LONDON, UK / ACCESSWIRE / September 19, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Caleres, Inc. (NYSE: CAL), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CAL, following the Company's announcement of its second quarter fiscal 2017 financial results on August 29, 2017. The footwear wholesaler and retailer outperformed sales and earnings expectations and also reaffirmed guidance for fiscal 2017. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For the second quarter fiscal 2017, Caleres reported consolidated sales of $676.95 million, up 8.7%, including Allen Edmonds compared to sales of $622.94 million for Q2 2016. The Company's revenue topped analysts' expectations of $663.5 million.

During Q2 2017, Caleres' Famous Footwear total sales were $404.93 million, growing 3.8% from $390.12 million in Q2 2016, while the segment's same-store-sales gained 2.8% on a y-o-y basis. For the reported quarter, the Company's Brand Portfolio sales were $272.02 million, surging 16.8% including a contribution from Allen Edmonds, which was acquired in December of 2016 compared to sales of $232.81 million in the prior year's same quarter.

For Q2 2017, Caleres reported gross profit of $287.5 million, including $1.9 million of expected fair value inventory adjustment amortization related to the Allen Edmonds acquisition, up 10.8% on a y-o-y basis, while gross margin of 42.5% gained 80 basis points compared to the year ago corresponding period. The Company's selling, general, and administrative (SG&A) expense was $253.50 million for the reported quarter, up 11.5%, including Allen Edmonds, from $227.30 million in the year-ago comparable period.

Caleres' operating earnings were $31.1 million and operating margin was 4.6% for Q2 2017, while adjusted operating earnings were $35.9 million and adjusted operating margin was 5.3% for the year-earlier quarter.

For Q2 2017, Caleres reported net earnings of $17.60 million, while diluted earnings per share were $0.41 and included $0.07 of expected charges related to the acquisition, integration, and reorganization of men's brands compared to net earnings of $19.77 million, or $0.46 per share, in Q2 2016. The Company's adjusted net earnings of $20.6 million were up 4.4%, while adjusted diluted earnings per share of $0.48 gained 4.3% on a y-o-y basis. Caleres' earnings beat Wall Street's estimates of $0.45 per share.

Balance Sheet and Cash Flow

Caleres ended Q2 2017 with cash and equivalents of $52.9 million. The Company's outstanding revolver borrowings at the end of the reported quarter were $35 million, down 68% from $110 million at the end of FY16 as it continues to pay down the revolving credit facility with strong cash flow from operations following the acquisition of Allen Edmonds.

Caleres delivered year-to-date cash from operations of $114.3 million, up 5.3% on a y-o-y basis. By the end of Q2 2017, the Company paid down $220 million of the $255 million related to the acquisition of Allen Edmonds. In total, Caleres repatriated $120 million and also used $100 million of operating cash flow it has generated since the acquisition.

Caleres' consolidated inventory position at quarter-end was $722 million, up 11.3% on a y-o-y basis, including Allen Edmonds. At Famous Footwear, the Company ended the reported quarter with inventory down 1.4% per store on a dollar basis and down 1.3% per store on a par basis. For its Brand Portfolio, inventory was up 39.6%, including Allen Edmonds.

Outlook

Caleres reiterated its fiscal 2017 guidance. The Company is forecasting consolidated net sales of $2.7 billion to $2.8 billion; comp sales at Famous Footwear up low single digits; and net sales for the Brand Portfolio segment, up in the high-teens, including Allen Edmonds. Caleres is estimating gross margin to be up 45 to 55 basis points; SG&A expense as a percent of sales to be up 30 to 40 basis points, and adjusted earnings per diluted share to be between $2.10 and $2.20.

Caleres' FY17 outlook includes the closing of 70 Famous Footwear stores and the opening of approximately 40 new doors as part of the Company's normal lease renewal process; the closing of approximately 11 Naturalizer stores and the opening of 4 new locations; the opening of 10 new stores for Allen Edmonds and 1 for Sam Edelman. The Company is also projecting depreciation and amortization (D&A) of approximately $60 million; capital expenditures of approximately $55 million; and an additional $12 million of operating expense related to the 53rd week in 2017.

Stock Performance

At the closing bell, on Monday, September 18, 2017, Caleres' stock marginally fell 0.94%, ending the trading session at $28.55. A total volume of 169.45 thousand shares have exchanged hands. The Company's stock price surged 6.57% in the last three months, 8.56% in the past six months, and 14.52% in the previous twelve months. The stock is trading at a PE ratio of 20.32 and has a dividend yield of 0.98%. The stock currently has a market cap of $1.21 billion.

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