Caleres unveils ambitious new growth strategy and financial targets
American footwear company Caleres has revealed a new strategic growth plan based around brand development, innovation and consumer-focused initiatives, and has updated its long-term financial targets.
The company announced on Wednesday that, as part of its new strategy, it will be looking to broaden the reach and power of its brands, which include Sam Edeleman, Famous Footwear and Dr Scholl’s Shoes, among others, as it seeks to drive profitability across its portfolio.
As revealed at in investor day held by the company in NYC, this strategy will also involve the incubation of more new brands, a shift already hinted at when Caleres acquired Vionic, as well as a majority stake in Blowfish Malibu, last year.
As consumer-oriented initiatives continue to play an increasingly important role at a wide range of companies, Caleres also revealed that it will be aiming to strengthen connections with its customers by developing its data analysis capacities, while also boosting its marketing efforts.
Finally, the company will be doubling down on innovation in an effort to optimize its operations by improving its fulfillment capabilities and increasing its agility in responding to fast-changing consumer preferences.
“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,” said Caleres President, Chairman and CEO Diane Sullivan, CEO in a release.
“Focused investment in our core competency as builders of loved and trusted footwear brands will allow us to extend the reach of our powerful portfolio no matter where our consumers choose to purchase our products. We are confident that this will create consistent sales and earnings growth and create value for all our stakeholders,” she added.
Caleres also announced a series of new financial targets for 2022 as it moves forward with its new strategic initiatives.
The company expects its revenue to grow at a compound annual growth rate (CAGR) in the low single digits over the next three years, while earnings per share are predicted to increase at a double-digit CAGR.
In the second quarter ended August 3, 2019, Caleres reported record-breaking sales of $752.5 million, up 6.5% from the prior-year period, with growth being driven by its brand portfolio segment.
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