Caleres sales fall nearly 2% in Q2, updates guidance

Caleres said on Thursday revenues for the second quarter fell 1.8% to $683.3 million, on the back of a dip in its brand portfolio segment. 

The St. Louis-based footwear company said Famous Footwear segment sales increased 1.5% versus the second quarter of 2023, offset by a brand portfolio segment sales decrease of 5.1%. 

Direct-to-consumer channels continue to be a significant portion of the company’s sales, accounting for approximately 75% of total net sales.

During the three months ended August 3, 2024, net earnings dipped to $30 million, or earnings per diluted share of $0.85, compared to net earnings of $33.9 million, or earnings per diluted share of $0.95 in the second quarter 2023. 

“Caleres reported second quarter results that were below expectations. While our brands and products continue to resonate with consumers and we remain confident in our long-term vision, our second quarter results in both segments fell short of our potential. Our systems implementation led to lack of visibility that prevented us from delivering our expected results. We also experienced weak seasonal demand and back-to-school business came later than expected,” said Jay Schmidt, president and chief executive officer. 

“Despite the sales miss, our gross margin remained strong, driven by the Brand Portfolio. At the same time, Famous Footwear gained market share in the strategically important Kids category. Furthermore, back-to-school sales surged in August bringing the season in total in-line with our expectations.”

Looking ahead, Caleres lowered its fiscal 2024 outlook and now expects net sales to be down low-single-digits percent versus previous guidance of flat to up 2 percent. For fiscal 2024, the company is expecting full-year diluted earnings per share of $3.94 to $4.09 versus prior guidance of $4.30 to $4.60.