Provides Annual 2020 Guidance
Caleres (NYSE: CAL) (caleres.com), a diverse portfolio of global
footwear brands, today reported fourth quarter 2019 financial
results.
“Despite a challenging footwear market that resulted in our
earnings to be less than expected, Caleres made excellent progress
on a range of value-creating strategic objectives during 2019,”
said Diane Sullivan, CEO, president and chairman of Caleres. “These
accomplishments include:
- Strengthening the connections with our consumers with a 23%
year-over-year growth in our ecommerce-related direct to consumer
business and the successful launch and execution of the Famous
Footwear rewards program;
- Broadening the reach and power of our brands by strategically
managing the portfolio to include our exclusive partnership with
Veronica Beard and the relaunch of the legacy Zodiac brand while at
the same time shifting away from DvF and Carlos Santana and
repositioning Via Spiga; and
- Aggressively managing the variables within our control with a
year-over-year reduction of capital expenditures and inventory
levels and the implementation of further cost-containment
initiatives that will carry into 2020.
“Furthermore, we generated $170.8 million of cash flow from
operations and put that cash to good use by investing wisely in our
businesses, returning approximately $45 million to shareholders
through our share repurchase program and long-standing dividend and
reducing the borrowing under our credit facility by $60
million.”
Coronavirus
Caleres is actively monitoring the Coronavirus, focusing first
and foremost on the health and well-being of its global workforce.
The executive management team is meeting regularly to rigorously
evaluate the potential impact of the virus on the supply chain and
broader consumer sentiment, and is taking prudent steps to protect
the business and adjust its short term strategy in response to this
dynamic health crisis.
Fourth Quarter 2019 Results Versus Fourth Quarter
2018
- Consolidated sales of $698.9 million were down approximately
3.0%
- Famous Footwear total sales of $369.5 million, up 1.2%, with
same-store-sales up 5.1%
- Brand Portfolio sales of $346.0 million, down 9.4%
- Gross profit was $278.8 million, while gross margin was 39.9%
and adjusted gross margin was 40.1%
- SG&A expense of $260.8 million represented 37.3% of
sales
- Operating earnings were $5.7 million and adjusted operating
earnings were $19.6 million
- Net earnings for the quarter were $0.4 million, resulting in an
earnings per diluted share of $0.01, including $0.33 for the below
items
- Cost containment initiatives of $0.27, including the voluntary
early retirement program and other restructuring actions
- Brand Portfolio expense of $0.03 related to brand exit
costs
- Fair value adjustment of $0.03 associated with the mandatory
purchase obligation for Blowfish Malibu
- Adjusted net earnings were $13.94 million, while adjusted
diluted net earnings per share were $0.34 and included
approximately $0.07 of dilution related to Vionic interest and
amortization expense
Fiscal 2019 Results Versus 2018
- Consolidated sales of $2,921.6 million were up 3.1%
- Brand Portfolio sales of $1,406.5 million, up 7.1%, driven by
the company’s 2018 acquisitions
- Famous Footwear total sales of $1,588.1 million, down 1.2%,
with same-store-sales up 2.0%
- Gross profit was $1,184.4 million, while gross margin was 40.5%
and adjusted gross margin was 40.8%
- SG&A expense of $1,065.8 million represented 36.5% of
sales
- Operating earnings were $103.8 million and adjusted operating
earnings were $127.4 million
- Net earnings for the year were $62.8 million, resulting in an
earnings per diluted share of $1.53, including $0.57 for the below
items
- Cost containment initiatives of $0.27, including the voluntary
early retirement program and other restructuring actions
- Vionic acquisition and integration-related costs of $0.14
- Brand Portfolio expense of $0.06 related to brand exits
- Fair value adjustment of $0.10 associated with the mandatory
purchase obligation for Blowfish Malibu
- Adjusted net earnings of $86.4 million were down approximately
9%, while adjusted diluted net earnings per share were down
approximately 5% to $2.10 per share, including approximately $0.22
of dilution primarily related to Vionic interest and amortization
expense
Balance Sheet and Cash Flow
- Cash and equivalents were $45.2 million and cash from
operations was $170.8 million
- Outstanding borrowings under the revolving credit facility
totaled $275.0 million, down $60 million for the year
- Inventory of $618.4 million was down 9.5% year-over-year
- Capital expenditures were $50.2 million, a decline of $16.7
million year-over-year
- Share repurchases and dividends totaled $45 million in
2019
2020 Outlook
“Looking ahead, in the short-term, we do anticipate disruptions
related to the Coronavirus and are expecting headwinds between
$0.15 and $0.20 per share in the first quarter of 2020. While
potential impacts on full year 2020 results are difficult to
quantify at this early stage, we will continue to actively assess
the situation. We are approaching 2020 with a laser focus on
managing the variables within our control and leveraging the
capabilities of our operations and the investments we’ve made for
the future. We are confident in the strength of our portfolio and
firmly believe we have the right team and right strategy in place
to manage through this dynamic marketplace,” Sullivan said.
