Generated $66.8 million of cash from operations

Paid down $88.5 million of debt during the second quarter

Caleres (NYSE: CAL, caleres.com) a diverse portfolio of consumer-driven footwear brands, today reported financial results for the second quarter ended August 1, 2020. Despite ongoing pressures from the global pandemic, Caleres delivered sequential improvement in several key financial metrics, spurred by the efficient restart of its retail store fleet, ongoing strength in ecommerce sales and prudent management of expenses and working capital.

“The global Caleres team continued to navigate this choppy market environment, executing on our plan and delivering better than expected results in the quarter just ended,” said Diane Sullivan, chief executive officer, president and chairman. “Even with the ongoing market impacts of the virus, Caleres took significant steps during the quarter to strengthen the business, improve the balance sheet, leverage our capabilities and lay the foundation for a continuing recovery of our business in the year’s second half.”

Second Quarter 2020 Highlights

(13-weeks ended August 1, 2020 compared to 13-weeks ended August 3, 2019)

  • Net Sales were $501.4 million, down 33.4% from the second quarter of fiscal 2019
    • Direct-to-consumer sales represented 80 percent of total net sales;
    • A 20.5 percent sales decline in the Famous Footwear segment with comparable stores sales up 14.7 percent during the quarter;
    • A 48.9 percent sales decline in the Brand Portfolio segment;
    • Total company ecommerce related sales increased more than 30 percent, with total company ecommerce penetration rising to nearly 34 percent of net sales;
  • Gross profit was $182.6 million, while gross margin was 36.4 percent reflecting an aggressive liquidation of spring inventory and higher penetration of ecommerce sales;
  • SG&A expense of $201.3 million, down $66.2 million compared to the second quarter of 2019;
  • Net loss of $30.7 million, or a loss of $0.83 per diluted share, compared to net income of $25.3 million, or $0.61 per diluted share, in the second quarter of fiscal 2019. The loss of $0.83 per share includes $0.13 of adjustments for COVID-19 related expenses and $0.13 related to the fair value adjustment to the Blowfish purchase obligation;
  • Adjusted net loss was $21.1 million, or an adjusted loss of $0.57 per diluted share compared to adjusted net income of $25.8 million, or adjusted earnings of $0.62 per diluted share, in the second quarter of fiscal 2019;
  • Ended the second quarter with $148.5 million of cash on hand;
  • Generated $66.8 million in cash from operations;
  • Reduced inventory levels approximately 27 percent year-over-year, reflecting actions taken to liquidate seasonal orders;
  • Reduced credit facility borrowings by $88.5 million, or approximately 20 percent, to $350 million;
  • Returned $13.1 million to shareholders during the quarter through its long-standing quarterly dividend and share repurchases; and
  • Continue to benefit from the absence of any significant debt maturities until 2023.

“Looking ahead, while we expect the second half of 2020 to continue to be unpredictable, we are managing our business for the long term while at the same time remaining nimble to adapt to unanticipated challenges that may arise during this unusual year,” said Sullivan. “We believe our diverse portfolio of brands that are well-aligned with consumer trends, advanced capabilities and improving capital structure will lead us through the recovery and position Caleres to embrace rapidly changing consumer behaviors and capitalize on the increasingly dynamic marketplace.”

Investor Conference Call

Caleres will host an investor conference call at 4:30 p.m. ET today, Tuesday, September 1. The webcast and associated 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 2989663. 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 2989663 through Tuesday, September 14.

Definitions

All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings (loss) attributable to Caleres, Inc. and diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders, are presented as net earnings (loss) and earnings (loss) 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 (loss), net earnings (loss) and earnings (loss) 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) the recent coronavirus outbreak and its adverse impact on our business operations, store traffic and financial condition (ii) changing consumer demands, which may be influenced by consumers' disposable income, which in turn can be influenced by general economic conditions and other factors; (iii) impairment charges resulting from a long-term decline in our stock price; (iv) rapidly changing fashion trends and consumer preferences and purchasing patterns; (v) intense competition within the footwear industry; (vi) 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; (vii) imposition of tariffs; (viii) the ability to accurately forecast sales and manage inventory levels; (ix) cybersecurity threats or other major disruption to the company’s information technology systems; (x) customer concentration and increased consolidation in the retail industry; (xi) transitional challenges with acquisitions; (xii) a disruption in the company’s distribution centers; (xiii) foreign currency fluctuations; (xiv) changes to tax laws, policies and treaties; (xv) the ability to recruit and retain senior management and other key associates; (xvi) compliance with applicable laws and standards with respect to labor, trade and product safety issues; (xvii) the ability to maintain relationships with current suppliers; (xviii) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights; and (xix) the ability to secure/exit leases on favorable terms. 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 1, 2020, 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 1,100 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 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

