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Caleres Reports Third Quarter 2021 Results, Raises Full Year Outlook

  • Achieved all-time record quarterly earnings
  • Generated record quarterly sales at Famous Footwear
  • Sequential sales improvement in the Brand Portfolio
  • Raises fiscal full-year 2021 adjusted earnings per share guidance to between $3.80 and $3.90

ST. LOUIS–(BUSINESS WIRE)–Caleres (NYSE: CAL)(caleres.com), operator of a powerful portfolio of consumer-centric footwear brands, today reported financial results for the third quarter ended October 30, 2021. During the quarter, Caleres continued to capitalize on strong consumer demand trends, achieving sequential revenue growth, recording strong gross margins, and delivering the highest level of quarterly earnings in company history. In addition, the company made further progress toward its balance sheet initiatives, enhancing its cash position, reducing its debt levels and securing more advantageous terms on its asset-based credit facility.

“Caleres achieved another record performance in the quarter just ended, driven principally by continued, exceptional upward momentum in our Famous Footwear business,” said Diane Sullivan, Chairman and Chief Executive Officer. “As robust consumer demand dynamics continue to accelerate, we fully expect the ongoing recovery in the Brand Portfolio to be an increasingly strong complement to the ongoing success at Famous Footwear in the quarters ahead.”

Third Quarter 2021 Highlights

(13-weeks ended October 30, 2021 compared to 13-weeks ended October 31, 2020)

  • Net sales were $784.2 million, up 21.1 percent from the third quarter of fiscal 2020

    • A 26.3 percent sales increase in the Famous Footwear segment;
    • A 12.3 percent sales increase in the Brand Portfolio segment;
    • Direct-to-consumer sales represented 73.5 percent of total net sales
  • Gross profit was $335.4 million, while gross margin was 42.8 percent, or a 308-basis point improvement over third quarter 2020;

    • A 47.6 percent gross margin in the Famous Footwear segment;
    • A 32.9 percent gross margin in the Brand Portfolio segment;
  • SG&A expense of $254.0 million, or 32.4 percent of total net sales, down from 36.6 percent of total net sales in the third quarter of fiscal 2020;
  • Net income of $59.6 million, or earnings of $1.54 per diluted share, compared to net income of $14.4 million, or earnings of $0.38 per diluted share, in the third quarter of fiscal 2020. Earnings of $1.54 per share includes $0.05 for the below items:

    • Fair value adjustment of $0.04 associated with the mandatory purchase obligation for Blowfish Malibu; and
    • Loss on early extinguishment of debt of $0.01 related to the redemption of $100 million of senior notes and the amendment to the credit facility;
  • Adjusted net income was approximately $61.5 million, or adjusted earnings of $1.59 per diluted share compared to adjusted net income of $18.2 million, or adjusted earnings of $0.48 per diluted share, in the third quarter of fiscal 2020;
  • Generated $54.2 million in cash from operations and ended the third quarter with $74.8 million of cash on hand;
  • Inventory levels were up 7.1 percent, year-over-year, with in-transit inventory 3.1x higher than the third quarter of 2020, reflecting the ongoing disruptions in the global supply chain;
  • Ended the third quarter with $274.6 million of short-term debt; and
  • Returned $2.7 million to shareholders during the quarter through its long-standing and uninterrupted quarterly dividend.

Capital Structure

As previously indicated, during the third quarter, Caleres renegotiated and renewed the terms of its asset-based credit facility. The terms of the new facility, which was restored to pre-COVID terms, includes a 5-year extension on the maturity date and features a reduction in the interest rate. This new agreement more accurately reflects the company’s significantly improved capital structure, accelerated recovery in the footwear market and more positive business outlook. Caleres notified its bondholders that it plans to redeem the remaining $100 million of its senior notes in January of 2022 – shifting that higher-cost debt to the revolving credit facility and extinguishing all of the company’s remaining long-term debt. These actions, coupled with the company’s proactive debt reduction activities in recent quarters, will result in approximately a $12 million decline in annual interest expense – bolstering its financial foundation further and driving long-term value for its shareholders.

Outlook

“As we progress through the remainder of the year and head into 2022, we expect supply chain challenges to persist,” said Sullivan. “However, our global Associates have taken quick action – leaning into our capabilities; optimizing our inventory position; and diversifying and leveraging our sourcing model to help offset the impacts caused by the ongoing disruptions. We believe we are well-positioned to navigate this dynamic market environment and we are confident in our ability to utilize our diversified brand model, achieve our short and long-term strategic objectives, and continue to create value for our shareholders.”

