Catch up on the latest earning reports for footwear giants.
Finish Line ended Q4 with a profit of $4 million, the retailer reported on Thursday. Consolidated net sales for the quarter rose 5.2 percent to $580.3 million over the prior year period. Comparable store sales increased 4.6 percent.
In a release, Finish Line CEO Sam Soto said, “We worked diligently to improve digital fulfillment rates and flow new inventory to our stores during the fourth quarter which helped us achieve a mid-single digit comparable sales increase and adjusted earnings per share at the high-end of our guidance range.”
As of Feb. 27, 2016, consolidated merchandise inventories increased 9.6 percent to $376.5 million compared to $343.4 million as of Feb. 28, 2015. Finish Line said the increase was driven in part by a seasonal build in merchandise inventories associated with an earlier Easter compared to the prior year. On a segment basis, merchandise inventories increased double digits at Macy’s and JackRabbit and mid-single digits at Finish Line.
For the full year, the athletic retailer’s consolidated net sales were a record $1.89 billion, a 3.8 percent increase over the prior year.
Soto said strengthening its supply chain and vendor relationships remain top priorities for the company in the year ahead. He added, “I am confident that elevating our execution across the organization will result in an enhanced customer experience and drive profitable growth and increased shareholder value over the long-term.”
For the fiscal year ending Feb. 25, 2017, Finish Line expects comparable store sales to increase in the 3 percent to 5 percent range and earnings per share to be between $1.50 and $1.56.
Caleres, home to Famous Footwear and fashion brands like Diane von Furstenberg, Sam Edelman, Vince and more, ended Q4 2015 with net sales totaling $608.7 million, up 0.4 percent, excluding sales from Shoes.com, which the company sold in December 2014. The company reported adjusted diluted EPS of $0.26, a 30 percent increase, on adjusted net earnings of $11.4 million.
Same-store sales for Famous Footwear for the quarter were up 0.8 percent. Inventory was up 1.2 percent on average store basis. The retailer opened 12 new stores during the quarter and closed 10.
Sales for Caleres brand portfolio was also up 0.8 percent for the quarter. However inventory was down 1.8 percent.
“At Caleres, we actively managed through what was poised to be a difficult quarter. We cut through the noise in the marketplace during the holiday season and delivered improved gross and operating margin, while maintaining our inventory position,” said Diane Sullivan, CEO, president and chairman of Caleres.
For the full year, Sullivan said Caleres saw improvement at both the top and bottom line and delivered double digit earnings per share growth for the fourth year in a row. Net sales increased two percent to $2,577.4 million, excluding sales from Shoes.com. Adjusted diluted EPS was $2.00, up 16.3 percent.
Famous Footwear completed the year with same-store sales up 1.9 percent, and sales for Caleres’ brand portfolio increased 2.3 percent to $1 billion.
The company expects 2016 consolidated net sales to be in the $2.65 billion to $2.68 billion range. Famous Footwear same-store sales are estimated to increase by low-single digits. Sales for Caleres’ brand portfolio are expected to increase by mid-single digits.
Footwear retailer DSW reported a fiscal fourth quarter net income of $11.8 million, or $0.14 per diluted share, on Tuesday. Sales increased five percent to $672 million during the quarter. Comparable sale increased 0.7 percent.
DSW CEO Roger Rawlins stated, “During the fourth quarter, we acted quickly to drive sales and gain market share, in the face of a challenging retail environment. While these actions negatively impacted operating margin in the near term, we believe they were the right steps to expand our customer base and exit the year with a clean inventory position.”
The retailer ended fiscal year 2015 with a total net income of $136 million. Sales were up five percent to $2.6 billion. Comparable sales increased 0.8 percent. The company opened 40 new stores in the U.S. and expanded its footprint in Canada with the opening of 11 new stories. Online, DSW sales increased 22 percent in the full year, supported by the roll-out of Buy Online Pick-Up In Store and Buy Online Ship to Store programs.
DSW expects revenue to grow 8-10 percent, with comparable sales growth in the 1-2 percent range in 2016. Its recent purchase of Ebuys Inc. is projected to contribute approximately $100 million in sales. The retailer plans to open 34 additional stores, and close two.
Rawlins said the company plans drive growth by entering new categories, markets and digital channels in coming year. He added, “We recognize there is much more we need to accomplish and we are committed to returning DSW to sustainable and profitable growth while delivering strong shareholder returns.”
Crocs ended Q4 2015 with a net loss of $73.9 million, or a loss of $1.01 per share, compared with a net loss of $56.9 million or $0.70 per diluted share in the same quarter of the prior year. Revenue for the quarter totaled $208.7 million, a one percent increase from the year prior.
