"Caleres executed another strong operational and financial performance in the third quarter and closed the first nine months of the year with record earnings. These results underscore the strength and versatility of our brands, highlight our compelling product and product creation power, and demonstrate the portfolio's significantly enhanced agility and resilience during periods of macroeconomic uncertainty. We are particularly pleased that our Brand Portfolio segment achieved near-record third quarter earnings and that Famous Footwear delivered a strong operating margin of 12.3%", commented Diane Sullivan, Chairman and Chief Executive Officer.

Third Quarter Results

Caleres reported a net sales increase of 1.8% in the third quarter of the current fiscal year, reaching 798.3 million US dollars, on a comparable basis to the same period of fiscal 2021. In this period, Famous Footwear segment sales declined by 2.6%, with comparable store sales down by 0.8%, while sales in the Brand Portfolio segment rose by 7.6%. The company added that Direct-to-Consumer sales represented almost 74% of total net sales during the quarter.

In the three months to the 29^th of October, Caleres' gross profit totalled 339.9 million US dollars, increasing by 1.3% as compared to a similar period of last year, while the gross margin was 42.6%.

In the third quarter of fiscal 2022, the footwear group posted net earnings of 39.2 million US dollars, or earnings per diluted share of 1.08 US dollars, on a comparable basis to net earnings of 59.6 million US dollars, or earnings per diluted share of 1.54 US dollars in the third quarter of fiscal 2021. Adjusted net earnings amounted to 42.0 million US dollars, or adjusted earnings per share of 1.15 US dollars, this quarter, as compared to adjusted earnings per share of 61.5 million US dollars, or adjusted earnings per diluted share of 1.59 US dollars, year-over-year.

Fiscal 2022 Outlook

"Looking ahead, we are confident that Caleres is well-positioned to close 2022 with record-setting earnings. We believe our curated family of brands, powerful platform and robust capabilities in the areas of brand building, production creation, marketing, and logistics will enable us to navigate any market environment", added Diane Sullivan.

For the full year, the company is expecting adjusted earnings per share in the range of 4.30 US dollars to 4.40 US dollars (previous guidance: 4.20 US dollars to 4.40 US dollars). Caleres has also reiterated its sales outlook, with the range still expected to be between 4% and 6%, as compared to the prior fiscal year.