Caleres Reports Fourth Quarter and Full Year 2017 Results

Increases in sales, margins and earnings for both the quarter and the year

Tuesday, March 13, 2018 3:15 pm CDT

Dateline:

ST. LOUIS

Public Company Information:

NYSE:
CAL
"We capped off an outstanding year by delivering a consolidated fourth quarter sales increase of nearly 10% and earnings improvement on both a reported and adjusted basis. Famous Footwear and Brand Portfolio both contributed to this growth and delivered fourth quarter sales increases of 7.0% and 13.8%, respectively"

ST. LOUIS--(BUSINESS WIRE)--Caleres (NYSE: CAL) (caleres.com), a diverse portfolio of global footwear brands which fit people’s lives, today reported fourth quarter and full year 2017 financial results.

“We capped off an outstanding year by delivering a consolidated fourth quarter sales increase of nearly 10% and earnings improvement on both a reported and adjusted basis. Famous Footwear and Brand Portfolio both contributed to this growth and delivered fourth quarter sales increases of 7.0% and 13.8%, respectively,” said Diane Sullivan, CEO, president and chairman of Caleres. “Our success in 2017 is reflective of the foundational strength of our diversified portfolio of brands and is directly attributable to our ability to move to where the consumer is going. We expect to leverage our success in both of these areas in 2018 and to deliver adjusted earnings per share of between $2.40 and $2.50.”

Fourth Quarter 2017 Results Versus 2016

  • Consolidated sales of $702.5 million were up 9.8%, including Allen Edmonds.
    • Famous Footwear total sales of $393.1 million were up 7.0%, while same-store-sales were up 2.8% on a 13-week basis.
    • Brand Portfolio sales of $309.4 million were up 13.8% including contribution from Allen Edmonds, which was acquired on December 13, 2016.
  • Gross profit was $293.4 million, while gross margin of 41.8% was up 97 basis points.
  • SG&A expense of $262.1 million was up 7.9%, including Allen Edmonds.
  • Operating earnings were $30.3 million and operating margin was 4.3%, while adjusted operating earnings were $31.3 million – up more than 50% – and adjusted operating margin of 4.5% was up 122 basis points.
  • Net earnings were $20.3 million, while diluted earnings per share were $0.47 and included a $0.02 charge for operations restructuring and a $0.01 benefit related to the Tax Cuts and Jobs Act.
  • Adjusted net earnings of $20.6 million were up 44.5%, while adjusted diluted net earnings per share of $0.48 were up 45.5%.

Full Year 2017 Results Versus 2016

  • Consolidated sales of $2,785.6 million were up 8.0%, including Allen Edmonds.
    • Famous Footwear total sales of $1,637.6 million were up 3.0%, while same-store-sales were up 1.4% on a 52-week basis.
    • Brand Portfolio sales of $1,148.0 million were up 16.0% including contribution from Allen Edmonds, which was acquired on December 13, 2016.
  • Gross profit of $1,168.6 million – including $4.9 million of expected fair value inventory adjustment amortization related to the Allen Edmonds acquisition – was up 10.0%, while gross margin of 42.0% was up 78 basis points.
  • SG&A expense of $1,023.7 million was up 10.4%, including Allen Edmonds.
  • Operating earnings were $140.0 million and operating margin was 5.0%, while adjusted operating earnings were $149.9 million – up 9.3% – and adjusted operating margin was 5.4%.
  • Net earnings were $87.2 million, while diluted earnings per share were $2.02 and included $0.13 of charges related to the acquisition, integration and reorganization of men’s brands, a $0.02 charge for operations restructuring, and a $0.01 benefit related to the Tax Cuts and Jobs Act.
  • Adjusted net earnings of $93.1 million were up 7.5%, while adjusted diluted earnings per share of $2.16 were up 8.0%.

Balance Sheet and Cash Flow

  • Cash and equivalents were $64.0 million and up $8.7 million year-over-year.
  • There were no outstanding borrowings under the revolving credit facility, as the company paid down the entirety of the $110 million associated with the December 2016 acquisition of Allen Edmonds.
  • Inventory of $569.4 million was down 2.8% year-over-year, including Allen Edmonds.
  • Capital expenditures of $51.2 million were down 14.1% year-over-year.
   

2017 Benefit from 53 rd Week

     
Consolidated net sales $23.4 million
Famous Footwear sales $19.7 million
Brand Portfolio sales $3.7 million
 

 

2018 Outlook

     
Consolidated net sales ~$2.8B
Famous Footwear same-store-sales Up low-single digits
Brand Portfolio sales Up low-single digits
Gross margin Up ~5 to 10 bps
SG&A as a percent of revenue Down ~5 to 10 bps
Interest expense ~$16M
Effective tax rate 25% to 26%
Adjusted earnings per diluted share     $2.40 to $2.50
 

Investor Conference Call

Caleres will host an investor conference call at 4:30 p.m. ET today, Tuesday, March 13. The webcast and slides will be available at investor.caleres.com/news/events. A live conference call will be available at (877) 217-9089 for analysts in North America or (706) 679-1723 for international analysts by using the conference ID 2086199. 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 2086199 through Tuesday, March 27.

