Caleres, the parent company of popular footwear brands such as Dr Scholl’s, Famous Footwear, and Vince, revealed on Thursday that it anticipates sales for its third quarter and the entirety of fiscal 2023 to fall at the lower end of its projected range.
As part of its strategic goals for the next three years, the St. Louis-based company provided this updated guidance ahead of its upcoming investor day.
Caleres aims to achieve sales growth at a compound annual growth rate (CAGR) of 3% to 5% over the three-year period. Additionally, it plans to realize per-share earnings growth at a CAGR of 11% to 13%, reaching $6.00 at the midpoint of the range. The company also targets annual shareholder returns in the low-to-mid teens.
Despite maintaining its expectations for third-quarter adjusted earnings per share (EPS) of $1.30 to $1.35 and fiscal 2023 adjusted earnings of $4.10 to $4.30, Caleres projects a decline in sales during the third quarter, specifically in the low-single digits. Moreover, it expects sales to be down by 3% to 5% for the year as a whole.
Due to the challenging consumer demand environment in September, the company stated that it anticipates landing on the lower end of the sales range for both the third quarter and fiscal year 2023.
Pre-market trading saw a 1.5% increase in Caleres stock (CAL, -2.74%), and year-to-date gains have reached 20%. In comparison, the S&P 500 (SPX) has gained 11% over the same period.