Caleres, Inc. (NYSE: CAL), a global footwear company, reported a sales decline in its third quarter and lowered its guidance for the full year on Wednesday..
Sales for the three months ended October 30, 2023, decreased by 4.8% to $703.2 million from $741.5 million in the same period in the previous year. Footwear sales fell by 4.5% to $616.4 million, while accessories and other sales declined by 6.5% to $86.8 million..
The company’s net income dropped by a significant 68.2% to $18.6 million from $58.7 million a year ago. This downturn resulted in a decrease in diluted earnings per share from $1.11 in Q3 2022 to $0.35 in Q3 2023..
Caleres CEO Diane Sullivan attributed the sales decline to several factors, including:.
– Economic uncertainty and inflationary pressures affecting consumer spending..
– Unseasonably warm weather in key markets, negatively impacting demand for boots and other cold-weather footwear..
– Continued supply chain disruptions, leading to inventory challenges and increased costs..
Despite these challenges, Caleres saw growth in its e-commerce channel, with sales increasing by 8.4% year-over-year. The company also made progress in its strategic initiatives, including the expansion of its Famous Footwear and Naturalizer brands internationally..
In light of the Q3 results, Caleres updated its guidance for the full year 2023. The company now expects net sales to be in the range of $2.725 billion to $2.775 billion, compared to the previous range of $2.800 billion to $2.850 billion. Adjusted diluted earnings per share are projected to be between $2.05 and $2.15, down from the prior estimate of $2.25 to $2.35..
Caleres’ sales decline in Q3 and reduced guidance reflect the ongoing challenges faced by the footwear industry amid economic uncertainty and supply chain disruptions. However, the company’s e-commerce growth and strategic initiatives position it for long-term success..
