The Famous Footwear segment saw net sales drop by 6.7% with comparable sales down by 6.9%, while the Brand Portfolio segment had a net sales decrease of 0.8% and direct-to-consumer sales made up around 73% of total net sales.

Gross profit for the quarter totalled US$340.4 million with a gross margin of 44.7%, while the margin was 44.2% for Famous Footwear and 43.7% for Brand Portfolio. The company reported a net earnings result of US$46.9 million for the quarter.

Looking forward, Caleres expects consolidated net sales to drop by 4.5-5.5% in the full 2023 financial year as a result of the soft consumer demand environment in its Famous Footwear segment.

President and CEO Jay Schmidt said: “The Brand Portfolio once again led the way for Caleres, achieving a sequential improvement in sales and generating record third quarter operating profit and operating margin. Most notably, the segment contributed more than half of total company operating profit through the first nine months of the fiscal year.

“At the same time, Famous Footwear continued to effectively navigate the challenging consumer demand landscape, delivering double-digit operating margin, demonstrating strength in its cornerstone Kids business, and achieving market share growth in shoe chains. Despite near-term macro challenges, we remain confident that Famous is well-situated to grow its leadership position with the Millennial family.”