US footwear company Caleres' Q4 FY20 sales fall 18% to $571 mn

Caleres, a US-based diverse portfolio of consumer-driven footwear brands, reported 18.3 per cent sales decrease to $570.9 million in its fourth quarter (Q4) FY20 ended on January 31, 2021 compared to sales of $698.9 million in the same period of previous fiscal. The company incurred a net loss of $77.0 million (Q4 FY19: earnings $9 million).

 

“We continued to execute at a very high level at Famous Footwear, which rebounded quickly following the extended store closures and capped off 2020 with a modest decline in fourth quarter sales and a significant increase in year-over-year earnings,” Diane Sullivan, chairman, president and chief executive officer, said in a press release.

 

“For the Brand Portfolio, we have identified areas of opportunity that are expected to position this segment for improved performance including actions to ensure the optimal alignment of our product assortment and omnichannel capabilities to more closely reflect rapidly evolving consumer behaviours, preferences and priorities,” Sullivan said.

 

Gross profit during the quarter dropped to $225.5 million ($278.8 million). Selling and administrative expenses were $226.0 ($260.7 million). The company’s operating loss for Q4 FY20 was $55.8 million (operating earnings: $5.7 million).

 

The company stated that its direct-to-consumer sales during the reported period represented 75 per cent of total net sales. Famous Footwear segment sales slipped to $346.5 million ($369.5 million), while Brand Portfolio segment sales plunged to $234.0 million ($345.9 million). Total company owned e-commerce website sales increased 25 per cent in Q4 FY20.

 

“While the pace of recovery is still uncertain, there are signs of stabilisation in the marketplace,” Sullivan said. “We believe we are well-positioned to capitalise as the market rebounds and the world returns to a greater degree of normalcy. As we plan for future success, we will focus on maintaining our strong momentum at Famous Footwear; driving enhanced consumer alignment and improved performance in the Brand Portfolio; taking a careful and disciplined approach to cost control and capital spending; reducing debt levels still further; and returning excess cash to shareholders.”