Shares of Caleres (CAL) gained nearly 5% on extended trading hours on Thursday after the footwear brand’s third-quarter profit surged, driven by double-digit growth in revenues. Moving ahead, the company also lifted its full year earnings outlook.
Third-quarter profit was $59.6 million or $1.54 per share, up from $14.4 million or $0.38 per share last year.
Adjusted earnings for the quarter was about $61.5 million or $1.59 per share, up from $18.2 million or $0.48 per share last year.
Net sales for the quarter rose 21.1 percent to $784.2 million from $647.5 million last year. The company reported a 26.3 percent sales increase in the Famous Footwear segment, a 12.3 percent sales growth in the Brand Portfolio segment.
Analysts polled by Thomson Reuters expected earnings of $1.14 per share on revenues of $753.48 million for the quarter.
“As we progress through the remainder of the year and head into 2022, we expect supply chain challenges to persist,” said CEO Diane Sullivan. “However, our global Associates have taken quick action – leaning into our capabilities; optimizing our inventory position; and diversifying and leveraging our sourcing model to help offset the impacts caused by the ongoing disruptions. We believe we are well-positioned to navigate this dynamic market environment and we are confident in our ability to utilize our diversified brand model, achieve our short and long-term strategic objectives, and continue to create value for our shareholders.”
The company now expects adjusted earnings between $3.80 and $3.90 per share for fiscal year 2021, up from prior forecast of $3.25 and $3.50 per share. Analysts currently estimate earnings of $3.40 per share.
CAL closed Thursday’s trading at $28.81, up $1.29 or 4.69%, on the NYSE. The stock further gained $1.29 or 4.48% in the after-hours trading.
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