Caleres Inc. is living up to its reputation for agility in a period of retail turmoil.
The company behind popular family-footwear retailer Famous Footwear, and brands such as Sam Edelman, Dr. Scholl’s and Diane von Furstenberg, today announced a second-quarter performance that topped estimates across the board.
Caleres said its sales advanced nearly 9 percent, to $677 million, besting analysts’ forecasts for sales of $668.9 million. Famous Footwear continues to make the largest contribution to the firm’s results, producing sales of $404.9 million, a gain of 3.8 percent over the comparable period. The retailer’s same-store-sales were also up 2.8 percent.
Brand Portfolio sales of $272 million were up 16.8 percent, which included a contribution from men’s label Allen Edmonds, which Caleres acquired in December 2016.
Overall, net earnings were $17.6 million, while diluted earnings per share were 41 cents. Adjusted net earnings of $20.6 million were up 4.4 percent, while adjusted diluted EPS of 48 cents topped estimates for diluted EPS of 44 cents.
“In the second quarter, we delivered solid sales improvement across both sides of our business,” said CEO, president and chairman Diane Sullivan, noting that a strong back-to-school season for Famous Footwear propelled the firm ahead of Q2 forecasts.
“Additionally, we saw consistent margin expansion, generated steady cash flow and continued to pay down our revolving credit facility following the Allen Edmonds acquisition,” Sullivan added.
The firm reiterated its fiscal 2017 guidance, and continues to expect consolidated net sales in the range of $2.7 billion to $2.8 billion, and adjusted diluted EPS of $2.10 to $2.20.