Caleres Reports Preliminary Fourth Quarter 2019 Net Sales Results
February 13 2020 - 10:30PM
Business Wire
Caleres (NYSE: CAL, caleres.com), a diverse portfolio of global
footwear brands, today reported preliminary fourth quarter 2019 net
sales results. The company plans to release its fourth quarter and
full year 2019 financial results and provide an initial 2020
outlook on Thursday, March 12, 2020, at 4:30 p.m. ET.
Fourth Quarter 2019 Net Sales Estimates
Versus Fourth Quarter 2018
Consolidated net sales of approximately
$700 million, down 3%.
‒ Famous Footwear net sales of
approximately $370 million, with same-store-sales up 5.1%.
‒ Brand Portfolio net sales of
approximately $346 million, down approximately 9%.
“During the fourth quarter, we saw continued shifts in the
underlying fashion footwear market. Our brands performed well in
the direct to consumer channels, including Famous Footwear which
had same-store-sales up 5.1% in the fourth quarter. However,
holiday sales at a number of our retail partners were disappointing
and our selling in the value channel has been difficult. Retail
partners continue to tightly manage inventory levels and limit
reordering and replenishment,” said Diane Sullivan, CEO, president
and chairman of Caleres.
In response to these market dynamics, resources are being
reallocated to focus on the growing portions of the business and
drive new brands and products. In the fourth quarter, the company
completed a Voluntary Early Retirement Program and took other
restructuring actions resulting in anticipated annualized savings
of $8-$10 million.
The implications of the coronavirus on the business are being
closely monitored and an assessment will be provided on the March
12 earnings call. Caleres’ Brand Portfolio segment sources
approximately 60% of its footwear from China. The near-term impact
will ultimately depend on the duration of the delays in Chinese
factory openings and how quickly the supply chain can return to
normal operations.
Investor Conference Call
Caleres will host an investor conference call Thursday, March
12, 2020, at 4:30 p.m. ET. The webcast and slides will be available
at investor.caleres.com/news/events. The live conference call will
be available at (877) 217-9089 for analysts in North America or
(706) 679-1723 for international analysts by using the conference
ID 5282859. A replay will be available at
investor.caleres.com/news/events/archive for a limited period.
Investors may also access a replay of the call through March 18,
2020, by dialing (855) 859-2056 in North America or (404) 537-3406
internationally and using the conference ID 5282859.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
This press release contains certain forward-looking statements
and expectations regarding the company’s future performance and the
performance of its brands. Such statements are subject to various
risks and uncertainties that could cause actual results to differ
materially. These risks include (i) changing consumer demands,
which may be influenced by consumers' disposable income, which in
turn can be influenced by general economic conditions and other
factors; (ii) rapidly changing fashion trends and consumer
preferences and purchasing patterns; (iii) intense competition
within the footwear industry; (iv) political and economic
conditions or other threats to the continued and uninterrupted flow
of inventory from China and other countries, where the company
relies heavily on third-party manufacturing facilities for a
significant amount of its inventory; (v) imposition of tariffs;
(vi) the ability to accurately forecast sales and manage inventory
levels; (vii) cybersecurity threats or other major disruption to
the company’s information technology systems; (viii) customer
concentration and increased consolidation in the retail industry;
(ix) transitional challenges with acquisitions; (x) a disruption in
the company’s distribution centers; (xi) foreign currency
fluctuations; (xii) changes to tax laws, policies and treaties;
(xiii) the ability to recruit and retain senior management and
other key associates; (xiv) compliance with applicable laws and
standards with respect to labor, trade and product safety issues;
(xv) the ability to secure/exit leases on favorable terms; (xvi)
the ability to maintain relationships with current suppliers; and
(xvii) the ability to attract, retain, and maintain good
relationships with licensors and protect our intellectual property
rights. The company's reports to the Securities and Exchange
Commission contain detailed information relating to such factors,
including, without limitation, the information under the caption
Risk Factors in Item 1A of the company’s Annual Report on Form 10-K
for the year ended February 2, 2019, which information is
incorporated by reference herein and updated by the company’s
Quarterly Reports on Form 10-Q. The company does not undertake any
obligation or plan to update these forward-looking statements, even
though its situation may change.
About Caleres
Caleres is the home of today’s most coveted footwear brands and
represents a diverse portfolio spanning all of life’s styles and
experiences. Every shoe tells a story and Caleres has the perfect
fit for every one of them. Our collections have been developed and
acquired to meet the evolving needs of today’s assorted and growing
global audiences, with consumer insights driving every aspect of
the innovation, design, and craft that go into our distinctly
positioned brands, including Famous Footwear, Sam Edelman,
Naturalizer, Allen Edmonds, Vionic, Dr. Scholl’s Shoes, and more.
The Caleres story is most simply defined by the company’s mission:
Inspire people to feel great…feet first.
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version on businesswire.com: https://www.businesswire.com/news/home/20200213005986/en/
Ken Hannah khannah@caleres.com Jo Ann Stoda
jstoda@caleres.com
Caleres (NYSE:CAL)
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