Caleres on Monday reported third quarter sales grew 2.1 percent to a record $792.4 while same store sales grew 2.5 percent at Famous Footwear, but the company’s otherwise upbeat period was tempered by slightly reducing full-year EPS guidance to reflect tariff impacts.

The company’s brands include Famous Footwear, Sam Edelman, Naturalizer, Allen Edmonds, Vionic, Dr. Scholl’s, Franco Sarto, Veronica Beard, and Ryka.

Here are Caleres’ Q3 highlights:

  • Record third quarter sales of $792.4 million, up 2.1 percent
  • Positive same-store-sales growth of 2.5 percent at Famous Footwear, the eighth consecutive year of positive back-to-school same-store-sales growth
  • Earnings per diluted share of $0.69, up 3 percent, including $0.03 net impact from tariffs
  • Full-year adjusted EPS guidance top-end narrowed by $0.05 to $2.35-$2.40 to reflect tariff impacts

“Our third quarter results demonstrate continued execution against our strategy to broaden the reach of our powerful portfolio and strengthen consumer connections,” said Diane Sullivan, CEO, president and chairman of Caleres. “We delivered our eighth consecutive year of positive back-to-school same-store-sales growth at Famous Footwear and our top brands continued to gain share within the Brand Portfolio. While the demand environment remains dynamic, we are focused on executing on our plan with fresh and compelling inventory and a continued emphasis on cost discipline across the organization.”

Third Quarter 2019 Results Versus Third Quarter 2018

  • Consolidated sales of $792.4 million, up 2.1 percent.
    • Famous Footwear total sales of $446.6 million, with same-store-sales up 2.5 percent.
    • Brand Portfolio sales of $359.9 million, up 4.9 percent.
  • Gross profit of $319.8 million, up 2.9 percent, representing gross margin of 40.4 percent.
  • SG&A expense of $275.3 million, up 3.7 percent, representing 34.7 percent of sales.
  • Operating earnings of $43.5 million, representing operating margin of 5.5 percent.
  • Adjusted operating earnings of $44.4 million, down 5.3 percent, representing adjusted operating margin of 5.6 percent excluding Vionic integration expense.
  • Net earnings of $28 million, resulting in earnings per diluted share of $0.69, up 3 percent, including $0.07 of fair value adjustment associated with the mandatory purchase obligation of Blowfish Malibu and $0.02 of Vionic integration expense.
  • Adjusted net earnings of $31.6 million, resulting in adjusted earnings per diluted share of $0.78, down 3.7 percent, including a $0.03 net impact from increased tariffs in the quarter.

First Nine Months 2019 Results Versus First Nine Months 2018

  • Consolidated sales of $2,222.6 million, up 5.1 percent.
    • Famous Footwear total sales of $1,218.6 million, with same-store-sales up 1.1 percent.
    • Brand Portfolio sales of $1,060.5 million, up 13.8 percent.
  • Gross profit of $905.6 million, up 3.1 percent, representing gross margin of 40.7 percent.
  • Adjusted gross margin of 41.1 percent, excluding $7.2 million related to Vionic inventory adjustment amortization and Brand Portfolio business exit expense.
  • SG&A expense of $805 million, up 3.9 percent, representing 36.2 percent of sales.
  • Operating earnings of $98.1 million, up 3.5 percent, representing operating margin of 4.4 percent.
  • Adjusted operating earnings of $107.7 million, up 1.2 percent, representing adjusted operating margin of 4.8 percent.
  • Net earnings of $62.4 million, resulting in earnings per diluted share of $1.51, down 6.8 percent.
  • Adjusted net earnings of $72.4 million, resulting in adjusted earnings per diluted share of $1.75, down 4.4 percent.

Balance Sheet and Cash Flow

  • Cash and equivalents of $52.5 million and cash from operations of $145.7 million year-to-date.
  • Inventory of $644.6 million, down 7.7 percent year-over-year.
  • Year-to-date capital expenditures of $41.6 million, up 7.4 percent year-over-year.
  • There were $295 million of outstanding borrowings under the revolving credit facility, following the October 18, 2018 acquisition of Vionic.
  • Returned $39.8 million to shareholders in the first nine months of 2019, via share repurchases and dividends.