2020 Guidance
Consolidated net sales
Flat at $2.95 billion
Brand Portfolio sales
Flat-to-low single digits
Famous Footwear same-store-sales
Up low single digits
Earnings per diluted share
$ 1.95 to $2.15
Investor Conference Call
Caleres will host an investor conference call at 4:30 p.m. ET
today, Thursday, March 12. The webcast and slides will be available
at investor.caleres.com/news/events. A live conference call will be
available at (877) 217-9089 for analysts in North America or (706)
679-1723 for international analysts by using the conference ID
5282859. A replay will be available at
investor.caleres.com/news/events/archive for a limited period.
Investors may also access the replay by dialing (855) 859-2056 in
North America or (404) 537-3406 internationally and using the
conference ID 5282859 through Wednesday, March 18.
Definitions
All references in this press release, outside of the condensed
consolidated financial statements that follow, unless otherwise
noted, related to net earnings attributable to Caleres, Inc. and
diluted earnings per common share attributable to Caleres, Inc.
shareholders, are presented as net earnings and earnings per
diluted share, respectively.
Non-GAAP Financial Measures
In this press release, the company’s financial results are
provided both in accordance with generally accepted accounting
principles (GAAP) and using certain non-GAAP financial measures. In
particular, the company provides historic and estimated future
gross profit, operating earnings, EBITDA (earnings before interest,
taxes, depreciation, and amortization), net earnings and earnings
per diluted share adjusted to exclude certain gains, charges and
recoveries, which are non-GAAP financial measures. These results
are included as a complement to results provided in accordance with
GAAP because management believes these non-GAAP financial measures
help identify underlying trends in the company’s business and
provide useful information to both management and investors by
excluding certain items that may not be indicative of the company’s
core operating results. These measures should not be considered a
substitute for or superior to GAAP results.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
This press release contains certain forward-looking statements
and expectations regarding the company’s future performance and the
performance of its brands. Such statements are subject to various
risks and uncertainties that could cause actual results to differ
materially. These risks include (i) changing consumer demands,
which may be influenced by consumers' disposable income, which in
turn can be influenced by general economic conditions and other
factors; (ii) rapidly changing fashion trends and consumer
preferences and purchasing patterns; (iii) intense competition
within the footwear industry; (iv) political and economic
conditions or other threats to the continued and uninterrupted flow
of inventory from China and other countries, where the Company
relies heavily on third-party manufacturing facilities for a
significant amount of its inventory; (v) imposition of tariffs;
(vi) the ability to accurately forecast sales and manage inventory
levels; (vii) cybersecurity threats or other major disruption to
the Company’s information technology systems; (viii) customer
concentration and increased consolidation in the retail industry;
(ix) transitional challenges with acquisitions; (x) a disruption in
the Company’s distribution centers; (xi) foreign currency
fluctuations; (xii) changes to tax laws, policies and treaties;
(xiii) the ability to recruit and retain senior management and
other key associates; (xiv) compliance with applicable laws and
standards with respect to labor, trade and product safety issues;
(xv) the ability to secure/exit leases on favorable terms; (xvi)
the ability to maintain relationships with current suppliers;
(xvii) the ability to attract, retain, and maintain good
relationships with licensors and protect our intellectual property
rights; and (xviii) the recent coronavirus outbreak and its adverse
impact on our supply chain operations and our business, sales and
results of operations around the world. The company's reports to
the Securities and Exchange Commission contain detailed information
relating to such factors, including, without limitation, the
information under the caption Risk Factors in Item 1A of the
company’s Annual Report on Form 10-K for the year ended February 2,
2019, which information is incorporated by reference herein and
updated by the company’s Quarterly Reports on Form 10-Q. The
company does not undertake any obligation or plan to update these
forward-looking statements, even though its situation may
change.
