American footwear firm Caleres' net sales at $695.5 mn in Q2 FY23

Direct-to-consumer channels continue to be a significant portion of the company's sales, accounting for approximately 74 per cent of total net sales. On the profitability front, Caleres posted a gross profit of $314.2 million, which equates to a gross margin rate of 45.2 per cent. Within this, the Famous Footwear segment reported a gross margin of 46.2 per cent, while the brand portfolio segment saw a gross margin of 41.3 per cent, Caleres said in a press release.

Selling, general, and administrative expenses accounted for 37.8 per cent of the net sales in Q2 FY23. The company's net earnings for the quarter were $33.9 million, or $0.95 per diluted share. This marks a decline from $51.2 million, or $1.38 per diluted share, in the same quarter of FY22. Adjusted net earnings, which exclude $0.03 related to expense reduction initiatives, stood at $35.2 million or $0.98 per diluted share.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) totalled $63.6 million in Q2 FY23, representing 9.1 per cent of net sales. Inventory was down 14.3 per cent compared to Q2 FY22.

“The Caleres team performed at a high level during the second quarter, delivering a strong consolidated operating margin and exceeding adjusted earnings per share expectations despite a choppy macro environment,” said Jay Schmidt, president and chief executive officer. “Once again, we gained market share in our lead brands and Famous Footwear.”

ALCHEMPro News Desk (DP)