The Footwear Brands Set to Win the Holidays

Happy Thanksgiving eve! And welcome back to FN Daily, where we break down the biggest stories happening in footwear and retail.

Today, we're looking ahead and analyzing which brands are set to win this holiday weekend. Plus, we take a look at Nordstrom's Q3 footwear sales and Caleres' CEO doubles down on the success of the company’s owned brand portfolio.

Here's what you need to know:

Retailers Say Newness and Value Will Drive Holiday: These Are the Footwear Brands Set to Win

Retailers in the third quarter noted a broad consumer pullback in discretionary categories. But that didn’t stop them from sharing positive projections for Black Friday, Thanksgiving weekend and subsequent Christmas shopping weekends.

Value and newness: While retailers are generally optimistic about holiday, many are emphasizing value to win over inflation-stricken consumers during an uncertain economic environment — and that means more promotions. In addition to the value proposition, having compelling, new product, will also be important this holiday season.

What brands will win? When it comes to categories, a recent Wedbush Securities survey found that 58 percent of people plan to gift apparel and footwear for the holidays this year, compared to 55 percent last year. Respondents said they would likely shop hot brands like Lululemon, Hoka, On, Ugg, Skechers and The North Face.

Wedbush also saw stronger year-over-year interest in brands like Timberland, Ralph Lauren, Tommy Hilfiger, Under Armour and Steve Madden, which the firm noted as being somewhat surprising. Hey Dude and Crocs also performed well in the survey, with both brands showing growth in shopping intent compared to the prior year.

New Balance, Hoka and On Help Fuel Active Sales at Nordstrom in Q3

Nordstrom Inc. saw progress in its third quarter financial report — and footwear helped drive solid results in the active category.

On the company’s earnings call on Tuesday, Pete Nordstrom, president and chief brand officer of Nordstrom Inc., noted that the majority of the retailer’s categories “improved sequentially” from the second quarter.

“Active sales growth was led by footwear, driven by New Balance, Hoka and On Running, and in apparel, Vuori,” Nordstrom told analysts on the call. “Beauty was strong at both [Nordstrom and Nordstrom Rack] as well, driven by designer brands and fragrance. Beauty has been a consistently solid performing category for us and continues to be a top trip driver.”

Nordstrom added that the company is “gaining traction” with its private label brands —?which are more profitable with lower return rates — suggesting a perceived good value by consumers.

Caleres CEO: Brand Portfolio Has Been ‘Transformed’ and ‘Readied’ for Accelerated Growth in 2024

Caleres president and CEO Jay Schmidt doubled down on the success of the company’s owned brand portfolio on Tuesday, telling analysts on its third quarter earnings call that the business segment performed well in the period and is planned to close 2023 strong.

Schmidt told market watchers on Tuesday that each of the company’s leading brands in the portfolio are “transformed” and “readied” for accelerated growth with clear strategies to optimize ongoing investments.

“We expect ongoing improvement in segment sales trends and a more meaningful contribution to the company’s operating performance this year,” the CEO said. “We are confident the brand portfolio fueled by its lead brands is positioned to lead the financial performance of Caleres over the long term.”

He added that Caleres will return to growth in 2024 "by leveraging our competitive advantages, powerful brands, innovative products and compelling experiences across channels and geographies."

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• Antoine Arnault to Relinquish CEO Role at Berluti

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