About Caleres
Caleres is a diverse portfolio of global footwear brands. Our
products are available virtually everywhere - in the more than
1,175 retail stores we operate, in hundreds of major department and
specialty stores, on our branded e-commerce sites, and on many
additional third-party retail websites. Famous Footwear offers
great casual and athletic brands for the entire family with
convenient, curated, affordable collections. Sam Edelman keeps
expressive women in step with the latest trends in a playful,
whimsical way. Naturalizer shoes are beautiful from the inside out,
with elegant simplicity and legendary fit re-imagined for today’s
consumer. Allen Edmonds combines old world craft with new world
technology to create luxe footwear for the discerning man who wants
sophisticated, modern classics. Rounding out our family of brands
are Vionic, Vince, Franco Sarto, Dr. Scholl’s Shoes, LifeStride,
Blowfish Malibu, Bzees, Circus by Sam Edelman, Fergie and Ryka.
Combined, these brands make Caleres a company with both a legacy
and a mission. Our legacy is our more than 140 years of
craftsmanship and our passion for fit, while our mission is to
continue to inspire people to feel great… feet first. Visit
caleres.com to learn more about us.
SCHEDULE 1
CALERES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
EARNINGS (LOSS)
(Unaudited)
Thirteen Weeks Ended
Fifty-Two Weeks Ended
(Thousands, except per share data)
February 1,
2020
February 2,
2019
February 1,
2020
February 2,
2019
Net sales
$
698,948
$
720,263
$
2,921,562
$
2,834,846
Cost of goods sold
420,138
442,551
1,737,202
1,678,502
Gross profit
278,810
277,712
1,184,360
1,156,344
Selling and administrative expenses
260,788
267,210
1,065,760
1,041,765
Impairment of goodwill and intangible
assets
—
98,044
—
98,044
Restructuring and other special charges,
net
12,353
6,895
14,787
16,134
Operating earnings (loss)
5,669
(94,437
)
103,813
401
Interest expense, net
(7,835
)
(6,782
)
(33,123
)
(18,277
)
Loss on early extinguishment of debt
—
(186
)
—
(186
)
Other income, net
1
3,054
7,903
12,308
(Loss) earnings before income taxes
(2,165
)
(98,351
)
78,593
(5,754
)
Income tax benefit (provision)
2,174
22,924
(16,511
)
273
Net earnings (loss)
9
(75,427
)
62,082
(5,481
)
Net (loss) earnings attributable to
noncontrolling interests
(399
)
25
(737
)
(40
)
Net earnings (loss) attributable to
Caleres, Inc.
