New quarter, same results for Caleres, which reported sagging profits for a second straight quarter on Thursday.
The company’s earnings dropped 11 percent, falling to $19.77 million, or 46 cents per share, from $22.11 million, or 50 cents per share a year ago. Caleres is once again blaming a “challenging” retail environment for its losses.
Net sales also dropped, down 2.3% to $622.9 million. Even with the help of the company’s fashion brands like Sam Edelman, Caleres could not counteract the less-than-stellar performance of its Healthy Living portfolio, which includes brands like Naturalizer, Dr. Scholl’s Shoes, LifeStride and Ryka.
However, Caleres did report some positives this quarter. Gross margin increased 47 basis points to 41.7%, with the help of Famous Footwear, which opened 11 stores during the last quarter, even as same-store sales slumped 1.1%.
Caleres CEO, President and Chairman Diane Sullivan was optimistic, as the company reported that it will maintain its 2016 EPS guidance of $2-$2.10 for the remainder of the year, as well as a full-year revenue guidance of $2.57-$2.60.
“Our second quarter results show the benefit of good execution during a challenging environment, as we improved gross margin, maintained SG&A spend, and continued to invest for long-term growth,” said Sullivan.