CAL Caleres Inc

• Drove sequential sales growth and significant gross margin improvement
• Achieved all-time record quarterly earnings
• Paid down an additional $100 million of debt
• Expects fiscal full-year 2021 adjusted earnings per share of between $3.25 to $3.50

Caleres (NYSE: CAL, caleres.com), operating a powerful portfolio of consumer-centric footwear brands, today reported financial results for the second quarter ended July 31, 2021. During the quarter, through its laser focus on the consumer’s evolving preferences and ongoing efforts to drive growth across its omni-channel ecosystem, Caleres continued to capitalize on positive consumer demand trends and an accelerated recovery in the footwear marketplace, achieving sequential growth in both revenues and gross margin and delivering its most profitable quarter ever. The company made excellent progress toward its balance sheet goals, paying down $100 million of debt bringing its total amount of debt reduction to $340 million since early 2020, reducing its credit facility borrowings to $100 million at quarter end.

“The Caleres team continued to execute at a high level during the quarter, achieving another significant sequential increase in sales and delivering earnings well in excess of pre-pandemic levels,” said Diane Sullivan, Chairman and Chief Executive Officer. “This exceptional performance was led by record-setting quarterly results at Famous Footwear, which in a single quarter delivered operating earnings that exceeded full year 2019. Driving these results, Famous Footwear achieved a more than eight-percent increase in revenue, a more than 100-percent increase in return on sales, and a 670-basis-point increase in gross margin to reach approximately 50 percent versus the same period of 2019. Complementing Famous Footwear’s outstanding performance, our Brand Portfolio surpassed its operating earnings for the same period of 2019, led by strong and improving earnings results from key leadership and emerging brands, including Vionic, Sam Edelman, Allen Edmonds and Blowfish Malibu.

Second Quarter 2021 Highlights (13-weeks ended July 31, 2021 compared to 13-weeks ended August 1, 2020)

• Net sales were $675.5 million, up 34.7 percent from the second quarter of fiscal 2020
  • A 35.8 percent sales increase in the Famous Footwear segment;
  • A 30.2 percent sales increase in the Brand Portfolio segment;
  • Direct-to-consumer sales represented 79 percent of total net sales
• Gross profit was $322.3 million, while gross margin was 47.7 percent, or an approximately 11 full percentage point improvement over second quarter 2020;
  • A 50.1 percent gross margin in the Famous Footwear segment;
  • A 39.7 percent gross margin in the Brand Portfolio segment;
• SG&A expense of $259.5 million, or 38.4 percent of total net sales, down from 40.1 percent of total net sales in the second quarter of fiscal 2020;
• Net income of $37.4 million, or earnings of $0.97 per diluted share, compared to net loss of $30.7 million, or a loss of $0.83 per diluted share, in the second quarter of fiscal 2020. Earnings of $0.97 per share includes $0.22 for the below items:
  • Fair value adjustment of $0.14 associated with the mandatory purchase obligation for Blowfish Malibu; and
  • Deferred tax valuation allowances of $0.08;
• Adjusted net income was approximately $46.0 million, or adjusted earnings of $1.19 per diluted share compared to adjusted net loss of $21.1 million, or adjusted loss of $0.57 per diluted share, in the second quarter of fiscal 2020;
• Generated $65.2 million in cash from operations and ended the second quarter with $54.7 million of cash on hand;
• Inventory levels were down slightly, or approximately two percent, year-over-year, reflecting ongoing disruptions in the global supply chain;
• Reduced credit facility borrowings by $100 million from the first quarter of 2021 to end the second quarter at $100 million under its credit facility;
• Returned $2.7 million to shareholders during the quarter through its long-standing and uninterrupted quarterly dividend.

Capital Structure

The company has continued to take actions to drive long-term value for its shareholders, investing in the business and enhancing its capital structure. As indicated, Caleres reduced the borrowings under its asset-based revolving credit facility by $100 million. Subsequently, on August 16, 2021, the company proactively called $100 million, or half, of the aforementioned senior secured notes and shifted this higher-cost debt to the revolving credit facility, resulting in a nearly 50-percent reduction in the interest rate on this piece of debt. The company ended the year’s fiscal first half with $200 million of short-term debt and $100 million of long-term debt, which compares to total indebtedness of roughly $640 million at the end of the first quarter of 2020. Further complementing this effort, Caleres is currently in the process of renegotiating and renewing the terms of its asset-based revolving credit facility to better reflect the company’s dramatically improved capital structure and business outlook.

