Shares of Caleres (NYSE: CAL) soared on Tuesday after the footwear specialist matched analyst expectations for revenue and beat expectations for earnings with its second-quarter report. The company recorded same-store sales growth at Famous Footwear, and double-digit revenue growth for its brand portfolio. As of 11:50 a.m. EDT, the stock was up about 25.7%.
Caleres reported second-quarter revenue of $752.5 million, up 6.5% year over year and in line with the average analyst estimate. Brand portfolio sales rose 17.9% to $359.6 million, while same-store sales at Famous Footwear were up 1.5%.
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"Our deep insights, combined with our industry-leading footwear capabilities, allowed us to deliver relevant product, supporting growth in the Brand Portfolio and positive same-store-sales growth at Famous Footwear," said CEO Diane Sullivan in prepared remarks included in the press release.
Non-GAAP (adjusted) earnings per share came in at $0.62, up from $0.59 in the prior-year period and $0.04 higher than analysts were expecting. Gross margin was 40.7%, down from 41.5% in the second quarter of 2018, but that decline was more than offset by higher revenue.
For the full year, Caleres expects to produce total revenue of approximately $3 billion. The brand portfolio is projected to grow sales by a low- to mid-teens percentage, including the impact of acquisitions, while Famous Footwear is expected to produce flat to low-single-digit same-store sales growth.
Full-year non-GAAP EPS is expected between $2.35 and $2.45, up 9% year over year at the midpoint. This adjusted figure excludes $0.16 per share of expenses tied to brand acquisitions and exits.
Shares of Caleres have tumbled over the past few months, partly due to trade war developments. With a strong second quarter in the books, this small-cap stock has clawed back at least some of those losses.
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