Caleres Q2 consolidated sales improve 8.7 percent

Caleres second quarter consolidated sales of 677 million dollars were up 8.7 percent, including Allen Edmonds, while Famous Footwear total sales of 404.9 million dollars were up 3.8 percent and same-store-sales were up 2.8 percent. Brand portfolio sales for the quarter of 272 million dollars were up 16.8 percent including contribution from Allen Edmonds, which was acquired in December of 2016.

“In the second quarter, we delivered solid sales improvement across both sides of our business, with Famous Footwear same-store-sales up 2.8 percent and brand portfolio sales up 16.8 percent,” said Diane Sullivan, CEO, President and Chairman of Caleres in a statement, adding, “Additionally, we saw consistent margin expansion, generated steady cash flow, and continued to pay down our revolving credit facility, following the Allen Edmonds acquisition.”

Second quarter gross profit up 10.8 percent

The company said, gross profit of 287.5 million dollars – including 1.9 million dollars of expected fair value inventory adjustment amortization related to the Allen Edmonds acquisition – was up 10.8 percent and gross margin of 42.5percent was up 80 basis points.

Operating earnings were 31.1 million dollars and operating margin was 4.6 percent, while adjusted operating earnings were 35.9 million dollars and adjusted operating margin of 5.3percent was up 12 basis points.

Net earnings were 17.6 million dollars, while diluted earnings per share were 0.41 dollar and included 0.07 dollar of expected charges related to the acquisition, integration and reorganization of men’s brands. Adjusted net earnings of 20.6 million dollars were up 4.4 percent, while adjusted diluted earnings per share of 0.48 dollar were up 4.3 percent.

Sales increased 8.3 percent in the first half

Consolidated sales in the first half of 1,308.5 million dollars were up 8.3 percent, including Allen Edmonds. Gross profit of 558.4 million dollars– including 4.9 million dollars of expected fair value inventory adjustment amortization related to the Allen Edmonds acquisition – was up 10.1percent and gross margin of 42.7 percent was up 66 basis points.

Operating earnings for the period were 56.8 million dollars and operating margin was 4.3 percent, while adjusted operating earnings were 65.7 million dollars and adjusted operating margin was 5 percent. Net earnings were 32.5 million dollars, while diluted earnings per share were 0.75 dollar and included 0.13 dollar of expected charges related to the acquisition, integration and reorganization of men’s brands. Adjusted net earnings of 38.1 million dollars were up 1.4 percent, while adjusted diluted earnings per share of 0.88 dollar were up 2.3 percent.

Caleres reveals outlook for FY17

For the fiscal year 2017, Caleres expects consolidated sales to range between 2.7 to 2.8 billion dollars, including Allen Edmonds. Famous Footwear same-store sales are expected to increase low-single digits and brand portfolio sales to be up high-teens. The company expects gross margin expansion of 45 to 55 bps and adjusted earnings per share to be between 2.10 to 2.20 dollars.

The company also declared 378th consecutive quarterly dividend, with 0.07 dollar per share payable on October 2, 2017.

Picture:Facebook/Famous Footwear