It was another successful quarter for Caleres, the footwear giant behind Famous Footwear, Sam Edelman, Vince, Dr. Scholl’s Shoes, and more brands.
Caleres posted record results for the third quarter, with net sales of $784.2 million, up 21.1% from Q3 of 2020. Net income was about $59.6 million, with an earnings per diluted share of $1.54. Adjusted net income was about $61.5 million.
The company also generated record quarterly sales at Famous Footwear, the brand that has consistently delivered explosive growth for the company. Famous Footwear delivered its highest level of Q3 sales in history at about $495 million, which represents a 26.3% sales increase in the brand.
“Caleres achieved another record performance in the quarter just ended, driven principally by continued, exceptional upward momentum in our Famous Footwear business,” said Diane Sullivan, Chairman and CEO. “As robust consumer demand dynamics continue to accelerate, we fully expect the ongoing recovery in the Brand Portfolio to be an increasingly strong complement to the ongoing success at Famous Footwear in the quarters ahead.”
Like other family footwear chains, Famous Footwear is seeing positive results this quarter. Shoe Carnival on Tuesday posted record-breaking quarterly sales, earnings, and profit, with net sales of $356.3 million.
Brands across dress and athletic are fueling this success. In an interview with FN Caleres president Jay Schmidt highlighted Caleres-owned brands such as Sam Edelman, Allen Edmonds, and Ryka.
“The Nike business has been very strong for us really throughout the year,” added Famous Footwear president Mike Edwards in an interview with FN. Nike is set to cut ties with a variety of stores in 2022, leaving retailers such as DSW, Zappos, Dillard’s, Urban Outfitters and Shoe Show without access to products from one of the largest athletic footwear makers.
“Our customer loves the Nike brand, and the fact that we’re going to continue to be a retail partner of Nike is exciting to both us and to them,” Edwards said.
In addition to a strong assortment of brands, an inflationary environment is allowing Caleres to accelerate its plans to diminish promotions overall. However, the company is taking cues from the consumer to understand where such price changes might make sense. As Schmidt explained, “We’re not just doing a one size fits all.”
In light of its quarterly results, Caleres raised its full year outlook and now expects record adjusted earnings per share between $3.80 and $3.90 for fiscal year 2021.
“We have what we believe is plenty of runway as we go into 2022,” said Schmidt. “So our focus on brand building, great product and bringing it to the consumer as quickly as we can, we think, is going to have a nice rebound as we go into 2022.”