Caleres, a leading footwear company, announced strong second-quarter earnings, exceeding expectations and maintaining its financial targets for the full year.
Impressive Performance and Positive Outlook
In the latest quarter, Caleres reported earnings of $33.9 million, or 95 cents per share. Although this is a decline compared to the same period last year ($51.2 million, or $1.38 per share), the adjusted per-share earnings of 98 cents surpassed both the company’s forecast (79 cents to 84 cents) and analyst estimates of 88 cents.
While sales for the 13-week period ending July 29 decreased by 5.8% to $695.5 million, falling slightly short of the company’s target of a 4% to 5% decline and analyst predictions of $704.9 million, Caleres remains optimistic.
Full-Year Guidance Reaffirmed
Caleres reaffirmed its guidance for full-year earnings, projecting a range of $4.02 to $4.22 per share. This includes $4 million in restructuring charges as part of ongoing efforts to reduce costs. Adjusted per-share earnings for the year are expected to fall between $4.10 and $4.30. The company also maintained its forecast of a 3% to 5% decline in sales for the year.
Third Quarter Expectations
Looking ahead to the third quarter, Caleres anticipates earnings per share ranging from $1.25 to $1.30, or $1.30 to $1.35 on an adjusted basis. Sales are projected to experience a low-single digit decline.
This positive news has prompted a 14% increase in Caleres’ stock price, bringing it to $28.17 as of morning trading and achieving a year-to-date gain of 26%.