Caleres Q3 FY20 result: sales $647 mn; net earnings $15 mn

Caleres, a diverse portfolio of consumer-driven footwear brands, reported financial results for the third quarter (Q3) FY20 ended on October 31, 2020. Net sales for the quarter slipped 18.3 per cent to $647.5 million compared to sales of $792.3 million in the same period previous fiscal. Net earnings for Q3 FY20 was $14.9 million (Q3 FY19: $27.7 million).

 

“Caleres furthered its recovery during the third quarter delivering results significantly better than anticipated in nearly all major financial metrics,” Diane Sullivan, chairman, president and chief executive officer, said in a press release.

 

Gross profit during the quarter dropped to $256.9 million ($319.7 million). Selling and administrative expenses were $236.9 ($275.3 million). Company’s operating earnings for Q3 FY20 were $20.0 million ($43.4 million).

 

Company stated that direct-to-consumer sales represented 71.4 per cent of total net sales during the reported quarter. Famous footwear segment sales slipped 12.3 per cent while brand portfolio segment plunged 25.6 per cent. Total company owned e-commerce website sales increased 24.6 per cent in Q3.

 

“Like the rest of the industry we have seen a structural shift in the shopping behaviour of the consumer – a change that has been further accelerated by the global health crisis,” Sullivan said. “With a larger percentage of Naturalizer’s sales originating online, now is the opportune time to shed the legacy stores and evolve it to be more profitable.”