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Caleres reiterates full year outlook and announces three-year strategic growth plan

Oct 9, 2023 United States
Caleres reiterates full year outlook and announces three-year strategic growth plan
The US-based footwear company confirmed its third quarter and fiscal 2023 guidance and introduced a three-year strategic and financial plan focused on four key areas
“Over the last four years, we have transformed the earnings power of the organization. Importantly, the structural changes implemented over this period have established a new baseline earnings level of 4.00 US dollars per diluted share. And, fiscal 2023 is expected to mark our third year of achieving this result”, commented Jay Schmidt, President and Chief Executive Officer of the company. “Today, we are introducing a three-year strategic and financial plan expected to take our company to an even higher level of growth and profitability,” he announced.  

By 2026, Caleres is expecting its net sales to increase at a three-year CAGR of 3% to 5% and its diluted adjusted earnings per share to grow at a three-year CAGR of 11% to 13% to reach 6.00 US dollars at the mid-point of the range.

The company also announced that it expects its brand portfolio segment to make an outsized contribution to its total earnings, with about 50% of revenue to be derived from the segment, and to strengthen Famous Footwear's connection to the millennial generation by improving the omnichannel experience and consumer analysis. In addition, it plans to create a unique platform to increase customer acquisition, further vertical integration, and leverage consumer insights and investment spending across the enterprise.

Outlook

Caleres reiterated its net sales guidance for both the third quarter and fiscal 2023, but “given the challenging consumer demand environment in September, it expects to be at the low-end of the sales range for both third quarter and fiscal year 2023”.

Therefore, for the third quarter, it anticipates its consolidated net sales to decrease by low-single digits, as compared to the same period of fiscal 2023, and full year consolidated net sales to fall by 3% to 5%, as compared to the prior year.

Diluted earnings per share for the third quarter of the current year are still expected in the range of 1.25 US dollars to 1.30 US dollars and for the full year between 4.02 US dollars to 4.22 US dollars. Accordingly, adjusted diluted earnings per share for the third quarter in the range of 1.30 US dollars to 1.35 US dollars and full year adjusted diluted earnings per share of 4.10 US dollars to 4.30 US dollars.


Image Credits: finance.yahoo.com


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