 

 

Twenty-Six Weeks Ended

 

(Thousands, except per share data)

 

August 1, 2020

 

 

August 3, 2019

 

 

August 1, 2020

 

 

August 3, 2019

 

Net sales

 

$

501,448

 

 

$

752,485

 

 

$

898,632

 

 

$

1,430,239

 

Cost of goods sold

 

 

318,828

 

 

 

446,541

 

 

 

594,114

 

 

 

844,459

 

Gross profit

 

 

182,620

 

 

 

305,944

 

 

 

304,518

 

 

 

585,780

 

Selling and administrative expenses

 

 

201,331

 

 

 

267,531

 

 

 

426,524

 

 

 

529,642

 

Impairment of goodwill and intangible assets

 

 

 

 

 

 

 

 

262,719

 

 

 

 

Restructuring and other special charges, net

 

 

5,429

 

 

 

609

 

 

 

65,625

 

 

 

1,465

 

Operating (loss) earnings

 

 

(24,140

)

 

 

37,804

 

 

 

(450,350

)

 

 

54,673

 

Interest expense, net

 

 

(13,387

)

 

 

(7,389

)

 

 

(22,866

)

 

 

(14,729

)

Other income, net

 

 

3,672

 

 

 

2,650

 

 

 

7,257

 

 

 

5,269

 

(Loss) earnings before income taxes

 

 

(33,855

)

 

 

33,065

 

 

 

(465,959

)

 

 

45,213

 

Income tax benefit (provision)

 

 

3,186

 

 

 

(7,838

)

 

 

89,118

 

 

 

(10,901

)

Net (loss) earnings

 

 

(30,669

)

 

 

25,227

 

 

 

(376,841

)

 

 

34,312

 

Net earnings (loss) attributable to noncontrolling interests

 

 

48

 

 

 

(114

)

 

 

(286

)

 

 

(112

)

Net (loss) earnings attributable to Caleres, Inc.

 

$

(30,717

)

 

$

25,341

 

 

$

(376,555

)

 

$

34,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic (loss) earnings per common share attributable to Caleres, Inc. shareholders

 

$

(0.83

)

 

$

0.61

 

 

$

(9.94

)

 

$

0.83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted (loss) earnings per common share attributable to Caleres, Inc. shareholders

 

$

(0.83

)

 

$

0.61

 

 

$

(9.94

)

 

$

0.82

 

SCHEDULE 2

 

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

(Unaudited)

 

 

 

 

 

 

 

August 1, 2020

 

 

August 3, 2019

 

 

February 1, 2020

 

(Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

148,544

 

 

$

42,601

 

 

$

45,218

 

Receivables, net

 

 

110,249

 

 

 

167,727

 

 

 

162,181

 

Inventories, net

 

 

574,830

 

 

 

792,064

 

 

 

618,406

 

Prepaid expenses and other current assets

 

 

96,426

 

 

 

51,394

 

 

 

56,494

 

Total current assets

 

 

930,049

 

 

 

1,053,786

 

 

 

882,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease right-of-use assets

 

 

624,881

 

 

 

723,415

 

 

 

695,594

 

Property and equipment, net

 

 

193,593

 

 

 

232,045

 

 

 

224,846

 

Goodwill and intangible assets, net

 

 

270,361

 

 

 

546,110

 

 

 

539,579

 

Other assets

 

 

93,510

 

 

 

89,037

 

 

 

89,389

 

Total assets

 

$

2,112,394

 

 

$

2,644,393

 

 

