Caleres Misses Q2 Sales

Welcome back to FN Daily, where we break down the biggest stories happening in footwear and retail.

Caleres reported earnings and Nike has downsized its annual "Just Do It" Day celebration. Plus, Skechers comes after more footwear companies for allegedly infringing on its design patents.

Here's what you need to know.

Caleres Misses Q2 Sales Following Later Than Expected Back-to-School Sales Bump, Cuts Yearly Guidance

Caleres is lowering its yearly guidance following a reported sales below its expectations in the second quarter.

According to the St. Louis-based footwear company, net sales in the second quarter of 2024 were $683.3 million, down 1.8 percent from $695.5 million in the second quarter of 2023. Net earnings in the period were 30.0 million, or earnings per diluted share of 85 cents, compared to net earnings of $33.9 million, or earnings per diluted share of 95 cents in the same time last year.

By business segment, Caleres reported that net sales at Famous Footwear increased 1.5 percent in Q2, with comparable sales down 2.9 percent. The company’s brand portfolio segment saw net sales decline 5.1 percent in the quarter.

“Our systems implementation led to lack of visibility that prevented us from delivering our expected results,” said Jay Schmidt, president and chief executive officer of Caleres. “We also experienced weak seasonal demand and back-to-school business came later than expected.”

Nike Downsizes Annual ‘Just Do It’ Day This Year

Nike Inc. will not be celebrating its annual “Just Do It” Day, an employee-focused celebration on its Beaverton, Ore. campus, in the same way this year as in years prior. Instead, the sportswear giant will run other team experiences on a smaller scale, Nike confirmed to FN.

As the Swoosh explained, its major presence at the Olympic and Paralympic Games this year prompted the team to rethink how to celebrate and engage employees across the globe. To that end, Nike has hosted sports watch parties, activations on campus and a global team member meet-up in Centre Pompidou in Paris.

Nike introduced “Just Do It” (JDI) Day in 2018 to celebrate the 30th anniversary of its iconic “Just Do It” marketing campaign. The annual celebration, which typically includes celebrity performances, awards ceremonies and athlete appearances, took a two-year hiatus during Covid and returned in 2022.

The reimagined JDI Day campaign comes as Nike faces financial troubles and increased competition from smaller athletic brands. In December, Nike announced new measures to “streamline” its organization to save up to $2 billion in costs over the next three years by implementing layoffs, simplifying product and increasing automation.

Skechers Sues Marc Fisher, Authentic Brands Group Over Rockport Slip-In Shoe Design

Skechers is coming after more footwear companies for allegedly infringing on its design patents.

In a lawsuit filed Sept. 4 in the Southern District of New York, Skechers accused Rockport, as well as its parent company Authentic Brands Group and its licensee Marc Fisher, of allegedly making and selling shoes that infringe on Skechers’ patented slip-in technology.

“Defendants [Rockport, Marc Fisher and Authentic] did so without even contacting Skechers to request a license to Skechers’ intellectual property protecting the innovations used in those shoes,” Skechers wrote in the complaint. “Rockport shoes infringe Skechers’ utility patent claims protecting innovations associated with its slip-in footwear technology. By this action, Skechers seeks to stop defendants’ patent infringement and obtain appropriate compensation for that infringement.”

As for why Marc Fisher was named in the suit, the company holds the license to Rockport’s products since it was acquired by Authentic in 2023.

Big picture: Skechers?previously accused?several shoe companies, including Laforst Shoes Inc. and?Dockers by Gerli?of copying its popular slip-in shoe designs.

Need more shoe news?

• Inside Black Suede Studio’s Expansion Plans — From Launching a New Licensing Model to Adding Bridal Shoes
• Mytheresa Improved Sales and Profitability in Fiscal Q4, Sees Momentum Continuing
• Nike Shareholders Vote No on Labor Rights Proposal
• The North Face Updates Its Original Hedgehog Hiking Boot From 2006

Got a tip? Send us a confidential note here.

Want more? Sign up here to receive FN's daily newsletter directly in your inbox.