Caleres Misses Street’s Q2 Targets

Sam Edelman
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St. Louis-based Caleres posted gains in both revenues and profits in its second quarter, but the numbers weren’t quite as high as Wall Street’s expectations.

“Today we reported a solid quarter, as expected, with improved sales, margins and adjusted earnings,” said Diane Sullivan, CEO, president and chairman of Caleres, in a release. “Total sales were up 2 percent, excluding Shoes.com, while gross and operating margin both expanded in the quarter. We also improved bottom-line performance by 22 percent, thanks to continued progress toward our long-term strategic initiatives.”

Net Income: Reported net earnings for the second quarter, ending Aug. 1, 2015, totaled $16.8 million and included $5.3 million of after-tax expense related to the company’s debt extinguishment.

EPS: Reported earnings per diluted share were 38 cents compared with the comparable year-ago quarter, when diluted EPS was 41 cents.

Net Revenue: Net sales in the $637.8 million, versus second-quarter 2014 net sales of $635.9 million.

Adjustments: Excluding the $5.3 million of after-tax expense, net earnings were $22.1 million, or 50 cents per diluted share, up 22.4 percent, versus second-quarter 2014 net earnings of $18.1 million, or 41 cents per diluted share.

Hit, Miss or Beat: Caleres missed Wall Street’s estimates for revenues and reported diluted EPS. Analysts polled by Yahoo Finance had predicted EPS of 44 cents and revenues of $647.2 million. It’s adjusted EPS of 50 cents per diluted share however, was 6 cents above estimates.

Looking Ahead: The company reiterated its full-year guidance.