 Q1 法說會逐字稿

Good morning, welcome to the Caleres First Quarter 2023 Earnings Conference Call. My name is Sherry, and I will be your conference coordinator. (Operator Instructions) As a reminder, this conference is being recorded.

早上好，歡迎參加 Caleres 2023 年第一季度收益電話會議。我叫雪莉，我將成為你們的會議協調員。 （操作員指示）謹此提醒，本次會議正在錄製中。

At this time, I'll turn the conference over to Logan Bonacorsi, Vice President of Investor Relations. Please go ahead.

這次，我將把會議交給投資者關係副總裁 Logan Bonacorsi。請繼續。

Good morning. Thank you for joining our first quarter 2023 earnings call and webcast. A press release with detailed financial tables as well as our quarterly slide presentation are available at caleres.com.

早上好。感謝您參加我們的 2023 年第一季度財報電話會議和網絡廣播。包含詳細財務表格的新聞稿以及我們的季度幻燈片演示可在 caleres.com 上獲取。

Please be aware, today's discussion contains forward-looking statements, which are subject to a number of risks and uncertainties. Actual results may differ materially due to various risk factors, including, but not limited to, the factors disclosed in the company's Form 10-K and other filings with the U.S. Securities and Exchange Commission.

請注意，今天的討論包含前瞻性陳述，這些陳述存在許多風險和不確定性。實際結果可能因各種風險因素而存在重大差異，包括但不限於公司向美國證券交易委員會提交的 10-K 表格和其他文件中披露的因素。

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

請參閱今天的新聞稿和我們向 SEC 提交的文件，了解有關可能影響前瞻性陳述的風險因素和其他因素的更多信息。這些報告的副本可在線獲取。在討論我們的運營結果時，我們將提供並參考某些非公認會計準則財務指標。您可以在我們網站的投資者部分找到有關這些非公認會計準則財務指標以及今天的收益發布和我們的演示中使用的其他指標的更多信息。該公司沒有義務隨時更新本次電話會議中討論的任何信息。

Joining me on the call today are Jay Schmidt, President and CEO; and Jack Calandra, Vice President and CFO. We will begin this morning's call with our prepared remarks, and thereafter, we will be happy to take your questions.

今天與我一起參加電話會議的是總裁兼首席執行官傑伊·施密特 (Jay Schmidt)；以及副總裁兼首席財務官傑克·卡蘭德拉 (Jack Calandra)。我們將以準備好的發言開始今天早上的電話會議，隨後我們將很樂意回答您的問題。

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

我現在想把電話轉給傑伊。傑伊？

Thank you, Logan, and good morning, everyone. During the first quarter, we leveraged our diversified structure to deliver earnings per share at the top end of our guidance range. Profit contribution from the brand portfolio more than offset the challenging operating environment at Famous Footwear. As we said last quarter, the structural changes we've implemented over the last several years have resulted in a much more nimble, productive, and profitable organization. This quarter's performance underscores the value of the Caleres platform, the strength of our omnichannel capabilities and the power of our carefully curated portfolio. We believe this structure enables us to be successful in a variety of different operating environments.

謝謝洛根，大家早上好。在第一季度，我們利用多元化結構實現了每股收益達到指導範圍的上限。品牌組合的利潤貢獻足以抵消 Famous Footwear 充滿挑戰的經營環境。正如我們上季度所說，我們在過去幾年中實施的結構性變革使我們的組織變得更加靈活、高效和盈利。本季度的業績凸顯了 Caleres 平台的價值、我們全渠道能力的優勢以及我們精心策劃的產品組合的力量。我們相信這種結構使我們能夠在各種不同的運營環境中取得成功。

Now let's turn to some key highlights from first quarter 2023. We delivered earnings per share of $0.97, driven by a record profit in our brand portfolio. We sustained total Caleres market share of more than 6% of the U.S. footwear market. We grew market share in the brand portfolio with many of our brands improving their rankings, and we increased Famous Footwear's market share in shoe chains. We managed our inventory levels very well, ending the period approximately 13% below the prior year period and down 3.6% compared to fiscal year-end 2022.

現在讓我們來看看 2023 年第一季度的一些關鍵亮點。在品牌組合利潤創紀錄的推動下，我們實現了每股收益 0.97 美元。我們的 Caleres 市場總份額保持在美國鞋類市場 6% 以上。我們增加了品牌組合中的市場份額，許多品牌的排名都得到了提高，並且我們增加了 Famous Footwear 在鞋業連鎖店中的市場份額。我們很好地管理了庫存水平，截至本期末，庫存水平比上年同期低約 13%，與 2022 財年末相比下降了 3.6%。

We continue to drive investment in strategic areas that are essential for our future growth. We maintained our longstanding quarterly dividend. And we prioritized debt reduction utilizing our free cash flow to reduce the borrowings under our asset-based revolving credit facility by $16 million from fiscal end 2022. As we've communicated, after funding our dividend, we believe that continued debt reduction is the top priority for cash flow near term in this uncertain macroeconomic environment.

我們繼續推動對我們未來增長至關重要的戰略領域的投資。我們維持了長期的季度股息。我們優先考慮利用自由現金流來減少債務，從 2022 財年末開始將我們基於資產的循環信貸安排下的借款減少 1600 萬美元。正如我們所傳達的，在為股息提供資金後，我們認為持續減少債務是最重要的在這種不確定的宏觀經濟環境下，短期內現金流的優先考慮。

Now let's move to our first quarter operating results. Overall consolidated sales declined 9.8%, falling short of our initial expectations. While some of this decline was expected, Famous Footwear was particularly hard hit by the softer consumer demand within the shoe chain channel. Fortunately, the weaker performance by Famous was offset by the outsized margin performance of the brand portfolio. As a result, we achieved solid first quarter operating earnings and generated strong consolidated gross margins of nearly 46%, which represented a record for the period, and we delivered $64 million in EBITDA.

