Shares of Caleres Inc. were up nearly 5% in after-hours trading on Tuesday after the company reported strong second-quarter results.
The St. Louis-based footwear company, which owns Famous Footwear, Allen Edmonds, Sam Edelman and more brands, reported that Q2 net sales were up 9.3% from last year, coming in at $738.3 million. This beat analysts’ expectations of $735.6 million. Earnings per diluted share were $1.38, ahead of expectations of $1.32.
In a statement on Tuesday, Caleres chairman and CEO Diane Sullivan said the strong results in Q2 were a result of Caleres’ “growing and dynamic portfolio” that managed to “capitalize on robust consumer demand in trending footwear categories.” Sullivan, one of the highest-ranking women in the footwear industry, recently announced she would transition to the executive chairman role next year, as Jay Schmidt takes the reins as CEO. The move is the culmination of a planned succession process.
Caleres reiterated its full-year outlook for 2022 and said it expects consolidated sales to rise between 4% and 6% compared to fiscal year 2021. The company expects earnings per diluted share to be between $4.20 and $4.40, which would mark another record or near-record year of earnings. In 2021, Caleres delivered record adjusted earnings per share that were nearly double the company’s previous all-time high. The company also achieved an all-time record for operating margins and set records with its fourth-quarter results as well.
Sullivan added that Caleres’ diverse portfolio of brands across various markets makes it “well-positioned” to continue to grow, despite current challenges in the macro environment, including headwinds such as inflation and a general uncertainty in consumer spending habits.
In the last few weeks, those headwinds have wreaked havoc on many retail earnings. Executives have noted softening demand in non-discretionary categories amid a highly inflationary environment. Noting the weak consumer demand, Target, Walmart and Kohl’s have recently mentioned canceling or cutting down on orders to stay ahead of their higher-than-usual inventories.
Foot Locker last week reported better-than-expected earnings results for Q2, with net income of $94 million, or 99 cents per share. However, the company cut its fiscal 2022 outlook and now expects total sales to fall between 6% and 7% for the year.