Caleres Inc (NYSE:CAL) stock fell 1.78% (As on March 21, 11:26:43 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY24. Subsequent to quarter end, the company announced plans to acquire Stuart Weitzman for $105 million, subject to customary adjustments. The transaction is expected to close in the summer of 2025, and Caleres will fund the acquisition through the company’s revolving credit agreement. The company gained market share in women’s fashion footwear, the Lead Brands outperformed, and the company grew the sneaker penetration. Famous Footwear’s business softened in the quarter. Adjusted net earnings were $11.1 million, compared to adjusted net earnings of $30.8 million, in the fourth quarter of 2023. In FY 24, inventory was up 4.5% compared to 2023 and under the asset-based revolving credit facility, borrowings were $219.5 million at the end of the period

Moreover, Famous Footwear segment net sales decreased 9.6%, with comparable sales down 2.9%, Brand Portfolio segment net sales decreased 7.2% and Direct-to-consumer sales represented about 73% of total net sales. Gross profit was $275.1 million, with gross margin at 43.0%, down 80 basis points year-over-year. Famous Footwear segment gross margin was 42.5%, down 40 basis points and Brand Portfolio segment gross margin was 41.6%, down 100 basis points.

CAL in the fourth quarter of FY24 has reported the adjusted earnings per share of 33 cents, beating the analysts’ estimates for the adjusted earnings per share of 27 cents, according to Zacks Investment Research. The company had reported the adjusted revenue decline of 8.3 percent to $639.2 million in the fourth quarter of FY24, missing the analysts’ estimates for revenue of $640.9 million.

For the first quarter, the company expects earnings in a range of $0.35 to $0.40 per share on consolidated net sales decline of 5.0 to 6.0 percent from last year. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.82 per share on net sales decline of 1.01 percent to $652.57 million for the quarter.

For fiscal 2025, the company now projects earnings in a range of $2.80 to $3.20 per share on consolidated net sales between down 1.0 percent and up 1.0 percent from last year. The Street is looking for earnings of $3.02 per share on net sales growth of 2.11 percent to $2.78 billion for the year.