Caleres, the parent of Famous Footwear and a number of wholesale footwear brands, reported preliminary fourth-quarter 2019 net sales results.
Consolidated net sales are expected to reach approximately $700 million, down 3 percent. Famous Footwear net sales are expected to be approximately $370 million, with same-store sales up 5.1 percent. Brand Portfolio net sales are expected to be approximately $346 million, down approximately 9 percent.
“During the fourth quarter, we saw continued shifts in the underlying fashion footwear market. Our brands performed well in the direct to consumer channels, including Famous Footwear which had same-store-sales up 5.1 percent in the fourth quarter. However, holiday sales at a number of our retail partners were disappointing and our selling in the value channel has been difficult. Retail partners continue to tightly manage inventory levels and limit reordering and replenishment,” said Diane Sullivan, CEO, president and chairman of Caleres.
In response to these market dynamics, resources are being reallocated to focus on the growing portions of the business and drive new brands and products. In the fourth quarter, the company completed a Voluntary Early Retirement Program and took other restructuring actions resulting in anticipated annualized savings of $8 to $10 million.
The implications of the coronavirus on the business are being closely monitored and an assessment will be provided on the March 12 earnings call. Caleres’ Brand Portfolio segment sources approximately 60 percent of its footwear from China. The near-term impact will ultimately depend on the duration of the delays in Chinese factory openings and how quickly the supply chain can return to normal operations.
The company plans to release its fourth quarter and full-year 2019 financial results and provide an initial 2020 outlook on Thursday, March 12, 2020, at 4:30 p.m. ET.
Photo courtesy Famous Footwear