Key Takeaways
- Footwear leader Caleres revised its financial guidance after weaker than expected holiday sales.
- The company now expects sales to decline as much as 3.5%, revising estimated earnings downward.
- Celeres competitors like FIVE, GCO & ANF fared better during the holiday season.
The holiday season is a make-or-break period for retailers, as consumer spending trends during this time can significantly impact performance. For Caleres Inc. CAL, this period brought unforeseen challenges, leading the company to revise its financial outlook. While Caleres faced setbacks, other retailers such as Five Below, Inc. FIVE, Genesco Inc. GCO and Abercrombie & Fitch Co. ANF had varying experiences.
What Led Caleres to Revisit Its Guidance?
Caleres, a prominent player in the consumer-driven footwear industry, has revised its financial outlook for the full year 2024 following a softer-than-expected sales performance.
Entering the holiday season, the momentum in the athletic segment at Famous Footwear was promising, but this enthusiasm waned as sales trends softened in mid-December and extended into January, ultimately falling short of the company’s expectations. Moreover, weather-related disruptions at Famous Footwear stores contributed to the weaker-than-expected results.
As a result of these challenges, Caleres has updated its forecast for fiscal 2024. The company now anticipates consolidated net sales to decline approximately 3% to 3.5% compared to the previous year. The company now envisions adjusted earnings between $3.20 and $3.30 per share. Earlier, management had guided a 2.5% to 3% decline in sales, with adjusted earnings in the band of $3.45-$3.55 per share.
Nonetheless, Caleres remains focused on delivering value to shareholders by executing its strategic plan. This includes creating innovative products and enhancing consumer experiences while maintaining a strict focus on cost management.
Shares of this Zacks Rank #5 (Strong Sell) company were down 3.6% yesterday.
Past Three-Month Performance of CAL, FIVE, GCO & ANF
Image Source: Zacks Investment Research
Here’s How FIVE, GCO & ANF Fared This Holiday Season
Five Below stated that holiday results came in line with expectations. The company generated net sales of $1.19 billion during the Holiday Period (Nov. 3, 2024 through Jan. 4, 2025), up from $1.10 billion reported in the comparable nine-week period from Nov. 5, 2023 through Jan. 6, 2024. However, comparable sales for the Holiday Period dipped 3.2%, highlighting some softness in same-store performance despite overall revenue gains.
Based on the holiday performance and January forecasts, Five Below now expects fourth-quarter sales to land in the upper half of its previously provided guidance. This Zacks Rank #1 (Strong Buy) company had earlier guided net sales between $1.35 billion and $1.38 billion, with a comparable sales decline of approximately 3% to 5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Genesco announced an impressive 10% increase in comparable sales for the fourth-quarter-to-date period ended Dec. 28, 2024. Same-store sales rose 6%, while comparable e-commerce sales surged 20%, signaling the strength of the company's omnichannel strategy.
Breaking down the numbers, the Journeys Group led the charge with a 14% year-over-year increase in comparable sales. The Schuh Group reported modest growth of 3%, while the Johnston & Murphy Group saw a slight decline of 1%. Based on quarter-to-date results, Genesco, a Zacks Rank #1 company, reiterated its fiscal 2025 earnings guidance of 80 cents to $1.00 per share.
Abercrombie & Fitch has announced an upward revision in its net sales outlook for the fourth quarter and fiscal 2024, attributing to a successful holiday sales season. This Zacks Rank #1 company now expects fourth-quarter net sales growth to range between 7% and 8%, up from the prior forecast of 5% to 7%. For the full fiscal year, net sales growth is projected at approximately 15% compared to the earlier range of 14%-15%.
Management highlighted the company's exceptional performance, noting that the quarter-to-date net sales through December set new records. This achievement reflects robust comparable sales across regions and brands bolstered by compelling product assortments and strategic marketing efforts.
Free: 5 Stocks to Buy As Infrastructure Spending Soars
Trillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.
In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.
Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Genesco Inc. (GCO) : Free Stock Analysis Report
Five Below, Inc. (FIVE) : Free Stock Analysis Report
Caleres, Inc. (CAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.