Caleres, Inc. (NYSE:CAL) shares are trading lower on Thursday after the company reported first-quarter results.

Quarterly earnings per share totaled 88 cents, missing the street view of 91 cents. Caleres reported first-quarter revenues of $659.198 million, missing the analyst consensus of $665.45 million.

Caleres' inventory in the quarter under review was down 5.2% year over year, due to strategic inventory management – primarily in the Brand Portfolio segment.

Net sales were down 0.5% year over year. Operating earnings in the first quarter stood at $42.758 million, lower than $49.587 million in the year-ago period.

Famous Footwear segment net sales increased by 0.1% in the quarter, while the Brand Portfolio segment net sales declined by 2.6%.

Gross profit was $309.1 million, while gross margin was 46.9%, up 120 basis points year over year.

Caleres exited the quarter with cash and equivalents worth $30.709 million.

In the near term, the company expects to continue to focus on reducing debt and still expects borrowings under its asset-based revolving credit facility will be less than $100 million by 2026.

Outlook: Caleres still expects consolidated net sales to be flat to up 2% in fiscal year 2024.

The company expects earnings per share of $4.30 to $4.60 versus the $4.60 estimate.

For the second quarter, Caleres sees consolidated net sales to be up 3% to 4%. The company sees earnings per share of $1.20 to $1.25 against the consensus of $1.22.

Price Action: CAL shares are trading lower by 4.72% at $34.96 at last check Thursday.