Caleres stock tumbles 16 % on Q2 earnings miss, guidance cut

ST. LOUIS - Footwear retailer Caleres (NYSE:CAL ) saw its stock plunge 16% after reporting second quarter earnings that fell short of expectations and cutting its full-year outlook.



The company posted adjusted earnings per share of $0.85 for Q2, well below the analyst consensus of $1.25. Revenue came in at $683.3 million, missing estimates of $728.78 million and declining 1.8% YoY.



Caleres cited operational challenges from its SAP implementation and pockets of weak seasonal demand for the disappointing results. Famous Footwear sales rose 1.5% YoY but Brand Portfolio sales declined 5.1%.



"While our brands and products continue to resonate with consumers and we remain confident in our long-term vision, our second quarter results in both segments fell short of our potential," said CEO Jay Schmidt.



The company slashed its fiscal 2024 guidance, now expecting earnings per share of $3.94-$4.09, down from its prior outlook of $4.30-$4.60 and below the $4.42 analyst consensus. Caleres also lowered its full-year sales forecast to a low-single-digit percentage decline versus previous expectations of flat to 2% growth.



To address the shortfall, Caleres announced restructuring actions aimed at generating $7.5 million in annualized cost savings. The company said it has addressed issues from the ERP implementation that impacted visibility.



"Looking ahead, we are confident in our ability to deliver earnings per share in line with our revised guidance," Schmidt added.

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Source: Investing.com