With the momentum continuing in its underlying business, the company now expects record adjusted earnings per share between $3.80 and $3.90 for fiscal year 2021.

Investor Conference Call

Caleres will host an investor conference call at 5:00 p.m. ET today, Thursday, November 18. 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 4368498. 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 4368498 through Thursday, December 2.

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 nearly 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

 

Thirty-Nine Weeks Ended

($ thousands, except per share data)

 

October 30, 2021

 

October 31, 2020

 

October 30, 2021

 

October 31, 2020

Net sales

 

$

784,156

 

 

$

647,480

 

 

$

2,098,323

 

 

$

1,546,111

 

Cost of goods sold

 

 

448,805

 

 

 

390,508

 

 

 

1,165,792

 

 

 

984,621

 

Gross profit

 

 

335,351

 

 

 

256,972

 

 

 

932,531

 

 

 

561,490

 

Selling and administrative expenses

 

 

254,033

 

 

 

236,901

 

 

 

757,070

 

 

 

663,425

 

Impairment of goodwill and intangible assets

 

 

 

 

 

 

 

 

 

 

 

262,719

 

Restructuring and other special charges, net

 

 

 

 

 

 

 

 

13,482

 

 

 

65,625

 

Operating earnings (loss)

 

 

81,318

 

 

 

20,071

 

 

 

161,979

 

 

 

(430,279

)

Interest expense, net

 

 

(5,069

)

 

 

(10,881

)

 

 

(28,803

)

 

 

(33,747

)

Loss on early extinguishment of debt

 

 

(649

)

 

 

 

 

 

(649

)

 

 

 

Other income, net

 

 

3,844

 

 

 

5,461

 

 

 

11,533

 

 

 

12,718

 

Earnings (loss) before income taxes

 

 

79,444

 

 

 

14,651

 

 

 

144,060

 

 

 

(451,308

)

Income tax (provision) benefit

 

 

(19,759

)

 

 

275

 

 

 

(39,838

)

 

 

89,393

 

Net earnings (loss)

 

 

59,685

 

 

 

14,926

 

 

 

104,222

 

 

 

(361,915

)

Net earnings attributable to noncontrolling interests

 

 

63

 

 

 

509

 

 

 

1,057

 

 

 

223

 

Net earnings (loss) attributable to Caleres, Inc.

 

$

59,622

 

 

$

14,417

 

 

$

103,165

 

 

$

(362,138

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.56

 

 

$

0.38

 

 

$

2.70

 

 

$

(9.67

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.54

 

 

$

0.38

 

 

$

2.68

 

 

$

(9.67

)

 

SCHEDULE 2

 

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

October 30, 2021

 

October 31, 2020

 

January 30, 2021

ASSETS

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

74,772

 

$

124,330

 

$

88,295

Receivables, net

 

 

161,892

 

 

141,059

 

 

126,994

Inventories, net

 

 

543,218

 

 

507,365

 

 

487,955

Prepaid expenses and other current assets

 

 

82,816

 

 

99,401

 

 

79,312

Total current assets

 

 

862,698

 

 

872,155

 

 

782,556

 

 

 

 

 

 

 

 

 

 

Lease right-of-use assets

 

 

500,308

 

 

601,574

 

 

554,303

Property and equipment, net

 

 

155,516

 

 

189,207

 

 

172,437

Goodwill and intangible assets, net

 

 

230,625

 

 

267,074

 

 

240,071

Other assets

 

 

125,411

 

 

97,050

 

 

117,683

Total assets

 

$

1,874,558

 

$

2,027,060

 

$

1,867,050

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

$

175,000

 

$

300,000

 

$

250,000

Mandatory purchase obligation – Blowfish Malibu

 

 

54,558

 

 

30,146

 

 

39,134

Current portion of long-term debt

 

 

99,598

 

 

 

 

Trade accounts payable

 

 

352,084

 

 

285,582

 

 

280,501

Lease obligations

 

 

128,151

 

 

156,200

 

 

153,060

Other accrued expenses

 

 

260,669

 

 

187,980

 

 

182,814

Total current liabilities

 

 

1,070,060

 

 

959,908

 

 

905,509

 

 

 

 

 

 

 

 

 

 

Noncurrent lease obligations

 

 

452,786

 

 

556,343

 

 

518,942

Long-term debt

 

 

