Famous Footwear Just Had the Biggest Q2 in Its 61-Year History
Famous Footwear drove Caleres’ explosive growth this quarter as the chain saw its highest level of Q2 sales in its history, at about $454 million. This represented an 8% jump from Q2 of 2019. This quarter’s earnings for Famous Footwear exceeded earnings for the entire year of 2019, with a more than 80% increase in revenue.
Caleres, which owns Famous Footwear, Sam Edelman, Vince, Dr. Scholl’s Shoes, and more brands, reported all-time high quarterly operating earnings of $62.8 million, with adjusted earnings per share of $1.19. The company also outdid Q1 2021 sales levels by $37 million.
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Famous Footwear is the latest family footwear chain to see positive results in Q2 of 2021. DSW parent company Designer Brands Inc. reported an increase in net sales and net income on Tuesday and called out DSW’s increased store traffic and loyal customer base in driving results. Last week, Shoe Carnival also reported strong results, with net sales of $332.2 million.
In a call with investors on Tuesday, Caleres executives highlighted the standout performance of Famous Footwear and offered a few reasons for the chain’s unprecedented success this quarter. Sales increased across all men’s, women’s, and kids categories and across all styles, from athletic and casual to boots and sandals.
“Famous is strong, agile and exceptionally well positioned to take advantage of this dynamic market environment,” said Caleres chairman and CEO Diane Sullivan.
While e-commerce sales were important this quarter, with digital sales up more than 50% over Q2 of 2019, brick-and-mortar sales were also significant.
Famous footwear had over 900 stores across the US as of May 2021, according to filings with the SEC. In Q2 of 2021, brick-and-mortar sales increased more than 10% over Q2 of 2019. Overall store traffic also increased since 2020.
In highlighting brick-and-mortar success, Sullivan called out the importance of “personal interaction” at stores, which helped drive an increase of new members signing up for Famous Footwear’s membership program.
The chain’s rewards program grew to nearly 42 million customers, seeing a 16% increase in new rewards members compared to Q2 of 2019.
With Famous Footwear soaring, Caleres expects the chain’s sales for the rest of 2021 to be in line with or slightly higher than 2019 levels.
“We’re poised to maintain this momentum into ’22 and beyond,” Sullivan said. “Given the powerful one-two punch that we have of our expansive direct-to-consumer network anchored by Famous Footwear and our exceptional portfolio of value-driving brands.”
