US' Caleres posts net sales of $662.7 mn in Q1 FY23

Sales within the Famous Footwear segment declined by 9.2 per cent year-on-year (YoY) in Q1 FY23, with comparable sales dropping by 8.5 per cent YoY. This was largely attributed to weaker consumer demand within shoe chains. On the other hand, the brand portfolio segment witnessed an 11-per cent YoY decrease in sales, in line with expectations.

Despite the downturn, direct-to-consumer sales still constituted a substantial portion of total net sales, approximately 68 per cent, the company said in a press release.

Gross profit for Q1 FY23 stood at $302.7 million, with a gross margin of 45.7 per cent. When looking at the segments separately, the Famous Footwear segment reported a gross margin of 45.6 per cent, while the brand portfolio segment posted a slightly lower gross margin of 44.2 per cent.

Selling, general, and administrative expenses as a per centage of net sales was reported to be 38.2 per cent. The company registered net earnings of $34.7 million, equating to earnings per diluted share of $0.97. This is a decrease compared to net earnings of $50.5 million, or earnings per diluted share of $1.32, in Q1 FY22.

“The Caleres team delivered a solid financial performance at the upper end of our earnings per share guidance driven by record quarterly profit from the brand portfolio and despite a challenging operating environment at Famous Footwear,” said Jay Schmidt, president and chief executive officer. “These first quarter results underscore the value of our diversified structure, the strength of our omnichannel capabilities, and the power of our portfolio.”

The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) were reported to be $63.7 million, or 9.6 per cent of sales. Furthermore, inventory was down 13.1 per cent in Q1 FY23, compared to the first quarter of FY22, also reflecting a lower in-transit inventory.

Fibre2Fashion News Desk (DP)