Caleres Stock Jumps After Q2 Profits Beat Expectations

Shares for Caleres Inc. are climbing in after-hours trading after the shoe-focused brand management firm posted better than expected results following market close today.

As of 4:25 p.m. ET, its shares were up 3.4% to $15.77.

The parent firm of Sam Edelman, Famous Footwear, Naturalizer and a bevy of other footwear brands said today that its second-quarter sales advanced nearly 7% to $753 million, modestly outdoing analysts’ bets of $752 million, thanks to a $420 million contribution from Famous Footwear and another $359.6 million from the company’s brand portfolio. Caleres’ longtime breadwinner, Famous Footwear, also saw same-store sales edge up 1.5% — likely boosted by back-to-school shopping at the mall staple for teen shoppers.

Adjusted profits, meanwhile, improved 5.1% to $25.8 million, or 62 cents per diluted share, besting market watchers’ bets of 58 cents per share. (Caleres’ Q2 results were for the period ended Aug. 3.)

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“During the quarter, we successfully executed on our strategies to strengthen the emotional connections we have with our consumers. Our deep insights, combined with our industry-leading footwear capabilities, allowed us to deliver relevant product, supporting growth in the Brand Portfolio and positive same-store-sales growth at Famous Footwear,” said Caleres president and CEO Diane Sullivan. “A continued focus on expense discipline improved profitability for the quarter. As a company, we remain focused on creating consistent, profitable and sustainable growth over the long term.”

Overall, the firm’s inventory in the first half is up 10.7% to $792.1 million, including $50.7 million in inventory from Vionic, which it acquired in 2018.

Caleres said it returned $35.8 million to shareholders in the first half of 2019, via share repurchases and dividends.

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