Caleres shares soar after best Q1 sales performance – Footwear News
Shares of Caleres Inc. rose nearly 12% in aftermarket trading today after a strong first quarter.
The St. Louis-based shoe company reported net sales of $735.1 million in the quarter, up 15.1% from the first quarter of fiscal 2021. Net income rose rose to $50.5 million from $6.1 million in the same period last year. (The company, which posted earnings per diluted share of $1.32, beat analysts’ estimates of 83 cents per share.)
In a statement on Tuesday, Caleres President and CEO Diane Sullivan said the company maintained its “strong momentum” from 2021, delivering its “best” first quarter performance for sales, gross profit margins and profits.
“Caleres had an outstanding start to the year, executing at a strong level and delivering record first quarter sales, gross profit margins and earnings despite significant and ongoing macro challenges,” Sullivan said in a statement. . “Notably, Famous (Footwear) extended its stellar performance from 2021, achieving another quarter of strong gross profit margin and generating nearly $50 million in operating profit, while strategically investing for growth.”
While Famous Footwear achieved a strong gross profit margin, the business segment recorded a 3.4% sales decline in the first quarter. This was offset by a 46.1% increase in sales in the company’s brand portfolio segment.
Sullivan said on a conference call that Caleres’ “strategic approach” to inventory helped drive sales this quarter. The company said its inventory levels were up around 45% year-over-year, reflecting continued efforts to align inventory with consumer demand and including increased inventory in transit resulting from delays. in ports and prolonged transport time.
Given the strong start to the year, Caleres said it is raising its financial outlook for fiscal year 2022. Specifically, the company now expects consolidated sales levels to increase between 2% and 5% per year. compared to fiscal 2021 and expects earnings per diluted share to be between $4.20 and $4.40.
“Looking ahead, even with the current supply chain challenges and persistent macro headwinds, Caleres is exceptionally well positioned to capitalize on favorable market momentum,” Sullivan said. “As we move forward through the year, we are committed to advancing our strategic priorities and have redoubled our efforts to unlock identified growth opportunities across the business.