Caleres is just the latest retailer blaming the weather on its flat sales performance.
The St. Louis-based company, which owns Famous Footwear, DVF and Sam Edelman among its portfolio, reported its financials for the first quarter of the year over the weekend. Profits in Q1 were down 7.8% to $17.8 million, or 41 cents per diluted share, from $19.3 million, or 44 cents per diluted share, during the same period last year. The company just missed analyst expectations, which were predicting diluted earnings per share of 43 cents. First-quarter sales were also down 3 percent to $584.7 million, well below the $610.6 million predicted by analysts.
At Famous Footwear, same-store sales were up just one percent. During the company’s earnings call, Caleres president, chairman and CEO Diane Sullivan blamed changing consumer habits and a cold spring for flattening sales.
“Despite softness in the overall market, we delivered solid sales at Famous Footwear and improved gross margin at brand portfolio,” said Sullivan. “We also invested in both businesses, reduced our inventory position and continued to drive omnichannel sales, while maintaining our rock-solid balance sheet. Quarter to date, we delivered a 27 percent improvement in cash and equivalents, while maintaining our inventory productivity.”
Caleres lowered its guidance for fiscal year 2016. The company said it now expects revenue in the range of $2.6 to $2.63 billion, down from the $2.65 to $2.68 billion it had predicted during its Q4 report.