 

 

198,736

 

 

198,851

Other liabilities

 

 

45,967

 

 

50,418

 

 

39,894

Total other liabilities

 

 

498,753

 

 

805,497

 

 

757,687

 

 

 

 

 

 

 

 

 

 

Total Caleres, Inc. shareholders’ equity

 

 

301,098

 

 

256,671

 

 

200,247

Noncontrolling interests

 

 

4,647

 

 

4,984

 

 

3,607

Total equity

 

 

305,745

 

 

261,655

 

 

203,854

Total liabilities and equity

 

$

1,874,558

 

$

2,027,060

 

$

1,867,050

 

SCHEDULE 3

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirty-Nine Weeks Ended

($ thousands)

 

October 30, 2021

 

October 31, 2020

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net cash provided by operating activities

 

$

189,728

 

 

$

101,766

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(10,437

)

 

 

(12,016

)

Capitalized software

 

 

(4,122

)

 

 

(3,525

)

Net cash used for investing activities

 

 

(14,559

)

 

 

(15,541

)

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

 

363,000

 

 

 

340,500

 

Repayments under revolving credit agreement

 

 

(438,000

)

 

 

(315,500

)

Redemption of senior notes

 

 

(100,000

)

 

 

 

Dividends paid

 

 

(8,011

)

 

 

(8,148

)

Debt issuance costs

 

 

(1,190

)

 

 

 

Acquisition of treasury stock

 

 

 

 

 

(23,348

)

Issuance of common stock under share-based plans, net

 

 

(3,779

)

 

 

(1,078

)

Contributions by noncontrolling interests, net

 

 

 

 

 

1,500

 

Other

 

 

(676

)

 

 

(980

)

Net cash used for financing activities

 

 

(188,656

)

 

 

(7,054

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(36

)

 

 

(59

)

(Decrease) increase in cash and cash equivalents

 

 

(13,523

)

 

 

79,112

 

Cash and cash equivalents at beginning of period

 

 

88,295

 

 

 

45,218

 

Cash and cash equivalents at end of period

 

$

74,772

 

 

$

124,330

 

 

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

 

 

October 30, 2021

 

October 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Tax

 

Net Earnings

 

 

 

 

Pre-Tax

 

Net Earnings

 

 

 

 

Impact of

 

Attributable

 

 

Diluted

 

Impact of

 

Attributable

 

Diluted

 

 

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

 

 

 

 

$

59,622

 

$

1.54

 

 

 

 

$

14,417

 

$

0.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment to Blowfish purchase obligation

 

$

1,918

 

 

1,424

 

 

0.04

 

$

5,124

 

 

3,805

 

 

0.10

Loss on early extinguishment of debt

 

 

649

 

 

482

 

 

0.01

 

 

 

 

 

 

Total charges/other items

 

$

2,567

 

$

1,906

 

$

0.05

 

$

5,124

 

$

3,805

 

$

0.10

Adjusted earnings

 

 

 

 

$

61,528

 

$

1.59

 

 

 

 

$

18,222

 

$

0.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirty-Nine Weeks Ended

 

 

October 30, 2021

 

October 31, 2020

 

 

 

 

 

Net

 

 

 

 

 

 

 

Net (Loss)

 

 

 

 

 

Pre-Tax

 

Earnings

 

 

 

Pre-Tax

 

Earnings

 

 

 

 

 

Impact of

 

Attributable

 

Diluted

 

Impact of

 

Attributable

 

Diluted (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)

 

 

 

 

$

103,165

 

$

2.68

 

 

 

 

$

(362,138

)

 

$

(9.67

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment to Blowfish purchase obligation

 

$

15,423

 

 

11,454

 

 

0.30

 

$

14,946

 

 

11,098

 

 

 

0.30

 

Brand Portfolio – business exits

 

 

13,482

 

 

11,927

 

 

0.31

 

 

1,598

 

 

1,187

 

 

 

0.03

 

Deferred tax valuation allowances

 

 

 

 

3,294

 

 

0.08

 

 

 

 

 

 

 

 

Loss on early extinguishment of debt

 

 

649

 

 

482

 

 

0.01

 

 

 

 

 

 

 

 

Goodwill and intangible asset impairment charges

 

 

 

 

 

 

 

 

262,719

 

 

218,506

 

 

 

5.84

 

COVID-19-related expenses (1)

 

 

 

 

 

 

 

 

99,040

 

 

78,047

 

 

 

