Caleres reports 0.5 percent increase in Q3 net sales

Net sales of 732.2 million at Caleres were up 0.5 percent, as the company said Famous Footwear experienced a solid back-to-school season. Gross margin increased 53 basis points to 40.1 percent, driven by brand portfolio, while operating margin was up 41 basis points to 7.6 percent. Reported diluted EPS for the quarter was 0.81 dollar versus 0.78 dollar and adjusted diluted EPS of 0.80 dollar in the prior year.

“Despite a somewhat choppy environment, our third quarter performance – with improvement in sales, margins, earnings, and cash from operations – further confirms our portfolio strategy is working as intended and delivering shareholder value,” said Diane Sullivan, CEO, President and Chairman of Caleres in a company release.

Third quarter segment results

Famous Footwear same-store-sales were up 2.1 percent, with the back-to-school season up 2.7 percent and total sales up 2.6 percent. The company opened 16 new stores and operated seven more stores year-over-year.

Brand portfolio sales were down 3 percent, with growth at Contemporary Fashion offset by planned reductions in Healthy Living. Gross margin increased over 300 basis points to 37.5 percent, benefitting from higher initial margin and better retail sell-through rates.

Net sales in the first nine months down 1.5 percent

Net sales of 1,939.9 million dollars were down 1.5 percent during the nine months period, due in part to planned reductions in Healthy Living. Gross margin was up 68 basis points to 41.3 percent. Diluted EPS stood at 1.67 dollars.

Same-store-sales at Famous Footwear increased 0.7 percent, with total sales up 0.9 percent. Gross margin of 44.2 percent, reflected higher shipping costs related to increased sales at famous.com and the ship-from-store program. The company opened 37 new stores and closed 32 during the period.

Brand Portfolio sales were down 5.2 percent, with growth at Contemporary Fashion offset by expected declines in Healthy Living. Gross margin improved 230 basis points to 36.3 percent.

Reveals outlook for FY16

For the fiscal year 2016, the company expects consolidated net sales to be in the range of 2.57 billion to 2.60 billion dollars. Famous Footwear sales are expected to be between flat to up low-single digits, while Brand Portfolio sales to be between flat to down low-single digits. Gross margin is expected to be up by 25 to 35 bps and earnings per diluted share are anticipated to range from 2 to 2.10 dollars.

Picture:Facebook/Famous Footwear,Levis