Caleres reports 5.8 percent sales growth in Q3

Caleres said consolidated sales for the third quarter of 774.7 million dollars were up 5.8 percent, including Allen Edmonds.

“Our strong start to the third quarter in August was interrupted by hurricanes in September and an unseasonably warm start to fall in October. While weather-related events had a negative impact to topline sales of approximately $35 million, sales have improved in November, as more seasonal weather arrived. As a result, we are maintaining our fiscal 2017 adjusted EPS guidance,” said Diane Sullivan, CEO, President and Chairman of Caleres in a media statement.

Third quarter results

Famous Footwear total sales of 473.1 million dollars were up 1.1 percent, while back-to-school same-store-sales were up 2.6 percent and third quarter same-store-sales were up 0.9 percent. Brand portfolio sales of 301.5 million dollars were up 14 percent including contribution from Allen Edmonds, which was acquired in December of 2016.

In total, third quarter, the company said, sales were negatively impacted by approximately 35 million dollars, due to the hurricanes in Texas and Florida and the delayed start to the fall boot season. Gross profit was 316.9 million dollars, while gross margin of 40.9 percent was up 79 basis points.

Operating earnings were 52.9 million dollars, while operating margin was 6.8 percent. Net earnings for the quarter were 34.4 million dollars, while diluted earnings per share were 0.80 dollar.

First nine months sales up 7.4 percent

Consolidated sales for the nine month period of 2,083.1 million dollars were up 7.4 percent, including Allen Edmonds. Gross profit of 875.3 million dollars – including 4.9 million dollars of expected fair value inventory adjustment amortization related to the Allen Edmonds acquisition – was up 9.3 percent, while gross margin of 42 percent was up 72 basis points.

Operating earnings were 109.7 million dollars and operating margin was 5.3 percent, while adjusted operating earnings were 118.6 million dollars and adjusted operating margin was 5.7 percent.

Net earnings were 66.9 million dollars, while diluted earnings per share were 1.55 dollars and included 0.13 dollar of charges related to the acquisition, integration and reorganization of men’s brands. Adjusted net earnings of 72.5 million dollars were up 0.2 million dollars, while adjusted diluted earnings per share of 1.68 dollars were up 0.6 percent.

Caleres outlook for 2017 including Allen Edmonds

For the year 2017, Caleres said including Allen Edmonds, consolidated net sales are expected to range between 2.7 billion to 2.8 billion dollars. Famous Footwear same-store-sales are expected to be up low-single digits and brand portfolio sales up high-teens. Gross margin is expected to increase 70 to 80 bps and adjusted earnings per diluted share are anticipated to range between 2.10 dollars to 2.20 dollars.

Picture:Facebook/Allen Edmonds