2.08

 

Total charges/other items

 

$

29,554

 

$

27,157

 

$

0.70

 

$

378,303

 

$

308,838

 

 

$

8.25

 

Adjusted earnings (loss)

 

 

 

 

$

130,322

 

$

3.38

 

 

 

 

$

(53,300

)

 

$

(1.42

)

________________________________________

(1)

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

 

 

 

October 30,

 

October 31,

 

October 30,

 

October 31,

 

October 30,

 

October 31,

 

October 30,

 

October 31,

 

($ thousands)

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

Net sales

 

$

494,660

 

$

391,706

 

$

300,513

 

$

267,587

 

$

(11,017)

 

$

(11,813)

 

$

784,156

 

$

647,480

 

Gross profit

 

 

235,487

 

 

160,019

 

 

98,898

 

 

94,312

 

 

966

 

 

2,641

 

 

335,351

 

 

256,972

 

Adjusted gross profit

 

 

235,487

 

 

160,019

 

 

98,898

 

 

94,312

 

 

966

 

 

2,641

 

 

335,351

 

 

256,972

 

Gross profit rate

 

 

47.6

%

 

40.9

%

 

32.9

%

 

35.2

%

 

(8.8)

%

 

(22.4)

%

 

42.8

%

 

39.7

%

Adjusted gross profit rate

 

 

47.6

%

 

40.9

%

 

32.9

%

 

35.2

%

 

(8.8)

%

 

(22.4)

%

 

42.8

%

 

39.7

%

Operating earnings (loss)

 

 

87,375

 

 

27,845

 

 

11,383

 

 

7,304

 

 

(17,440)

 

 

(15,078)

 

 

81,318

 

 

20,071

 

Adjusted operating earnings (loss)

 

 

87,375

 

 

27,845

 

 

11,383

 

 

7,304

 

 

(17,440)

 

 

(15,078)

 

 

81,318

 

 

20,071

 

Operating earnings (loss) %

 

 

17.7

%

 

7.1

%

 

3.8

%

 

2.7

%

 

n/m

 

 

127.6

 

 

10.4

%

 

3.1

%

Adjusted operating earnings (loss) %

 

 

17.7

%

 

7.1

%

 

3.8

%

 

2.7

%

 

n/m

 

 

127.6

 

 

10.4

%

 

3.1

%

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

 

 

26.5

%

 

(9.1)

%

 

45.8

%

 

(41.0)

%

 

%

 

%

 

%

 

%

Number of stores

 

 

905

 

 

925

 

 

90

 

 

197

 

 

 

 

 

 

995

 

 

1,122

 

 

n/m – Not meaningful

 

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Thirteen Weeks Ended

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

October 30,

 

October 31,

 

October 30,

 

October 31,

 

October 30,

 

October 31,

 

October 30,

 

October 31,

($ thousands)

2021

 

2020

 

2021

 

2020

 

2021

 

 

2020

 

 

2021

 

2020

Gross profit

$

235,487

$

160,019

$

98,898

$

94,312

$

966

 

$

2,641

 

$

335,351

$

256,972

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID-19-related expenses

 

 

 

 

 

 

 

 

 

 

Total charges/other items

 

 

 

 

 

 

 

 

 

 

Adjusted gross profit

$

235,487

$

160,019

$

98,898

$

94,312

$

966

 

$

2,641

 

$

335,351

$

256,972

Operating earnings (loss)

$

87,375

$

27,845

$

11,383

$

7,304

$

(17,440

)

$

(15,078

)

$

81,318

$

20,071

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID-19-related expenses

 

 

 

 

 

 

 

 

 

 

Total charges/other items

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings (loss)

$

87,375

$

27,845

$

11,383

$

7,304

$

(17,440

)

$

(15,078

)

$

81,318

$

20,071

 

SCHEDULE 5

 

 

 

 

 

 

 

 

 

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

 

 

 

 

 

 

 

 

 

SUMMARY FINANCIAL RESULTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

Thirty-Nine Weeks Ended

 

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

 

October 30,

 

October 31,

 

October 30,

 

October 31,

 

October 30,

 

October 31,

 

October 30,

 

October 31,

 

($ thousands)

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

Net sales

 

$

1,346,413

 

$

916,893

 

$

789,832

 

$

668,447

 

$

(37,922)

 

$

(39,229)

 

$

2,098,323

 

$

1,546,111

 

Gross profit

 

 

642,715

 

 

348,267

 

