Caleres meets sales, earnings expectations despite fourth quarter promotions
Caleres on Thursday reported its fourth quarter and full year results. The company met its consolidated sales expectations for the year with sales of $2.579.4 million, led by a $1,590.1 million in total sales for Famous Footwear.
Same store sales for Famous Footwear was up 0.6% and Famous.com sales increased over 50%, which offset the brand portfolio sales that fell 1.5% to $989.3 million.
Gross profit was $260.9 million, adjusted operating earnings were $137.2 million, and adjusted net earnings were $86.5 million. The earnings decreased 1.6% from last year.
Caleres acquired Allen Edmonds from Brentwood Associates for $255 million in December. According to Diane Sullivan, CEO, President and Chairman of Caleres, the acquisition was a step in diversifying the company portfolio and increasing its exposure in men’s footwear.
“Throughout 2016," said Ken Hannah, Chief Financial Officer of Caleres, "We continued investing in our business, delivered strong cash from operations of $183.6 million, and maintained the strength and flexibility of our balance sheet, even as we acquired Allen Edmonds.”
In addition to the acquisition, Caleres delivered fourth quarter EPS improvement of 26.9%. Consolidated sales increased 5.1% to $639.5 million, with Famous Footwear increasing 1.9% to $367.5 million and brand portfolio sales jumping 9.6% to $272.0 million.
Fourth quarter adjusted diluted earnings per share were $0.33 and full year adjusted diluted earnings per share met expectations at $2.00. In addition, gross profit for the year was $1,062.0 million.
Caleres expects its fiscal 2017 consolidated net sales to range from $2.7 billion to $2.8 billion and its adjusted earnings per diluted share to be in range of $2.10 to $2.20.
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