Caleres Inc. (CAL) has reported a 2.63 percent rise in profit for the quarter ended Oct. 31, 2015. The company has earned $33.98 million, or $0.78 a share in the quarter, compared with $33.11 million, or $0.75 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $35.17 million, or $0.80 a share compared with $33.11 million or $0.75 a share, a year ago. Revenue during the quarter went down marginally by 0.09 percent to $728.64 million from $729.28 million in the previous year period. Gross margin for the quarter contracted 28 basis points over the previous year period to 39.59 percent. Total expenses were 92.83 percent of quarterly revenues, up from 92.70 percent for the same period last year. That has resulted in a contraction of 13 basis points in operating margin to 7.17 percent.
Operating income for the quarter was $52.22 million, compared with $53.21 million in the previous year period.
With solid inventory planning and careful expense management, we delivered good performance in the third quarter, despite a challenging retail environment," said Diane Sullivan, chief executive officer, president and chairman of Caleres. "Famous Footwear delivered same-store-sales growth of 4.4%, capping another successful back-to-school season, as athletic footwear continued to resonate with consumers."
Caleres Inc. expects revenue to be $2,610 million for fiscal year 2015. For financial year 2015, the company forecasts diluted earnings per share to be in the range of $1.95 to $2 on adjusted basis.
Operating cash flow improves
Caleres Inc. has generated cash of $84.05 million from operating activities during the nine month period, up 22.70 percent or $15.55 million, when compared with the last year period.
The company has spent $45.33 million cash to meet investing activities during the nine month period as against cash outgo of $112.44 million in the last year period. It has incurred net capital expenditure of $45.33 million on net basis during the nine month period, up 283.65 percent or $70.02 million from year ago period.
The company has spent $19.32 million cash to carry out financing activities during the nine month period as against cash inflow of $0.55 million in the last year period.
Cash and cash equivalents stood at $86.30 million as on Oct. 31, 2015, up 120.82 percent or $47.22 million from $39.08 million on Nov. 01, 2014.
Working capital increases
Caleres Inc. has recorded an increase in the working capital over the last year. It stood at $443.75 million as at Oct. 31, 2015, up 12.69 percent or $49.97 million from $393.78 million on Nov. 01, 2014. Current ratio was at 2.18 as on Oct. 31, 2015, up from 2.01 on Nov. 01, 2014.
Cash conversion cycle (CCC) has decreased to 81 days for the quarter from 87 days for the last year period. Days sales outstanding went up to 18 days for the quarter compared with 16 days for the same period last year.
Days inventory outstanding has decreased to 123 days for the quarter compared with 127 days for the previous year period. At the same time, days payable outstanding went up to 60 days for the quarter from 57 for the same period last year.
Debt comes down
Caleres Inc. has recorded a decline in total debt over the last one year. It stood at $200 million as on Oct. 31, 2015, down 6.17 percent or $13.15 million from $213.15 million on Nov. 01, 2014. Total debt was 15.87 percent of total assets as on Oct. 31, 2015, compared with 17.62 percent on Nov. 01, 2014. Debt to equity ratio was at 0.33 as on Oct. 31, 2015, down from 0.39 as on Nov. 01, 2014. Interest coverage ratio improved to 12.63 for the quarter from 10.22 for the same period last year.
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