What happened
Shares of footwear retailer Caleres (CAL -2.62%) spiked today after the company reported first-quarter results that beat Wall Street's top- and bottom-line consensus estimates. Investors were also reacting to the fact that the company raised its earnings outlook for the full year.
The stock had spiked by 26.4% at 10:54 a.m. ET.
So what
Caleres reported adjusted earnings per share of $1.32 in the first quarter, a huge increase from $0.16 in the year-ago quarter and far outpacing analysts' consensus estimate of $0.83 per share.
Image source: Getty Images.
Caleres beating Wall Street's bottom line estimate was impressive enough, but investors were also happy that the company's first-quarter sales of $735.1 million -- up 15% year over year -- blew past analysts' average estimate of $677.2 million.
"Caleres had an outstanding start to the year, executing at a high level and delivering record first quarter sales, gross profit margins and earnings despite significant and ongoing macro-challenges," Caleres CEO Diane Sullivan said in a press release.
Now what
The good news kept coming for investors after Caleres' management raised the company's full-year earnings guidance to between $4.20 and $4.40, up from the previous range of between $3.75 and $4.00.
The new range is far ahead of analysts' consensus earnings estimate of $3.92 for the year.
Sullivan said that even with "ongoing supply chain challenges and persistent macro-economic headwinds," the company is "exceptionally well-positioned to capitalize on favorable market dynamics."
While many other retailers are struggling and bracing themselves for a potential recession, Caleres' latest financial results and rosy outlook are a bright spot in the retail market.
