Caleres (NYSE: CAL) reported Q3 EPS of $0.81, $0.07 worse than the analyst estimate of $0.88. Revenue for the quarter came in at $775.8 million versus the consensus estimate of $765 million.

• Famous Footwear same-store-sales up 2.8% – delivered seventh consecutive year of positive back-to-school same-store-sales
• Brand Portfolio sales up 8.5%, as top brands continued to grow and take market share
• Added Vionic – a growing brand with strong consumer loyalty and great cultural fit – to the Brand Portfolio
• Leveraged balance sheet and invested for continued success

“Famous Footwear delivered its seventh consecutive year of positive back-to-school same-store-sales, while Brand Portfolio showed sales improvement of 8.5%, as our top brands continued to take consumer share in the market,” said Diane Sullivan, CEO, president and chairman of Caleres. “In addition, we announced the acquisition of Vionic, a strong consumer demand brand, which has demonstrated solid growth over the past six years and is expected to be accretive to adjusted EPS in 2019.

“We also continued to accelerate the transition to our in-house distribution center for Brand Portfolio. While our in-house facility is up and running efficiently, the third-party facility expense has been far greater than expected,” continued Sullivan. “In an effort to eliminate the potential for incremental expense going forward, we have committed to exiting this third-party facility immediately following fiscal 2018 shipping. Due to these expenses, and our recent Vionic acquisition, we are updating our 2018 adjusted earnings per shareguidance.

“We now expect to report fiscal 2018 adjusted earnings per share of between $2.25 and $2.35, and this range includes approximately $0.05 of dilution related to Vionic interest and amortization expense. This acquisition – along with other actions we have taken this year – is part of our strategy to invest for continued success, and our plans remain on-track,” concluded Sullivan.

GUIDANCE:

Caleres sees FY2018 EPS of $2.25-$2.35, versus the consensus of $2.46. Caleres sees FY2018 revenue of $2.5 billion, versus the consensus of $2.8 billion.

For earnings history and earnings-related data on Caleres (CAL) click here.