$

2,431,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

$

350,000

 

 

$

300,000

 

 

$

275,000

 

Trade accounts payable

 

 

280,319

 

 

 

448,596

 

 

 

267,018

 

Lease obligations

 

 

171,247

 

 

 

143,202

 

 

 

127,869

 

Other accrued expenses

 

 

216,334

 

 

 

190,331

 

 

 

181,063

 

Total current liabilities

 

 

1,017,900

 

 

 

1,082,129

 

 

 

850,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent lease obligations

 

 

579,399

 

 

 

649,100

 

 

 

629,032

 

Long-term debt

 

 

198,621

 

 

 

198,161

 

 

 

198,391

 

Other liabilities

 

 

71,340

 

 

 

90,325

 

 

 

104,204

 

Total other liabilities

 

 

849,360

 

 

 

937,586

 

 

 

931,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Caleres, Inc. shareholders’ equity

 

 

242,240

 

 

 

623,429

 

 

 

645,950

 

Noncontrolling interests

 

 

2,894

 

 

 

1,249

 

 

 

3,180

 

Total equity

 

 

245,134

 

 

 

624,678

 

 

 

649,130

 

Total liabilities and equity

 

$

2,112,394

 

 

$

2,644,393

 

 

$

2,431,707

 

SCHEDULE 3

 

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

(Unaudited)

 

 

 

Twenty-Six Weeks Ended

 

(Thousands)

 

August 1, 2020

 

 

August 3, 2019

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

67,520

 

 

$

116,578

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(6,394

)

 

 

(26,741

)

Disposals of property and equipment

 

 

 

 

 

636

 

Capitalized software

 

 

(2,220

)

 

 

(4,084

)

Net cash used for investing activities

 

 

(8,614

)

 

 

(30,189

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

 

250,500

 

 

 

149,000

 

Repayments under revolving credit agreement

 

 

(175,500

)

 

 

(184,000

)

Dividends paid

 

 

(5,495

)

 

 

(5,808

)

Acquisition of treasury stock

 

 

(23,348

)

 

 

(29,995

)

Issuance of common stock under share-based plans, net

 

 

(973

)

 

 

(2,547

)

Other

 

 

(649

)

 

 

(694

)

Net cash provided by (used for) financing activities

 

 

44,535

 

 

 

(74,044

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(115

)

 

 

56

 

Increase in cash and cash equivalents

 

 

103,326

 

 

 

12,401

 

Cash and cash equivalents at beginning of period

 

 

45,218

 

 

 

30,200

 

Cash and cash equivalents at end of period

 

$

148,544

 

 

$

42,601

 

SCHEDULE 4

 

CALERES, INC.

RECONCILIATION OF NET EARNINGS (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS (LOSS) AND ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE (NON-GAAP BASIS)

 

 

(Unaudited)

 

 

 

Thirteen Weeks Ended

 

 

 

August 1, 2020

 

 

August 3, 2019

 

(Thousands, except per share data)

 

Pre-Tax Impact of Charges/Other Items

 

 

Net (Loss) Earnings Attributable to Caleres, Inc.

 

 

Diluted (Loss) Earnings Per Share

 

 

Pre-Tax Impact of Charges/Other Items

 

 

Net Earnings Attributable to Caleres, Inc.

 

 

Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP (loss) earnings

 

 

 

 

 

$

(30,717

)

 

$

(0.83

)

 

 

 

 

 

$

25,341

 

 

$

0.61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment to Blowfish purchase obligation

 

$

6,589

 

 

 

4,893

 

 

 

0.13

 

 

$

 

 

 

 

 

 

 

COVID-19-related expenses (1)

 

 

5,429

 

 

 

4,709

 

 

 

0.13

 

 

 

 

 

 

 

 

 

 

Vionic integration-related costs

 

 

 

 

 

 

 

 

 

 

 

609

 

 

 

452

 

 

 

0.01

 

Total charges/other items

 

$

12,018

 

 

$

9,602

 

 

$

0.26

 

 

$

609

 

 

$

452

 

 

$

0.01

 

Adjusted (loss) earnings

 

 

 

 

 

$

(21,115

)

 

$

(0.57

)

 

 

 

 

 

$

25,793

 

 

$

0.62

 

 

 

(Unaudited)

 

 

 

Twenty-Six Weeks Ended

 

 

 

August 1, 2020

 

 

August 3, 2019

 

(Thousands, except per share data)

 

Pre-Tax Impact of Charges/Other Items

 

 

Net (Loss) Earnings Attributable to Caleres, Inc.

