Ecco is adding to its American leadership team. Last week, the Danish footwear and leather company named footwear industry veteran Matt Feiner as chief commercial officer of Ecco Americas. More from WWD In his new role, the company said that Feiner will lead wholesale, retail and e-commerce across North America. Key to the role, is managing the omni-channel landscape, ensuring best in class partnership for Ecco’s wholesale accounts and profitability through its direct-to-consumer channels. The company ad ...

Core Viewpoint - Caleres, Inc. reported disappointing earnings and faces challenges in maintaining consistent revenue growth despite a slight revenue beat [2][3][6] Financial Performance - The company reported earnings per share (EPS) of $0.35, missing the Zacks Consensus Estimate of $0.51 by 31.37% [2][6] - Revenue for the quarter was $658.52 million, slightly above the estimated $656.5 million, but down from $683.32 million in the same quarter last year [3][6] - Over the past four quarters, Caleres has only exceeded consensus revenue estimates once, indicating difficulties in revenue consistency [3] Valuation Metrics - Caleres has a price-to-earnings (P/E) ratio of 5.43, suggesting a low valuation relative to its earnings [4][6] - The price-to-sales ratio is 0.18, indicating modest market valuation of its sales [4] - The enterprise value to sales ratio is 0.48, valuing the company at less than half of its sales when considering its enterprise value [4] Financial Health - The debt-to-equity ratio stands at 1.40, indicating significant reliance on debt in its capital structure [5][6] - The current ratio is 1.10, suggesting a slightly higher level of current assets compared to current liabilities, which may indicate short-term financial health [5] - Caleres' earnings yield is 18.41%, providing a measure of return on investment for shareholders despite recent earnings challenges [5]

Financial Data and Key Metrics Changes - The company reported second quarter sales of $658.5 million, a decline of 3.6% year over year, with sales trends improving sequentially in both segments [24][10] - Adjusted earnings per share were $0.35, down from $0.85 in the previous year [30] - Consolidated gross margin was 43.4%, down 20 basis points compared to last year, driven by lower margins in both segments [26] Business Segment Data and Key Metrics Changes - Brand Portfolio sales declined 3.5%, with lead brands growing about 1% in North America and 3.6% globally [25][11] - Famous Footwear sales were down 4.9%, with comparable sales declining 3.4% [25][19] - The Brand Portfolio experienced gross margin pressure due to tariffs and markdown reserves, while Famous Footwear's gross margin was 43.7%, down 130 basis points [26][27] Market Data and Key Metrics Changes - International sales increased by double digits, and the company gained market share in women's fashion footwear [6][11] - E-commerce sales for Famous Footwear were up double digits, particularly in May and July [19] - The company gained 0.6 points of kids market share in shoe chains during the quarter [22] Company Strategy and Development Direction - The company completed structural cost savings initiatives expected to deliver annualized savings of $15 million, with half of that coming this year [7] - The acquisition of Stuart Weitzman was completed, adding a new lead brand to the portfolio, with a focus on operational efficiency and profitability post-transition [8][9] - Strategic focuses include ongoing tariff mitigation, expense and capital discipline, and integrating Stuart Weitzman while fueling lead brands and Famous Footwear [23] Management's Comments on Operating Environment and Future Outlook - Management noted headwinds due to market uncertainty but highlighted improved sales trends and market share gains [5] - The tariff environment remains uncertain, with expectations of continued gross margin pressure in the second half of the year [17][33] - Management expressed confidence in executing strategic plans to improve financial performance and drive shareholder value [23] Other Important Information - The company expects to finalize purchase accounting for Stuart Weitzman and provide more information on its impact in the next earnings call [35] - Inventory at quarter end was $693 million, up 4.9% year over year, with a 2% increase in Famous and an 8.6% increase in Brand Portfolio [31] Q&A Session Summary Question: Can you provide insights on August performance and any shifts in the women's business? - Management noted improved traffic and conversion in brick-and-mortar stores, with flat average unit retails (AURs) [38] - The product assortment shift positively impacted sales, particularly with the launch of Jordan [39] Question: What are the expectations for gross margins moving forward? - Management anticipates less headwind from promotions in the back half of the year, with continued pressure from tariffs [41][42] Question: What is the expected impact of the Stuart Weitzman acquisition on sales and EBIT? - Management is not providing specific details at this time, as purchase accounting is still being finalized [46][47] Question: How is the consumer health of Famous Footwear and Brand Portfolio customers? - Management observed that consumers continue to prefer highly demanded national brands, with strong performance in back-to-school sales [60][61] Question: What mitigation tactics for tariffs are being employed? - The company is selectively passing through price increases and negotiating with factory partners for cost savings [64][66]