For the full year, Crocs reported a GAAP net loss attributable to common stockholders of $98 million or $1.30 per diluted share, compared with a net loss attributable to common stockholders of $19 million or $0.22 per diluted share in 2014.
In a press release, Crocs CEO Gregg Ribatt said, “We continue to make meaningful progress positioning our business for long-term sustainable success despite some near-term challenges. Revenue on a constant currency basis, excluding store closures and discontinued product lines, grew at 12.2% in the quarter compared with a year ago. Our overall results reflect the impact of higher clearance sales as we made the decision in the quarter to increase our promotional cadence, given the overall retail environment.”
He added, “While we still face foreign exchange headwinds from the stronger U.S. Dollar and macroeconomic challenges, we are making progress in our transformation efforts. I believe we are reaching an inflection point and we will see the benefits of our actions increasingly as 2016 progresses.”
The company said it expects Q1 2016 revenue in the $260-$270 million range compared to $262.2 million last year.
Foot Locker Inc. reported net income of $158 million for Q4 2015. This equates to earnings of $1.14 per share, an increase of 13 percent over earnings per share of $1.01 for the 13-week period ended January 31, 2015.
Fourth quarter comparable-store sales increased 7.9 percent. Total Q4 sales increased 5 percent, to $2,007 million this year, compared with sales of $1,911 million in 2014. Excluding the effect of foreign currency fluctuations, total sales for the fourth quarter increased 8.8 percent.
For fiscal year 2015, the Company reported net income of $541 million, or $3.84 per share, compared to net income of $520 million, or $3.56 per share, in 2014. On a non-GAAP basis, earnings were $4.29 per share in 2015, an increase of 20 percent over the $3.58 per share earned on a comparable basis in 2014. In 2015 the Company generated its sixth consecutive double-digit percentage increase in annual earnings per share and its fifth consecutive year of record earnings as Foot Locker, Inc.
Total sales increased 3.6 percent in 2015 to $7,412 million, the highest level of sales ever recorded by the company as Foot Locker, Inc., compared with sales of $7,151 million in 2014. Comparable-store sales increased 8.5 percent in 2015.
Steve Madden reported a slight increase in Q4 earnings, however, the fashion footwear has a conservative outlook for 2016.
After a third quarter slowed by a warm winter season, the brand’s Q4 net sales increased .5% to $344.3 million compared to $342.6 million in the same period of 2014. Net income was $25.7 million, or $0.43 per diluted share, compared to $21.0 million, or $0.34 per diluted share, in the prior year’s fourth quarter.
Wholesale business was $265 million, down from $269.9 million in Q4 2014. However, gross margin in Steve Madden’s wholesale business increased to 28.2% compared to 26.9% in last year’s fourth quarter due to improvement in both the wholesale footwear and wholesale accessories segments.
Retail net sales in the fourth quarter were $79.3 million compared to $72.8 million in Q4 2014. Same store sales increased 6.1% for the fourth quarter. Promotional activity helped retail gross margin increase to 62.3% in the fourth quarter of 2015 compared to 61.6% in the fourth quarter of 2014.
Looking ahead at fiscal year 2016, the company expects that net sales will increase 2% to 4% over net sales in 2015. Diluted EPS for fiscal year 2016 is expected to be in the range of $1.93 to $2.03.
In a release, Steve Madden Chairman and CEO Edward Rosenfeld said, “As we move forward, we are cautious about the overall environment but are pleased with the underlying fundamentals in our business, and we remain confident that the strength of our brands, combined with our proven business model, will enable us to drive meaningful earnings growth over the long term.”
Wolverine Worldwide is preparing for a tepid 2016. The company’s net income for Q4 2015 was $11.6 million, compared to $10.7 million in Q4 2014. Revenue for the quarter decreased 7% to $751.2 million. Reported e-commerce revenue growth accelerated in the fourth quarter to approximately 25%.
Wolverine Worldwide ended fiscal year 2015 with $2.69 billion in revenue which was in line with guidance.
Mike Stornant, Wolverine Worldwide senior vice president and chief financial officer, said, “The Company delivered solid fourth-quarter earnings despite a very tough environment, resulting from in-line revenue performance and continued discipline over operating expenses.” He went on to describe the quarter as one that was “volatile for the whole industry.” However he added that the company foreshadowed deterrents like a warm winter season and tepid holiday sales and made leadership and organization changes to “fix under-performing areas of business.”
For 2016, the company expects consolidated reported revenue in the range of $2.475 billion to $2.575 billion, representing an underlying revenue decline in the range of approximately 4.3% to 0.5%. Adjusted diluted earnings per share in the range of $1.30 to $1.40. Constant currency adjusted earnings per share in the range of $1.48 to $1.58. Reported diluted earnings per share in the range of $1.20 to $1.30.