For the third quarter, Caleres reported sales of 792.4 million dollars, up 2.1 percent, while same-store-sales grew 2.5 percent at Famous Footwear, the eighth consecutive year of positive back-to-school same-store-sales growth. Earnings per diluted share of 69 cents, were up 3 percent, including 3 cents net impact from tariffs. The company said in a statement that full-year adjusted EPS guidance top-end narrowed by 5 cents to 2.35 dollars-2.40 dollars to reflect tariff impacts.
“Our third quarter results demonstrate continued execution against our strategy to broaden the reach of our powerful portfolio and strengthen consumer connections,” said Diane Sullivan, CEO, President and Chairman of Caleres, adding, “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.”
Review of Caleres’ third quarter performance
The company added that Famous Footwear total sales were 446.6 million dollars, with same-store-sales up 2.5 percent and Brand Portfolio sales of 359.9 million dollars, were up 4.9 percent.
Gross profit of 319.8 million dollars, increased 2.9 percent, representing gross margin of 40.4 percent, while operating earnings of 43.5 million dollars, represented operating margin of 5.5 percent. Adjusted operating earnings of 44.4 million dollars, were down 5.3 percent, representing adjusted operating margin of 5.6 percent excluding Vionic integration expense.
The company’s net earnings were 28 million dollars or earnings per diluted share of 69 cents, up 3 percent, including 7 cents of fair value adjustment associated with the mandatory purchase obligation of Blowfish Malibu and 2 cents of Vionic integration expense. Adjusted net earnings of 31.6 million dollars, resulted in adjusted earnings per diluted share of 78 cents, down 3.7 percent, including a 3 cents net impact from increased tariffs in the quarter.
Highlights of first nine month results at Caleres
The company further said that consolidated sales of 2,222.6 million dollars in the first nine months, were up 5.1 percent. Famous Footwear total sales were 1,218.6 million dollars, with same-store-sales growth of 1.1 percent and Brand Portfolio sales of 1,060.5 million dollars, were up 13.8 percent.
Gross profit of 905.6 million dollars, increased 3.1 percent, representing gross margin of 40.7 percent, while adjusted gross margin was 41.1 percent, excluding 7.2 million dollars related to Vionic inventory adjustment amortization and Brand Portfolio business exit expense. Operating earnings of 98.1 million dollars, were up 3.5 percent, representing operating margin of 4.4 percent, while adjusted operating earnings of 107.7 million dollars, were up 1.2 percent, representing adjusted operating margin of 4.8 percent.
Net earnings of 62.4 million dollars, resulted in earnings per diluted share of 1.51 dollars, down 6.8 percent, and adjusted net earnings of 72.4 million dollars, resulted in adjusted earnings per diluted share of 1.75 dollars, down 4.4 percent.
Picture:Blowfish Malibu website