“During the period, we maintained our sharp focus on driving towards our long-term goal of zero net debt,” said Ken Hannah, Senior Vice President and Chief Financial Officer. “During the course of the past five quarters, we have utilized our strong cash generation to lower our overall indebtedness – creating significant long-term value for equity holders in the process. As we progress through 2021, we will continue to prioritize debt reduction in our capital allocation strategy, while simultaneously lowering interest expense levels still further on the debt that remains.”

Fiscal Full Year 2021 Outlook

“Looking ahead, we remain cautious about the macro environment given the uncertainty surrounding new COVID-19 variants and ongoing challenges in the global supply chain,” said Sullivan. “To that end, we are taking actions to minimize these disruptions and believe we are well-equipped to partially offset some of these cost headwinds. Even with these uncertainties, I remain highly confident in the team’s ability to build upon our recent strong performance at Famous and improving results in the Brand Portfolio, leverage our diversified brand model and continue to execute on our long-term strategic priorities in the year’s back half. We strongly believe in our prospects for delivering record annual adjusted earnings per share for fiscal year 2021 and are enthusiastic about our strategy for ongoing value creation and for the long-term opportunities that lie ahead for Caleres.”

For the third quarter we expect adjusted earnings per share of between $1.10 and $1.25 and for fiscal full year 2021, Caleres expects adjusted earnings per share to be between $3.25 and $3.50.

Investor Conference Call

Caleres will host an investor conference call at 5:00 p.m. ET today, Tuesday, August 31. 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 8448125. 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 8448125 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 coronavirus pandemic 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) rapidly changing consumer preferences and purchasing patterns and fashion trends; (iv) intense competition within the footwear industry; (v) customer concentration and increased consolidation in the retail industry; (vi) foreign currency fluctuations; (vii) impairment charges resulting from a long-term decline in our stock price; (viii) 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; (ix) cybersecurity threats or other major disruption to the company’s information technology systems; (x) the ability to accurately forecast sales and manage inventory levels; (xi) a disruption in the company’s distribution centers; (xii) the ability to recruit and retain senior management and other key associates; (xiii) the ability to maintain relationships with current suppliers; (xiv) the ability to secure/exit leases on favorable terms; (xv) transitional challenges with acquisitions and divestitures; (xvi) changes to tax laws, policies and treaties; (xvii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xviii) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights.

About Caleres

Caleres is a diverse portfolio of global footwear brands. Our products are available virtually everywhere - in the more than 1,000 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)

 

July 31, 2021

 

August 1, 2020

 

July 31, 2021

 

August 1, 2020

Net sales

 

$

675,531

 

 

$

501,448

 

 

$

1,314,167

 

 

$

898,632

 

Cost of goods sold

 

 

353,238

 

 

 

318,828

 

 

 

716,987

 

 

 

594,114

 

Gross profit

 

 

322,293

 

 

 

182,620

 

 

 

597,180

 

 

 

304,518

 

Selling and administrative expenses

 

 

259,501

 

 

 

201,331

 

 

 

503,036

 

 

 

426,524

 

Impairment of goodwill and intangible assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

262,719

 

Restructuring and other special charges, net

 

 

—

 

 

 

5,429

 

 

 

13,482

 

 

 

65,625

 

Operating earnings (loss)

 

 

62,792

 

 

 

(24,140

)

 

 

80,662

 

 

 

(450,350

)

Interest expense, net

 

 

(11,941

)

 

 

(13,387

)

 

 

(23,734

)

 

 

(22,866

)

Other income, net

 

 

3,860

 

 

 

3,672

 

 

 

7,688

 

 

 

7,257

 

Earnings (loss) before income taxes

 

 

54,711

 

 

 

(33,855

)

 

 

64,616

 

 

 

(465,959

)

Income tax (provision) benefit

 

 

(16,559

)

 

 

3,186

 

 

 

(20,080

)

 

 

89,118

 

Net earnings (loss)

 

 

38,152

 

 

 

(30,669

)

 

 

44,536

 

 

 

(376,841

)

Net earnings (loss) attributable to noncontrolling interests

 

 

756

 

 

 

48

 

 

 

993

 

 

 

(286

)

Net earnings (loss) attributable to Caleres, Inc.