現在讓我們來看第一季度的運營業績。總體綜合銷售額下降 9.8%，低於我們最初的預期。雖然這種下降在一定程度上是預料之中的，但 Famous Footwear 受到鞋履連鎖渠道消費者需求疲軟的打擊尤為嚴重。幸運的是，Famous 的疲軟表現被品牌組合的超額利潤表現所抵消。結果，我們第一季度實現了穩健的營業收入，並產生了近 46% 的強勁綜合毛利率，創下了該時期的記錄，並且我們實現了 6400 萬美元的 EBITDA。

In addition, beginning in the first quarter, we initiated cost-cutting and profit improvement initiatives across the organization. In total, we expect these measures to deliver approximately $20 million of SG&A savings this year, plus an additional $10 million of better-than-expected freight costs. We took these actions while still preserving investments in areas of strategic priority, namely consumer experience, analytics, and marketing that will accelerate our long-term growth vectors.

此外，從第一季度開始，我們在整個組織內啟動了成本削減和利潤提高舉措。總的來說，我們預計這些措施今年將節省約 2,000 萬美元的銷售、行政管理費用，另外還能節省 1,000 萬美元的貨運成本，好於預期。我們採取這些行動的同時，仍然保留對戰略優先領域的投資，即消費者體驗、分析和營銷，這將加速我們的長期增長。

Now let's turn to our operating segments, starting with the Brand Portfolio, which led our financial performance in the quarter. We delivered sales modestly ahead of our expectations and second only to the first quarter of 2022, which, as you will remember, included $50 million of wholesale inventory restock. Despite this difficult compare, a number of our brands, including lead brands, Sam Edelman and Allen Edmonds, delivered quarterly sales improvements.

現在讓我們轉向我們的運營部門，首先是品牌組合，它引領了我們本季度的財務業績。我們的銷售額略高於我們的預期，僅次於 2022 年第一季度，您會記得，其中包括 5000 萬美元的批發庫存補貨。儘管比較困難，但我們的許多品牌，包括主導品牌 Sam Edelman 和 Allen Edmonds，都實現了季度銷售額的增長。

The consumer was motivated by newness and gravitated toward fashion footwear, especially casual, new dress, casual sandals, and Retro-inspired white sneakers. We capitalized on all these trends by leaning into our Edit to Win initiative. We chased products and utilized our speed programs and supply chain network to react aggressively in season to maximize top-selling items. We are pleased that even with the expected sales decline, the brand portfolio delivered record first quarter operating earnings of nearly $43 million and achieved a 13% operating margin.

消費者受到新鮮感的驅使，被時尚鞋類所吸引，尤其是休閒鞋、新連衣裙、休閒涼鞋和復古風格的白色運動鞋。我們通過“Edit to Win”計劃充分利用了所有這些趨勢。我們追逐產品，並利用我們的速度計劃和供應鍊網絡在當季積極做出反應，以最大限度地提高最暢銷的產品。我們很高興地看到，儘管銷售額出現預期下降，但該品牌組合第一季度的營業利潤創紀錄地達到了近 4300 萬美元，營業利潤率達到了 13%。

This performance was driven by a 611 basis point improvement in gross margins due to higher initial margins and lower freight costs. We believe these results are a direct reflection of the progress we've made, elevating product design, sharpening brand messaging, and maximizing our inventory investment. Also during the quarter, we capitalized on strong product trends and our capabilities to drive an approximately 8% increase in our D2C business compared to the first quarter of 2022. This increase includes notable year-over-year improvements from our overall owned e-commerce, drop-ship, and owned brick-and-mortar businesses.

這一業績的推動因素是初始利潤率提高和貨運成本降低，毛利率提高了 611 個基點。我們相信這些結果直接反映了我們在提升產品設計、強化品牌信息以及最大化庫存投資方面所取得的進步。此外，在本季度，我們利用強勁的產品趨勢和能力，推動 D2C 業務較 2022 年第一季度增長約 8%。這一增長包括我們整體自有電子商務的顯著同比改善、代發貨和自有實體企業。

Going forward, we will provide color on the performance of our lead brands, Sam Edelman, Naturalizer, Allen Edmonds and Vionic on each earnings call. We want the investment community to understand what's driving our business. We believe each of these brands has significant growth ahead, and we are strategically investing to power that growth. These 4 brands in total represented more than half of the brand portfolio and 27% of our total Caleres revenue in the first quarter.

展望未來，我們將在每次財報電話會議上對主導品牌 Sam Edelman、Naturalizer、Allen Edmonds 和 Vionic 的業績進行詳細介紹。我們希望投資界了解推動我們業務發展的因素。我們相信這些品牌中的每一個都將在未來實現顯著增長，並且我們正在進行戰略投資以推動這種增長。這 4 個品牌總共佔品牌組合的一半以上，占我們第一季度 Caleres 總收入的 27%。

We outperformed in owned channels across all lead brands in the quarter with strong positive comps driven by increased traffic. Trends in flat loafers, (inaudible) shoes and fashion sneakers drove business at both Sam Edelman and Naturalizer where we delivered an improvement of 25% and 11% on our own website, respectively. Allen Edmonds delivered a strong first quarter performance with sales up 11% versus last year. This improvement was led by robust consumer demand for loafers and slip-ons and positive response to its new offerings.

本季度，我們在所有領先品牌的自有渠道中表現出色，流量增加推動了強勁的積極競爭。平底樂福鞋、（聽不清）鞋子和時尚運動鞋的流行趨勢推動了 Sam Edelman 和 Naturalizer 的業務增長，我們在自己的網站上分別實現了 25% 和 11% 的增長。 Allen Edmonds 第一季度業績強勁，銷售額比去年增長 11%。這一改善得益於消費者對樂福鞋和懶人鞋的強勁需求以及對其新產品的積極反應。

AE's efforts to focus on its consumer also yielded encouraging results from the relaunched loyalty program known as the collectors. In fact, we've seen our total collectors grow since the reintroduction of the program last September, and the average spend from AE collectors is 20% higher than non-collectors. And finally, we successfully launched a new brand direction for Vionic, combining a Northern California aesthetic with our unique scientific solutioning.

AE 專注於消費者的努力也通過重新啟動的忠誠度計劃（稱為收藏家）取得了令人鼓舞的成果。事實上，自去年 9 月重新推出該計劃以來，我們已經看到我們的收藏者總數有所增長，並且 AE 收藏者的平均支出比非收藏者高 20%。最後，我們成功地為 Vionic 推出了新的品牌方向，將北加州的美學與我們獨特的科學解決方案相結合。

This new branding, which went live on our website and in catalog during the quarter, spurred an immediate positive reaction on vionicshoes.com with casual sandals and dress delivering the largest year-over-year growth. We are encouraged by the early consumer response to its new offerings.

