Caleres, Inc., an American footwear company, delivered an update on its continuing response to the massive spread of COVID-19. The company had earlier taken some steps to temporarily shut its branded retail stores and specific Famous Footwear shops. These shops are majorly situated in extremely COVID-19 impacted areas. Besides this, it has now decided to close its remaining Famous Footwear locations.
The closure of the remaining stores of Caleres is expected to start from March 19. The company will shut all retail locations, that are anticipated to remain closed through April 2, 2020. Over this period, the company understands the requirement to maintain the stability of overall safety and health with the current necessities of its consumers. To that end, customers will still be able to buy products online from Naturalizer, Famous Footwear, Sam Edelman, and Allen Edmonds and get their product delivered directly to their home.
As a result, Caleres is pulling out its 2020 financial guidance, which only comprised assessed influences from virus-related supply chain interferences and did not hold any virus-related fall in consumer demand. Though it is tough to enumerate the effect over financial results of the entire year, the company will reevaluate and plans to discuss its outlook on its first-quarter 2020 conference call.
Ken Hannah, Chief Financial Officer and Senior Vice President, Caleres, reportedly stated that during such tough times, the company is taking steps to manage the business conservatively. The company has been minimizing operating expenses & capital expenditures and is holding the flexibility to fully use its strong balance sheet to move its capital allocation primacies to bring into line with the best interest of stakeholders, he further added.
Diane Sullivan, CEO, Chairman, and President, Caleres, was reportedly quoted saying that the company will balance the distinct requirements of communities with the ongoing need of the consumers while working determinedly to protect its business and team members.