Caleres reports Q3 revenue drop, lowers full-year outlook (#1684606)

Caleres said on Thursday revenues for the third quarter fell 2.8% to $740.9 million, on the back of a dip in its Famous Footwear segment. 

The St. Louis-based footwear company said brand portfolio segment net sales increased 0.7%, offset by a Famous Footwear segment sales decrease of 4.8%. 

Direct-to-consumer channels continue to be a significant portion of the company’s sales, accounting for approximately 72% of total net sales.

During the 13-weeks ended November 2, net earnings dipped to $41.4 million, or earnings per diluted share of $1.19, compared to net earnings of $46.9 million, or earnings per diluted share of $1.32 in the third quarter 2023. 

“The third quarter saw progress toward our strategy highlighted by the Brand Portfolio delivering growth, Famous Footwear delivering positive comparable store sales, and both segments increasing market share. That said, performance was below our expectations reflecting softer seasonal demand in the boot category, late receipts of key athletic product at Famous Footwear, and a discrete customer credit issue that impacted shipments. In addition, our business in China was also weaker than planned,” said Jay Schmidt, president and chief executive officer.

“As we begin the fourth quarter, our strategies are working to drive market share and we are aligning our expenses with expected sales, while appropriately investing behind areas of the business that are expected to deliver a strong ROI.” 

Looking ahead, Caleres lowered its fiscal 2024 outlook and now expects net sales to be down 2.5% to 3%. For fiscal 2024, the company is expecting full-year diluted earnings per share of $3.35 to $3.45, versus prior guidance of $3.94 to $4.09.