Caleres posts modest sales gains, cuts outlook due to tariff concerns
today Nov 27, 2019
American footwear company Caleres reported slight increases in sales and earnings per share for the third quarter on Monday, but trimmed its full-year outlook for fiscal 2019 to reflect the impact of new tariffs.
In the third quarter ended November 2, 2019, Caleres achieved consolidated sales of $792.4 million, up 2.1% from $775.8 million in the prior-year period.
At the St. Louis, Missouri-based company’s Famous Footwear retail banner total sales were $446.6 million, reflecting an increase in same-store sales of 2.5%. Total sales in the company’s brand portfolio, which includes Sam Edelman, Vionic and Dr. Scholl’s Shoes, among others, rose 4.9% to $359.9 million.
The company’s quarterly net earnings totaled, $28.0 million, or $0.69 per diluted share, compared to $29.2 million, or $0.67 per diluted share, in the same period in the previous year.
“Our third quarter results demonstrate continued execution against our strategy to broaden the reach of our powerful portfolio and strengthen consumer connections,” said Caleres president, chairman and CEO, Diane Sullivan, in a release. “While the demand environment remains dynamic, we are focused on executing on our plan with fresh and compelling inventory and a continued emphasis on cost discipline across the organization.”
Year to date, the company’s consolidated sales totaled $2.2 billion, up 5.1% from $2.1 billion in the first three quarters of 2018. Famous Footwear, where same-store sales rose 1.1%, posted revenues of $1.2 billion, while Caleres’ brand portfolio saw impressive growth of 13.8% in its sales, which totaled $1.1 billion.
Net earnings for the period were $62.4 million, or $1.51 per diluted share, compared to $70.0 million, or $1.62 per diluted share, in the prior-year period.
As Washington’s trade war with China continues, with new tariffs of 15% on Chinese consumer goods set to come into effect in mid-December, Caleres has reduced the top end of its full-year adjusted EPS guidance by $0.05, and now expects to see a figure in the range of $2.35 to $2.40.
Following the announcement of Caleres’ reduced guidance, shares in the company fell close to 2% on Monday.
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