With the promotional environment expected to remain quiet and continue bolstering full-price sales and margins, Caleres-owned Famous Footwear is promising to employ a more tactical approach for connecting  and engaging with its customer base. The 887-door retailer is currently testing a prototype store that offers an enhanced shopping experience and an elevated presentation of its most in-demand footwear brands.

Despite a three percent, year-over-year decline in first quarter sales to $384.5 million for the period ended April 30, Famous Footwear generated $49.7 million in operating income and a nearly 13 percent return on sales related to price increases taken during the last fiscal year.  Margins got a boost from owned brands Lifestride, Scholl’s and Blowfish, which were each among the retailer’s top 10 brands. While continuing to experience delayed product receipts and supply chain headwinds, Famous intends to introduce select seasonal products and additional categories in locations where there is demand. 

Elsewhere, Caleres’ management is pleased with turnaround performance within its Brand Portfolio segment, which generated $41 million in Q1 profits and a 46 percent increases in revenues to $365.7 million as wholesale partners restocked their inventories and consumer demand for dress and wear-to-work styles accelerated. The level of restocking is expected to moderate during the remainder of 2022. 

Caleres generated $50.5 million in Q1 net profit against $6.1 million as total net sales grew 15 percent to $735.1 million from $638.6 million.  The company is forecasting 2 to 5 percent sales growth in FY22.