Financial Performance - Q2 2025 - Sales decreased to $659 million, a 3.6% decrease compared to $683 million in 2Q24[19, 16] - Adjusted Earnings Per Share (EPS) decreased to $0.35, compared to $0.85 in 2Q24[19, 16] - Gross margin was 43.4%, down 210 bps compared to 2Q24[19] - Inventory increased by 5% compared to 2Q24[19] - Adjusted EBITDA was $163 million[19] Segment Performance - **Famous Footwear:** Sales were $400 million, down 4.9% year-over-year, with comparable sales down 3.4%[26] Gross margin was 43.7%, down 130 bps year-over-year[26] - **Brand Portfolio:** Sales were $276 million, down 3.5% compared to 2Q24, including a $10 million impact from tariffs[21] Gross margin was 40.3%, down 240 bps compared to 2Q24[22] Outlook - Famous Footwear expects comparable sales to be up 1% in August, down low-single digits in September and October[30] - The Brand Portfolio expects Q3 gross margin to be down similar to Q2, with Q4 trends improving as mitigation strategies benefit[30] Strategic Initiatives - The company achieved $15 million in annualized, structural savings[14] - The company is partnering with a consulting firm to explore additional structural cost savings across the portfolio[30]

Core Viewpoint - The article promotes the Weiko Vasaci high-end handmade shoes as a stylish and comfortable option for consumers, emphasizing their unique craftsmanship and affordability compared to other luxury brands [6][8][35]. Brand Overview - Weiko Vasaci is a high-end shoe brand with a 73-year history, founded by a renowned European shoemaker, known for its craftsmanship and focus on comfort [8][10][48]. - The brand combines luxury with functionality, appealing to both fashion and comfort-conscious consumers [12][80]. Product Features - The Weiko Vasaci couple's handmade shoes are designed for both style and comfort, featuring a shock-absorbing sole and breathable materials [19][54][60]. - The shoes incorporate a reflective design for safety during night activities and an invisible height increase of 3.5 cm for a flattering silhouette [23][25]. - Available in two colors, the shoes are versatile enough for various occasions, from casual outings to sports activities [27][33]. Pricing Strategy - The retail price of the shoes is set at 2,988 yuan, but a promotional price of 168 yuan is offered, making it less than 10% of the original price [35][38][95]. - This pricing strategy aims to increase brand awareness and attract consumers looking for high-quality products at a lower price point [38]. Quality Assurance - The shoes come with an anti-counterfeit code for verification, ensuring customers receive genuine products [35][95]. - The craftsmanship includes durable materials like Napa leather, which is known for its softness and breathability, enhancing the overall comfort of the shoes [71][77][79].

Strategy & Vision - Alpargatas is shifting its strategy to focus on core strengths, prioritizing financial discipline and sustainable growth[10, 15] - The company's vision is to "Inspire the world to walk a lighter path"[21] - A revamped strategy planning process aims for end-to-end alignment across Alpargatas' value creation priorities[25] Market & Portfolio - The company is refocusing on flip-flops, addressing consumer needs before expanding into new categories[49, 52] - In Brazil, the company aims to protect its leading position in the grocery channel and women's category while growing in specialized channels and men's/kids' segments[17, 60] - Havaianas International has a significant market opportunity, particularly in Italy, England, France, Spain and the USA, but needs to focus on gaining market share in flip-flops[61, 82] Operational Efficiency & Capital Allocation - The company is implementing a Zero-Based Budgeting (ZBB) approach and simplifying operations to improve efficiency and support future growth[26, 157] - Capital allocation will be more disciplined, focusing on automation and optimizing logistics[17, 136] - Rothy's has shown steady growth, with net sales reaching $226 million and a gross margin of 63.3%[144, 145] International Markets - The company aims to build a consistent international business by focusing on priority markets and executing a clusterization playbook[16, 41, 84] - In Europe, the company is addressing issues such as high prices and declining service levels, reallocating marketing budget to brand building, and streamlining operations[98, 101, 365, 371] - In the US, the company is transitioning to an own operation model and expanding distribution in mid-tier and sports/athletic channels[123, 107] Sustainability & Culture - The company is committed to operating according to circular economy principles, reducing the impact of operations, and promoting diversity, inclusion, and local development[597] - The company has invested R$76 million between 2003 and 2024 through the Alpargatas Institute to create opportunities for communities[598]

Company Overview - Crocs operates under two brands, with the Crocs brand accounting for approximately 80% of its business, offering a diverse range of footwear including clogs and sandals, as well as personalization options [5] Geographic Diversification - The Crocs brand is well diversified geographically, trading in over 80 countries worldwide [5]

