Caleres lowers sales and earnings forecast

Caleres reported sales of 683.3 million dollars for the second quarter, down 1.8 percent.

Caleres has lowered fiscal 2024 outlook of net sales to down low-single-digits percent versus previous guidance of flat to up 2 percent; and earnings per diluted share to 3.94 dollars to 4.09 dollars versus prior guidance of 4.30 dollars to 4.60 dollars and provides guidance for adjusted earnings per diluted share of 4 dollars to 4.15 dollars.

“Caleres reported second quarter results that were below expectations. Our systems implementation led to lack of visibility that prevented us from delivering our expected results. We also experienced weak seasonal demand and back-to-school business came later than expected,” said Jay Schmidt, president and chief executive officer.

Famous Footwear sales increased 1.5 percent with a later than expected back- to-school season; and Brand Portfolio sales declined 5.1 percent due to operational reporting challenges and pockets of weak seasonal demand.

The company improved second quarter consolidated gross margin rate to 45.5 percent, up 30 basis points and reported 85 cent in earnings per share for the quarter, below expectations; and generated EBITDA of 57.2 million dollars.