With some help from its latest acquisition, Caleres Inc. posted better-than-expected first-quarter results after the market close on Thursday.
The owner of Famous Footwear as well as several popular shoe brands such as Sam Edelman, Via Spiga and Diane von Furstenberg, said it total sales advanced 8 percent year-over-year, to $631.5 million, including a $42.5 million contribution from newly acquired men’s shoe brand Allen Edmonds. Analysts were expecting sales of $621 million. (Caleres bought Allen Edmonds in December 2016 for $255 million.)
Net earnings, however, fell 16 percent year-over-year, to $14.9 million, or 35 cents per diluted share. Adjusted net earnings, at 40 cents per share, topped analysts’ expectations for earnings of 37 cents per share.
Sales at Famous Footwear — which brings in the lion’s share of revenues for Caleres — edged up 0.5 percent during the period, to $366.5 million. However, same-store sales dipped 0.6 percent at the division.
As has been the case for much of first-quarter earnings reports from a range of footwear and apparel sellers, a delay in income tax refunds also impacted sales for Famous Footwear in February.
“February was tough, as expected,” Caleres president, chairman and CEO Diane Sullivan said during a call with investors Thursday. “However, we saw improvement as the quarter progressed.”
Revenues in the brand portfolio — which includes other brands such as Naturalizer, Franco Sarto and Dr. Scholl’s — rose 20 percent to $265 million.
The company maintained its full-year outlook.
“Our first-quarter results provided a solid start to the year, despite the continued tough retail environment,” Sullivan said. “We are pleased with the performance of our Allen Edmonds acquisition, the success of our integration to date and with our continued shift toward more balanced earnings contribution from both Famous Footwear and Brand Portfolio. And although retail continues to rapidly and significantly evolve, we remain on track for 2017.”
As of 1:20 p.m. ET, Caleres shares were up more than 7 percent, to $26.58.