Caleres Q1 sales, profits surge; increases full-year outlook

By

Benjamin Fitzgerald

Published
May 25, 2022

Caleres announced on Tuesday first quarter sales increased by more than 15%, as the U.S. footwear group recorded its best-ever first quarter performance for sales, gross profit margins and earnings, "despite significant and ongoing macro-challenges."

The St. Louis-based company said sales for the first quarter ending April 30 surged 15.1% to $735.1 million year-over-year. By brand, Famous Footwear sales dipped 3.4% to $384.5 million, overwhelmingly offset by a 46.1% uptick at its brand portfolio, including Sam Edelman, Naturalizer and Allen Edmonds brands, which totalled $365.7 million in sales.

Direct-to-consumer sales represented approximately 65% of total net sales, the company said in a press release.

“Notably, Famous extended its exceptional performance from 2021, achieving another quarter of strong gross profit margin and generating nearly $50 million in operating earnings, while strategically investing for growth," said Diane Sullivan, chairman and chief executive officer.

"In addition, our brand portfolio returned to nearly full strength during the first quarter, setting the stage for a significantly improved earnings contribution in 2022. In fact, our strong product design, diverse and targeted assortments, and bold and strategic approach to inventory drove the best-ever quarterly sales and operating earnings performance for the brand portfolio.”

Profit-wise, Caleres said net income surged to $50.5 million, or earnings of $1.32 per diluted share, from net earnings of $6.1 million, or earnings of $0.16 per diluted share in the same quarter last year.

Looking ahead, Caleres raised its fiscal-year 2022 financial outlook. The company now expects consolidated sales levels to be up between 2% and 5% and expects earnings per diluted share to be between $4.20 and $4.40, "representing another year of record or near-record earnings for the organization."