Caleres Reiterates Full Year 2023 Outlook

Rhea-AI Summary

Caleres (CAL) reaffirms financial outlook for full year 2023, expecting adjusted earnings of $4.10 to $4.20 per share, despite a challenging demand environment. Consolidated net sales are projected to be down 4.5% to 5.5% compared to fiscal 2022. The company aims to drive long-term value for shareholders and create exceptional products and experiences for consumers.

Insights

Financial Analyst

Caleres Inc.'s reaffirmation of its financial outlook for the full year 2023 is indicative of the company's confidence in its operational stability and strategic planning. The projection of full-year adjusted earnings per share (EPS) remaining above the $4.00 baseline for the third consecutive year suggests a resilient earnings profile, even in the face of a challenging demand environment. This stability is a positive signal to investors, reflecting the company's ability to navigate market fluctuations without significant downward revisions to its earnings expectations.

However, the anticipated decline in consolidated net sales of 4.5 to 5.5 percent compared to fiscal 2022 warrants attention. This projected decrease must be weighed against the broader industry context, where consumer spending on footwear may be impacted by macroeconomic factors such as disposable income levels and consumer confidence. The impact of the 53rd week on the company's financials should also be considered, as it represents an anomaly that can skew year-over-year comparisons.

Investors should monitor the company's cost management strategies closely, as maintaining profitability in a period of declining sales will likely require stringent cost controls and operational efficiencies. The long-term value proposition for shareholders will hinge on Caleres' execution of its strategic plan and its ability to innovate and differentiate its product offerings in a highly competitive market.

Market Research Analyst

The footwear industry is highly competitive and sensitive to consumer trends and economic cycles. Caleres' reaffirmation of its earnings outlook, despite a projected sales decline, suggests that the company may be gaining operational efficiencies or benefiting from a favorable product mix with higher margins. This could be a reflection of effective inventory management and a strong grasp on consumer preferences, allowing the company to maintain profitability.

It is also important to consider the role of digital transformation and e-commerce in supporting Caleres' performance. The shift towards online shopping has been accelerated by the pandemic and companies that have adapted effectively to this shift are likely to see sustained benefits. Caleres' ability to create exceptional consumer experiences, potentially through digital channels, could be a significant factor in driving customer loyalty and maintaining sales volumes.

Moreover, the mention of rigorous cost management implies that Caleres is actively seeking ways to optimize its operations amidst the challenging demand environment. This could involve renegotiating supplier contracts, reducing overhead costs, or streamlining logistics. The effectiveness of these measures will be crucial in determining the company's ability to deliver on its earnings promises and drive long-term shareholder value.

ST. LOUIS--(BUSINESS WIRE)-- Caleres, (NYSE: CAL), a market-leading portfolio of consumer-driven footwear brands, today announced that it is reaffirming its financial outlook for consolidated sales, earnings per share and adjusted earnings per share for full year 2023.

“Caleres continues to expect full year 2023 adjusted earnings of $4.10 to $4.20 per share, which would mark the third consecutive year with earnings per share in excess of our $4.00 baseline,” said Jay Schmidt, president and chief executive officer. “Our ability to deliver results ahead of expectations throughout the year and to maintain our earnings outlook, despite a challenging demand environment, underscores yet again the powerful transformation we’ve achieved in the earnings profile of the organization. As we look ahead to 2024, we are focused on executing on our strategic plan to drive long-term value for our shareholders, creating exceptional products and experiences for our consumers, and managing our costs rigorously.”

Caleres still expects the following for fiscal year 2023:

• Consolidated net sales to be down 4.5 percent to 5.5 percent compared to fiscal 2022, including the impact of the 53^rd week;
• Diluted earnings per share of $3.96 to $4.06; and
• Adjusted diluted earnings per share of $4.10 and $4.20.

As previously announced, the company will be participating in the 2024 Annual ICR Conference on January 9, 2024. Caleres is scheduled to host a fireside chat on Tuesday, January 9 at 11:30 a.m. Eastern Time. A live audio webcast of the event will be available via the “Investors” section of the company’s website at https://investor.caleres.com/events-and-presentations. An online archive will be available on the site following the event.

About Caleres:

Caleres is a market-leading portfolio of global footwear brands that includes Famous Footwear, Sam Edelman, Allen Edmonds, Naturalizer, Vionic, and more. Our products are available virtually everywhere - in the nearly 1,000 retail stores we operate, in hundreds of major department and specialty stores, on our branded e-commerce sites, and on many additional third-party retail websites. Combined, these brands make Caleres a company with both a legacy and a mission. Our legacy is our more than 140 years of craftsmanship and our passion for fit, while our mission is to continue to inspire people to feel great… feet first. Visit caleres.com to learn more about us.

Definitions

All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings attributable to Caleres, Inc. and diluted earnings per common share attributable to Caleres, Inc. shareholders, are presented as net earnings and earnings per diluted share, respectively.

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 earnings per diluted share, 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) changing consumer demands, which may be influenced by general economic conditions and other factors; (ii) inflationary pressures (iii) supply chain disruptions (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) – FISCAL 2023 GUIDANCE
		Fiscal 2023 Guidance
		Low			High
GAAP diluted earnings per share		$	3.96		$	4.06
Charges/other items:
Expense reduction initiatives			0.14			0.14
Adjusted diluted earnings per share		$	4.10		$	4.20

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240107253661/en/

Investor Contact:

Logan Bonacorsi

lbonacorsi@caleres.com

Media Contact:

Kelly Malone

kmalone@caleres.com

Source: Caleres

FAQ

What is Caleres' financial outlook for full year 2023?

Caleres expects adjusted earnings of $4.10 to $4.20 per share for full year 2023, marking the third consecutive year with earnings per share in excess of $4.00.

What are Caleres' projected consolidated net sales for fiscal year 2023?

The company anticipates consolidated net sales to be down 4.5% to 5.5% compared to fiscal 2022.

When is Caleres participating in the 2024 Annual ICR Conference?

Caleres will be participating in the 2024 Annual ICR Conference on January 9, 2024, and is scheduled to host a fireside chat at 11:30 a.m. Eastern Time.