US Footwear Caleres Stock Is Soaring Today - Here's Why?

Caleres Inc CAL reported a Q2 2023 sales decline of 5.8% Y/Y to $695.53 million, missing the consensus of $704.85 million.

Net sales in the Famous Footwear segment declined 5.1% Y/Y to $414.2 million, and the Brand Portfolio segment fell 7.2% Y/Y to $300.9 million.

The operating margin was 7.4%, down from 9.3% a year ago.

EPS of $0.98, down from $1.38 a year ago and beating the consensus of $0.88 and the management guidance of $0.87-$0.92.

Inventory was down 14.3% Y/Y due to disciplined inventory management and improved supply chain flow.

"Once again, we gained market share in our Lead Brands and Famous Footwear...We also invested in high-return growth opportunities, including enhancing the omnichannel experience and marketing technologies and analytics", said Jay Schmidt, President and CEO.

Outlook: For 2023, Caleres reiterated the adjusted EPS outlook at $4.10-$4.30 versus the consensus of $4.13. The company expects FY23 sales to decline 3%-5%.

For Q3 FY23, the company forecasts adjusted EPS of $1.30-$1.35 versus the consensus of $1.29.

Price Action: CAL shares are trading higher by 9.66% at $27.12 on the last check Thursday.