Caleres sales dip nearly 5% in Q3, updates guidance

By

Jennifer Braun

Published
Nov 22, 2023

Caleres said on Tuesday revenues for the third quarter fell 4.6 percent to $761.9 million, on the back of dips in both its Famous Footwear and brand portfolio segments.

The St. Louis-based footwear company said Famous Footwear segment sales declined 6.7 percent, with comparable sales down 6.9 percent. Likewise, brand portfolio segment sales decreased 0.8 percent. 

Direct-to-consumer channels continue to be a significant portion of the company's sales, accounting for approximately 73 per cent of total net sales

During the three months ending October 28, net earnings still climbed to $46.9 million, or earnings per diluted share of $1.32, compared to net earnings of $39.2 million, or earnings per diluted share of $1.08 in the third quarter of 2022. 

“Caleres continued its strong operational and financial execution during the third quarter, delivering a 19-percent increase in adjusted earnings per share and exceeding the top end of the guidance range despite ongoing softness in the macroeconomic environment,” said Jay Schmidt, president and chief executive officer.

“The brand portfolio once again led the way, achieving a sequential improvement in sales and generating record third quarter operating profit and operating margin. Most notably, the segment contributed more than half of total company operating profit through the first nine months of the fiscal year.”

Still, as a result of the soft consumer demand environment in its Famous Footwear segment, Caleres now expects consolidated net sales to be down 4.5 percent to 5.5 percent. For fiscal 2023, the company is expecting full-year diluted earnings per share of $4.10 to $4.20.

“Looking ahead, we are confident that our leading brand assets, unique One Caleres capabilities and strong balance sheet have set the stage for a third consecutive year of adjusted earnings in excess of our $4.00-per-share baseline,” added Schmidt. 

“Longer term, we remain sharply focused on the strategies we outlined at our recent Investor Day, and the Caleres team is dedicated and poised to execute on this clear and actionable plan for long-term value creation and growth.”