 

 

Diluted (Loss) Earnings Per Share

 

 

Pre-Tax Impact of Charges/Other Items

 

 

Net Earnings Attributable to Caleres, Inc.

 

 

Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP (loss) earnings

 

 

 

 

 

$

(376,555

)

 

$

(9.94

)

 

 

 

 

 

$

34,424

 

 

$

0.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and intangible asset impairment charges

 

$

262,719

 

 

 

218,506

 

 

 

5.66

 

 

$

 

 

 

 

 

 

 

COVID-19-related expenses (2)

 

 

99,040

 

 

 

78,047

 

 

 

2.17

 

 

 

 

 

 

 

 

 

 

Fair value adjustment to Blowfish purchase obligation

 

 

9,822

 

 

 

7,294

 

 

 

0.19

 

 

 

 

 

 

 

 

 

 

Brand Portfolio - business exits

 

 

1,598

 

 

 

1,187

 

 

 

0.03

 

 

 

1,905

 

 

 

1,415

 

 

 

0.03

 

Vionic acquisition and integration-related costs

 

 

 

 

 

 

 

 

 

 

 

6,727

 

 

 

4,996

 

 

 

0.13

 

Total charges/other items

 

$

373,179

 

 

$

305,034

 

 

$

8.05

 

 

$

8,632

 

 

$

6,411

 

 

$

0.16

 

Adjusted (loss) earnings

 

 

 

 

 

$

(71,521

)

 

$

(1.89

)

 

 

 

 

 

$

40,835

 

 

$

0.98

 

(1) Represents costs associated with the economic impact of the COVID-19 pandemic, primarily consisting of severance and the cost of supplies and deep cleaning of our facilities.

(2) Represents costs associated with the economic impact of the COVID-19 pandemic, primarily consisting of impairment charges associated with property and equipment and lease right-of-use assets, inventory markdowns, expenses associated with factory order cancellations, provision for expected credit losses and severance.

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)

 

August 1, 2020

 

August 3, 2019

 

August 1, 2020

 

August 3, 2019

 

August 1, 2020

 

August 3, 2019

 

August 1, 2020

 

August 3, 2019

Net sales

 

$

333,935

 

 

$

419,841

 

 

$

183,622

 

 

$

359,575

 

 

$

(16,109

)

 

$

(26,931

)

 

$

501,448

 

 

$

752,485

 

Gross profit

 

 

119,155

 

 

 

182,301

 

 

 

64,002

 

 

 

124,840

 

 

 

(537

)

 

 

(1,197

)

 

 

182,620

 

 

 

305,944

 

Adjusted gross profit

 

 

119,155

 

 

 

182,301

 

 

 

64,002

 

 

 

124,840

 

 

 

(537

)

 

 

(1,197

)

 

 

182,620

 

 

 

305,944

 

Gross profit rate

 

 

35.7

%

 

 

43.4

%

 

 

34.9

%

 

 

34.7

%

 

 

3.3

%

 

 

4.4

%

 

 

36.4

%

 

 

40.7

%

Adjusted gross profit rate

 

 

35.7

%

 

 

43.4

%

 

 

34.9

%

 

 

34.7

%

 

 

3.3

%

 

 

4.4

%

 

 

36.4

%

 

 

40.7

%

Operating earnings (loss)

 

 

1,045

 

 

 

31,542

 

 

 

(14,111

)

 

 

13,898

 

 

 

(11,074

)

 

 

(7,636

)

 

 

(24,140

)

 

 

37,804

 

Adjusted operating earnings (loss)

 

 

1,633

 

 

 

31,542

 

 

 

(9,551

)

 

 

13,916

 

 

 

(10,793

)

 

 

(7,045

)

 

 

(18,711

)

 

 

38,413

 

