Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Caleres stock tumbles 16 % on Q2 earnings miss, guidance cut

EditorRachael Rajan
Published 12/09/2024, 12:04
© Reuters.
CAL
-

ST. LOUIS - Footwear retailer Caleres (NYSE:CAL) saw its stock plunge 16% after reporting second quarter earnings that fell short of expectations and cutting its full-year outlook.


The company posted adjusted earnings per share of $0.85 for Q2, well below the analyst consensus of $1.25. Revenue came in at $683.3 million, missing estimates of $728.78 million and declining 1.8% YoY.


Caleres cited operational challenges from its SAP implementation and pockets of weak seasonal demand for the disappointing results. Famous Footwear sales rose 1.5% YoY but Brand Portfolio sales declined 5.1%.


"While our brands and products continue to resonate with consumers and we remain confident in our long-term vision, our second quarter results in both segments fell short of our potential," said CEO Jay Schmidt.


The company slashed its fiscal 2024 guidance, now expecting earnings per share of $3.94-$4.09, down from its prior outlook of $4.30-$4.60 and below the $4.42 analyst consensus. Caleres also lowered its full-year sales forecast to a low-single-digit percentage decline versus previous expectations of flat to 2% growth.


To address the shortfall, Caleres announced restructuring actions aimed at generating $7.5 million in annualized cost savings. The company said it has addressed issues from the ERP implementation that impacted visibility.


"Looking ahead, we are confident in our ability to deliver earnings per share in line with our revised guidance," Schmidt added.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.