Caleres Inc (NYSE: CAL) stock fell 0.30% on 4th September 2018 after the company in the second quarter of FY 18 has reported the adjusted earnings per share of 59 cents, missing the analysts’ estimates for the adjusted earnings per share of 60 cents. The company had posted the adjusted revenue growth of 4.4 percent to $706.61 billion in the second quarter of FY 18. Famous Footwear total sales of $429.5 million were up 6.1% driven by lifestyle athletic styles and sandals, while same-store-sales were up 2.6% due to improvements in traffic, conversions and pairs per transaction. Brand Portfolio sales of $277.1 million were up 1.9%. E commerce related sales improved in the second quarter as well and represented 10% of total sales, up about 15% of the solid base.
Moreover, in the second quarter 2018, the Women’s lifestyle athletic category performed even better with comp sales up more than 20%. In the total adult athletic segment, that comped at mid single digits with lifestyle athletic again up more than 10%. Kids section was down to low single digits as growth in athletic could not offset declines in nonathletic. In the second quarter also consumers continue to shop their way with more than 23 million people visiting CAL’s stores and leaving with approximately 9 million pairs of shoes. Nearly 500,000 pairs of shoes were shipped directly to consumers from the stores, while more than 300,000 pairs were individually processed at the distribution centers, including the facility in Lebanon, Tennessee.
For the second quarter, Famous delivered record second quarter operating profit, up 32.4% and an operating margin of 7.7%, up more than 150 basis points.
Additionally, five of the Women’s brands gained market share, with growth rates ranging from mid single digits all the way up to a market share gain of more than 40% for Dr. Scholl’s. Sport inspired styles helped fuel the improvement in the brand portfolio with the majority of the brands growing sales in this key category double-digit and even triple digits. Sandals had an outstanding quarter with sales up more than 20%.
Meanwhile, this spring, the company has relocated all consumer facing activities to St. Louis and the company is in the middle of launching a rebranding effort, all designed on making Allen Edmonds a better American luxury brand. The company has refreshed the brand strategy and storytelling. CAL has added new merchandise like the something called the artisans of freedom, apparel and accessories collections, which are American-made brand enhancing and differentiated, and the customers will be able to see them in the stores in the next 30 days. Further, the company’s new television campaign will roll out the last week of September.