 

$

37,396

 

 

$

(30,717

)

 

$

43,543

 

 

$

(376,555

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.98

 

 

$

(0.83

)

 

$

1.14

 

 

$

(9.94

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.97

 

 

$

(0.83

)

 

$

1.13

 

 

$

(9.94

)

  SCHEDULE 2

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

July 31, 2021

 

August 1, 2020

 

January 30, 2021

ASSETS

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

54,684

 

$

148,544

 

$

88,295

Receivables, net

 

 

110,522

 

 

110,249

 

 

126,994

Inventories, net

 

 

565,512

 

 

574,830

 

 

487,955

Prepaid expenses and other current assets

 

 

76,645

 

 

96,426

 

 

79,312

Total current assets

 

 

807,363

 

 

930,049

 

 

782,556

 

 

 

 

 

 

 

 

 

 

Lease right-of-use assets

 

 

508,597

 

 

624,881

 

 

554,303

Property and equipment, net

 

 

161,066

 

 

193,593

 

 

172,437

Goodwill and intangible assets, net

 

 

233,777

 

 

270,361

 

 

240,071

Other assets

 

 

122,095

 

 

93,510

 

 

117,683

Total assets

 

$

1,832,898

 

$

2,112,394

 

$

1,867,050

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

$

100,000

 

$

350,000

 

$

250,000

Current portion of long-term debt

 

 

99,540

 

 

—

 

 

—

Mandatory purchase obligation - Blowfish Malibu

 

 

52,639

 

 

—

 

 

39,134

Trade accounts payable

 

 

348,795

 

 

280,319

 

 

280,501

Lease obligations

 

 

126,820

 

 

171,247

 

 

153,060

Other accrued expenses

 

 

250,875

 

 

216,334

 

 

182,814

Total current liabilities

 

 

978,669

 

 

1,017,900

 

 

905,509

 

 

 

 

 

 

 

 

 

 

Noncurrent lease obligations

 

 

463,746

 

 

579,399

 

 

518,942

Long-term debt

 

 

99,540

 

 

198,621

 

 

198,851

Other liabilities

 

 

45,652

 

 

71,340

 

 

39,894

Total other liabilities

 

 

608,938

 

 

849,360

 

 

757,687

 

 

 

 

 

 

 

 

 

 

Total Caleres, Inc. shareholders’ equity

 

 

240,697

 

 

242,240

 

 

200,247

Noncontrolling interests

 

 

4,594

 

 

2,894

 

 

3,607

Total equity

 

 

245,291

 

 

245,134

 

 

203,854

Total liabilities and equity

 

$

1,832,898

 

$

2,112,394

 

$

1,867,050

 

SCHEDULE 3

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Twenty-Six Weeks Ended

($ thousands)

 

July 31, 2021

 

August 1, 2020

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net cash provided by operating activities

 

$

135,547

 

 

$

67,520

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(6,816

)

 

 

(6,394

)

Capitalized software

 

 

(2,581

)

 

 

(2,220

)

Net cash used for investing activities

 

 

(9,397

)

 

 

(8,614

)

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

 

164,500

 

 

 

250,500

 

Repayments under revolving credit agreement

 

 

(314,500

)

 

 

(175,500

)

Dividends paid

 

 

(5,336

)

 

 

(5,495

)

Acquisition of treasury stock

 

 

—

 

 

 

(23,348

)

Issuance of common stock under share-based plans, net

 

 

(3,752

)

 

 

(973

)

Other

 

 

(677

)

 

 

(649

)

Net cash (used for) provided by financing activities

 

 

(159,765

)

 

 

44,535

 

Effect of exchange rate changes on cash and cash equivalents

 

 

4

 

 

 

(115

)

(Decrease) increase in cash and cash equivalents

 

 

(33,611

)

 

 

103,326

 

Cash and cash equivalents at beginning of period

 

 

88,295

 

 

 

45,218

 

Cash and cash equivalents at end of period

 

$

54,684

 

 

$

148,544

 

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

 

 

July 31, 2021

 

August 1, 2020

 

 

 

 

Net

 

 

 

 

 

Net (Loss)

 

 

 

 

Pre-Tax

 

Earnings

 

 

 

Pre-Tax

 

Earnings

 

Diluted

 

 

Impact of

 

Attributable

 

Diluted

 

Impact of

 

Attributable

 

(Loss)

 

 

Charges/Other

 

to Caleres,

 

Earnings

 

Charges/Other

 

to Caleres,

 

Earnings

($ thousands, except per share data)

 

Items

 

Inc.

 

Per Share

 

Items

 

Inc.

