ST. LOUIS - Footwear retailer Caleres (NYSE:CAL) saw its shares tumble 15.66% in premarket trading on Thursday after reporting third quarter results that fell short of expectations and significantly lowering its full-year outlook.
The company posted adjusted earnings per share of $1.23 for Q3, missing analyst estimates of $1.38. Revenue came in at $740.9 million, below the consensus forecast of $753.81 million and down 2.8% YoY.
Caleres slashed its fiscal 2024 earnings guidance to $3.45-$3.55 per share, well below its previous outlook of $4.00-$4.15 and the analyst consensus of $4.03. The company now expects full-year net sales to decline 2.5-3%, compared to its prior forecast for a low-single-digit percentage drop.
CEO Jay Schmidt cited "softer seasonal demand in the boot category, late receipts of key athletic product at Famous Footwear, and a discrete customer credit issue that impacted shipments" for the weaker-than-expected Q3 performance. He added that business in China was also weaker than planned.
Famous Footwear sales declined 4.8% YoY in Q3, though comparable store sales rose 2.5%. The Brand Portfolio segment saw a modest 0.7% sales increase.
"As we begin the fourth quarter, our strategies are working to drive market share and we are aligning our expenses with expected sales," Schmidt stated. However, he noted the company has reduced its outlook as it expects recent sales trends to continue and anticipates pressure on gross margins.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.