Post Earnings Coverage as Caleres' Quarterly Sales Increased 5.1%
Upcoming AWS Coverage on Crocs Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 29, 2017 / Active Wall St. announces its post-earnings coverage on Caleres, Inc. (NYSE: CAL). The Company posted its fourth quarter and fiscal 2016 financial results on March 16, 2017. The footwear wholesaler missed earnings estimates. Register with us now for your free membership at:
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One of Caleres' competitors within the Textile - Apparel Footwear & Accessories space, Crocs, Inc. (NASDAQ: CROX), reported on March 01, 2017, its financial results for Q4 and year ended December 31, 2016. AWS will be initiating a research report on Crocs in the coming days.
Today, AWS is promoting its earnings coverage on CAL; touching on CROX. Get our free coverage by signing up to:
http://www.activewallst.com/register/
Earnings Reviewed
For the three months ended January 28, 2017, Caleres reported consolidated sales of $639.5 million, up 5.1% on a y-o-y basis, with e-commerce representing 16% of total sales. For the full year, the Company's consolidated sales were $2.58 billion, essentially flat versus 2015.
For Q4 FY16, Caleres' Famous Footwear sales were $367.5 million, up 1.9% on a y-o-y basis as the Company operated nine more stores y-o-y, while same-store sales were up 0.3%. Famous.com sales increased nearly 40% to comprise 8.2% of total Famous Footwear reported quarter sales. For the full year, total sales at Famous Footwear were $1.59 billion, up 1.1%, while same-store sales for the year were up 0.6%.
For Q4 FY16, Famous Footwear's gross margin of 44.0% was down 148 basis points, reflecting product mix shift within the boot category and sales growth at famous.com. For the year, Famous Footwear gross margin of 44.2% was down 75 basis points, reflecting seasonal product mix shift and sales growth at famous.com
For Caleres' brand portfolio, Q4 FY16 sales were $272 million, up 9.6% versus the prior year. Sales numbers also included approximately 6 weeks of contribution from Allen Edmonds which was acquired in December 2016. Ecommerce sales, including the Company's branded dot-com, drop-ship, and pure play dot-com sales, increased nearly 90% to approximately 27% of total brand portfolio sales in the reported quarter. For FY16, brand portfolio sales totaled $989.3 million, down 1.5% y-o-y, reflecting a significant and planned shift away from the mass channel throughout 2016 and an industry-wide overall reduction in initial orders.
During the reported quarter, Brand Portfolio's gross margin was 36.4%, up nearly 260 basis points, benefitting from higher volume and improved mix. For the year, Brand Portfolio gross margin totaled 36.3%, up nearly 240 basis points, benefitting from better inventory management and a shift away from the lower margin mass channel
Adjusted net earnings of $14.3 million were up 25.0%. Adjusted diluted earnings per share were $0.33, up 26.9% excluding above charges and other items. Adjusted operating earnings were $137.2 million, up 1.5%, excluding above charges and other items
Caleres reported loss of $6.6 million, or $0.16 per share, compared to earnings of $11.41, or $0.26 per share. Earnings, adjusted for costs related to mergers and acquisitions and asset impairment costs, were $0.33 per share, missing Wall Street's earnings expectations of $0.40 per share. For the year, net earnings were $65.7 million, with diluted earnings per share of $1.52. Adjusted net earnings were $86.5 million, down 1.6%. Adjusted diluted EPS was $2.00, which was unchanged.
Balance sheet and cash flow
Caleres' ended the year with cash and equivalents of $55.3 million. At the end of FY16, the Company had $110 million of borrowings remaining against its revolving credit facility.
The Company's consolidated inventory position at the end of the year was $585.8 million. Excluding Allen Edmonds, inventory was down 2.3% y-o-y. For Caleres' brand portfolio, inventory was up 1.8% to support spring orders. And at Famous Footwear, the Company ended the year with inventory down 5.1% per store on a dollar basis. Cash from operations was $183.6 million, up 23.1%.
Stock Performance
At the close of trading session on Tuesday, March 28, 2017, Caleres' share price finished yesterday's trading session at $26.86, marginally up 0.22%. A total volume of 318.92 thousand shares exchanged hands. The stock has advanced 7.16% in the last six months. The Company's shares are trading at a PE ratio of 17.66 and have a dividend yield of 1.04%. Additionally, the stock currently has a market cap of $1.15 billion.
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