 

Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP earnings (loss)

 

 

 

$

37,396

 

$

0.97

 

 

 

$

(30,717

)

 

$

(0.83

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment to Blowfish purchase obligation

 

$

7,115

 

 

5,284

 

 

0.14

 

$

6,589

 

 

4,893

 

 

 

0.13

 

Deferred tax valuation allowances

 

 

—

 

 

3,294

 

 

0.08

 

 

—

 

 

—

 

 

 

—

 

COVID-19-related expenses (1)

 

 

—

 

 

—

 

 

—

 

 

5,429

 

 

4,709

 

 

 

0.13

 

Total charges/other items

 

$

7,115

 

$

8,578

 

$

0.22

 

$

12,018

 

$

9,602

 

 

$

0.26

 

Adjusted earnings (loss)

 

 

 

$

45,974

 

$

1.19

 

 

 

$

(21,115

)

 

$

(0.57

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Twenty-Six Weeks Ended

 

 

July 31, 2021

 

August 1, 2020

 

 

 

 

Net

 

 

 

 

 

Net (Loss)

 

 

 

 

Pre-Tax

 

Earnings

 

 

 

Pre-Tax

 

Earnings

 

Diluted

 

 

Impact of

 

Attributable

 

Diluted

 

Impact of

 

Attributable

 

(Loss)

 

 

Charges/Other

 

to Caleres,

 

Earnings

 

Charges/Other

 

to Caleres,

 

Earnings

($ thousands, except per share data)

 

Items

 

Inc.

 

Per Share

 

Items

 

Inc.

 

Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP earnings (loss)

 

 

 

$

43,543

 

$

1.13

 

 

 

$

(376,555

)

 

$

(9.94

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment to Blowfish purchase obligation

 

$

13,505

 

 

10,030

 

 

0.26

 

$

9,822

 

 

7,294

 

 

 

0.19

 

Deferred tax valuation allowances

 

 

—

 

 

3,294

 

 

0.09

 

 

—

 

 

—

 

 

 

—

 

Brand Portfolio - business exits

 

 

13,482

 

 

11,927

 

 

0.31

 

 

1,598

 

 

1,187

 

 

 

0.03

 

Goodwill and intangible asset impairment charges

 

 

—

 

 

—

 

 

—

 

 

262,719

 

 

218,506

 

 

 

5.66

 

COVID-19-related expenses (2)

 

 

—

 

 

—

 

 

—

 

 

99,040

 

 

78,047

 

 

 

2.17

 

Total charges/other items

 

$

26,987

 

$

25,251

 

$

0.66

 

$

373,179

 

$

305,034

 

 

$

8.05

 

Adjusted earnings (loss)

 

 

 

$

68,794

 

$

1.79

 

 

 

$

(71,521

)

 

$

(1.89

)

________________________________________

(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

 

 

July 31,

 

August 1,

 

July 31,

 

August 1,

 

July 31,

 

August 1,

 

July 31,

 

August 1,

 

($ thousands)

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

Net sales

 

$

453,649

 

$

333,935

 

$

239,013

 

$

183,622

 

$

(17,131

)

$

(16,109

)

$

675,531

 

$

501,448

 

Gross profit

 

 

227,414

 

 

119,155

 

 

94,890

 

 

64,002

 

 

(11

)

 

(537

)

 

322,293

 

 

182,620

 

Adjusted gross profit

 

 

227,414

 

 

119,155

 

 

94,890

 

 

64,002

 

 

(11

)

 

(537

)

 

322,293

 

 

182,620

 

Gross profit rate

 

 

50.1

%

 

35.7

%

 

39.7

%

 

34.9

%

 

0.0

%

 

3.3

%

 

47.7

%

 

36.4

%

Adjusted gross profit rate

 

 

50.1

%

 

35.7

%

 

39.7

%

 

34.9

%

 

0.0

%

 

3.3

%

 

47.7

%

 

36.4

%

Operating earnings (loss)

 

 

85,498

 

 

1,045

 

 

16,554

 

 

(14,111

)

 

(39,260

)

 

(11,074

)

 

62,792

 

 

(24,140

)

Adjusted operating earnings (loss)

 

 

85,498

 

 

1,633

 

 

16,554

 

 

(9,551

)

 

(39,260

)

 

(10,793

)

 

62,792

 

 

(18,711

)

Operating earnings (loss) %

 

 

18.8

%

 

0.3

%

 

6.9

%

 

(7.7

)%

 

n/m

 

 

n/m

 

 

9.3

%

 

(4.8

)%

Adjusted operating earnings (loss) %

 

 

18.8

%

 

0.5

%

 

6.9

%

 

(5.2

)%

 

n/m

 

 

n/m

 

 

