Caleres, Inc. (NYSE:CAL) Q4 2018 Earnings Conference Call - Final Transcript

Mar 21, 2019 • 04:30 pm ET

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Caleres, Inc. (NYSE:CAL) Q4 2018 Earnings Conference Call - Final Transcript

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Executive
Diane M. Sullivan

innovate and deliver consistent and sustainable growth once again in 2019. As Ken said, cash from famous operations fuels investments across the entire company and these funds are absolutely important to the continued long term growth of Caleres. You know, it's really impossible to capture all that's going on at Famous this year, but let me share the few -- a few of the most critical needle movers for '19.

First and most importantly, we are elevating our assortments to drive growth and give our consumers the iconic brands they love by deepening our relationships with all of our vendor partners. We're also looking forward to a return to positive growth for two of our top vendor partners. We're also going to drive an improved flow of new product this year and a related reduction in SKUs and an improvement in AURs. We're also going to be deepening our relationship with our consumer, and today, we introduced phase one of a refreshed and rebranded rewards program called Famously You Rewards. Our new program realizes consumers want to be rewarded differently and feel valued. And Famously You Rewards embraces this and deepens our consumer connection.

And to further this connection and to reach our consumers no matter, where are they -- where they are, we are launching a new e-commerce platform designed around the consumer. When it comes to e-commerce, we have a long standing legacy of leading and innovating, and we're not stopping. We are targeting strong digital growth again in 2019.

And also, we added new leadership as part of the evolution of our marketing when Marci Grebstein joined us as Senior vice president of Marketing last month. We've also engaged in new branding agency, exploring lots of new opportunities, and we're focused on presenting a relevant message that resonates with consumers across all mediums. We're looking to differentiate Famous Footwear even further in the highly competitive marketplace, and you should expect to see many new approaches during this upcoming back-to-school season.

So, that's a little bit about what we're looking forward to in 2019 across our business. As I mentioned earlier, the entire company is operating with the understanding that we absolutely do need to starve your distractions and feed your focus. We must execute what's right in front of us, and what we have committed to with excellence and deliver adjusted earnings per share of between $2.45 and $2.55 this year.

As I said earlier in the call, our vision, which we've had now for quite some time to be a powerful portfolio of footwear brands and the strategic underpinnings of what has made us Caleres remain relevant and unchanged. I remain convinced, our direction is sound, and while we are proud of what we have accomplished as a team. There is no doubt about the fact that we are picking up both our pace and our focus in 2019.

And with that, I'd like to turn the call over to the operator for Q&A.