American firm Caleres’ sales at $683.3 mn in Q2 FY24

The company’s focus on direct-to-consumer sales remained strong, with this channel representing approximately 75 per cent of total net sales. In terms of profitability, Caleres reported a gross profit of $310.9 million, and its gross margin improved to 45.5 per cent, a 30-basis-point increase from the previous year, the company said in a press release.

Caleres reported Q2 FY24 net sales of $683.3 million, down 1.8 per cent year-over-year.
Famous Footwear sales grew 1.5 per cent, while Brand Portfolio dropped 5.1 per cent.
Gross margin improved to 45.5 per cent.
Net earnings were $30 million, or $0.85 per share, compared to $33.9 million and $0.95 per share in Q2 FY23.
Inventory levels remained stable.

While the Famous Footwear segment’s gross margin declined by 120 basis points to 45.0 per cent, the brand portfolio segment experienced a positive shift, with its gross margin rising by 140 basis points to 42.7 per cent.

Selling, general, and administrative expenses accounted for 39.3 per cent of net sales during the quarter. The company recorded net earnings of $30 million, translating to earnings per diluted share of $0.85. This was a decrease from the $33.9 million in net earnings and $0.95 in earnings per diluted share reported for the second quarter of FY23. On an adjusted basis, the previous year’s net earnings were $35.2 million, or $0.98 per diluted share. Inventory levels remained steady compared to the second quarter of FY23.

“Caleres reported second quarter results that were below expectations. While our brands and products continue to resonate with consumers and we remain confident in our long-term vision, our second quarter results in both segments fell short of our potential. Our systems implementation led to lack of visibility that prevented us from delivering our expected results. We also experienced weak seasonal demand and back-to-school business came later than expected,” said Jay Schmidt, president and chief executive officer.

Fibre2Fashion News Desk (DP)