Caleres just had a record-breaking 2021.
The parent company to Famous Footwear, Sam Edelman, Vince, Dr. Scholl’s Shoes and more delivered record adjusted earnings per share that were nearly double the company’s previous all-time record. Net earnings for fiscal year 2021 were $165.2 million, or adjusted earnings of $4.29 per diluted share. The company also achieved an all-time record for operating margins and set records with its fourth-quarter results as well.
“These excellent results demonstrate the strength of our portfolio of brands, the success of our advanced operating capabilities, the tremendous efforts and talents of our global associates and the significant value-enhancing transformation of the organization,” said chairman and CEO Diane Sullivan.
Shares of Caleres rose modestly after markets closed on Tuesday.
In Q4, Famous Footwear’s sales were up 8.8% compared with the same quarter in 2019, which management attributed to a strong portfolio of high-heat brands and products. Sales at the retail chain grew 15.9% in Q4 compared to fiscal 2020. In fiscal year 2021, Famous Footwear saw a 38.4% increase in sales year-over-year.
Throughout the past year, Famous Footwear has consistently delivered explosive growth for Caleres. Last quarter, Famous Footwear delivered its highest level of Q3 sales in history at about $495 million, which represented a 26.3% sales increase for the retailer.
Sam Edelman, Allen Edmonds, Vionic and Blowfish also delivered strong results in 2021, with each exceeding its Q4 levels of 2019.
“Clearly, fiscal 2021 was an exceptional year for Caleres with the company delivering record adjusted earnings per share,” said Sullivan. “Going forward, given the significant structural changes we have made across a range of critical performance areas, including financial, operational, marketing and logistics, we expect our operating margin rate, return on sales and gross margin rate will exceed historical averages.”
Taking into account inflationary pressures and supply chain challenges, Caleres expects consolidated sales to be flat or up 3% in fiscal year 2022, with earnings per diluted share between $3.75 and $4, which represents a 75% increase above pre-pandemic levels.