Operating earnings (loss) %

 

 

0.3

%

 

 

7.5

%

 

 

(7.7

)%

 

 

3.9

%

 

 

68.7

%

 

 

28.4

%

 

 

(4.8

)%

 

 

5.0

%

Adjusted operating earnings (loss) %

 

 

0.5

%

 

 

7.5

%

 

 

(5.2

)%

 

 

3.9

%

 

 

67.0

%

 

 

26.2

%

 

 

(3.7

)%

 

 

5.1

%

Same-store sales % (on a 13-week basis)

 

 

14.7

%

 

 

1.5

%

 

 

(24.7

)%

 

 

(9.3

)%

 

 

%

 

 

%

 

 

%

 

 

%

Number of stores

 

 

936

 

 

 

973

 

 

 

202

 

 

 

231

 

 

 

 

 

 

 

 

 

1,138

 

 

 

1,204

 

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

(Thousands)

 

August 1, 2020

 

August 3, 2019

 

August 1, 2020

 

August 3, 2019

 

August 1, 2020

 

August 3, 2019

 

August 1, 2020

 

August 3, 2019

Gross profit

 

$

119,155

 

 

$

182,301

 

 

$

64,002

 

 

$

124,840

 

 

$

(537

)

 

$

(1,197

)

 

$

182,620

 

 

$

305,944

 

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID-19-related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total charges/other items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted gross profit

 

$

119,155

 

 

$

182,301

 

 

$

64,002

 

 

$

124,840

 

 

$

(537

)

 

$

(1,197

)

 

$

182,620

 

 

$

305,944

 

Operating earnings (loss)

 

$

1,045

 

 

$

31,542

 

 

$

(14,111

)

 

$

13,898

 

 

$

(11,074

)

 

$

(7,636

)

 

$

(24,140

)

 

$

37,804

 

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID-19-related expenses

 

 

588

 

 

 

 

 

 

4,560

 

 

 

 

 

 

281

 

 

 

 

 

 

5,429

 

 

 

 

Vionic integration-related costs

 

 

 

 

 

 

 

 

 

 

 

18

 

 

 

 

 

 

591

 

 

 

 

 

 

609

 

Total charges/other items

 

 

588

 

 

 

 

 

 

4,560

 

 

 

18

 

 

 

281

 

 

 

591

 

 

 

5,429

 

 

 

609

 

Adjusted operating earnings (loss)

 

$

1,633

 

 

$

31,542

 

 

$

(9,551

)

 

$

13,916

 

 

$

(10,793

)

 

$

(7,045

)

 

$

(18,711

)

 

$

38,413

 

SCHEDULE 5

 

 

 

 

 

 

 

 

 

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

 

 

 

 

 

 

 

 

 

SUMMARY FINANCIAL RESULTS

 

 

 

 

 

 

 

(Unaudited)

 

 

 

Twenty-Six Weeks Ended

 

 

 

Famous Footwear

 

 

Brand Portfolio

 

 

Eliminations and Other

 

 

Consolidated

 

(Thousands)

 

August 1, 2020

 

 

August 3, 2019

 

 

August 1, 2020

 

 

August 3, 2019

 

 

August 1, 2020

 

 

August 3, 2019

 

 

August 1, 2020

 

 

August 3, 2019

 

Net sales

 

$

525,187

 

 

$

772,006

 

 

$

400,860

 

 

$

700,625

 

 

$

(27,415

)

 

$

(42,392

)

 

$

898,632

 

 

$

1,430,239

 

Gross profit

 

 

188,248

 

 

 

334,994

 

 

 

117,395

 

 

 

251,700

 

 

 

(1,125

)

 

 

(914

)

 

 

304,518

 

 

 

585,780

 

Adjusted gross profit

 

 

194,206

 

 

 

334,994

 

 

 

146,451

 

 

 

258,867

 

 

 

(1,125

)

 

 

(914

)

 

 

339,532

 

 

 

592,947

 

Gross profit rate

 

 

35.8

%

 

 

43.4

%

 

 

29.3

%

 

 

35.9

%

 

 

4.1

%

 

 

2.2

%

 

 

33.9

%

 

