Reiterates Third Quarter and Fiscal Year
2023 Outlook Ahead of Investor Day
Caleres (NYSE: CAL), a market-leading portfolio of
consumer-driven footwear brands, will host an Investor Day today,
October 5, 2023, in New York City. In conjunction with the event,
the company is presenting its three-year strategic and financial
plan. Caleres also reiterated its third quarter and fiscal year
2023 expectations for consolidated net sales and for diluted
earnings per share and adjusted diluted earnings per share.
“Caleres has a rich 145-year heritage and has always been
committed to superior fit and innovation,” said Jay Schmidt,
president and chief executive officer. “Our company has
consistently adapted to consumer needs and economic changes while
building trust with consumers. 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 per diluted
share. And, fiscal 2023 is expected to mark our third year of
achieving this result.”
“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,” said Schmidt. “We believe our brand assets,
competitive advantages, and core competencies put us in a unique
position to achieve these results and deliver long-term value for
our shareholders.”
The three-year strategic plan focuses on four key areas:
Brand Portfolio Segment Expected to Accelerate Growth –
and deliver an outsized contribution to the company’s earnings.
Caleres expects double-digit operating margin in 2023 and beyond
with about 50% of revenue to be derived from the segment by
2026.
Famous Footwear Deepens its Connection to the Millennial
Family – and leverages its dominant position in Kids, enhanced
omni experience, and consumer analytics to maintain its
profitability and generate significant cash flow.
One Caleres Platform and Capabilities Enhance Profitable
Growth – and this synergistic structure enables the company to
increase customer acquisition, further vertical integration, and
leverage consumer insights and investment spend across the
enterprise.
Deliver Strong Financial Performance that Generates Value for
Shareholders – with the long-term plan expected to result
in:
- Net sales to grow at a three-year CAGR of 3 percent to 5
percent;
- Diluted adjusted EPS to increase at a three-year CAGR of 11
percent to 13 percent to reach $6.00 at the mid-point of the range;
and
- Annual Total Shareholder Return in low-to-mid-teens.
Third Quarter and Fiscal Year 2023 Business Update
The company is reiterating its guidance for consolidated net
sales for the third quarter and fiscal year 2023. However, 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. In addition, Caleres is maintaining
its expectations for diluted earnings per share and adjusted
diluted earnings per share for the third quarter and fiscal 2023
year reflecting its strong financial discipline and increased
operational flexibility.
For third quarter 2023, the company still expects:
- Consolidated net sales down low-single digits, as compared to
the third quarter of fiscal 2022;
- Diluted earnings per share of $1.25 to $1.30; and
- Adjusted diluted earnings per share of $1.30 to $1.35.
For fiscal year 2023, the company still expects:
- Consolidated net sales down 3 percent to 5 percent, as compared
to fiscal 2022, including the 53rd week;
- Diluted earnings per share of $4.02 to $4.22; and
- Adjusted diluted earnings per share of $4.10 to $4.30.
Investor Day
Caleres will hold an Investor Day, at 9:00 am ET today in New
York City. The event will include presentations from executive
leadership on the Company’s positioning as a leading force in
footwear, its growth strategy and its three-year financial outlook.
Prepared remarks will be followed by a question-and-answer
session.
A live video broadcast of the event can be accessed on the
Company’s Investor Relations website:
https://investor.caleres.com/events-and-presentations. An archived
replay will be also available at
https://investor.caleres.com/events-and-presentations/default.aspx
at end of day, October 5, 2023.
Non-GAAP Financial Measures
In this press release, the company’s financial results are
provided both in accordance with generally accepted accounting
principles (GAAP) and using certain non-GAAP financial measures. In
particular, the company provides historic and estimated future
gross profit, operating earnings, net earnings, earnings per
diluted share, and earnings before interest, taxes, depreciation
and amortization adjusted to exclude certain gains, charges, and
recoveries, which are non-GAAP financial measures. These results
are included as a complement to results provided in accordance with
GAAP because management believes these non-GAAP financial measures
help identify underlying trends in the company’s business and
provide useful information to both management and investors by
excluding certain items that may not be indicative of the company’s
core operating results. These measures should not be considered a
substitute for or superior to GAAP results.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
This press release contains certain forward-looking statements
and expectations regarding the company’s future performance and the
performance of its brands. Such statements are subject to various
risks and uncertainties that could cause actual results to differ
materially. These risks include (i) inflationary pressures; (ii)
supply chain disruptions (iii) changing consumer demands, which may
be influenced by general economic conditions and other factors;
(iv) rapidly changing consumer preferences and purchasing patterns
and fashion trends; (v) customer concentration and increased
consolidation in the retail industry; (vi) intense competition
within the footwear industry; (vii) foreign currency fluctuations;
(viii) political and economic conditions or other threats to the
continued and uninterrupted flow of inventory from China and other
countries, where the company relies heavily on third-party
manufacturing facilities for a significant amount of its inventory;
(ix) cybersecurity threats or other major disruption to the
company’s information technology systems; (x) the ability to
accurately forecast sales and manage inventory levels; (xi) a
disruption in the company’s distribution centers; (xii) the ability
to recruit and retain senior management and other key associates;
(xiii) the ability to secure/exit leases on favorable terms; (xiv)
the ability to maintain relationships with current suppliers; (xv)
transitional challenges with acquisitions and divestitures; (xvi)
changes to tax laws, policies and treaties; (xvii) our commitments
and shareholder expectations related to environmental, social and
governance considerations; (xviii) compliance with applicable laws
and standards with respect to labor, trade and product safety
issues; and (xix) the ability to attract, retain, and maintain good
relationships with licensors and protect our intellectual property
rights. The company's reports to the Securities and Exchange
Commission contain detailed information relating to such factors,
including, without limitation, the information under the caption
Risk Factors in Item 1A of the company’s Annual Report on Form 10-K
for the year ended January 28, 2023, which information is
incorporated by reference herein and updated by the company’s
Quarterly Reports on Form 10-Q. The company does not undertake any
obligation or plan to update these forward-looking statements, even
though its situation may change.
SCHEDULE 1
CALERES, INC.
RECONCILIATION OF DILUTED
EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED DILUTED EARNINGS PER
SHARE (NON-GAAP BASIS) – THIRD QUARTER AND FISCAL 2023
GUIDANCE
(Unaudited)
Third Quarter 2023 Guidance
Fiscal 2023 Guidance
Low
High
Low
High
GAAP diluted earnings per share
$
1.25
$
1.30
$
4.02
$
4.22
Charges/other items:
Expense reduction initiatives
0.05
0.05
0.08
0.08
Adjusted diluted earnings per share
$
1.30
$
1.35
$
4.10
$
4.30
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231005357261/en/
Investor Contact: Logan Bonacorsi
lbonacorsi@caleres.com
Caleres (NYSE:CAL)
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