這個新品牌在本季度在我們的網站和目錄中上線，立即在 vionicshoes.com 上引起了積極的反應，休閒涼鞋和連衣裙實現了最大的同比增長。消費者對其新產品的早期反應令我們感到鼓舞。

In addition, we saw continued strength in our portfolio brands, including LifeStride, Franco Sarto and Dr. Scholl's. These are important growing assets that serve key consumer segments not currently served by our lead brands. We are leveraging our one Caleres capabilities across our portfolio to ensure all our assets are positioned to succeed. As we progress through the rest of the year, the teams will remain nimble, amplify newness, and react quickly to maintain momentum for the balance of the year.

此外，我們看到我們的投資組合品牌持續走強，包括 LifeStride、Franco Sarto 和 Dr. Scholl's。這些都是重要的不斷增長的資產，為我們的領先品牌目前尚未服務的關鍵消費者群體提供服務。我們在整個投資組合中利用我們的 one Caleres 能力，以確保我們的所有資產都能取得成功。隨著今年剩餘時間的進展，團隊將保持敏捷，增強新鮮感，並迅速做出反應，以保持今年剩餘時間的勢頭。

Longer term, we are laser focused on building upon the momentum we've seen in the recent quarter and have ambitious growth plans for all of our lead brands. We expect that given the strength of our brands, the diversity of the portfolio, our flexible and agile operating model, and our improved margin performance that the [BP] will continue to contribute substantially to the company's operating performance.

從長遠來看，我們將專注於鞏固最近一個季度所看到的勢頭，並為我們所有的領先品牌制定雄心勃勃的增長計劃。我們預計，鑑於我們品牌的實力、產品組合的多樣性、靈活敏捷的運營模式以及改善的利潤表現，[BP] 將繼續為公司的運營業績做出重大貢獻。

Turning now to Famous Footwear. After several successive quarters of strength, Famous Footwear's contribution declined markedly as it navigated a challenging macroeconomic backdrop and decelerating spending, particularly in the month of March among its target consumer. The challenging backdrop was exacerbated by a late-breaking sandal season. Even in this difficult environment, Famous outperformed its competitive set and increased market share in shoe chains.

現在轉向著名鞋類。在經歷了連續幾個季度的強勁表現後，Famous Footwear 的貢獻顯著下降，因為它面臨著充滿挑戰的宏觀經濟背景和支出放緩，特別是在 3 月份目標消費者的支出放緩。即將到來的涼鞋季節加劇了這一充滿挑戰的背景。即使在這種困難的環境下，Famous 的表現仍優於競爭對手，並增加了鞋履連鎖店的市場份額。

Our kid's business, a key differentiator for Famous, was a bright spot in the quarter. This important and growing category once again outpaced the rest of our business as families prioritize purchases of kid's footwear. In total, Famous generated $17 million in operating earnings.

我們的兒童業務是 Famous 的一個關鍵差異化優勢，也是本季度的一個亮點。由於家庭優先購買童鞋，這一重要且不斷增長的類別再次超過了我們的其他業務。 Famous 總共創造了 1700 萬美元的營業收入。

And even with the weakness in shoe chains, we expect Famous to deliver a significantly stronger earnings contribution in the second quarter as consumer activity accelerates due to typical seasonal drivers, including warm weather and back-to-school beginning in mid-July.

即使鞋履連鎖店疲軟，我們預計 Famous 在第二季度的盈利貢獻將顯著增強，因為典型的季節性驅動因素（包括溫暖的天氣和 7 月中旬開始的返校）導致消費者活動加速。

To that end, we have taken a number of steps to ensure that Famous leverages its strength in kids and delivers for back-to-school. As you will remember, we delivered our best ever back-to-school in 2022 despite a less than ideal inventory position. This year, we have a better in-stock position from the beginning on key trending brands and styles that we've reacted to due to our well-managed inventory position. We have named a new kid's merchant to closely maximize all opportunities and a new head of stores to drive our strategy at point of sale.

為此，我們採取了一系列措施，確保 Famous 充分發揮其在孩子們身上的優勢，為返校提供幫助。正如您所記得的，儘管庫存狀況不太理想，但我們還是在 2022 年實現了有史以來最好的返校成績。今年，由於我們管理良好的庫存狀況，我們從一開始就在主要趨勢品牌和款式上擁有更好的庫存狀況。我們任命了一位新的兒童商家來最大限度地利用所有機會，並任命了一位新的商店負責人來推動我們的銷售點戰略。

We have planned a high-impact marketing campaign across all consumer touch points, but especially aimed at the millennial family. And our investments in technology, specifically launching a CDP during the quarter, should better target our messaging and improve our conversion and drive sales. Clearly, there is a lot to be excited about during back-to-school at Famous.

我們計劃在所有消費者接觸點開展一場具有高影響力的營銷活動，特別針對千禧一代家庭。我們對技術的投資，特別是在本季度推出 CDP，應該能更好地瞄准我們的信息傳遞並提高我們的轉化率並推動銷售。顯然，Famous 返校期間有很多值得興奮的事情。

In summary, we continue to have great confidence in the long-term outlook for Famous. The same strength that delivered stellar results in recent years are still very much in place and in fact continue to expand. As we move forward, we will be taking immediate actions across our product assortment, our team, our marketing approach, our digital strategy in an effort to maximize our earnings potential this year. In parallel, we will continue to leverage our leadership position with the family. Our leading assortment of national brands, our nationwide retail footprint, mostly of mall, and consistent consumer experience in stores and online to accelerate all opportunities for growth at Famous.

總而言之，我們仍然對 Famous 的長期前景充滿信心。近年來取得出色業績的實力仍然非常強大，而且實際上還在繼續擴大。隨著我們的前進，我們將立即在我們的產品種類、我們的團隊、我們的營銷方法和我們的數字戰略方面採取行動，以最大限度地發揮我們今年的盈利潛力。與此同時，我們將繼續利用我們在家族中的領導地位。我們領先的民族品牌品種、覆蓋全國的零售足跡（主要是購物中心）以及商店和網上一致的消費者體驗，加速了 Famous 的所有增長機會。

So overall, as we look forward to the balance of the year, we are optimistic about the strength of our Brand Portfolio segment and its ability to deliver a much stronger earnings contribution in 2023 and beyond. And while we have work to do at Famous, we believe that the relative strength in kids, its inherent competitive advantages, and its avenues for growth set us up to improve as the year progresses.