$
408
$
(75,452
)
$
62,819
$
(5,441
)
Basic earnings (loss) per common share
attributable to Caleres, Inc. shareholders
$
0.01
$
(1.83
)
$
1.53
$
(0.13
)
Diluted earnings (loss) per common share
attributable to Caleres, Inc. shareholders
$
0.01
$
(1.83
)
$
1.53
$
(0.13
)
SCHEDULE 2
CALERES, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
February 1, 2020
February 2, 2019
(Thousands)
ASSETS
Cash and cash equivalents
$
45,218
$
30,200
Receivables, net
162,181
191,722
Inventories, net
618,406
683,171
Prepaid expenses and other current
assets
56,494
71,354
Total current assets
882,299
976,447
Lease right-of-use assets
695,594
—
Property and equipment, net
224,846
230,784
Goodwill and intangible assets, net
539,579
549,897
Other assets
89,389
81,440
Total assets
$
2,431,707
$
1,838,568
LIABILITIES AND EQUITY
Borrowings under revolving credit
agreement
$
275,000
$
335,000
Trade accounts payable
267,018
316,298
Lease obligations
127,869
—
Other accrued expenses
181,063
202,038
Total current liabilities
850,950
853,336
Noncurrent lease obligations
629,032
—
Long-term debt
198,391
197,932
Deferred rent
—
54,850
Other liabilities
104,204
97,015
Total other liabilities
931,627
349,797
Total Caleres, Inc. shareholders’
equity
645,950
634,053
Noncontrolling interests
3,180
1,382
Total equity
649,130
635,435
Total liabilities and equity
$
2,431,707
$
1,838,568
SCHEDULE 3
CALERES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Fifty-Two Weeks Ended
(Thousands)
February 1, 2020
February 2, 2019
OPERATING ACTIVITIES:
Net cash provided by operating
activities
$
170,786
$
129,589
INVESTING ACTIVITIES:
Purchases of property and equipment
(44,533
)
(62,483
)
Disposals of property and equipment
636
—
Capitalized software
(5,619
)
(4,416
)
Acquisition of Blowfish Malibu, net of
cash received
—
(16,792
)
Acquisition of Vionic, net of cash
received
—
(352,666
)
Net cash used for investing activities
(49,516
)
(436,357
)
FINANCING ACTIVITIES:
Borrowings under revolving credit
agreement
288,500
360,000
Repayments under revolving credit
agreement
(348,500
)
(25,000
)
Dividends paid
(11,422
)
(11,983
)
Debt issuance costs
—
(1,298
)
Acquisition of treasury stock
(33,424
)
(43,771
)
Issuance of common stock under share-based
plans, net
(2,644
)
(4,372
)
Contributions by noncontrolling
interests
2,500
—
Other
(1,342
)
(406
)
Net cash (used for) provided by financing
activities
(106,332
)
273,170
Effect of exchange rate changes on cash
and cash equivalents
80
(249
)
Increase (decrease) in cash and cash
equivalents
15,018
(33,847
)
Cash and cash equivalents at beginning of
period
30,200
64,047
Cash and cash equivalents at end of
period
$
45,218
$
30,200
SCHEDULE 4
CALERES, INC.
RECONCILIATION OF NET EARNINGS AND
DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS
AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS)
(Unaudited)
Thirteen Weeks Ended
February 1, 2020
February 2, 2019
(Thousands, except per share data)
Pre-Tax
Impact of
Charges/Other
Items
Net
Earnings
Attributable
to Caleres, Inc.
Diluted
Earnings
Per Share
Pre-Tax
Impact of
Charges/Other
Items
Net (Loss)
Earnings
Attributable
to Caleres, Inc.
