- Prachi Singh |
For the fourth quarter, Caleres consolidated sales of 639.5 million dollars were up 5.1 percent. The company said, Famous Footwear total sales of 367.5 million dollars, increased 1.9 percent, while same-store-sales were up 0.3 percent. For the fiscal 2016, consolidated sales were 2,579.4 million dollars, while Famous Footwear total sales of 1,590.1 million dollars were up 1.1 percent. Same-store-sales increased 0.6 percent.
“Despite a promotional and challenging retail environment in the fourth quarter, we maintained our consistent approach of managing the areas under our control while continuing to rapidly respond to changing consumer shopping behaviours,” said Diane Sullivan, CEO, President and Chairman of Caleres in a statement, adding, “We expect to see continued pressure in retail based on the current environment.”
Review of fourth quarter results
Famous.com sales increased nearly 40 percent to 8.2 percent of total sales and Brand Portfolio sales of 272 million dollars were up 9.6 percent, which the company said, included approximately six weeks of contribution from Allen Edmonds, which was acquired in December of 2016.
Gross profit was 260.9 million dollars, while gross margin of 40.8 percent was up 4 basis points. Famous Footwear gross margin of 44 percent was down 148 basis points, reflecting product mix shift within the boot category and sales growth at famous.com but Brand Portfolio gross margin of 36.4 percent was up nearly 260 basis points, benefitting from higher volume and improved mix.
Net loss stood at 6.6 million dollars, with a loss per diluted share of 0.16 dollar. Adjusted net earnings of 14.3 million dollars were up 25 percent, while adjusted diluted earnings per share of 0.33 dollar, increased 26.9 percent.
Fiscal 2016 results highlights
Famous.com sales for the year increased over 50 percent to 5.9 percent of total sales, while Brand Portfolio sales of 989.3 million dollars were down 1.5 percent.
Gross profit was 1,062 million dollars. Gross margin of 41.2 percent was up 52 basis points. Famous Footwear gross margin of 44.2 percent was down 75 basis points, while Brand Portfolio gross margin of 36.3 percent was up nearly 240 basis points, benefitting from better inventory management and a shift away from the lower margin mass channel.
Operating earnings were 111 million dollars, with operating margin of 4.3 percent. Adjusted operating earnings of 137.2 million dollars were up 1.5 percent, and adjusted operating margin of 5.3 percent, was up 8 basis points. Net earnings were 65.7 million dollars, with diluted earnings per share of 1.52 dollars. Adjusted net earnings of 86.5 million dollars were down 1.6 percent and adjusted diluted EPS of 2 dollars was flat on last year.
“For the fourth quarter, we delivered solid adjusted EPS improvement of 26.9 percent over last year, despite a highly promotional and challenging retail environment,” added Ken Hannah, CFO of Caleres.