Caleres Stock Climbing 2% Despite Slow Sales for ‘Famous Footwear’

Caleres Stock

On Monday this week, footwear owner Caleres Inc. (NYSE:CAL) released its Q1 financial report and Caleres stock dropped. The St. Louis-based firm reported better-than-expected first-quarter sales but warned of slow days ahead for its ‘Famous Footwear’ retailer.

The warning sent Caleres stock down more than 3%. The next day told a different story, however, as shares bounced back and hit a high of $20.75 in early trade.

Prices have corrected once again and currently, CAL stock is trading for $19.79 USD, up 2% on the NASDAQ.

Caleres Stock

With a market cap of roughly $836 million, small-cap Caleres is the parent company of popular footwear labels Sam Edelman, Naturalizer, and Vionic, among others.

Its recent report saw it beat analyst expectations. Consolidated sales for the period grew more than 7% to $677.8 million; over 3 million better than the predicted $673.2 million.

Enter Your E-mail Address To Subscribe

* indicates required
 

But on the flipside, revenue at its outlet Famous Footwear dipped 3% year-over-year. Net revenue came in at $352.2 million, and alongside this, same-store-sales were down 1%. The retailer had a poor February in particular; possibly due to delayed and lower tax returns for many Americans.

>> PTI Stock Jumps As EU Grants Orphan Drug Designation

Will Famous Footwear Affect Caleres Stock?

March and April were better, with the store reporting positive same-store-sales, but despite this, the company is warning about business slowing in Q2.

Caleres CEO Diane Sullivan said the following:

“Going forward, we expect to see softness at Famous Footwear through at least the second quarter, as we continue to prepare for back-to-school by aggressively clearing underperforming inventory.”

Caleres Stock Moving Forward

The firm is now reducing its outlook for the year, bringing the mid-point for earnings growth down to 9%, from 13%.

Sullivan continued that this new rate “more accurately reflects industry challenges to date and gradual improvement over the balance of the year.”

Despite a slower patch for Famous Footwear, overall sales from Caleres’s portfolio of brands has been impressive. Its portfolio of 12 names saw increased sales of 20%, netting the company $341.1 million.

The company’s Q1 adjusted net income totaled $15 million or $0.36 per share. What are your thoughts on Caleres stock moving forward?

>> Read More Consumer News

Featured Image: DepositPhotos © cozyta