The US-based footwear company reported preliminary fourth quarter consolidated net sales and is anticipating a 3% decline. Implications of the Coronavirus are still being assessed
“During the fourth quarter, we saw continued shifts in the underlying fashion footwear market. Our brands performed well in the direct to consumer channels, including Famous Footwear which had same-store-sales up by 5.1% in the fourth quarter. However, holiday sales at a number of our retail partners were disappointing and our selling in the value channel has been difficult. Retail partners continue to tightly manage inventory levels and limit reordering and replenishment”, commented Diane Sullivan, CEO, President and Chairman of Caleres.
Fourth Quarter Highlights
-Consolidated net sales reached approximately 700 million US dollars, down by 3%;
– Famous Footwear net sales totalled approximately 370 million US dollars, with same-store-sales up by 5.1%;
– Brand Portfolio net sales of approximately 346 million US dollars, down by approximately 9%.
The implications of the coronavirus on the business are being closely monitored and an assessment will be provided on the earnings call due to be held by the company on the 12th of March. Caleres’ Brand Portfolio segment sources approximately 60% of its footwear from China, and the company believes the near-term impact will ultimately depend on the duration of the delays in Chinese factory openings and how quickly the supply chain can return to normal operations.
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