Caleres, Inc. (NYSE:CAL) Q2 2019 Earnings Conference Call - Final Transcript

Aug 26, 2019 • 04:30 pm ET


Caleres, Inc. (NYSE:CAL) Q2 2019 Earnings Conference Call - Final Transcript


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Good afternoon and welcome to the Caleres Second Quarter Earnings conference call. My name is Jesse and I'll be your conference coordinator. All lines have placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded.

At this time, I will turn the call over to Ken Hannah, Senior Vice President and Chief Financial Officer. Please go ahead.

Kenneth H. Hannah

Good afternoon. I'd like to thank you for joining our second quarter 2019 earnings call and webcast. A press release with detailed financial tables, as well as slides are available at Please be aware, today's discussion contains forward-looking statements, which are subject to a number of risks and uncertainties. Actual results may differ materially due to various risk factors, including but not limited to the factors disclosed in the Company's Form 10-K and other filings with the US Securities and Exchange Commission.

Please refer to today's press release and our SEC filings for more information on risk factors and other factors, which could impact forward-looking statements. Copies of these reports are available online. The Company undertakes no obligation to update any information discussed in this call at any time.

Joining me on the call today is Diane Sullivan, CEO, President and Chairman. I would now like to turn the call over to Diane.

Diane Sullivan

Thanks, Ken, and good afternoon and thank you for joining our second quarter call and for your continued support of Caleres.

During the quarter, we continued to successfully execute on our strategies to strengthen the emotional connections we have with our consumers. Our deep insights, combined with our industry-leading footwear capabilities, allowed us to deliver relevant product support and continued growth in the Brand Portfolio, positive same-store sales growth at Famous Footwear and record second quarter total sales. Our focus on expense discipline also allowed the top line performance to translate into improved profitability for the quarter, resulting in a solid increase in earnings per share.

Turning to the details of the second quarter. We are pleased to have delivered products that resonated across multiple consumer segments this quarter. The weather certainly resulted in a later spring that impacted our sandal business and there was a noticeable increase in demand for novelty and newness. We also experienced retailers managing their inventories, which led to a moderation and replenishment orders. Fortunately, the investments we have made in product design, development and speed to market allowed us to manage and respond to these trends in a timely, efficient and profitable way across our Brand Portfolio.

We also made excellent progress injecting more freshness into the assortment at Famous Footwear, contributing to a 1.5% increase in same-store sales and successfully worked our way through certain underperforming athletic styles from a key vendor in the quarter. We are pleased to have returned to positive growth with this brand heading into back-to-school. We expect our underlying momentum at Famous to continue into the third quarter as we