Shares for Caleres Inc. continue to soar on the heels of a better-than-expected second-quarter performance.
Ahead of Wednesday’s market open, as of 8:45 a.m. ET, the firm’s stock had climbed nearly 5% to $9.18.
The St. Louis-based parent to Famous Footwear, Sam Edelman, Naturalizer and other footwear brands posted on Tuesday afternoon Q2 revenues of $501.4 million, a 33% decline over the same period last year, but handily topping Wall Street’s $450.1 million estimate.
Although the company posted an adjusted net loss of $21.1 million, or 57 cents per share, compared to adjusted net income of $25.8 million, 62 cents per share, in the comparable period, those results were significantly better than market watchers’ expectations for a $1.02 per share loss.
By division, Famous Footwear notched a 21% sales decline but saw comparable sales advance 15% during the period ended Aug. 1. Meanwhile, sales at the Brand Portfolio tumbled 49%.
As has been the trend for companies forced to accelerate their digital strategies amid COVID-19 challenges, Caleres saw e-commerce sales jump more than 30%, with total company ecommerce penetration rising to nearly 34% of net sales.
At the end of Q2, direct-to-consumer sales represented 80% of total net sales.
In a statement Tuesday, Caleres president, chairman and CEO Diane Sullivan touted the company’s ability to navigate a “choppy market environment,” as it restarted its retail store fleet, leaned into e-commerce and worked to manage down expenses.
“Even with the ongoing market impacts of the virus, Caleres took significant steps during the quarter to strengthen the business, improve the balance sheet, leverage our capabilities and lay the foundation for a continuing recovery of our business in the year’s second half,” Sullivan added.
Still, Caleres’ chief noted the company continues to expect an “unpredictable” latter part of the year but is “managing our business for the long term while at the same time remaining nimble to adapt to unanticipated challenges that may arise during this unusual year.”
She continued, “We believe our diverse portfolio of brands that are well-aligned with consumer trends, advanced capabilities and improving capital structure will lead us through the recovery and position Caleres to embrace rapidly changing consumer behaviors and capitalize on the increasingly dynamic marketplace.”