Caleres clocks nearly 10% sales dip, reveals cost-cutting measures moving forward
Caleres said on Thursday revenues for the first quarter fell 9.8 percent to $662.7 million, on the back of double-digit dips in both its Famous Footwear and brand portfolio segments, prompting the firm to reduce future costs by some $20 million.
The St. Louis-based footwear company said Famous Footwear segment sales declined 9.2 percent, with comparable sales down 8.5 percent, due to soft consumer demand in shoe chains.
Likewise, brand portfolio segment sales decreased 11 percent, primarily due to the timing of wholesale shipments in first quarter of 2022, to satisfy customer restocking efforts.
During the three months ending April 29, net earnings fell to $34.7 million, or earnings per diluted share of $0.97, compared to net earnings of $50.5 million, or earnings per diluted share of $1.32 in the prior-year per
“The Caleres team delivered a solid financial performance at the upper end of our earnings per share guidance driven by record quarterly profit from the brand portfolio and despite a challenging operating environment at Famous Footwear,” said Jay Schmidt, president and chief executive officer.
“These first quarter results underscore the value of our diversified structure, the strength of our omnichannel capabilities and the power of our portfolio.”
As a result of the more challenging operating environment, Caleres said it has taken several steps to reduce expenses across its business, including the elimination of open corporate positions, the reduction of non-merchandise procurement costs, and the lowering of depreciation expenses, resulting in $20 million of in-year savings.
For fiscal 2023, the company is expecting full-year diluted earnings per share of $4.02 to $4.22, inclusive of the $4 million one-time charge associated with expense reduction actions in the second quarter.
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