Diluted (Loss)
Earnings
Per Share
GAAP earnings
$
408
$
0.01
$
(75,452
)
$
(1.83
)
Charges/other
items:
Expense containment initiatives
$
15,033
11,189
0.27
$
—
—
—
Fair value adjustment to Blowfish purchase
obligation
1,545
1,147
0.03
—
—
—
Brand Portfolio - business exits
1,615
1,198
0.03
2,395
1,779
0.04
Impairment of goodwill and intangible
assets
—
—
—
98,044
83,044
2.01
Vionic acquisition and integration-related
costs
—
—
—
8,346
5,756
0.14
Integration and reorganization of men's
brands
—
—
—
1,014
754
0.02
Logistics transition
—
—
—
4,488
3,326
0.08
Blowfish Malibu acquisition and
integration-related costs
—
—
—
244
238
0.01
Retail operations restructuring
—
—
—
392
287
0.01
Loss on early extinguishment of debt
—
—
—
186
138
0.00
Income tax reform
—
—
—
—
(3,891
)
(0.10
)
Total charges/other items
$
18,193
$
13,534
$
0.33
$
115,109
$
91,431
$
2.21
Adjusted earnings
$
13,942
$
0.34
$
15,979
$
0.38
(Unaudited)
Fifty-Two Weeks Ended
February 1, 2020
February 2, 2019
(Thousands, except per share data)
Pre-Tax
Impact of
Charges/Other
Items
Net
Earnings
Attributable
to Caleres, Inc.
Diluted
Earnings
Per Share
Pre-Tax
Impact of
Charges/Other
Items
Net (Loss)
Earnings
Attributable
to Caleres, Inc.
Diluted (Loss)
Earnings
Per Share
GAAP earnings
$
62,819
$
1.53
$
(5,441
)
$
(0.13
)
Charges/other
items:
Expense containment initiatives
$
15,033
11,189
0.27
$
—
—
—
Vionic acquisition and integration-related
costs
7,696
5,714
0.14
13,368
9,926
0.23
Fair value adjustment to Blowfish purchase
obligation
5,428
4,031
0.10
—
—
—
Brand Portfolio - business exits
3,520
2,613
0.06
2,395
1,779
0.04
Impairment of goodwill and intangible
assets
—
—
—
98,044
83,044
1.93
Integration and reorganization of men's
brands
—
—
—
5,841
4,328
0.10
Logistics transition
—
—
—
4,488
3,326
0.08
Blowfish Malibu acquisition and
integration-related costs
—
—
—
2,022
1,557
0.04
Retail operations restructuring
—
—
—
392
287
0.01
Loss on early extinguishment of debt
—
—
—
186
138
0.00
Income tax reform
—
—
—
—
(3,891
)
(0.09
)
Total charges/other items
$
31,677
$
23,547
$
0.57
$
126,736
$
100,494
$
2.34
Adjusted earnings
$
86,366
$
2.10
$
95,053
$
2.21
SCHEDULE 5
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY
SEGMENT
SUMMARY FINANCIAL RESULTS
(Unaudited)
Thirteen Weeks Ended
Famous Footwear
Brand Portfolio
Eliminations and Other
Consolidated
(Thousands)
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
Net sales
$
369,468
$
365,160
$
345,972
$
382,001
$
(16,492
)
$
(26,898
)
$
698,948
$
720,263
Gross profit
157,140
156,028
121,095
123,212
575
(1,528
)
278,810
277,712
Adjusted gross profit
157,140
156,028
122,710
133,197
575
(1,528
)
280,425
287,697
Gross profit rate
42.5
%
42.7
%
35.0
%
32.3
%
(3.5
)%
5.7
%
39.9
%
38.6
%
Adjusted gross profit rate
42.5
%
42.7
%
35.5
%
34.9
%
(3.5
)%
5.7
%
40.1
%
39.9
%
Operating earnings (loss)
6,860
5,757
11,928
(93,450
)
(13,119
)
(6,744
)
5,669
(94,437
)
