By
Fibre2Fashion
Published
Oct 9, 2023
US-based footwear company Caleres, in its financial forecast for the third quarter of fiscal 2023 (Q3 FY23), anticipates a diluted earnings per share (EPS) to range between $1.25 and $1.30 and expects adjusted diluted earnings per share to hover between $1.30 and $1.35. The company expects decline in consolidated net sales by low-single digits when compared to the third quarter of fiscal 2022.
Looking at projections for fiscal 2023, Caleres maintains its predictions with a decrease in consolidated net sales by 3 to 5 percent 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.
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 percent 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.