Tough times. Not for everybody though. US footwear industry is facing a complicated and diversified situation. On the one hand, manufacturers wonder about customs duties imposed on China. On the other hand, domestic distribution keeps fluctuating between apocalyptic scenarios and revamp prompts. With a few exceptions though. Caleres group (former Brown Shoe) is one of them. They hold a solid portfolio of brands (including Allen Edmonds and DrScholls, among others). Their worldwide production network makes nearly 50 million pairs of shoes. Their commercial channel is composed of over 1,200 stores. Finally yet importantly, their turnover is very positive.
A “consistent growth”
The footwear group, headquartered in St. Louis (Missouri), achieved outstanding sales in the second quarter (ended on August 3): revenues amounted to 752.5 million dollars, therefore increasing by 6.5% on annual basis. They went beyond, slightly though, analysts’ forecast (752 million dollars). Likewise, Famous Footwear, the group’s core brand (420 million dollars), augmented comparable sales by 1.5%. Adjusted profits, 62 cents per share, went beyond the market consensus (58 cents). According to Diane Sullivan, president and chief executive officer, “our paying continuous attention to expenses improved profitability in the quarter. Our company keeps staying focused to develop a consistent, profitable and long-term sustainable growth”.
The biannual balance sheet
In the first six months of 2019, Caleres consolidated revenues reached 1.43 billion dollars: +6.8%. Earnings coming from Famous Footwear sales amounted to 772 million dollars; as regards the other brands in the portfolio (Sam Edelman, Naturalizer, Vionic, Diane von Furstenberg (DVF), Rykä, Dr. Scholl’s), revenues reached 700.6 million dollars (+19%). Caleres have a hub office in Italy, based in Empoli.
Picture taken from caleres.com