Definitions

All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings attributable to Caleres, Inc. and diluted earnings per common share attributable to Caleres, Inc. shareholders, are presented as net earnings and earnings per diluted share, respectively.

Non-GAAP Financial Measures

In this press release, the company’s financial results are provided both in accordance with generally accepted accounting principles (GAAP) and using certain non-GAAP financial measures. In particular, the company provides historic and estimated future gross profit, operating earnings, net earnings and earnings per diluted share adjusted to exclude certain gains, charges and recoveries, which are non-GAAP financial measures. These results are included as a complement to results provided in accordance with GAAP because management believes these non-GAAP financial measures help identify underlying trends in the company’s business and provide useful information to both management and investors by excluding certain items that may not be indicative of the company’s core operating results. These measures should not be considered a substitute for or superior to GAAP results.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains certain forward-looking statements and expectations regarding the company’s future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) changing consumer demands, which may be influenced by consumers' disposable income, which in turn can be influenced by general economic conditions and other factors; (ii) rapidly changing fashion trends and consumer preferences and purchasing patterns; (iii) intense competition within the footwear industry; (iv) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the Company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (v) the ability to accurately forecast sales and manage inventory levels; (vi) cybersecurity threats or other major disruption to the Company’s information technology systems; (vii) customer concentration and increased consolidation in the retail industry; (viii) transitional challenges with acquisitions; (ix) a disruption in the Company’s distribution centers; (x) changes to tax laws, policies and treaties; (xi) the ability to recruit and retain senior management and other key associates; (xii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; (xiii) foreign currency fluctuations; (xiv) the ability to secure/exit leases on favorable terms; (xv) the ability to maintain relationships with current suppliers; and (xvi) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights. 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 January 28, 2017, 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 over 1,200 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 and Famous.com serve as our Family brands. Our Contemporary Fashion brands include Sam Edelman, Allen Edmonds, Franco Sarto, Vince, Via Spiga, George Brown Bilt, Diane von Furstenberg, Fergie Footwear and Carlos Santana. Naturalizer, Dr. Scholl's Shoes, LifeStride, Bzees and Ryka represent our Healthy Living brands. Combined, these brands help make Caleres a company with both a legacy and a mission. Our legacy is our more than 130-years of craftsmanship, our passion for fit and our business savvy, while our mission is to continue to inspire people to feel good…feet first. Visit caleres.com to learn more about us.

   
SCHEDULE 1
     
CALERES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
 
(Unaudited)

Fourteen

Weeks Ended

 

Thirteen

Weeks Ended

Fifty-three

Weeks Ended

 

Fifty-two

Weeks Ended

(Thousands, except per share data) February 3, 2018 January 28, 2017 February 3, 2018 January 28, 2017
Net sales $ 702,465 $ 639,488 $ 2,785,584 $ 2,579,388
Cost of goods sold 409,070   378,616   1,616,935   1,517,397  
Gross profit 293,395     260,872   1,168,649   1,061,991  
Selling and administrative expenses 262,113 242,936 1,023,703 927,602
Restructuring and other special charges, net 942   23,404   4,915   23,404  
Operating earnings (loss) 30,340     (5,468 ) 140,031     110,985  
Interest expense (4,267 ) (4,547 ) (18,089 ) (15,111 )
Interest income 172   473   764   1,380  
Earnings (loss) before income taxes 26,245     (9,542 ) 122,706   97,254  
Income tax (provision) benefit (5,944 ) 3,346   (35,475 ) (31,168 )
Net earnings (loss) 20,301   (6,196 ) 87,231   66,086  

Net (loss) earnings attributable to noncontrolling interests

(15 ) 426   31   428  
Net earnings (loss) attributable to Caleres, Inc. $ 20,316   $ (6,622 ) $ 87,200   $ 65,658  
 
Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.47   $ (0.16 ) $ 2.03   $ 1.52  
 
Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.47   $ (0.16 ) $ 2.02   $ 1.52  
 
SCHEDULE 2
 
CALERES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
   
(Unaudited)
February 3, 2018 January 28, 2017
(Thousands)
ASSETS
Cash and cash equivalents $ 64,047 $ 55,332
Receivables, net 152,613 153,121
Inventories, net 569,379 585,764
Prepaid expenses and other current assets 60,750   49,528
Total current assets 846,789   843,745
 
Property and equipment, net 212,799 219,196
Goodwill and intangible assets, net 339,168 343,758
Other assets 90,659   68,574
Total assets $ 1,489,415   $ 1,475,273
 
LIABILITIES AND EQUITY
Borrowings under revolving credit agreement $ $ 110,000
Trade accounts payable 272,962 266,370
Other accrued expenses 157,197   151,225
Total current liabilities 430,159   527,595
 
Long-term debt 197,472 197,003
Deferred rent 53,071 51,124
Other liabilities 89,751   85,065
Total other liabilities 340,294   333,192
 
