Footwear firm Caleres’ Q2 sales dip to $695.5 million

Caleres, a US-based footwear company, has reported net sales of $695.5 million in the second quarter of fiscal 2023, a decline of 5.8 per cent from the second quarter of the previous fiscal. Sales in the Famous Footwear segment saw a decrease of 5.1 per cent, with comparable sales dropping 4.3 per cent. Similarly, the brand portfolio segment experienced a 7.2 per cent decline in net sales.

Direct-to-consumer channels continue to be a significant portion of the company’s sales, accounting for approximately 74 per cent of total net sales. On the profitability front, Caleres posted a gross profit of $314.2 million, which equates to a gross margin rate of 45.2 per cent. Within this, the Famous Footwear segment reported a gross margin of 46.2 per cent, while the brand portfolio segment saw a gross margin of 41.3 per cent, Caleres said in a press release.

Selling, general, and administrative expenses accounted for 37.8 per cent of the net sales in Q2 FY23. The company’s net earnings for the quarter were $33.9 million, or $0.95 per diluted share. This marks a decline from $51.2 million, or $1.38 per diluted share, in the same quarter of FY22. Adjusted net earnings, which exclude $0.03 related to expense reduction initiatives, stood at $35.2 million or $0.98 per diluted share.

“The Caleres team performed at a high level during the second quarter, delivering a strong consolidated operating margin and exceeding adjusted earnings per share expectations despite a choppy macro environment,” said Jay Schmidt, president and chief executive officer. “Once again, we gained market share in our lead brands and Famous Footwear.”