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Caleres (CAL) to Report Q3 Earnings: What's in the Cards?

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  • CAL
  • BJ
  • PVH

Caleres, Inc. CAL is scheduled to release third-quarter fiscal 2021 results on Nov 18. The footwear retailer and wholesaler is likely to have witnessed revenue and earnings growth in the to-be-reported quarter.

The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $760.6 million, indicating growth of 17.5% from the figure reported in the year-ago quarter. The consensus mark for earnings of $1.15 per share suggests growth of 139.6% from the year-ago quarter's reported number. The consensus mark for earnings has been unchanged in the past 30 days.

In the last reported quarter, Caleres delivered an earnings surprise of 116.4%. It has beat earnings by a significant margin, on average, in the trailing four quarters.

Caleres, Inc. Price and EPS Surprise

Caleres, Inc. Price and EPS Surprise
Caleres, Inc. Price and EPS Surprise

Caleres, Inc. price-eps-surprise | Caleres, Inc. Quote

Key Factors to Note

Caleres has been witnessing positive consumer demand trends and accelerated recovery in the footwear marketplace, which have been aiding its sales. The momentum in the Famous Footwear brand is expected to have continued in the fiscal third quarter, contributing meaningfully to sales. Strong performances of its emerging brands, including Vionic, Sam Edelman, Allen Edmonds and Blowfish Malibu, are also expected to have been drivers.

On the last reported quarter's earnings call, management stated that it expects the second half of fiscal 2021 to benefit from a strong performance at the Famous Footwear brand and gains in Brand Portfolio, leverage of diversified brand model and the continued execution of ongoing strategic priorities.

Caleres's laser focus on the consumer's evolving preferences and efforts to drive growth across its omni-channel ecosystem are likely to have driven top and bottom-line growth. For the fiscal third quarter, management predicted adjusted earnings of $1.10-$1.25 per share.

However, CAL is likely to have witnessed pressures related to the uncertainty surrounding new COVID-19 variants and ongoing challenges in the global supply chain.

On the last reported quarter's earnings call, management indicated that it had undertaken measures to minimize the impacts of the disruptions and expects to partially offset some of these cost headwinds.

Zacks Model

Our proven model does not conclusively predict an earnings beat for Caleres this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Ross Stores has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With a Favorable Combination

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

BJ's Wholesale Club BJ currently has an Earnings ESP of +10.89% and a Zacks Rank of 2. The company is expected to have registered top-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.92 billion, which suggests a rise of 5.1% from the figure reported in the prior-year quarter. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BJ's Wholesale's quarterly earnings moved up 3.8% in the last seven days to 81 cents per share, suggesting a 12% decline from the year-ago quarter's reported number. However, BJ has delivered an earnings beat of 25.6%, on average, in the trailing four quarters.

PVH Corp PVH currently has an Earnings ESP of +12.38% and a Zacks Rank #2. It is anticipated to have registered top and bottom-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for quarterly earnings moved up 2% in the last 30 days to $2.06 per share, suggesting 56.1% growth from the year-ago quarter's reported number.

The Zacks Consensus Estimate for PVH Corp's quarterly revenues is pegged at $2.4 billion, suggesting growth of 13.2% from the figure reported in the prior-year quarter. PVH has delivered an earnings beat of 177.5%, on average, in the trailing four quarters.

lululemon athletica LULU currently has an Earnings ESP of +2.36% and a Zacks Rank #2. It is likely to have registered top and bottom-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for its quarterly earnings moved up by a penny in the last seven days to $1.39 per share, suggesting 19.8% year-over-year growth.

The Zacks Consensus Estimate for lululemon's quarterly revenues is pegged at $1.4 billion, which suggests growth of 28.1% from the figure reported in the prior-year quarter. LULU has delivered an earnings beat of 25.2%, on average, in the trailing four quarters.


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PVH Corp. (PVH) : Free Stock Analysis Report

Caleres, Inc. (CAL) : Free Stock Analysis Report

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