CALERES (CAL) has reported 16.20 percent fall in profit for the quarter ended Apr. 29, 2017. The company has earned $14.90 million, or $0.35 a share in the quarter, compared with $17.78 million, or $0.41 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $17.43 million, or $0.40 a share compared with $17.78 million or $0.41 a share, a year ago. Revenue during the quarter grew 8 percent to $631.51 million from $584.73 million in the previous year period. Gross margin for the quarter expanded 52 basis points over the previous year period to 42.90 percent. Total expenses were 95.93 percent of quarterly revenues, up from 95.08 percent for the same period last year. That has resulted in a contraction of 84 basis points in operating margin to 4.07 percent.
Operating income for the quarter was $25.72 million, compared with $28.74 million in the previous year period.
"Our first quarter results - including 8.0% sales growth and more than 50 basis points of gross margin improvement - provided a solid start to the year, despite the continued tough retail environment," said Diane Sullivan, chief executive officer, president and chairman of Caleres. "We are pleased with the performance of our Allen Edmonds acquisition, the success of our integration to date, and with our continued shift toward more balanced earnings contribution from both Famous Footwear and Brand Portfolio. And although retail continues to rapidly and significantly evolve, we remain on track for 2017."
CALERES expects revenue to be in the range of $2,700 million to $2,800 million for financial year 2017. For financial year 2017, the company projects diluted earnings per share to be in the range of $2.10 to $2.20 on adjusted basis.
Operating cash flow remains almost stableCash flow from operating activities was almost stable for the quarter at $65.38 million, when compared with the previous year period The company has spent $12.37 million cash to meet investing activities during the quarter as against cash outgo of $18.19 million in the last year period.
The company has spent $36.44 million cash to carry out financing activities during the quarter as against cash outgo of $16.18 million in the last year period.
Cash and cash equivalents stood at $71.82 million as on Apr. 29, 2017, down 51.97 percent or $77.72 million from $149.53 million on Apr. 30, 2016.
Debt increases substantially
CALERES has witnessed an increase in total debt over the last one year. It stood at $282.12 million as on Apr. 29, 2017, up 43.46 percent or $85.46 million from $196.66 million on Apr. 30, 2016. Short-term debt stood at $85 million as on Apr. 29, 2017. Interest coverage ratio deteriorated to 5.10 for the quarter from 7.96 for the same period last year.
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