 

41.0

%

Adjusted gross profit rate

 

 

37.0

%

 

 

43.4

%

 

 

36.5

%

 

 

36.9

%

 

 

4.1

%

 

 

2.2

%

 

 

37.8

%

 

 

41.5

%

Operating (loss) earnings

 

 

(66,495

)

 

 

42,355

 

 

 

(359,860

)

 

 

26,827

 

 

 

(23,995

)

 

 

(14,509

)

 

 

(450,350

)

 

 

54,673

 

Adjusted operating (loss) earnings

 

 

(43,944

)

 

 

42,355

 

 

 

(19,690

)

 

 

34,621

 

 

 

(23,359

)

 

 

(13,671

)

 

 

(86,993

)

 

 

63,305

 

Operating (loss) earnings %

 

 

(12.7

)%

 

 

5.5

%

 

 

(89.8

)%

 

 

3.8

%

 

 

87.5

%

 

 

34.2

%

 

 

(50.1

)%

 

 

3.8

%

Adjusted operating (loss) earnings %

 

 

(8.4

)%

 

 

5.5

%

 

 

(4.9

)%

 

 

4.9

%

 

 

85.2

%

 

 

32.2

%

 

 

(9.7

)%

 

 

4.4

%

Same-store sales % (on a 26-week basis)

 

 

13.9

%

 

 

0.4

%

 

 

(24.7

)%

 

 

(8.9

)%

 

 

%

 

 

%

 

 

%

 

 

%

Number of stores

 

 

936

 

 

 

973

 

 

 

202

 

 

 

231

 

 

 

 

 

 

 

 

 

1,138

 

 

 

1,204

 

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

(Unaudited)

 

 

 

Twenty-Six Weeks Ended

 

 

 

Famous Footwear

 

 

Brand Portfolio

 

 

Eliminations and Other

 

 

Consolidated

 

(Thousands)

 

August 1, 2020

 

 

August 3, 2019

 

 

August 1, 2020

 

 

August 3, 2019

 

 

August 1, 2020

 

 

August 3, 2019

 

 

August 1, 2020

 

 

August 3, 2019

 

Gross profit

 

$

188,248

 

 

$

334,994

 

 

$

117,395

 

 

$

251,700

 

 

$

(1,125

)

 

$

(914

)

 

$

304,518

 

 

$

585,780

 

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID-19-related expenses

 

 

5,958

 

 

 

 

 

 

27,458

 

 

 

 

 

 

 

 

 

 

 

 

33,416

 

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

1,598

 

 

 

1,355

 

 

 

 

 

 

 

 

 

1,598

 

 

 

1,355

 

Vionic acquisition and integration-related costs

 

 

 

 

 

 

 

 

 

 

 

5,812

 

 

 

 

 

 

 

 

 

 

 

 

5,812

 

Total charges/other items

 

 

5,958

 

 

 

 

 

 

29,056

 

 

 

7,167

 

 

 

 

 

 

 

 

 

35,014

 

 

 

7,167

 

Adjusted gross profit

 

$

194,206

 

 

$

334,994

 

 

$

146,451

 

 

$

258,867

 

 

$

(1,125

)

 

$

(914

)

 

$

339,532

 

 

$

592,947

 

Operating (loss) earnings

 

$

(66,495

)

 

$

42,355

 

 

$

(359,860

)

 

$

26,827

 

 

$

(23,995

)

 

$

(14,509

)

 

$

(450,350

)

 

$

54,673

 

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and intangible asset impairment charges

 

 

 

 

 

 

 

 

262,719

 

 

 

 

 

 

 

 

 

 

 

 

262,719

 

 

 

 

COVID-19-related expenses

 

 

22,551

 

 

 

 

 

 

75,853

 

 

 

 

 

 

636

 

 

 

 

 

 

99,040

 

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

1,598

 

 

 

1,905

 

 

 

 

 

 

 

 

 

1,598

 

 

 

1,905

 

Vionic acquisition and integration-related costs

 

 

 

 

 

 

 

 

 

 

 

5,889

 

 

 

 

 

 

838

 

 

 

 

 

 

6,727

 

Total charges/other items

 

 

22,551

 

 

 

 

 

 

340,170

 

 

 

7,794

 

 

 

636

 

 

 

838

 

 

 

363,357

 

 

 

8,632

 

Adjusted operating (loss) earnings

 

$

(43,944

)

 

$

42,355

 

 

$

(19,690

)

 

$

34,621

 

 

$

(23,359

)

 

$

(13,671

)

 

$

(86,993

)

 

$

63,305

 

SCHEDULE 6

 

CALERES, INC.

