Footwear giant puts best foot forward in Q2

The parent company of such brands as Famous Footwear, Sam Edelman, and Allen Edmonds topped the Street in its second quarter, fueled by a strong back-to-school selling season.



Caleres reported that its adjusted net earnings rose 4.4% to $20.6 million. Adjusted diluted earnings a share were 48 cents, which topped estimates of 44 cents.



Consolidated sales increased 8.7% to $677 million, topping analysts’ forecasts of $668.9 million. At Famous Footwear, total sales rose 3.8% to $404.9 million, while same-store-sales increased 2.8%.



Caleres' "brand portfolio" sales rose 16.8% to $272, which included a contribution from Allen Edmonds, which the company acquired in December 2016.



“At Famous Footwear, sales were ahead of expectations, including a stronger start to the key back-to-school selling season and – as a result – we delivered second quarter earnings ahead of expectations," said Diane Sullivan, CEO, president and chairman of Caleres. “Additionally, we saw consistent margin expansion, generated steady cash flow, and continued to pay down our revolving credit facility, following the Allen Edmonds acquisition."



The company reiterated its fiscal 2017 guidance, and continues to expect consolidated net sales in the range of $2.7 billion to $2.8 billion, and adjusted diluted EPS of $2.10 to $2.20.



Caleres is made up of a diverse portfolio of global footwear brands, and its products are sold in its 1,200-plus retail stores, along with department stores, specialty stores, its branded e-commerce sites, and on many additional third-party retail websites. Its fashion brands include Sam Edelman, Allen Edmonds, Franco Sarto, Vince, Via Spiga, George Brown Bilt, Diane von Furstenberg, Fergie Footwear and Carlos Santana. Naturalizer, Dr. Scholl’s Shoes, LifeStride, Bzees and Ryka represent its "healthy living" brands.