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Footwear retailer $CAL's 1Q17 net earnings fell 16% to $14.9MM, or $0.35 per share, compared to $17.8MM, or $0.41 per share during 1Q16. The results included $2.5MM after-tax of expected charges related to the acquisitions, integration and reorganization of men's brands. Net sales were up 8% YoY to $631.5MM. Excluding items, $CAL earned $0.40.
$CAL elected Wenda Harris Millard and Brenda Freeman to its BoD. Millard is vice chairman of MediaLink, a strategic advisory firm. Freeman is currently the Chief Marketing Officer for MagicLeap, a technology company that is developing a Mixed Reality computing platform.
For 2017, $CAL plans to close 70 Famous Footwear stores and open 40 new doors as part of normal lease renewal process. The company will also close 11 Naturalizer stores and open four new locations, as well as open 10 new stores for Allen Edmonds and one new store for Sam Edelman.
$CAL expects 2017 net sales of $2.7-2.8Bil and adjusted EPS of $2.10-2.20. The company sees famous footwear same-store sales in up low-single digits and brand portfolio sales in up high-teens. $CAL predicts gross margin in up 45-55 basis points, SG&A as a percent of revenue in up 30-40 basis points, and effective tax rate of 31-33%.
$CAL slipped to a 4Q16 loss from a profit last year, due to restructuring and other special charges. Net loss was $6.62MM or $0.16 per share compared to a profit of $11.41MM or $0.26 per share a year ago. Net sales grew to $639.49MM from $608.67MM. Adjusted EPS increased to $0.33 from $0.26.
$CAL announced the appointment of two leadership positions in its Famous Footwear division. The company named Karlyn Mattson as Chief Merchandising Officer and Chris Cavalline as Senior Vice President, E-Commerce. Ms. Mattson and Mr. Cavalline will report to Rick Ausick, Division President of Famous Footwear.
On a query about monthly progression of comps for Famous Footwear, $CAL said Aug. began slow and finished in the high twos, Sept. was in the mid-single-digit range up and Oct. slowed down a bit in low-single-digits. That company added that it was positive all three months 2.1% back-to-school to 2.7% or 2.6%.
$CAL reported a CapEx of $17.5MM for the 3Q16, which mostly included investments in the consumer fulfillment initiatives and the new retail doors. The company also added that it ended the quarter with cash and equivalents of $173.4MM, up $87.1MM YoverY and had no borrowings against its revolving credit facility.
$CAL still expects FY16 consolidated net sales of $2.57-2.6Bil and EPS of $2.00-2.10. Famous Footwear same-store-sales are still expected to be flat to up low-single digits. Brand Portfolio sales are still expected to be flat to down low-single digits. $CAL still sees gross margin to rise 25-35BP and CapEx of about $70MM.
Footwear retailer $CAL reported a rise in 3Q16 earnings as solid back-to-school season from Famous Footwear drove net sales higher. Net income rose to $34.73MM or $0.81 per share from $33.98MM or $0.78 per share last year. Net sales grew to $732.23MM from $728.64MM.
At 2Q16 end, $CAL's consolidated inventory grew 1% to $648.9MM versus 2Q15, with inventory up 3.4% per store on a dollar basis at Famous Footwear and down about 4% in Brand Portfolio. In the quarter, company's brands encountered low initial orders and more mid-seasonal replenishment resulting in overall higher margins.
$CAL's 2Q16 corporate tax rate was 32.3%, up over 2Q15 rate of 26.5%. CapEx was $13MM, due to investment in new retail doors and expansion and modernization of distribution centers. End 2Q16, cash and equivalents were $165.7MM. Company purchased 450,000 shares in the quarter and declared a dividend of $0.07 per share.
In 2Q16, $CAL's GM was 41.7% of sales, up 47 BPs YoverY, with both Famous Footwear and Brand Portfolio up 14 BPs and 85 BPs respectively, benefiting from improved product mix and focused inventory management with a reduction in overall markdowns. SG&A was 36.5% of revenue or $227.3MM and D&A rose 4% to $13.4MM.
Footwear company $CAL's Brand Portfolio segment total sales were down 3.8%, with Healthy Living sales down 9.4% and lower sales in Dr. Scholl's due to company exiting some categories in the mass channel. Contemporary Fashion sales were up 3.8% with all key brands delivering improvement.