In recent trading activity, Diane M. Sullivan, Executive Chair of Caleres Inc. (NYSE:CAL), a leading footwear company, sold a total of 6,299 shares of the company's common stock. The transaction, which took place on June 18, 2024, resulted in proceeds exceeding $212,765, with the sales conducted at a weighted average price of $33.7776 per share.
The sales occurred in a series of transactions at prices ranging from $33.64 to $33.98. Following the sale, Sullivan's direct holdings in Caleres Inc. amounted to 167,517 shares. Additionally, the executive has indirect ownership of 11,0236 shares through a trust and 10,575 shares through a 401(k) plan.
It's worth noting that the reported sales were made in accordance with a pre-arranged Rule 10b5-1 trading plan, which Sullivan had adopted on January 19, 2024. This type of trading plan allows insiders to sell shares over a predetermined period of time, providing an affirmative defense against accusations of trading on non-public, material information.
Investors and the market often monitor insider transactions for insights into a company's performance and the confidence level of its executives. The sale by Sullivan represents a notable transaction by a key figure at Caleres Inc.
The company, which has its roots as Brown Shoe Co. and has undergone several name changes over the years, is incorporated in New York and has its business headquarters in St. Louis, Missouri.
The details of the transactions were made public through a Form 4 filing with the Securities and Exchange Commission, with the signature of Thomas C. Burke, Attorney-in-Fact for Diane M. Sullivan, dated June 20, 2024. Sullivan has committed to providing additional information about the number of shares sold at each price upon request.
In other recent news, Caleres Inc. reported robust financial results for the first quarter of 2024, exceeding earnings per share (EPS) expectations with a figure of $0.88 and achieving a record high gross margin of 47%. Despite a slight dip in sales, which totaled $659 million, the company's Brand Portfolio segment, featuring brands like Sam Edelman and Allen Edmonds, maintained a strong operating margin. Meanwhile, Famous Footwear reported flat sales, with a notable performance in the kids category.
Caleres' e-commerce platforms showed growth, and the company has invested in marketing, international expansion, and systems upgrades. The company returned $18 million to shareholders through share repurchases and dividends. Looking ahead, Caleres anticipates full-year sales to be flat to up 2%, with earnings per diluted share projected to be between $4.30 and $4.60.
In terms of future expectations, the company anticipates Q2 consolidated net sales to increase by 3% to 4% and expects strong performance in sneakers and casual categories for the back-to-school season. Despite the slightly lower sales in Q1, executives expressed confidence in the company's long-term strategies and the upcoming back-to-school season.
InvestingPro Insights
Amid the recent insider trading activity at Caleres Inc. (NYSE:CAL), investors are keen to understand the company's financial health and future prospects. According to InvestingPro, Caleres is currently trading at a low earnings multiple with a P/E ratio of 7.07, which could suggest that the stock is undervalued compared to its earnings potential. Despite this low earnings multiple, the company's P/E ratio is high relative to near-term earnings growth, with a PEG ratio for the last twelve months as of Q1 2025 standing at 2.34.
Investors considering Caleres Inc. should note that the company has a strong history of dividend payments, maintaining them for 54 consecutive years, which reflects a commitment to shareholder returns. Additionally, the firm's stock price movements have been quite volatile, a factor that risk-averse investors might need to consider.
InvestingPro Data for Caleres Inc. reveals a market capitalization of $1.18 billion and a revenue for the last twelve months as of Q1 2025 at approximately $2.81 billion, with a slight decline in revenue growth of -2.83%. The Gross Profit Margin remains robust at 45.11%, indicating the company's ability to maintain profitability in its operations.
For those interested in further analysis and tips, InvestingPro offers additional insights on Caleres Inc. Using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a comprehensive set of metrics that can guide investment decisions.
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