Adjusted operating earnings (loss)
10,343
6,149
18,621
20,678
(9,327
)
(6,341
)
19,637
20,486
Operating earnings %
1.9
%
1.6
%
3.4
%
(24.5
)%
79.5
%
25.1
%
0.8
%
(13.1
)%
Adjusted operating earnings %
2.8
%
1.7
%
5.4
%
5.4
%
56.6
%
23.6
%
2.8
%
2.8
%
Same-store sales % (on a 13-week
basis)
5.1
%
1.1
%
(0.6
)%
0.2
%
—
%
—
%
—
%
—
%
Number of stores
949
992
228
229
—
—
1,177
1,221
RECONCILIATION OF ADJUSTED RESULTS
(NON-GAAP)
(Unaudited)
Thirteen Weeks Ended
Famous Footwear
Brand Portfolio
Eliminations and Other
Consolidated
(Thousands)
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
Gross profit
$
157,140
$
156,028
$
121,095
$
123,212
$
575
$
(1,528
)
$
278,810
$
277,712
Charges/Other
Items:
Blowfish Malibu acquisition and
integration-related costs
—
—
—
244
—
—
—
244
Vionic acquisition and integration-related
costs
—
—
—
7,973
—
—
—
7,973
Brand Portfolio - business exits
—
—
1,615
1,768
—
—
1,615
1,768
Total charges/other items
—
—
1,615
9,985
—
—
1,615
9,985
Adjusted gross profit
$
157,140
$
156,028
$
122,710
$
133,197
$
575
$
(1,528
)
$
280,425
$
287,697
Operating earnings (loss)
$
6,860
$
5,757
$
11,928
$
(93,450
)
$
(13,119
)
$
(6,744
)
$
5,669
$
(94,437
)
Charges/Other
Items:
Expense containment initiatives
3,483
—
5,078
—
3,792
—
12,353
—
Brand Portfolio - business exits
—
—
1,615
2,395
—
—
1,615
2,395
Impairment of goodwill and intangible
assets
—
—
—
98,044
—
—
—
98,044
Integration and reorganization of men's
brands
—
—
—
984
—
30
—
1,014
Logistics transition
—
—
—
4,488
—
—
—
4,488
Blowfish Malibu acquisition and
integration-related costs
—
—
—
244
—
—
—
244
Vionic acquisition and integration-related
costs
—
—
—
7,973
—
373
—
8,346
Retail operations restructuring
—
392
—
—
—
—
—
392
Total charges/other items
3,483
392
6,693
114,128
3,792
403
13,968
114,923
Adjusted operating earnings (loss)
$
10,343
$
6,149
$
18,621
$
20,678
$
(9,327
)
$
(6,341
)
$
19,637
$
20,486
SCHEDULE 5
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY
SEGMENT
SUMMARY FINANCIAL RESULTS
(Unaudited)
Fifty-Two Weeks Ended
Famous Footwear
Brand Portfolio
Eliminations and Other
Consolidated
(Thousands)
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
Net sales
$
1,588,057
$
1,606,808
$
1,406,460
$
1,313,551
$
(72,955
)
$
(85,513
)
$
2,921,562
$
2,834,846
Gross profit
675,401
690,830
506,556
466,919
2,403
(1,405
)
1,184,360
1,156,344
Adjusted gross profit
675,401
690,830
515,337
479,291
2,403
(1,405
)
1,193,141
1,168,716
Gross profit rate
42.5
%
43.0
%
36.0
%
35.5
%
(3.3
)%
1.6
%
40.5
%
40.8
%
Adjusted gross profit rate
42.5
%
43.0
%
36.6
%
36.5
%
(3.3
)%
1.6
%
40.8
%
41.2
%
Operating earnings (loss)
76,896
85,268
58,153
(40,799
)
(31,236
)
(44,068
)
103,813
401
Adjusted operating earnings (loss)
80,379
85,660
72,640
80,152
(25,637
)
(38,861
)
127,382
126,951
Operating earnings %
4.8
%
5.3
%
4.1
%
(3.1
)%
42.8
%
51.5
%
3.6
%
0.0
%
Adjusted operating earnings %
5.1
%
5.3
%
5.2
%
6.1
%
35.1
%
45.4
%