 

287,791

 

 

211,707

 

 

2,025

 

 

1,516

 

 

932,531

 

 

561,490

 

Adjusted gross profit

 

 

642,715

 

 

354,225

 

 

287,791

 

 

240,763

 

 

2,025

 

 

1,516

 

 

932,531

 

 

596,504

 

Gross profit rate

 

 

47.7

%

 

38.0

%

 

36.4

%

 

31.7

%

 

(5.3)

%

 

(3.9)

%

 

44.4

%

 

36.3

%

Adjusted gross profit rate

 

 

47.7

%

 

38.6

%

 

36.4

%

 

36.0

%

 

(5.3)

%

 

(3.9)

%

 

44.4

%

 

38.6

%

Operating earnings (loss)

 

 

220,746

 

 

(38,651)

 

 

25,116

 

 

(352,556)

 

 

(83,883)

 

 

(39,072)

 

 

161,979

 

 

(430,279)

 

Adjusted operating earnings (loss)

 

 

220,746

 

 

(16,100)

 

 

38,598

 

 

(12,386)

 

 

(83,883)

 

 

(38,436)

 

 

175,461

 

 

(66,922)

 

Operating earnings (loss) %

 

 

16.4

%

 

(4.2)

%

 

3.2

%

 

(52.7)

%

 

n/m

 

 

99.6

%

 

7.7

%

 

(27.8)

%

Adjusted operating earnings (loss) %

 

 

16.4

%

 

(1.8)

%

 

4.9

%

 

(1.9)

%

 

n/m

 

 

98.0

%

 

8.4

%

 

(4.3)

%

Same-store sales % (on a 39-week basis)

 

 

11.5

%

 

3.0

%

 

24.3

%

 

(32.3)

%

 

%

 

%

 

%

 

%

Number of stores

 

 

905

 

 

925

 

 

90

 

 

197

 

 

 

 

 

 

995

 

 

1,122

 

 

n/m – Not meaningful

 

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Thirty-Nine Weeks Ended

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

October 30,

 

October 31,

 

October 30,

 

October 31,

 

October 30,

 

October 31,

 

October 30,

 

October 31,

($ thousands)

2021

 

2020

 

 

2021

 

2020

 

 

2021

 

 

2020

 

 

2021

 

2020

 

Gross profit

$

642,715

$

348,267

 

$

287,791

$

211,707

 

$

2,025

 

$

1,516

 

$

932,531

$

561,490

 

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

$

642,715

$

354,225

 

$

287,791

$

240,763

 

$

2,025

 

$

1,516

 

$

932,531

$

596,504

 

Operating earnings (loss)

$

220,746

$

(38,651

)

$

25,116

$

(352,556

)

$

(83,883

)

$

(39,072

)

$

161,979

$

(430,279

)

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)

$

220,746

$

(16,100

)

$

38,598

$

(12,386

)

$

(83,883

)

$

(38,436

)

$

175,461

$

(66,922

)

SCHEDULE 6

 

CALERES, INC.

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Thirty-Nine Weeks Ended

 

 

October 30,

 

October 31,

 

October 30,

 

October 31,

 

 

2021

 

2020

 

2021

 

2020

($ thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

59,685

 

 

$

14,926

 

 

$

104,222

 

 

$

(361,915

)

Net earnings attributable to noncontrolling interests

 

 

(63

)

 

 

(509

)

 

 

(1,057

)

 

 

(223

)

Net earnings (loss) attributable to Caleres, Inc.

 

 

59,622

 

 

 

14,417

 

 

 

103,165

 

 

 

(362,138

)

Net earnings allocated to participating securities

 

 

(2,140

)

 

 

(512

)

 

 

(3,737

)

 

 

 

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

 

$

57,482

 

 

$

13,905

 

 

$

99,428

 

 

$

(362,138

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

36,889

 

 

 

36,554

 

 

 

36,825

 

 

 

37,439

 

Dilutive effect of share-based awards

 

 

457

 

 

 

176

 

 

 

294

 

 

 

 

Diluted common shares attributable to Caleres, Inc.

 

 

37,346

 

 

 

36,730

 

 

 

37,119

 

 

 

37,439

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.56

 

 

$

0.38

 

 

$

2.70

 

 

$

(9.67

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.54

 

 

$

0.38

 

 

$

2.68

 

 

$

(9.67

)

Contacts

Investor Contact:

Logan Bonacorsi
lbonacorsi@caleres.com

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