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Caleres Faces Setbacks: How Did FIVE, GCO & ANF Perform This Holiday?
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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 - Free Report) , 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 - Free Report) , Genesco Inc. (GCO - Free Report) and Abercrombie & Fitch Co. (ANF - Free Report) 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.
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Caleres Faces Setbacks: How Did FIVE, GCO & ANF Perform This Holiday?
Key Takeaways
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 - Free Report) , 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 - Free Report) , Genesco Inc. (GCO - Free Report) and Abercrombie & Fitch Co. (ANF - Free Report) 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.