9.3

%

 

(3.7

)%

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

 

 

(1.1

)%

 

14.7

%

 

16.3

%

 

(24.7

)%

 

—

%

 

—

%

 

—

%

 

—

%

Number of stores

 

 

912

 

 

936

 

 

87

 

 

202

 

 

—

 

 

—

 

 

999

 

 

1,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

n/m – Not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

July 31,

 

August 1,

 

July 31,

 

August 1,

 

July 31,

 

August 1,

 

July 31,

 

August 1,

($ thousands)

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

Gross profit

 

$

227,414

 

$

119,155

 

$

94,890

 

$

64,002

 

 

$

(11

)

 

$

(537

)

 

$

322,293

 

$

182,620

 

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID-19-related expenses

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

Total charges/other items

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

Adjusted gross profit

 

$

227,414

 

$

119,155

 

$

94,890

 

$

64,002

 

 

$

(11

)

 

$

(537

)

 

$

322,293

 

$

182,620

 

Operating earnings (loss)

 

$

85,498

 

$

1,045

 

$

16,554

 

$

(14,111

)

 

$

(39,260

)

 

$

(11,074

)

 

$

62,792

 

$

(24,140

)

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID-19-related expenses

 

 

—

 

 

588

 

 

—

 

 

4,560

 

 

 

—

 

 

 

281

 

 

 

—

 

 

5,429

 

Total charges/other items

 

 

—

 

 

588

 

 

—

 

 

4,560

 

 

 

—

 

 

 

281

 

 

 

—

 

 

5,429

 

Adjusted operating earnings (loss)

 

$

85,498

 

$

1,633

 

$

16,554

 

$

(9,551

)

 

$

(39,260

)

 

$

(10,793

)

 

$

62,792

 

$

(18,711

)

               

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

 

July 31,

 

August 1,

 

July 31,

 

August 1,

 

July 31,

 

August 1,

 

July 31,

 

August 1,

 

($ thousands)

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

Net sales

$

851,754

 

$

525,187

 

$

489,318

 

$

400,860

 

$

(26,905

)

$

(27,415

)

$

1,314,167

 

$

898,632

 

Gross profit

 

407,229

 

 

188,248

 

 

188,892

 

 

117,395

 

 

1,059

 

 

(1,125

)

 

597,180

 

 

304,518

 

Adjusted gross profit

 

407,229

 

 

194,206

 

 

188,892

 

 

146,451

 

 

1,059

 

 

(1,125

)

 

597,180

 

 

339,532

 

Gross profit rate

 

47.8

%

 

35.8

%

 

38.6

%

 

29.3

%

 

(3.9

)%

 

4.1

%

 

45.4

%

 

33.9

%

Adjusted gross profit rate

 

47.8

%

 

37.0

%

 

38.6

%

 

36.5

%

 

(3.9

)%

 

4.1

%

 

45.4

%

 

37.8

%

Operating earnings (loss)

 

133,371

 

 

(66,495

)

 

13,733

 

 

(359,860

)

 

(66,442

)

 

(23,995

)

 

80,662

 

 

(450,350

)

Adjusted operating earnings (loss)

 

133,371

 

 

(43,944

)

 

27,215

 

 

(19,690

)

 

(66,442

)

 

(23,359

)

 

94,144

 

 

(86,993

)

Operating earnings (loss) %

 

15.7

%

 

(12.7

)%

 

2.8

%

 

(89.8

)%

 

n/m

 

 

n/m

 

 

6.1

%

 

(50.1

)%

Adjusted operating earnings (loss) %

 

15.7

%

 

(8.4

)%

 

5.6

%

 

(4.9

)%

 

n/m

 

 

n/m

 

 

7.2

%

 

(9.7

)%

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

 

0.5

%

 

13.9

%

 

10.2

%

 

(24.7

)%

 

—

%

 

—

%

 

—

%

 

—

%

Number of stores

 

912

 

 

936

 

 

87

 

 

202

 

 

—

 

 

—

 

 

999

 

 

1,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

n/m – Not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

Twenty-Six Weeks Ended

 

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

 

July 31,

 

August 1,

 

July 31,

 

August 1,

 

July 31,

 

August 1,

 

July 31,

 

August 1,

 

($ thousands)

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

 

2021

 

2020

 

Gross profit

 

$

407,229

 

$

188,248

 

 

$

188,892

 

$

117,395

 

 

$

1,059

 

 

$

(1,125

)

 

$

597,180

 

$

304,518

 

 

