Caleres reports Q1 adjusted EPS 22c, consensus 37c

Reports Q1 revenue $614.2M, consensus $622.05M. “While our brands continue to resonate with consumers and both segments of our business gained market share in the period, our Q1 results fell short of expectations. February sales were particularly weak, and although trends improved in March and April, overall performance was below plan. Furthermore, operating earnings were pressured by lower gross margins, increased reserves, and costs to cancel and move inventory,” said CEO Jay Schmidt. “Despite the weak quarter, we did experience improving momentum at retail and growth in our strategically important international business. The operating environment has become more challenging, and we must redouble our efforts to drive growth and profitability. In the near term, we are focused on controlling what we can control, including optimizing our sourcing strategy. Additionally, we expect to decrease SG&A by $15M on an annualized basis through structural expense cuts. We are viewing this as an opportunity to strengthen Caleres (CAL) and position our company for the future,” said Schmidt. “Longer term, we are confident in our ability to get back on track, execute our strategic plan, invest to fuel our growth initiatives, and drive sustained value for our shareholders.”