Famous Footwear Scores Record Gross Profit Margin
Famous Footwear, the Caleres-owned chain, generated a 671-basis-point increase improvement in its Q2 gross profit margin from its Q2/19 level to 50.1 percent on more full-price selling and a lower promotional environment. The margin improvement was fueled by women’s, men’s, kids, and accessories across the athletic, casual, sandal and boots segments. Total Famous Footwear sales rose 8 percent from Q2/19 to $454 million despite a 28 percent inventory decline. At the start of Q3, Famous Footwear traffic and comp store sales were said to be up high double-digits versus Q2/20. Chain sales are forecast to be at or slightly below 2019 levels in H2.
As for Caleres’ Brand Portfolio, Q2 revenues dipped 33 percent from the Q2/19 level, largely due to ongoing supply chain issues and logistic challenges. These included longer lead times and higher ocean freight costs that are likely to put approximately $30 million in downward pressure on the segment’s Q3 revenues. At the end of Q2, Brand Portfolio inventory was down 30 percent and $100+ million worth of inventory was in transit.
Both Vionic and Sam Edelman were called out for strong Q2 sales, including 163 percent and 75 percent increases, respectively, in their online businesses.