Chandana Naga Madaka's questions to Caleres Inc (CAL) leadership • Q3 2024
Question
Chandana Madaka inquired about Caleres's confidence in its long-term plan a year after its Investor Day, seeking clarity on the delayed EPS targets and the specific drivers behind the revised outlook, particularly from an OpEx perspective. She also asked for details on the softness observed in the China market and the company's confidence in the region amid new store openings.
Answer
CFO Jack Calandra acknowledged the year as a setback, attributing it to a softer fashion footwear market, disruptions from a Q2 ERP upgrade, and strategic investments in international growth and marketing. He affirmed that while it will take longer to reach the EPS goals set in October 2023, the company has the capabilities to return to over $4 in EPS. CEO Jay Schmidt added that while the company remains confident in China's long-term potential, initial growth plans were too aggressive, and they are now pursuing a more balanced international strategy that includes the Middle East, EU, and Southeast Asia.