因此，總體而言，在我們展望今年剩餘時間時，我們對品牌組合部門的實力及其在 2023 年及以後提供更強勁盈利貢獻的能力感到樂觀。雖然我們在 Famous 仍有工作要做，但我們相信，兒童的相對優勢、其固有的競爭優勢及其增長途徑將使我們能夠隨著時間的推移而不斷進步。

Before I hand it over to Jack to walk through our financials in more detail, I'd like to highlight and remind you of the power of the Caleres model. We believe the structural changes we made in recent years, coupled with our diversified structure and strong financial contribution from both operating segments will enable us to deliver annual earnings of more than $4 per share on a consistent basis, while generating strong levels of free cash flow and creating long-term value for our shareholders.

在我將其交給傑克更詳細地介紹我們的財務狀況之前，我想強調並提醒您卡萊雷斯模型的力量。我們相信，近年來我們所做的結構性變革，加上我們的多元化結構和兩個運營部門的強勁財務貢獻，將使我們能夠持續實現每股超過 4 美元的年收益，同時產生強勁的自由現金流並為股東創造長期價值。

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

現在，我將把它交給傑克，讓他更詳細地了解我們的財務狀況。傑克？

Thanks, Jay, and good morning, everyone. In this challenging market environment, we achieved better-than-expected gross margin and profitability in brand portfolio and maintain strong financial discipline across the company. This resulted in earnings per share at the upper end of our guidance and healthy cash flow, which enabled us to reduce debt while still investing in our critical growth initiatives.

謝謝杰伊，大家早上好。在充滿挑戰的市場環境下，我們的品牌組合毛利率和盈利能力好於預期，並在整個公司保持嚴格的財務紀律。這導致每股收益處於我們指導的上限，並且現金流健康，使我們能夠減少債務，同時仍然投資於我們的關鍵增長計劃。

In today's call, I'll provide additional details on our first quarter performance, discuss actions we are taking on expenses in light of the more difficult operating conditions at Famous, update you on our capital allocation plan and priorities and share our outlook for the second quarter and full year fiscal 2023. My comments on our outlook will be on an adjusted basis. Please see today's press release for a reconciliation of adjusted results.

在今天的電話會議中，我將提供有關我們第一季度業績的更多詳細信息，討論我們根據 Famous 更加困難的運營條件採取的費用行動，向您介紹我們的資本分配計劃和優先事項的最新情況，並分享我們對第二季度的展望2023 財年季度和全年。我對我們​​前景的評論將在調整的基礎上進行。請參閱今天的新聞稿，了解調整後的結果的核對錶。

Starting with Q1. Consolidated sales were $663 million, a 9.8% decrease versus last year. Famous sales were down 9.2% as its more moderate income customer continue to grapple with inflation and higher interest rates. Comparable sales were down 8.5%. Brand Portfolio sales were $326 million, down 11% to last year and in line with our expectations. You will remember that Brand Portfolio was lapping the restocking at wholesale accounts that was highlighted in last quarter's call and factored into our guidance.

從 Q1 開始。綜合銷售額為 6.63 億美元，比去年下降 9.8%。由於中等收入客戶繼續應對通貨膨脹和利率上升，名牌銷售額下降了 9.2%。可比銷售額下降 8.5%。品牌組合銷售額為 3.26 億美元，比去年下降 11%，符合我們的預期。您會記得，品牌組合正在對批發賬戶進行補貨，這一點在上季度的電話會議中得到了強調，並已納入我們的指導中。

Even with this difficult compare, this sales volume was the second highest first quarter amount in Brand Portfolio's history. Despite the sales decline, consolidated gross margin increased 120 basis points to 45.7%, reflecting a significant increase in Brand Portfolio gross margin and a decrease in Famous gross margin. Brand Portfolio gross margin was 44.2%, a more than 600 basis point increase versus last year due to higher initial margins and lower ocean and airfreight costs.

即使進行這種艱難的比較，這一銷量仍是品牌組合歷史上第二高的第一季度銷量。儘管銷售額下降，綜合毛利率仍增長 120 個基點，達到 45.7%，反映出品牌組合毛利率大幅上升，而名品毛利率下降。由於初始利潤率上升以及海運和空運成本下降，品牌組合毛利率為 44.2%，比去年增長了 600 個基點以上。

Famous gross margin was 45.6%, a 360 basis point decline versus last year. This decline reflects the softer consumer demand and a more normalized level of clearance pricing and activity given last year's clean inventory position. SG&A expense for the quarter was $253 million or 38.2% of sales. SG&A expense was $7.7 million below last year as a result of lower variable expenses and incentive compensation costs.

名譽毛利率為45.6%，較去年下降360個基點。這一下降反映出消費者需求疲軟以及考慮到去年的清潔庫存狀況，清倉定價和活動水平更加正常化。該季度的 SG&A 費用為 2.53 億美元，佔銷售額的 38.2%。由於可變費用和激勵補償成本降低，SG&A 費用比去年減少了 770 萬美元。

Operating earnings were $50 million and operating margin was 7.5%. Operating margin was 13.1% at Brand Portfolio and 4.9% at Famous. Net interest expense was $5.6 million or about $3 million above last year given the higher borrowing rate. The weighted average interest rate in Q1 this year was 6.2% versus 2.6% last year. Diluted earnings per share were $0.97, at the high end of our previous guidance. EBITDA for the quarter was $64 million or 9.6% of sales.

