Famous Footwear Helps Caleres Keep Profits & Sales Steady Amid Market Turbulence

Famous Footwear
A Famous Footwear store.
Courtesy of brand

Caleres posted third-quarter profits after the market close today that were roughly in line with expectations, while sales were slightly above forecasts.

The St. Louis-based owner of Famous Footwear and shoe brands such as Franco Sarto, Dr. Scholl’s and Via Spiga said its Q3 net income advanced 2 percent year-over-year, to $34.7 million, or 81 cents per diluted share. Adjusted earnings per diluted share, at 80 cents, were in line with expectations.

Revenues gained less than 1 percent year-over-year, to $732.2 million, and topped forecasts predicting $731.5 million.

Family shoe seller Famous Footwear continues to bring in the lion’s share of Caleres’ sales, posting a same-store sales gain of 2.1 percent year-over-year, with a back-to-school comp gain of 2.7 percent and total sales growth of 2.6 percent.

“Despite a somewhat choppy environment, our third-quarter performance – with improvement in sales, margins, earnings and cash from operations – further confirms that our portfolio strategy is working as intended and delivering shareholder value,” said Diane Sullivan, CEO, president and chairman of Caleres, in a release. “By diversifying across platforms, brands, channels and products, we have been able to drive toward our long-term goal of consistent, profitable and sustainable growth while minimizing our exposure to potential variability in the marketplace.”

Sales across the firm’s brand portfolio were down 3 percent as strength in Caleres’ contemporary-fashion division — comprised of brands such as Sam Edelman, Diane von Furstenberg (DVF) and Fergie Footwear — were unable to offset weakness in the healthy-living division, which includes Naturalizer, Dr. Scholl’s Shoes, LifeStride and other brands.

Caleres maintained its full-year outlook.