Brown Shoe’s Stock Climbs on Major Earnings Beat

Momentum is high at Brown Shoe Co., soon to be Caleres, as the firm’s share price continues to climb on a much better than expected Q1 performance and a solid Wall Street beat. Reflective of the strong Q1 finish, the firm upped its 2015 guidance for earnings per share.

Net Income: For the first quarter, ended May 2, 2015, the company’s net income rose 25 percent to $19.3 million, compared to the same year-ago quarter’s profits of $15.4 million.

EPS: Earnings per diluted share were up year-over-year to 44 cents, compared to the same year-ago quarter’s earnings per diluted share of 35 cents.

Net Revenue: Net revenues were also up from $591 million in the prior year’s quarter to $602 million in the current quarter.

Hit, Miss or Beat: Brown Shoe’s performance surpassed Wall Street’s forecast for revenues and EPS. Analysts polled by Yahoo Finance had predicted revenues of $593 million and EPS of 36 cents.

Executive Insights: “First quarter exceeded our expectations virtually across the board—including sales, margin and earnings—despite a late start to spring and caution around potential west coast port delays,” said Diane Sullivan, Brown Shoe’s CEO, in a release. “We’re pleased with our first quarter results, which were achieved thanks to strong sales from our brand portfolio and exceptional gross margin and operating margin gains at Famous Footwear combined with better than expected same-store-sales.”

Looking Ahead: “We reported a very strong first quarter, which included a relatively uneventful untangling of the west coast port situation,” said Ken Hannah, Brown Shoe’s CFO. “With the strong sales and margin performance we saw in the first quarter, we feel comfortable raising our diluted EPS guidance range for 2015 to $1.84 to $1.94.”

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