營業利潤為 5000 萬美元，營業利潤率為 7.5%。 Brand Portfolio 的營業利潤率為 13.1%，Famous 的營業利潤率為 4.9%。由於借款利率較高，淨利息支出為 560 萬美元，較去年增加約 300 萬美元。今年第一季度的加權平均利率為 6.2%，而去年為 2.6%。稀釋後每股收益為 0.97 美元，處於我們之前指引的上限。本季度 EBITDA 為 6,400 萬美元，佔銷售額的 9.6%。

Turning now to the balance sheet and cash flow. We ended the first quarter with $292 million in borrowings on our revolver and no long-term debt. Inventory at the end of Q1 was $560 million, down 13.1% versus last year, reflecting reductions in both in transit and on-hand inventory. By segments, inventory at Famous was down 1%, primarily a result of supply chain constraints last year, which limited the inventory level. Notably, Famous' inventory was $51 million or 13% below first quarter 2019. At Brand Portfolio, inventory was down 26% versus last year and up approximately 15% versus the first quarter of 2019.

現在轉向資產負債表和現金流。截至第一季度末，我們的左輪手槍借款為 2.92 億美元，沒有長期債務。第一季度末的庫存為 5.6 億美元，比去年下降 13.1%，反映出在途庫存和現有庫存的減少。按細分市場來看，Famous 的庫存下降了 1%，主要是由於去年供應鏈的限制限制了庫存水平。值得注意的是，Famous 的庫存為 5100 萬美元，比 2019 年第一季度下降了 13%。品牌組合的庫存比去年下降了 26%，比 2019 年第一季度增長了約 15%。

In general, we feel good about the quantity and quality of inventory in both segments. Regarding cash flow from operations, we generated $38 million during the quarter and deployed cash for strategic investments in the business, paid our quarterly dividend and reduced outstanding borrowings. Specifically, we spent $6.5 million on capital expenditures, $2.5 million on our quarterly dividend, and $16 million to reduce borrowings.

總的來說，我們對這兩個細分市場的庫存數量和質量都感到滿意。關於運營現金流，我們在本季度產生了 3800 萬美元，並將現金用於業務戰略投資、支付季度股息並減少了未償還借款。具體來說，我們花費了 650 萬美元用於資本支出，250 萬美元用於季度股息，1600 萬美元用於減少借款。

Given the ongoing macroeconomic uncertainty, we continue to believe that the best use of free cash flow after maintaining the dividend is to reduce our revolver borrowings to below 1x on a debt-to-EBITDA basis and to increase overall liquidity. On a trailing 12-month basis, we ended the quarter with a debt-to-EBITDA ratio of 1.1x, and we anticipate getting below 1x in the third quarter. That said, we have 6.4 million shares remaining under our current board repurchase authorization, and we'll continue to consider share repurchases based on market conditions.

鑑於持續的宏觀經濟不確定性，我們仍然認為，維持股息後自由現金流的最佳利用是將我們的循環借款按債務與 EBITDA 的比例減少至 1 倍以下，並增加整體流動性。從過去 12 個月的數據來看，本季度末我們的債務與 EBITDA 比率為 1.1 倍，我們預計第三季度該比率將低於 1 倍。也就是說，我們目前的董事會回購授權尚有 640 萬股股票，我們將繼續根據市場情況考慮股票回購。

Now turning to our outlook. Despite a more challenging macro environment, we continue to expect full year earnings per share of $4.10 to $4.30 as we anticipate offsetting top line softness in Famous with cost savings and gross margin and SG&A. Additional full year guidance metrics are as follows: We now expect consolidated sales to be down 3% to 5% versus our original guidance of flat to up 2%, including the impact of the 53rd week. We now expect consolidated operating margin of 7.3% to 7.5% versus our original guidance of 7.1% to 7.3%.

現在轉向我們的展望。儘管宏觀環境更具挑戰性，我們仍然預計全年每股收益為 4.10 美元至 4.30 美元，因為我們預計成本節約、毛利率和銷售管理費用將抵消 Famous 的營收疲軟。其他全年指導指標如下：我們現在預計綜合銷售額將下降 3% 至 5%，而我們最初的指導是持平至增長 2%，其中包括第 53 週的影響。我們現在預計綜合營業利潤率為 7.3% 至 7.5%，而我們最初的指導為 7.1% 至 7.3%。

The improved operating margin outlook is being driven by better-than-expected ocean and domestic transportation costs and specific actions we are taking on overhead expenses, including eliminating open corporate positions, reducing non-merchandise procurement costs, realizing additional Brand Portfolio synergies and lowering depreciation expense. The specific actions we are taking on cost will generate about $20 million of in-year savings and $30 million to $35 million on an annualized basis.

運營利潤率前景的改善是由於好於預期的海運和國內運輸成本以及我們針對管理費用採取的具體行動，包括消除未平倉公司頭寸、降低非商品採購成本、實現額外的品牌組合協同效應和降低折舊費用。我們在成本方面採取的具體行動將在年內節省約 2000 萬美元，每年節省 3000 萬至 3500 萬美元。

For the in-year savings, $3 million was realized in Q1, $5 million will be realized in Q2 and the remaining $12 million in the second half. We anticipate a onetime cash charge of approximately $4 million in Q2 associated with these actions. We also expect about $10 million of additional freight savings versus our original guidance. $3 million was realized in Q1, and we expect the remaining $7 million in the second half. We now expect net interest expense of $17 million to $19 million versus our original guidance of $18 million to $20 million.

對於年內節省，第一季度實現了 300 萬美元，第二季度將實現 500 萬美元，下半年實現剩餘 1200 萬美元。我們預計第二季度與這些行動相關的一次性現金費用約為 400 萬美元。與我們最初的指導相比，我們還預計可額外節省約 1000 萬美元的運費。第一季度實現了 300 萬美元，我們預計下半年將剩餘 700 萬美元。我們現在預計淨利息支出為 1700 萬美元至 1900 萬美元，而我們最初的指導為 1800 萬美元至 2000 萬美元。

We continue to expect an effective tax rate of about 25%. We continue to expect shares outstanding of approximately $34.3 million. This assumes share repurchases to offset dilution of any stock-based compensation, but no additional share repurchases. And we now expect capital expenditures of $55 million to $65 million versus our original guidance of $60 million to $70 million. In addition, we are providing the following guidance for the second quarter. We expect net sales to be down 4% to 5% and earnings per share of $0.87 to $0.92.

