Nov 21, 2018
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Caleres lowers earnings expectations

Nov 21, 2018

Missouri-based footwear and accessories company Caleres lowered its earnings expectations for the year on Tuesday, after announcing mixed third-quarter results. 

Caleres lowers earnings expectations. - Facebook: Famous Footwear

The company reported total consolidated sales of $775.8 million for the third quarter. Famous Footwear led growth with sales of $448.8 million, down 5.1 percent, as one week of back-to-school sales shifted into the second quarter of the year, compared to the third quarter of last year. Meanwhile, its same-store-sales were up 2.8 percent. 
Sales in the company’s brand portfolio rose 8.5 percent in the quarter to $327.1 million. 

Commenting on the results in a release, Caleres CEO Diane Sullivan highlighted that, among the brand’s in the company’s portfolio, she was especially excited about the addition of Vionic, which was acquired last month: “[…] we announced the acquisition of Vionic, a strong consumer demand brand, which has demonstrated solid growth over the past six years and is expected to be accretive to adjusted EPS in 2019.” 
Caleres’ total profits declined 15 percent to $29.2 million, or 67 cents per diluted share. On adjusted basis, however, earnings improved 1.6 percent year over year to $34.9 million, or 81 cents per share. 
“Famous Footwear delivered its seventh consecutive year of positive back-to-school same-store-sales, while Brand Portfolio showed sales improvement of 8.5 percent, as our top brands continued to take consumer share in the market,” said Sullivan, in a news statement. 
Still, Sulivan said that full year profit will take a hit due to its new third-party facility. 
“While our in-house facility is up and running efficiently, the third-party facility expense has been far greater than expected,” explained Sullivan. “In an effort to eliminate the potential for incremental expense going forward, we have committed to exiting this third-party facility immediately following fiscal 2018 shipping. Due to these expenses, and our recent Vionic acquisition, we are updating our 2018 adjusted earnings per share guidance.”
The company now expects fiscal 2018 adjusted earnings per share of between $2.25 and $2.35, compared to its previous guidance of $2.40 to $2.50. It expects full-year consolidated sales of $2.85 billion, compared with a prior outlook of $2.8 billion. 

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