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID-19-related expenses

 

 

—

 

 

5,958

 

 

 

—

 

 

27,458

 

 

 

—

 

 

 

—

 

 

 

—

 

 

33,416

 

 

Brand Portfolio - business exits

 

 

—

 

 

—

 

 

 

—

 

 

1,598

 

 

 

—

 

 

 

—

 

 

 

—

 

 

1,598

 

 

Total charges/other items

 

 

—

 

 

5,958

 

 

 

—

 

 

29,056

 

 

 

—

 

 

 

—

 

 

 

—

 

 

35,014

 

 

Adjusted gross profit

 

$

407,229

 

$

194,206

 

 

$

188,892

 

$

146,451

 

 

$

1,059

 

 

$

(1,125

)

 

$

597,180

 

$

339,532

 

 

Operating earnings (loss)

 

$

133,371

 

$

(66,495

)

 

$

13,733

 

$

(359,860

)

 

$

(66,442

)

 

$

(23,995

)

 

$

80,662

 

$

(450,350

)

 

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

 

 

—

 

 

—

 

 

 

13,482

 

 

1,598

 

 

 

—

 

 

 

—

 

 

 

13,482

 

 

1,598

 

 

Total charges/other items

 

 

—

 

 

22,551

 

 

 

13,482

 

 

340,170

 

 

 

—

 

 

 

636

 

 

 

13,482

 

 

363,357

 

 

Adjusted operating earnings (loss)

 

$

133,371

 

$

(43,944

)

 

$

27,215

 

$

(19,690

)

 

$

(66,442

)

 

$

(23,359

)

 

$

94,144

 

$

(86,993

)

 

SCHEDULE 6

CALERES, INC.

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Twenty-Six Weeks Ended

 

 

July 31,

 

August 1,

 

July 31,

 

August 1,

 

 

2021

 

2020

 

2021

 

2020

($ thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

38,152

 

 

$

(30,669

)

 

$

44,536

 

 

$

(376,841

)

Net (earnings) loss attributable to noncontrolling interests

 

 

(756

)

 

 

(48

)

 

 

(993

)

 

 

286

 

Net earnings (loss) attributable to Caleres, Inc.

 

 

37,396

 

 

 

(30,717

)

 

 

43,543

 

 

 

(376,555

)

Net earnings allocated to participating securities

 

 

(1,360

)

 

 

—

 

 

 

(1,575

)

 

 

—

 

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

 

$

36,036

 

 

$

(30,717

)

 

$

41,968

 

 

$

(376,555

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

36,880

 

 

 

37,113

 

 

 

36,794

 

 

 

37,881

 

Dilutive effect of share-based awards

 

 

267

 

 

 

—

 

 

 

212

 

 

 

—

 

Diluted common shares attributable to Caleres, Inc.

 

 

37,147

 

 

 

37,113

 

 

 

37,006

 

 

 

37,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.98

 

 

$

(0.83

)

 

$

1.14

 

 

$

(9.94

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.97

 

 

$

(0.83

)

 

$

1.13

 

 

$

(9.94

)

 

SCHEDULE 7

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Twenty-Six Weeks Ended

 

 

July 31,

 

August 1,

 

July 31,

 

August 1,

 

 

2021

 

2020

 

2021

 

2020

($ thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings (loss)

 

$

46,730

 

 

$

(21,067

)

 

$

69,787

 

 

$

(71,807

)

Net (earnings) loss attributable to noncontrolling interests

 

 

(756

)

 

 

(48

)

 

 

(993

)

 

 

286

 

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

 

 

45,974

 

 

 

(21,115

)

 

 

68,794

 

 

 

(71,521

)

Net earnings allocated to participating securities

 

 

(1,673

)

 

 

—

 

 

 

(2,504

)

 

 

—

 

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

 

$

44,301

 

 

$

(21,115

)

 

$

66,290

 

 

$

(71,521

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

36,880

 

 

 

37,113

 

 

 

36,794

 

 

 

37,881

 

Dilutive effect of share-based awards

 

 

267

 

 

 

—

 

 

 

212

 

 

 

—

 

Diluted common shares attributable to Caleres, Inc.

 

 

37,147

 

 

 

37,113

 

 

 

37,006

 

 

 

37,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.20

 

 

$

(0.57

)

 

$

1.80

 

 

$

(1.89

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.19

 

 

$

(0.57

)

 

$

1.79

 

 

$

(1.89

)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210831005895/en/

Investor Contact: Logan Bonacorsi lbonacorsi@caleres.com