我們繼續預計有效稅率約為 25%。我們仍然預計已發行股數約為 3,430 萬美元。這假設股票回購可以抵消任何基於股票的薪酬的稀釋，但沒有額外的股票回購。我們現在預計資本支出為 5500 萬至 6500 萬美元，而我們最初的指導為 6000 萬至 7000 萬美元。此外，我們還為第二季度提供以下指導。我們預計淨銷售額將下降 4% 至 5%，每股收益將下降 0.87 美元至 0.92 美元。

Before we take questions, I will now turn the call back over to Jay.

在我們回答問題之前，我現在將把電話轉回給傑伊。

Thanks, Jack. In closing, we are pleased to have delivered EPS at the upper end of our range for the first quarter and maintain EPS guidance for the year. These results demonstrate the power of our portfolio, the strength of our company and the dedication of our team. We are committed to disciplined and nimble expense management as we continue to invest in capabilities to drive growth. I am confident that the commitment of our incredibly talented team, coupled with our strategic approach will help us deliver strong results for the balance of the year.

謝謝，傑克。最後，我們很高興第一季度的每股收益達到了我們範圍的上限，並維持了今年的每股收益指引。這些結果證明了我們產品組合的力量、公司的實力和團隊的奉獻精神。隨著我們繼續投資於推動增長的能力，我們致力於嚴格而靈活的費用管理。我相信，我們才華橫溢的團隊的承諾，加上我們的戰略方針，將幫助我們在今年餘下的時間裡取得強勁的業績。

And with that, I'd like to turn the call over to the operator for questions. Operator?

因此，我想將電話轉給接線員詢問問題。操作員？

(Operator Instructions) Our first question is from Abi Zvejnieks with Piper Sandler.

（操作員說明）我們的第一個問題來自 Abi Zvejnieks 和 Piper Sandler。

I have 2. So first, is there any color you can give on the guidance for both the second quarter and fiscal year between your expectations for Famous Footwear and the Brand Portfolio. I guess specifically on the Brand Portfolio, do you expect that you will continue to face tough compares with fill in the second quarter? Or was that mainly just the first quarter dynamic?

我有兩個問題。首先，您對 Famous Footwear 和品牌組合的預期對第二季度和財年的指導有何看法？我想特別是在品牌組合方面，您是否預計第二季度將繼續面臨艱難的比較？或者這主要只是第一季度的動態？

I think just in terms of the Brand Portfolio, we do believe that we will have lapped most of that by the time we get into the second half. And then I'll let Jack fill in on the color by segment.

我認為就品牌組合而言，我們確實相信，到進入下半年時，我們將完成大部分工作。然後我會讓傑克逐段填寫顏色。

Yes, Abi, thanks for your question. So we don't give specific guidance by segment, but to be helpful, let me give you a little bit of color. So we are certainly expecting Famous' sales to improve versus the first quarter. We are tracking to our forecast quarter-to-date. So we feel good about that. And then I would say in the back half, really, our guidance assumes anywhere for Famous, anywhere from a deterioration of what we expect in Q2 to an improvement in what we expect in Q2.

是的，阿比，謝謝你的問題。因此，我們不會按細分提供具體指導，但為了有所幫助，讓我給您一點顏色。因此，我們當然預計 Famous 的銷售額將比第一季度有所改善。我們正在追踪本季度至今的預測。所以我們對此感覺良好。然後我想說，在後半部分，實際上，我們的指導假設了 Famous 的任何地方，從我們對第二季度預期的惡化到我們對第二季度預期的改善。

But in both cases, we still are expecting negative sales -- negative sales growth for Famous for the year. In BP, and Jay will give a little bit more color on some of the initiatives that support this. We are expecting BP to show some improvement in the back half. Again, part of that is no longer lapping this wholesale restock that we talked about as well as some of the initiatives we've got and feel really good about on our lead brands.

但在這兩種情況下，我們仍然預計銷售額為負數——Famous 今年的銷售額將出現負增長。在 BP 中，Jay 將為支持這一目標的一些舉措提供更多的色彩。我們預計 BP 在後半段會表現出一些進步。同樣，其中一部分不再是我們討論過的批發補貨，以及我們已經採取的一些舉措，並且對我們的領先品牌感覺非常好。

And I would say, Abi, that includes, obviously, the investments of the lead brands we talked about, Sam Edelman, Naturalizer, Allen Edmonds and Vionic. And then specifically, as we really are modeling the market right now and product opportunities, we see the whole fashion sneaker part of our business growing exponentially, and we're able to get back into position on that in late second quarter and think that, that will really help us drive through really further showing this power of our company, our sourcing model and our portfolio. And all of those lead brands fit really well and we'll be maximizing that category as well, too.

我想說的是，Abi，這顯然包括我們談到的領先品牌 Sam Edelman、Naturalizer、Allen Edmonds 和 Vionic 的投資。然後具體來說，當我們真正對現在的市場和產品機會進行建模時，我們看到我們業務的整個時尚運動鞋部分呈指數級增長，我們能夠在第二季度末恢復到這一點，並認為，這將真正幫助我們進一步展示我們公司的力量、我們的採購模式和我們的產品組合。所有這些領先品牌都非常適合，我們也將最大化該類別。

And then just your inventory management has been really strong. I mean, especially compared to peers in the space that have said they'll need to continue to be promotional. So you said you feel good about the quality and quantity of your inventory, but how do the peer's promotional strategy impact your promotional strategy through the remainder of the year?

然後你的庫存管理就非常強大了。我的意思是，特別是與該領域的同行相比，他們表示需要繼續進行促銷。那麼您說您對庫存的質量和數量感覺良好，但是同行的促銷策略如何影響您今年剩餘時間的促銷策略呢？

Well, I think we believe that obviously, we're going to model it very closely and keep in control of that, and we'll be watching the competitive landscape all the way through. But continually, we -- our model on the brand side is not really -- it's managing those brick-and-mortar inventories really closely driving our digital business. And the same as we kind of look at it the same way where we're really maximizing our in-store opportunities and giving them what they need and really watching the quality of that inventory. And I think that's going to be the key thing that helps us manage it as we go forward.

嗯，我認為我們相信，顯然，我們將對其進行非常嚴格的建模並保持控制，並且我們將全程關注競爭格局。但持續地，我們——我們在品牌方面的模型並不是真正的——它管理那些實體庫存，真正密切地推動我們的數字業務。就像我們看待它的方式一樣，我們真正最大化我們的店內機會，為他們提供他們需要的東西，並真正關注庫存的質量。我認為這將是幫助我們前進的關鍵。

Yes. And Abi, just to add to Jay's comment, I mean we believe that our consolidated inventories will continue to be down versus last year in Q2 and Q3. So we will be making sure we continue to manage that tightly and don't have to take any actions to clear our own inventory.

