Caleres accelerates in-house distribution

Brazil
Published:  29 November, 2018
Allen Edmonds men's footwear

The U.S. based global footwear Group says it is updating its 2018 adjusted earnings per share guidance following the third quarter financial results.

Caleres’ consolidated sales in the third quarter of 2018 totalled US$775.8 million, with the Famous Footwear brand same-store-sales were up +2.8%, but total sales down -5.1% to US$448.8 million as “one week of back-to-school sales shifted into the second quarter of this year versus the third quarter of last year”, said the Group. Brand Portfolio sales were US$327.1 million in the quarter, up +8.5% and including the Vionic acquisition. Net earnings were US$29.2 million in the quarter, while diluted earnings per share were US$0.67 and included US$0.14 for charges related to the acquisitions of Allen Edmonds, Blowfish Malibu and Vionic.

In the first nine months of the year, consolidated sales were US$2,114.6 million, with Famous Footwear same-store-sales up 1.7% and Brand Portfolio +4.1%. Net earnings were US$70 million in the period, while diluted earnings per share were US$1.62.

Diane Sullivan, CEO, President and Chairman, Caleres said the Group continued to accelerate the transition to its in-house distribution centre for Brand Portfolio. “While our in-house facility is up and running efficiently, the third-party facility expense has been far greater than expected,” said Sullivan. “In an effort to eliminate the potential for incremental expense going forward, we have committed to exiting this third-party facility immediately following fiscal 2018 shipping. Due to these expenses, and our recent Vionic acquisition, we are updating our 2018 adjusted earnings per share guidance.”

Allen Edmond's woven range

Caleres, whose portfolio of brands include Scholl’s Shoes, LifeStride, Via Spiga, Allen Edmonds and Diane von Furstenberg, expects to report fiscal 2018 adjusted earnings per share of between US$2.25 and US$2.35, including approximately US$0.05 of dilution related to Vionic interest and amortisation expense.