Caleres Inc (NYSE:CAL) put forward its three-year strategic and financial plan in conjunction with its Oct. 5 Investor Day.
The footwear company expects double-digit operating margin in 2023 and beyond, with about 50% of revenue to be derived from the Brand Portfolio segment by 2026.
Caleres expects net sales to grow at a three-year CAGR of 3% – 5%.
Diluted adjusted EPS is expected to increase at a three-year CAGR of 11% – 13% to reach $6.00 at the mid-point of the range.
Caleres sees annual total shareholder return in low-to-mid teens.
The company reaffirmed its Q3 net sales outlook of low-single digits decline and adjusted EPS of $1.30 – $1.35.
It also reaffirmed FY23 sales decline of 3% – 5% and adjusted EPS of $4.10 – $4.30.
However, given the challenging consumer demand environment in September, Caleres expects sales to be at the low-end of the range for both the third quarter and fiscal year 2023.
Price Action: CAL shares are trading higher by 1.45% at $27.34 in premarket on the last check Thursday.