是的。阿比，我想補充一下傑伊的評論，我的意思是我們相信我們的綜合庫存在第二季度和第三季度將繼續比去年下降。因此，我們將確保繼續嚴格管理，並且不必採取任何行動來清理我們自己的庫存。

Our next question is from Laura Champine with Loop Capital.

我們的下一個問題來自 Loop Capital 的 Laura Champine。

I'd just like a little more color on what the investments are that you're making in those key Brand Portfolio brands. Are those marketing investments? Are they infrastructure? What do you need to do there?

我只是想更多地了解一下您對這些關鍵品牌組合品牌進行的投資。這些是營銷投資嗎？它們是基礎設施嗎？你需要在那裡做什麼？

Well, they're both marketing and in terms of product, more category expansion within those brands that we see will continue to drive. And then they also are feeding off of some growth vectors as we develop different points of distribution and different customers, while we continue to develop our own digital business and continue to drive that. So it is a combination of things. It's not just one thing, but we do feel that, that will continue to get us there and maximize through.

嗯，他們既在營銷方面，也在產品方面，我們認為這些品牌的更多品類擴張將繼續推動。然後，隨著我們開發不同的分銷點和不同的客戶，同時我們繼續發展自己的數字業務並繼續推動這一業務，它們也會從一些增長向量中汲取營養。所以這是多種因素的結合。這不僅僅是一件事，但我們確實認為，這將繼續幫助我們實現這一目標並最大化。

Our next question is from Mitch Kummetz with Seaport Research.

我們的下一個問題來自 Seaport Research 的 Mitch Kummetz。

I've got a few. Jay, starting with Famous in the quarter, you mentioned it was worse than planned. Can you speak to why that was? Was weather worse than your planning? Tax refunds had maybe a bigger impact than you had thought? Or was it just that, that moderate income consumer ended up just being softer than what you thought going in? Or maybe there are some other reason?

我有幾個。 Jay，從本季度的 Famous 開始，您提到情況比計劃的還要糟糕。你能談談為什麼會這樣嗎？天氣比你計劃的要糟糕嗎？退稅的影響可能比你想像的更大？或者只是這樣，中等收入消費者最終比你想像的要軟一些？或者也許還有其他原因？

Yes. Actually, a little bit of all the things you mentioned, Mitch, I think that was accurate. First of all, coming into the first early 2 months, we did see weather as a factor. And that March was our worst month in Famous. And we saw a nice improvement on that in April. So I have to believe the weather had something to do with it. But in general, we know that there are some headwinds coming out there, and people are actually really focusing their purchases on the key items they want. And so that's what we've done has really come back on Famous and really improved our inventory position and continue to fuel the things that we can control, which is mostly the items that they want in all the colors and sizes that they need.

是的。事實上，米奇，你提到的所有事情中有一點我認為是準確的。首先，進入前兩個月，我們確實將天氣視為一個因素。那年三月是我們在《Famous》中最糟糕的一個月。我們在四月份看到了很好的改善。所以我不得不相信天氣與它有關。但總的來說，我們知道存在一些阻力，人們實際上真正將購買重點放在他們想要的關鍵物品上。因此，我們所做的事情確實在 Famous 上得到了回報，並真正改善了我們的庫存狀況，並繼續為我們可以控制的東西提供燃料，這主要是他們想要的所有顏色和尺寸的物品。

So that would be really our strength for that. But we do think it's a little bit of all of what you described. As usual, we focus on controlling what we can control and then -- and that's really where we put our efforts.

所以這確實是我們的優勢所在。但我們確實認為這只是您所描述的所有內容的一部分。像往常一樣，我們專注於控制我們可以控制的事情，然後——這才是我們真正努力的地方。

And so April was better than March. Has that continued into May? And as you've guided for 2Q, particularly as you're thinking about the Famous piece, is the uptick from Q1 based on kind of what your trends that you're seeing quarter-to-date? Or is it more about optimism around back-to-school or again, maybe some combination of the 2?

所以四月比三月好。這種情況一直持續到五月嗎？正如您對第二季度的指導，特別是當您考慮 Famous 作品時，第一季度的上漲是否基於您本季度迄今為止所看到的趨勢？或者更多的是關於重返校園的樂觀情緒，或者也許是兩者的某種結合？

I think it's a little bit of a combination of 2. As I said, April was markedly better than March for us. So we think that, that's a little closer to where our modeling comes through. And then with the actions that we've taken to really put ourselves in a better place going into back-to-school. We do think that those 2 things in combination will do it. As the consumer will continue to prioritize, we believe, purchases for the family, particularly their kids.

我認為這有點是 2 的結合。正如我所說，四月對我們來說明顯好於三月。所以我們認為，這更接近我們建模的結果。然後，通過我們採取的行動，讓自己在重返校園時真正處於一個更好的位置。我們確實認為將這兩件事結合起來就能做到這一點。我們相信，隨著消費者將繼續優先考慮為家庭（尤其是孩子）購買商品。

And then on the profitability, so Famous was -- in Q1 was down year-over-year, but better than '19 and BP was, I think, better for both. So how are you thinking about where do you think those could sort of land for the year? I mean I assume you expect Famous margins, EBIT margin to be down. Do you still expect it to be up over '19 levels? And then BP as well. BP margin's going to be up year-over-year, do you think?

然後在盈利能力方面，So Famous 的盈利能力在第一季度同比下降，但比 19 年要好，我認為 BP 對兩者來說都更好。那麼，您如何看待這些今年可能落地的地方？我的意思是，我假設您預計 Famous 的利潤率、息稅前利潤率會下降。您仍然預計它會超過 19 年的水平嗎？然後還有 BP。您認為英國石油公司的利潤率會逐年上升嗎？

Well, we do believe that the BP margin will continue to be up based on a lot of things working in our favor there. And it's really about the -- that initial margins that we've been able to do, our mix is much better. And obviously, with continued savings on the freight side, all 3 of those things will help us, I think, there, too. And then we have some other pieces there. I'll let Jack jump in on the Famous piece.

