Footwear company Caleres' Q3 profit drops 96%, forecasts FY loss

Reuters12-09
Footwear company Caleres' Q3 profit drops 96%, forecasts FY loss

Overview

  • Caleres reports Q3 net income of $1.4 mln, down 96.5% yr/yr

  • Revenue rises 6.6%, beating analysts' expectations

  • Adjusted EPS drops to $0.38 from $1.23 last year

  • Stuart Weitzman acquisition boosts revenue but pressures earnings

Outlook

  • Caleres expects full-year GAAP loss per share between $0.13 and $0.18

  • Company anticipates adjusted EPS for fiscal 2025 between $0.55 and $0.60

  • Caleres sees continued tariff pressure on gross margin and earnings

Result Drivers

  • BRAND PORTFOLIO GROWTH - Brand Portfolio sales increased 18.8%, driven by Stuart Weitzman contribution and organic growth

  • E-COMMERCE MOMENTUM - Owned eCommerce sales across Famous Footwear and Brand Portfolio up double digits

  • STUART WEITZMAN IMPACT - Stuart Weitzman acquisition added $45.8 mln to sales but pressured earnings due to integration costs

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$790.05 mln

$759.09 mln (3 Analysts)

Q3 EPS

$0.07

Q3 Net Income

$1.43 mln

Q3 Basic EPS

$0.07

Q3 EBIT

$11.97 mln

Q3 Gross Profit

$329.95 mln

Q3 Pretax Profit

$6.16 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

  • Wall Street's median 12-month price target for Caleres Inc is $19.00, 40.8% above its December 8 closing price of $13.49

  • The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nBw7XkmlKa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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