4.4
%
4.5
%
Same-store sales % (on a 52-week
basis)
2.0
%
1.5
%
(5.8
)%
(0.1
)%
—
%
—
%
—
%
—
%
Number of stores
949
992
228
229
—
—
1,177
1,221
RECONCILIATION OF ADJUSTED RESULTS
(NON-GAAP)
(Unaudited)
Fifty-Two Weeks Ended
Famous Footwear
Brand Portfolio
Eliminations and Other
Consolidated
(Thousands)
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
Gross profit
$
675,401
$
690,830
$
506,556
$
466,919
$
2,403
$
(1,405
)
$
1,184,360
$
1,156,344
Charges/Other
Items:
Vionic acquisition and integration-related
costs
—
—
5,812
8,886
—
—
5,812
8,886
Brand Portfolio - business exits
—
—
2,969
1,769
—
—
2,969
1,769
Blowfish Malibu acquisition and
integration-related costs
—
—
—
1,717
—
—
—
1,717
Total charges/other items
—
—
8,781
12,372
—
—
8,781
12,372
Adjusted gross profit
$
675,401
$
690,830
$
515,337
$
479,291
$
2,403
$
(1,405
)
$
1,193,141
$
1,168,716
Operating earnings (loss)
$
76,896
$
85,268
$
58,153
$
(40,799
)
$
(31,236
)
$
(44,068
)
$
103,813
$
401
Charges/Other
Items:
Expense containment initiatives
3,483
—
5,078
—
3,792
—
12,353
—
Vionic acquisition and integration-related
costs
—
—
5,889
8,886
1,807
4,482
7,696
13,368
Brand Portfolio - business exits
—
—
3,520
2,395
—
—
3,520
2,395
Impairment of goodwill and intangible
assets
—
—
—
98,044
—
—
—
98,044
Integration and reorganization of men's
brands
—
—
—
5,421
—
420
—
5,841
Logistics transition
—
—
—
4,488
—
—
—
4,488
Blowfish Malibu acquisition and
integration-related costs
—
—
—
1,717
—
305
—
2,022
Retail operations restructuring
—
392
—
—
—
—
—
392
Total charges/other items
3,483
392
14,487
120,951
5,599
5,207
23,569
126,550
Adjusted operating earnings (loss)
$
80,379
$
85,660
$
72,640
$
80,152
$
(25,637
)
$
(38,861
)
$
127,382
$
126,951
SCHEDULE 6
CALERES, INC.
BASIC AND DILUTED EARNINGS PER SHARE
RECONCILIATION
(Unaudited)
Thirteen Weeks Ended
Fifty-Two Weeks Ended
(Thousands, except per share data)
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
Net earnings (loss) attributable to
Caleres, Inc.:
Net earnings (loss)
$
9
$
(75,427
)
$
62,082
$
(5,481
)
Net loss (earnings) attributable to
noncontrolling interests
399
(25
)
737
40
Net earnings (loss) attributable to
Caleres, Inc.
408
(75,452
)
62,819
(5,441
)
Net earnings allocated to participating
securities
(45
)
—
(1,988
)
—
Net earnings (loss) attributable to
Caleres, Inc. after allocation of earnings to participating
securities
$
363
$
(75,452
)
$
60,831
$
(5,441
)
Basic and diluted common shares
attributable to Caleres, Inc.:
Basic common shares
39,235
41,150
39,796
41,756
Dilutive effect of share-based awards
55
—
57
—
Diluted common shares attributable to
Caleres, Inc.
39,290
41,150
39,853
41,756
Basic earnings (loss) per common share
attributable to Caleres, Inc. shareholders
$
0.01
$
(1.83
)
$
1.53
$
(0.13
)
Diluted earnings (loss) per common share
attributable to Caleres, Inc. shareholders
$
0.01
$
(1.83
)
$
1.53
$
(0.13
)
SCHEDULE 7
CALERES, INC.