嗯，我們確實相信，基於許多對我們有利的事情，英國石油公司的利潤率將繼續上升。這實際上是關於我們能夠做到的初始利潤，我們的組合要好得多。顯然，隨著運費方面的持續節省，我認為所有這三件事也將對我們有所幫助。然後我們還有其他一些作品。我會讓傑克加入到著名的作品中來。

Yes. Mitch, on the famous piece, we posted 11.5% operating margin last year in that business. We had signaled that, that was going to come down this year. I think just given the softer expectations for sales, we likely will not hit that sort of 10% operating margin target this year, but we still feel like that's the appropriate target long term. And that's why we're making these changes on the cost structure in Famous, but also in other parts of the business to provide sort of that fuel to get that margin back at 10%.

是的。米奇（Mitch），在著名的文章中，我們去年在該業務上公佈了 11.5% 的營業利潤率。我們曾表示，今年這一數字將會下降。我認為，鑑於銷售預期較疲弱，我們今年可能不會達到 10% 的營業利潤率目標，但我們仍然認為這是合適的長期目標。這就是為什麼我們不僅要對 Famous 的成本結構進行這些改變，還要對業務的其他部分進行這些改變，以提供某種動力，使利潤率恢復到 10%。

Our final question is from Dana Telsey with Telsey Advisory Group.

我們的最後一個問題來自特爾西諮詢小組的達納·特爾西。

As you think about the comp store sales, particularly at Famous Footwear, what were the complexions of the comps, what you saw in ticket or traffic? How did that range? And is the uptick that you've seen now, are we seeing a meaningful improvement? And then on the Brand Portfolio with the margin improvement, what are you seeing in terms of wholesale orders and also AUR?

當您考慮競爭商店的銷售情況時，尤其是 Famous Footwear 的銷售情況時，競爭者的膚色是什麼？您在門票或客流量中看到了什麼？這個範圍是怎樣的？您現在看到的上升是我們看到的有意義的改善嗎？然後，在品牌組合中，利潤率有所提高，您對批發訂單和 AUR 有何看法？

Okay. As usual, Dana, I'll start with the last part of your question and move my way backwards. But we did see, first of all, AUR was actually up for us. So it's up slightly. So that means a really nice hold as we came through and really came through that 22 space where we really do feel our strategy there has worked really nicely. In terms of our wholesale inventory or wholesale order book, I should say, it's very much in line with what we've seen quarter-to-quarter.

好的。像往常一樣，達納，我將從你問題的最後一部分開始，然後向後移動。但我們確實看到，首先，AUR 實際上適合我們。所以略有上升。因此，這意味著當我們經歷並真正經歷了 22 個空間時，我們確實感覺我們的策略非常有效。我應該說，就我們的批發庫存或批發訂單而言，這與我們每季度看到的情況非常一致。

Obviously, there's more reorders coming through, more drop ship than everything else versus last year when people were out buying quite a bit. But we see our order book as we feel pretty confident that it really meets where our guidance has been and does just reflect a lot more of it's going to be more dynamic, I would say, going through there. And our model really pivots to accomplish that.

顯然，與去年人們大量外出購買相比，現在有更多的重新訂購和直運。但我們看到我們的訂單簿，因為我們非常有信心它確實符合我們的指導方針，並且確實反映了更多的內容將變得更加動態，我想說，通過那裡。我們的模型確實致力於實現這一目標。

So then in Q1, overall, we did see kind of a mix on Famous Footwear pointing to the quarter. Our conversion was actually pretty good, but our traffic in brick-and-mortar was down for the quarter. And then we had a little bit of a different dynamic in Q1 in -- on the e-com side, but where that was -- conversion was actually down. Our traffic was roughly flat. So I would say overall, we just saw a much slower start to the whole season. And obviously we're working on things to improve it.

因此，總體而言，在第一季度，我們確實看到 Famous Footwear 的情況有所不同。我們的轉化實際上相當不錯，但本季度我們的實體流量有所下降。然後，我們在第一季度的電子商務方面出現了一些不同的動態，但轉化率實際上有所下降。我們的流量大致持平。所以我想說，總的來說，我們整個賽季的開局要慢得多。顯然我們正在努力改進它。

And then just unpacking the gross margin for a second and operating margin. Freight benefits this year, what are you seeing for that? And is there any other puts and takes as we go through the back half of the year, whether it's on raw materials or any other commodity costs we should be mindful of?

然後將毛利率分解為第二個利潤率和營業利潤率。今年的貨運福利，您有何看好？當我們經歷下半年時，是否還有其他看跌期權和看跌期權，無論是原材料還是我們應該注意的任何其他商品成本？

Yes, Dana, it's Jack. Thanks for the question. No, I would say in terms of the freight benefit, we're actually expecting more freight benefit in the back half. About 60% of the freight benefit is coming through the back half versus about 40% in the first half. And that includes both what we had planned for and then this incremental $10 million that we talked about. So that's obviously a nice tailwind in terms of the gross margin there.

是的，達納，我是傑克。謝謝你的提問。不，我想說的是，就貨運效益而言，我們實際上預計下半年會有更多的貨運效益。約 60% 的貨運收益來自下半年，而上半年約為 40%。這既包括我們的計劃，也包括我們談到的增量 1000 萬美元。因此，就毛利率而言，這顯然是一個很好的推動力。

We have reached the end of our question-and-answer session. I would like to turn the conference back over to management for closing remarks.

我們的問答環節已經結束。我想將會議轉回管理層進行閉幕致辭。

Okay. Well, thank you, everyone, for joining us. I just want to close by again thanking our great team at Caleres, couldn't accomplish any of this without them. And also thanking both our vendor partners at Famous and our retail partners out there. We look forward to seeing many of them in the market and many of you as well. So thank you again.

好的。好的，謝謝大家加入我們。最後我想再次感謝我們在卡萊雷斯的偉大團隊，沒有他們就不可能完成這一切。還要感謝 Famous 的供應商合作夥伴和零售合作夥伴。我們期待在市場上看到他們中的許多人，也期待看到你們中的許多人。所以再次感謝你。

This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

今天的會議到此結束。此時您可以斷開線路，感謝您的參與。