Caleres Q2 sales and profits fall, but reiterates FY23 outlook

Caleres has reported a drop in revenue and profit in the second quarter of the year, but has reiterated its full-year outlook.

The US footwear group generated net sales of 695.5 million dollars in the three months to July 29, down 5.8 percent from the prior year. It had expected a drop of between 4 percent and 5 percent.

Sales at the group’s Famous Footwear segment fell 5.1 percent, while sales at its Brand Portfolio segment declined 7.2 percent.

The company posted a net profit of 33.9 million dollars in the year, or earnings per diluted share of 0.95 dollars, down from 51.2 million dollars, or earnings per diluted share of 1.38 dollars.

It had expected diluted earnings per share of between 0.79 dollars and 0.84 dollars.

“The Caleres team performed at a high level during the second quarter, delivering a strong consolidated operating margin and exceeding adjusted earnings per share expectations despite a choppy macro environment,” said president and CEO Jay Schmidt in a statement.

Caleres reaffirms outlook

He added that the group is “confident” it can achieve its full-year financial outlook and is reaffirming its 2023 sales and earnings guidance.

The group expects FY23 consolidated net sales to be down between 3 percent and 5 percent, and diluted earnings per share to be between 4.02 dollars and 4.22 dollars.

Caleres announced a cost-cutting drive when reporting its full-year results back in June amid a “challenging operating environment”.

It said initiatives included “eliminating open corporate positions, reducing non-merchandise procurement costs, realizing additional Brand Portfolio synergies, and lowering depreciation expense”.

It said at the time the steps were expected to result in 20 million dollars of in-year savings.