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2 Footwear Stocks Decline Friday

- By Omar Venerio

Shares of Caleres Inc. (CAL) fell nearly 10% on Friday after the company announced fourth-quarter 2018 results on Thursday.

The footwear company posted earnings of 38 cents per share on $720.26 million in revenue, reflecting 2.5% growth from the prior-year quarter. Earnings fell 7 cents short of analysts' estimates and revenue missed expectations by $17.95 million.


By segment, b rand portfolio sales grew 18% to $355.1 million , including Vionic . Famous Footwear's same-store sales were up 1.1%.

"In 2018, we continued to build on our strategic plan, as we gained market share in Brand Portfolio, delivered our seventh consecutive year of same-store sales improvement at Famous Footwear, transitioned to an in-house distribution center facility, and acquired two new brands," Chairman, President and CEO Diane Sullivan said. "This work has prepared us for the future and also positioned us for growth. "

The g ross profit reached $277.7 million, registering a gross margin of 38.6% and adjusted gross margin of 39.9%. The o perating loss was $94.4 million, but the adjusted operating earnings were $20.5 million.

For fiscal 2018 , the company recorded a g ross profit of $1.15 billion with a gross margin of 40.8% and adjusted gross margin of 41.2%. O perating earnings were $0.4 million and adjusted operating earnings were $127 million.

Looking ahead to 2019, Caleres expects its total net revenue to be in the range of $3 billion to $3.05 billion.

During the quarter, several hedge fund managers increased their positions in the stock. Chuck Royce (Trades, Portfolio) boosted his holding 94.02% to 725 , 923 shares and Jeremy Grantham (Trades, Portfolio) added 53 . 27 % to 51 , 500 shares . Philippe Laffont opened a new position, buying 10,549 shares. Steven Cohen (Trades, Portfolio) purchased 2,524 shares .

Shares of Nike Inc. (NKE) lost more than 6 % on Fri d ay after the company announced third -quarter earnings of 68 cents per share on $ 9 . 61 b illion in revenue, reflecting 7 % year-over-year growth . The company beat earnings estimates by 3 cents and revenue expectations by $10 million.

"Our business momentum is being accelerated by our ability to scale innovation at a faster pace and expand new digital consumer experiences around the world," Chairman, President and CEO Mark Parker said.

The footwear manufacturer's g ross margin inc hed up 130 basis points to 45.1 % due to higher average selling prices, favorable changes in foreign currency exchange rates and growth in Nike Direct .

During the quarter , the company repurchased 9.8 million shares for a total of $754 million.

Lee Ainslie (Trades, Portfolio) opened a new position of 232 , 070 shares in the final quarter of 2018. Paul Tudor Jones (Trades, Portfolio) was also bullish on the stock, increasing his holding by 758 . 86 % to 23 , 756 shares.

Disclosure: The author holds no positions in any stocks mentioned.

This article first appeared on GuruFocus.