Caleres Inc. shares are tumbling in after-hours trading — they were down more than 10 percent, to $27.81, as of 4:45 p.m. EST — after the firm announced third-quarter results that missed expectations.
The owner of family-footwear retailer Famous Footwear and brands such as Sam Edelman and Franco Sarto said today that its third-quarter profits were roughly flat year over year, at $34.4 million, or 80 cents per diluted share. Analysts had expected the corporation to post diluted earnings per share of 85 cents.
Revenue, meanwhile, gained 5.8 percent year over year, rising to $774.7 million, but missed forecasts for $785.8 million in revenue.
Consistent with many other footwear and apparel companies reporting third-quarter earnings, Caleres said its results during the period were negatively affected by hurricanes that made landfall in Florida and Texas. Specifically, the company said it lost about $35 million in sales as a result of the hurricanes. (DSW Inc., Macy’s Inc., Nordstrom Inc. were among the companies to cite a negative impact from Hurricanes Irma, Harvey and Maria in the third quarter.)
Overall making the largest contribution to Caleres’ revenue during the period, Famous Footwear logged a 1.1 percent increase in sales (to $473.1 million) over the prior year. The retailer’s back-to-school same-store sales rose 2.6 percent and its Q3 same-store sales grew 0.9 percent.
“Our strong start to the third quarter in August was interrupted by hurricanes in September and an unseasonably warm start to fall in October,” said Diane Sullivan, the chairman, president and CEO of Caleres. “Even though the quarter became progressively more challenging, we delivered improvement in gross margin and generated strong cash flow, while paying down our revolver borrowings.”
The company maintained its fiscal 2017 adjusted earnings-per-share guidance and continues to expect diluted earnings per share in the range of $2.10 to $2.20.