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Caleres is lowering its yearly guidance after reporting performance below its expectations in the third quarter of 2024.<\/p>\n
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According to the St. Louis-based footwear company, net sales in Q3 were $740.9 million, down 2.8 percent from $761.9 million in the third quarter of 2023. Net earnings in the third quarter $41.4 million, or earnings per diluted share of $1.19, compared to net earnings of $46.9 million, or earnings per diluted share of $1.32, in the same period last year.<\/p>\n
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By business segment, Caleres reported that net sales at Famous Footwear<\/a> decreased 4.8 percent, with comparable store sales up 2.5 percent. The company\u2019s brand portfolio segment saw net sales increase 0.7 percent.<\/p>\n <\/p>\n <\/p>\n These results missed the company\u2019s Q3 guidance, which were expected to see net sales between flat for the period to down 2 percent. Earnings per diluted share in Q3 were expected to be between $1.24 and $1.34.<\/p>\n <\/p>\n <\/p>\n The miss led to the company\u2019s stock dipping nearly 19 percent in pre-market trading on Thursday.<\/p>\n <\/p>\n <\/p>\n Jay Schmidt<\/a>, president and chief executive officer of Caleres, said in a statement on Thursday that performance in the quarter was due to \u201csofter seasonal demand in the boot category<\/a>, late receipts of key athletic product at Famous Footwear, and a discrete customer credit issue that impacted shipments.\u201d The company\u2019s business in China was also weaker than planned in Q3, the CEO noted.<\/p>\n <\/p>\n <\/p>\n Despite the lower sales, Schmidt remains confident in the business. \u201cThe third quarter saw progress toward our strategy highlighted by the Brand Portfolio delivering growth, Famous Footwear delivering positive comparable store sales, and both segments increasing market share,\u201d he said.<\/p>\n <\/p>\n <\/p>\n \u201cAs we begin the fourth quarter, our strategies are working to drive market share and we are aligning our expenses with expected sales, while appropriately investing behind areas of the business that are expected to deliver a strong ROI,\u201d Schmidt continued.<\/p>\n <\/p>\n <\/p>\n Looking ahead, the company is lowering its full-year outlook as it expects its season-to-date sales trend to continue in the final quarter of the year and anticipates pressure on its gross margin as it takes action to move through excess inventory in order to position itself well for 2025.<\/p>\n <\/p>\n <\/p>\n