Caleres today unveiled an ambitious plan during an investor day in New York City.
The shoe-focused brand management firm — parent to Sam Edelman, Famous Footwear and Naturalizer, among other footwear labels — said its upcoming strategic moves include amping up its marketing efforts as well as adding and incubating more brands. Last year, for instance, the company snapped up Vionic — marking a major move into the comfort-fashion category — and acquired a majority stake in Blowfish Malibu.
Amid a broader industry shift to digital and the push toward omnichannel offerings, the St. Louis-based firm also expects to leverage investments in its infrastructure and innovations, including fulfillment options, e-commerce and buy online, pick-up in store services.
“We are focused on building on the progress we have made over the last several years to position our portfolio to capture rapidly changing consumer preferences and enhance our capabilities to better service our customers,” president, chairman and CEO Diane Sullivan said in a statement. “We are confident that this will create consistent sales and earnings growth and create value for all our stakeholders.”
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In support of the plan, Caleres introduced new financial targets for 2022. It expects revenues in the low single-digits, with double-digit earnings per share and a 15% or more return on invested capital.
During the second-quarter ended Aug. 3, the firm posted sales that advanced nearly 7% to $753 million, modestly outdoing analysts’ bets of $752 million — thanks to a $420 million contribution from Famous Footwear and another $359.6 million from the company’s brand portfolio. It also logged adjusted profits that improved 5.1% to $25.8 million, or 62 cents per diluted share, besting Wall Street’s estimates of 58 cents per share.
(Editor’s note: This is an updated version of a story that ran on Oct. 3.)
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