Financial Data and Key Metrics Changes - The company reported a Q3 sales guidance decline of 9% to 11%, primarily driven by the Hey Dude brand, while the Crocs brand is expected to decline in the low single digits with international growth [10][44] - The company emphasized its high profitability and cash flow, which is a key part of its shareholder return strategy [7][56] Business Line Data and Key Metrics Changes - The Crocs brand constitutes about 80% of the business, while Hey Dude accounts for approximately 20% [5][6] - The Crocs brand is experiencing a low single-digit decline, while Hey Dude is facing more significant challenges [10][19] Market Data and Key Metrics Changes - International sales for Crocs surpassed domestic sales for the first time in Q2, indicating strong growth potential outside the U.S. [25] - The company identified key international markets such as China, Japan, Western Europe, India, and South Korea as areas of focus for growth [26][28] Company Strategy and Development Direction - The company is focusing on reducing discounts to protect brand value and improve net pricing [9][20] - Strategic actions include cleaning up the wholesale market for Hey Dude and reallocating marketing spend from performance to brand marketing [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding consumer spending, noting a more cautious consumer environment and potential headwinds from athletic trends [8][19] - The outlook for the U.S. consumer is expected to remain stable, while there may be improvements in Asian markets [44][45] Other Important Information - A new CFO, Patrick Reagan, will join the company on September 22, bringing extensive footwear experience [11][12] - The company is innovating in marketing strategies, particularly through social selling and live streaming [39][43] Q&A Session Summary Question: Insights on back-to-school trends - Management noted that back-to-school is not a peak period for their brands, but tax holidays provided some benefits [15][16] Question: Key drivers of cautious tone in North America - The primary driver is consumer concern, with no immediate pivot expected in consumer behavior [19][20] Question: International market opportunities - Management sees significant white space internationally, with average market share in international markets being about a third of that in the U.S. [25][28] Question: Competitive landscape - The competitive landscape is dynamic, with both smaller brands and larger competitors posing challenges [46][47] Question: Pricing strategy - The company is strategic about pricing, anticipating a systemic rise in footwear prices over the next 12 to 18 months [49][50] Question: Long-term margin guidance - Management reaffirmed that while the long-term margin target of 24% is viable, current conditions may not support that level [54][55]

Financial Data and Key Metrics Changes - The company reported a solid performance in the first half of the year, but guidance for Q3 indicates an expected sales decline of 9% to 11%, primarily driven by the Hey Dude brand, while Crocs brand is expected to decline in the low single digits [8][6][5] - The company highlighted its high profitability and cash flow as a key part of its shareholder return strategy, including stock buybacks [5] Business Line Data and Key Metrics Changes - The Crocs brand constitutes about 80% of the business, while Hey Dude accounts for approximately 20% of sales, primarily in the U.S. with emerging international growth [3][4] - The Crocs brand is experiencing a low single-digit decline, but international growth is anticipated [8] - Hey Dude is undergoing strategic changes to clean up distribution and reduce aged inventory, which has been a challenge since its acquisition [26][28] Market Data and Key Metrics Changes - The company noted a cautious consumer environment, particularly among moderate consumers, impacting sales [6][7] - Retailers are acting cautiously, affecting the open-to-buy dynamics, which is squeezing the casual footwear segment [20][21] Company Strategy and Development Direction - The company is focusing on protecting its brands for long-term success by reducing discounts and enhancing net pricing strategies [7][8] - There is a significant emphasis on international expansion, with sales outside the U.S. surpassing domestic sales for the first time [22][23] - The company is investing in the Hey Dude brand for future growth, including a new marketing strategy focused on core consumers [26][30] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the consumer environment, expecting no significant changes in consumer behavior in the near future [42] - The competitive landscape is dynamic, with increased competition from both smaller and larger brands, necessitating continuous innovation [44][45] Other Important Information - A new CFO, Patrick Reagan, will join the company on September 22, bringing extensive footwear experience [10][11] - The company is leveraging social selling and live streaming as innovative marketing strategies to engage consumers [36][40] Q&A Session Summary Question: Insights on back-to-school trends - Back-to-school shopping has played out as expected, with a tightening in consumer shopping weeks and beneficial tax holidays in some states [14][15] Question: Key drivers of cautious tone in North America - The cautious tone is driven by consumer concern, with no expected pivot point for improvement [16][17] Question: International market opportunities - There is significant white space internationally, with the average market share in international markets being about a third of that in the U.S. [22][25] Question: Pricing strategy and ability to take price - The company is strategic about pricing, anticipating a systemic rise in footwear prices over the next 12 to 18 months, while not leading price increases [47][50] Question: Long-term margin guidance - The long-term margin target of 24% is still viable but not expected in the current non-normalized trading environment [52][53]

Company Leadership Change - Crocs, Inc. announced the appointment of Patraic Reagan as the Executive Vice President and Chief Financial Officer, effective September 22, 2025, succeeding Susan Healy who resigned on August 28, 2025 [1][5] - Mr. Reagan brings approximately three decades of financial and operational leadership experience from prominent global consumer companies, including his most recent role as CFO at SharkNinja, Inc. and nearly 14 years at Nike, Inc. [2][7] Executive Insights - CEO Andrew Rees expressed excitement about Mr. Reagan's appointment, highlighting his strong public profile and track record of delivering consistent, profitable growth, which is expected to enhance shareholder value [3][5] - Mr. Reagan emphasized his admiration for Crocs, Inc. and the untapped potential within the Crocs and HEYDUDE brands, indicating a focus on disciplined execution to unlock shareholder value [5] Financial Responsibilities - Mr. Reagan will oversee the company's financial strategies, including financial planning and analysis, accounting, treasury, investor relations, tax, and internal audit [4] Transition and Future Outlook - To ensure a smooth transition, Susan Healy will remain as an advisor until October 31, 2025 [5] - The company reaffirmed its third quarter 2025 financial outlook as previously disclosed on August 7, 2025, and management will present at the Goldman Sachs 32nd Annual Global Retailing Conference on September 3, 2025 [6]