BASIC AND DILUTED ADJUSTED EARNINGS PER
SHARE RECONCILIATION
(Unaudited)
Thirteen Weeks Ended
Fifty-Two Weeks Ended
(Thousands, except per share data)
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
Adjusted net earnings attributable to
Caleres, Inc.:
Adjusted net earnings
$
13,543
$
16,004
$
85,629
$
95,013
Net loss (earnings) attributable to
noncontrolling interests
399
(25
)
737
40
Adjusted net earnings attributable to
Caleres, Inc.
13,942
15,979
86,366
95,053
Net earnings allocated to participating
securities
(404
)
(462
)
(2,766
)
(2,678
)
Adjusted net earnings attributable to
Caleres, Inc. after allocation of earnings to participating
securities
$
13,538
$
15,517
$
83,600
$
92,375
Basic and diluted common shares
attributable to Caleres, Inc.:
Basic common shares
39,235
41,150
39,796
41,756
Dilutive effect of share-based awards
55
127
57
118
Diluted common shares attributable to
Caleres, Inc.
39,290
41,277
39,853
41,874
Basic adjusted earnings per common share
attributable to Caleres, Inc. shareholders
$
0.35
$
0.38
$
2.10
$
2.21
Diluted adjusted earnings per common share
attributable to Caleres, Inc. shareholders
$
0.34
$
0.38
$
2.10
$
2.21
SCHEDULE 8
CALERES, INC.
CALCULATION OF EBITDA AND ADJUSTED
EBITDA (NON-GAAP METRICS)
(Unaudited)
Fifty-Two Weeks Ended
Famous Footwear
Brand Portfolio
Eliminations and Other
Consolidated
(Thousands)
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
February 1, 2020
February 2, 2019
EBITDA
Net earnings (loss) attributable to
Caleres, Inc.
$
51,043
$
58,783
$
35,907
$
(43,477
)
$
(24,131
)
$
(20,747
)
$
62,819
$
(5,441
)
Income tax provision (benefit)
17,391
17,728
4,855
(9,558
)
(5,735
)
(8,443
)
16,511
(273
)
Interest expense, net
8,462
8,758
20,501
10,769
4,160
(1,250
)
33,123
18,277
Depreciation and amortization (1)
26,707
28,816
29,875
20,768
8,980
13,113
65,562
62,697
EBITDA
$
103,603
$
114,085
$
91,138
$
(21,498
)
$
(16,726
)
$
(17,327
)
$
178,015
$
75,260
EBITDA margin
6.5
%
7.1
%
6.5
%
-1.6
%
22.9
%
20.3
%
6.1
%
2.7
%
Adjusted EBITDA
Adjusted net earnings attributable to
Caleres, Inc. (2)
$
53,630
$
57,538
$
46,689
$
56,829
$
(13,953
)
$
(19,314
)
$
86,366
$
95,053
Income tax provision
18,287
19,364
8,560
11,087
(2,206
)
(4,482
)
24,641
25,969
Interest expense, net
8,462
8,758
20,501
10,769
(1,268
)
(1,250
)
27,695
18,277
Depreciation and amortization (1)
26,707
28,816
29,875
20,768
8,980
13,113
65,562
62,697
Adjusted EBITDA
$
107,086
$
114,476
$
105,625
$
99,453
$
(8,447
)
$
(11,933
)
$
204,264
$
201,996
Adjusted EBITDA margin
6.7
%
7.1
%
7.5
%
7.6
%
11.6
%
14.0
%
7.0
%
7.1
%
(1) Includes depreciation and amortization
of capitalized software and intangible assets
(2) Refer to Schedule 4 for the
consolidated reconciliation of net earnings attributable to
Caleres, Inc. to adjusted net earnings attributable to Caleres,
Inc.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200312005781/en/
Ken Hannah khannah@caleres.com Logan Bonacorsi
lbonacorsi@caleres.com
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