Footwear retailer Caleres' Q2 sales beat estimates on gains across brands
CAL•Outlook and analyst coverage
Caleres expects third-quarter net sales to rise in the low-single digits and sees GAAP EPS of $0.62 to $0.70.
For the full year, the company expects net sales to rise in the low-to-mid-single digits and GAAP EPS of $2.80 to $2.95. Caleres raised the lower end of its full-year adjusted EPS guidance to $1.50-$1.65 from $1.40-$1.65.
The current average analyst rating on the shares is "buy," with one "strong buy" or "buy," one "hold" and no "sell" or "strong sell." The median 12-month price target is $17.00, about 41.3% above its Sept. 8 closing price of $12.03.
Q2 sales and earnings beat expectations
Footwear retailer Caleres said its U.S. footwear brand portfolio's second-quarter sales rose 5.6% year over year, beating analyst expectations.
Adjusted EPS exceeded the company's expectations.
Brand Portfolio gains offset Famous Footwear weakness
The company said broad-based gains across brands, channels and geographies drove strong sales and margin expansion in Brand Portfolio.
Reported gross margin was boosted by $55.6 million in tariff refunds, while adjusted gross margin also improved.
Famous Footwear sales declined 6.3%, which Caleres said was impacted by a later Back-to-School season and weak demand for lifestyle athletic products.
