US footwear firm Caleres' net sales at $761.9 mn in Q3 FY23

A significant portion of the company's sales, approximately 73 per cent, were generated from direct-to-consumer channels, emphasising the growing trend of online shopping.

In terms of profitability, Caleres reported a gross profit of $340.4 million. The gross margin stood at 44.7 per cent, with the Famous Footwear segment contributing a 44.2 per cent gross margin and the brand portfolio segment slightly lower at 43.7 per cent. The selling, general, and administrative expenses were 35.9 per cent of net sales, the company said in a press release.

Caleres showcased a positive outlook in its earnings, with net earnings reaching $46.9 million. This translates to earnings per diluted share of $1.32, an increase from the $39.2 million net earnings or $1.08 per diluted share in the third quarter of 2022. The adjusted net earnings were slightly higher at $48.6 million, or $1.37 per adjusted diluted share.

The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) were also noteworthy, standing at $78.8 million, which is 10.3 per cent of the net sales.

In terms of inventory management, Caleres reported a 14.4 per cent reduction compared to the third quarter of 2022, indicating efficient inventory control amidst fluctuating market demands.

“Caleres continued its strong operational and financial execution during the third quarter, delivering a 19-percent increase in adjusted earnings per share and exceeding the top end of the guidance range despite ongoing softness in the macroeconomic environment,” said Jay Schmidt, president and chief executive officer. “The brand portfolio once again led the way, 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.

Fibre2Fashion News Desk (DP)