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION

 

 

(Unaudited)

 

 

 

Thirteen Weeks Ended

 

 

Twenty-Six Weeks Ended

 

(Thousands, except per share data)

 

August 1, 2020

 

 

August 3, 2019

 

 

August 1, 2020

 

 

August 3, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) earnings attributable to Caleres, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) earnings

 

$

(30,669

)

 

$

25,227

 

 

$

(376,841

)

 

$

34,312

 

Net (earnings) loss attributable to noncontrolling interests

 

 

(48

)

 

 

114

 

 

 

286

 

 

 

112

 

Net (loss) earnings attributable to Caleres, Inc.

 

 

(30,717

)

 

 

25,341

 

 

 

(376,555

)

 

 

34,424

 

Net earnings allocated to participating securities

 

 

 

 

 

(857

)

 

 

 

 

 

(1,125

)

Net (loss) earnings attributable to Caleres, Inc. after allocation of earnings to participating securities

 

$

(30,717

)

 

$

24,484

 

 

$

(376,555

)

 

$

33,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted common shares attributable to Caleres, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

37,113

 

 

 

39,951

 

 

 

37,881

 

 

 

40,346

 

Dilutive effect of share-based awards

 

 

 

 

 

55

 

 

 

 

 

 

58

 

Diluted common shares attributable to Caleres, Inc.

 

 

37,113

 

 

 

40,006

 

 

 

37,881

 

 

 

40,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic (loss) earnings per common share attributable to Caleres, Inc. shareholders

 

$

(0.83

)

 

$

0.61

 

 

$

(9.94

)

 

$

0.83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted (loss) earnings per common share attributable to Caleres, Inc. shareholders

 

$

(0.83

)

 

$

0.61

 

 

$

(9.94

)

 

$

0.82

 

SCHEDULE 7  

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

 

Twenty-Six Weeks Ended

 

(Thousands, except per share data)

 

August 1, 2020

 

 

August 3, 2019

 

 

August 1, 2020

 

 

August 3, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net (loss) earnings attributable to Caleres, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net (loss) earnings

 

$

(21,067

)

 

$

25,679

 

 

$

(71,807

)

 

$

40,723

 

Net (earnings) loss attributable to noncontrolling interests

 

 

(48

)

 

 

114

 

 

 

286

 

 

 

112

 

Adjusted net (loss) earnings attributable to Caleres, Inc.

 

 

(21,115

)

 

 

25,793

 

 

 

(71,521

)

 

 

40,835

 

Net earnings allocated to participating securities

 

 

 

 

 

(873

)

 

 

 

 

 

(1,336

)

Adjusted net (loss) earnings attributable to Caleres, Inc. after allocation of earnings to participating securities

 

$

(21,115

)

 

$

24,920

 

 

$

(71,521

)

 

$

39,499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted common shares attributable to Caleres, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

37,113

 

 

 

39,951

 

 

 

37,881

 

 

 

40,346

 

Dilutive effect of share-based awards

 

 

 

 

 

55

 

 

 

 

 

 

58

 

Diluted common shares attributable to Caleres, Inc.

 

 

37,113

 

 

 

40,006

 

 

 

37,881

 

 

 

40,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic adjusted (loss) earnings per common share attributable to Caleres, Inc. shareholders

 

$

(0.57

)

 

$

0.62

 

 

$

(1.89

)

 

$

0.98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted adjusted (loss) earnings per common share attributable to Caleres, Inc. shareholders

 

$

(0.57

)

 

$

0.62

 

 

$

(1.89

)

 

$

0.98

 

 

Investor Contact: Logan Bonacorsi lbonacorsi@caleres.com

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