Caleres Q1 net sales drop on poor Brand Portfolio sales
Caleres posted net sales of $584.7 million, down 2.9% driven by a planned reduction in Brand Portfolio sales.
Caleres, the Clayton-based shoe retailer formerly known as Brown Shoe Co., reported a net income of $17.8 million, or 41 cents a share, for the quarter ended April 30, compared with $19.3 million, or 44 cents a share, a year earlier.
The drop indicates an 8 per cent first quarter profit slump.
The group's Brand Portfolio sales were down 9.1%, reflected in a reduction in Healthy Living sales, said the firm in a statement.
Meanwhile, Famous Footwear saw same-store-sales lift 1%, driven by strength in lifestyle athletic products.
“Despite softness in the overall market, we delivered solid sales at Famous Footwear and improved gross margin at Brand Portfolio,” said Diane Sullivan, CEO, president and chairman of Caleres.
“We also invested in both businesses, reduced our inventory position and continued to drive omni-channel sales, while maintaining our rock-solid balance sheet. Quarter-to-date, we delivered a 27% improvement in cash and equivalents, while maintaining our inventory productivity.”
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