Famous Footwear Parent Caleres Stock Plunges on Soft Sales

Core Insights - Caleres, the parent company of Famous Footwear, reported weak demand and challenges with its resource planning system, leading to disappointing second-quarter results [1][2] - The company missed profit and sales estimates, prompting a reduction in its full-year outlook [1][2] - Caleres shares fell nearly 20%, entering negative territory for 2024 [5] Financial Performance - Caleres reported second-quarter earnings per share (EPS) of 85 cents, which is over 30% below the consensus estimate [2] - Revenue decreased by 1.8% year-over-year to $683.3 million, also falling short of forecasts [2] - Famous Footwear unit sales increased by 1.5%, but comparable-store sales declined by 2.9% [3] Management Commentary - CEO Jay Schmidt acknowledged that the results were "below expectations" and that both segments did not meet their potential [4] - The CEO attributed the poor performance to weak seasonal demand and a delayed back-to-school sales period [4] - Challenges with the implementation of the enterprise resource planning (ERP) system resulted in a lack of visibility for products, negatively impacting sales [4] Revised Outlook - Caleres now expects full-year adjusted EPS to be between $4.00 and $4.15, down from the previous range of $4.30 to $4.60 [5] - The company anticipates sales to decline by a low-single-digit percentage, compared to earlier guidance of flat to up 2% [5]