Looking at projections for fiscal 2023, Caleres maintains its predictions with a decrease in consolidated net sales by 3 to 5 per cent from fiscal 2022. The anticipated diluted earnings per share for the year stand between $4.02 and $4.22, and the adjusted figures for the same are expected to be between $4.10 and $4.30.
US footwear firm Caleres predicts a Q3 FY23 diluted EPS of $1.25-$1.30 and anticipates a slight decline in net sales from the third quarter of FY22.
The company’s three-year strategy focuses on brand portfolio growth, strengthening Famous Footwear’s market position, and enhancing its integrated platform, targeting a 3-5 per cent CAGR in net sales.
Alongside these forecasts, Caleres introduced a three-year strategic plan centred on four pivotal areas. Firstly, the brand portfolio Segment is anticipated to expedite growth, with the company hoping for a double-digit operating margin in 2023 and beyond. They project that by 2026, about 50 per cent of revenue will come from this segment. Secondly, Famous Footwear aims to further its bond with the Millennial family, banking on its strong position in Kids footwear, improved omni experience, and consumer analytics to sustain profitability and generate substantial cash flow.
The third strategic pillar, named ‘One Caleres Platform and Capabilities’, is set to enhance profitable growth. This synergistic model is designed to boost customer acquisition, augment vertical integration, and make optimal use of consumer insights and investment expenditure across the company.
The long-term plan is projected to lead to a growth in net sales at a three-year compound annual growth rate (CAGR) of 3 to 5 per cent. Adjusted EPS is set to increase at a three-year CAGR of 11 to 13 per cent, aiming to reach a midpoint of $6.
Fibre2Fashion News Desk (DP)