Total Caleres, Inc. shareholders’ equity 717,489 613,117
Noncontrolling interests 1,473   1,369
Total equity 718,962   614,486
Total liabilities and equity $ 1,489,415   $ 1,475,273
 
SCHEDULE 3
     
CALERES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Fifty-three

Weeks Ended

  Fifty-two

Weeks Ended

(Thousands) February 3, 2018 January 28, 2017
OPERATING ACTIVITIES:    
Net cash provided by operating activities $ 191,375   $ 183,622  
 
INVESTING ACTIVITIES:
Purchases of property and equipment (44,720 ) (50,523 )
Capitalized software (6,458 ) (9,039 )
Acquisition cost, net of cash received   (259,932 )
Net cash used for investing activities (51,178 ) (319,494 )
 
FINANCING ACTIVITIES:
Borrowings under revolving credit agreement 454,000 623,000
Repayments under revolving credit agreement (564,000 ) (513,000 )
Dividends paid (12,027 ) (12,104 )
Acquisition of treasury stock (5,993 ) (23,139 )
Issuance of common stock under share-based plans, net (3,816 ) (4,188 )
Excess tax benefit related to share-based plans   2,251  
Net cash (used for) provided by financing activities (131,836 ) 72,820  
Effect of exchange rate changes on cash and cash equivalents 354   233  
Increase (decrease) in cash and cash equivalents 8,715 (62,819 )
Cash and cash equivalents at beginning of period 55,332   118,151  
Cash and cash equivalents at end of period $ 64,047   $ 55,332  
   
SCHEDULE 4
                   
CALERES, INC.
RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS)

 

 
(Unaudited)
Fourteen Weeks Ended   Thirteen Weeks Ended
February 3, 2018 January 28, 2017
(Thousands, except per share data)

Pre-Tax

Impact of

Charges/Other

Items

   

Net Earnings

(Loss)

Attributable

to

Caleres, Inc.

   

Diluted

Earnings (Loss)

Per Share

Pre-Tax

Impact of

Charges/Other

Items

   

Net (Loss)

Earnings

Attributable

to

Caleres, Inc.

   

Diluted

(Loss)

Earnings

Per Share

 
GAAP earnings (loss) $ 20,316 $ 0.47 $ (6,622 ) $ (0.16 )
 

Charges/other items:

Tax Cuts and Jobs Act $ (294 ) (0.01 ) $
Retail operations restructuring 942 596 0.02
Acquisition, integration and reorganization of men's brands 13,975 12,685 0.29
Brand Portfolio - business exits and restructuring 4,200 3,315 0.08
Impairment of note and account receivable               8,000       4,888       0.12  
Total charges/other items $ 942       $ 302       $ 0.01   $ 26,175       $ 20,888       $ 0.49  
Adjusted earnings $ 20,618       $ 0.48   $ 14,266       $ 0.33  
 
(Unaudited)
Fifty-three Weeks Ended   Fifty-two Weeks Ended
February 3, 2018 January 28, 2017
(Thousands, except per share data)

Pre-Tax

Impact of

Charges/Other

Items

   

Net Earnings

(Loss)

Attributable

to

Caleres, Inc.

   

Diluted

Earnings

(Loss)

Per Share

Pre-Tax

Impact of

Charges/Other

Items

   

Net Earnings

Attributable

to

Caleres, Inc.

   

Diluted

Earnings

Per Share

 
GAAP earnings $ 87,200 $ 2.02 $ 65,658 $ 1.52
 

Charges/other items:

Tax Cuts and Jobs Act $

(294 ) (0.01 ) $
Retail operations restructuring 942 596 0.02
Acquisition, integration and reorganization of men's brands 8,912 5,569 0.13 13,975 12,685 0.29
Brand Portfolio - business exits and restructuring 4,200 3,315 0.08
Impairment of note and account receivable               8,000       4,888       0.11  
Total charges/other items $ 9,854       $ 5,871       $ 0.14   $ 26,175       $ 20,888       $ 0.48  
Adjusted earnings $ 93,071       $ 2.16   $ 86,546       $ 2.00  
SCHEDULE 5
                               
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
                   
SUMMARY FINANCIAL RESULTS                              
 
(Unaudited)
Famous Footwear    

Brand Portfolio

    Other     Consolidated

14 Weeks

Ended

   

13 Weeks

Ended

   

14 Weeks

Ended

   

13 Weeks

Ended

   

14 Weeks

Ended

   

13 Weeks

Ended

   

14 Weeks

Ended

   

13 Weeks

Ended

(Thousands)

February 3,

2018

   

January 28,

2017

   

February 3,

2018

   

January 28,

2017

   

February 3,

2018

   

January 28,

2017

   

February 3,

2018

   

January 28,

2017

Net sales $ 393,085 $ 367,530 $ 309,380 $ 271,958 $ $ $ 702,465 $ 639,488
Gross profit $ 175,362 $ 161,830 $ 118,033 $ 99,042 $ $ $ 293,395 $ 260,872
Adjusted gross profit $ 175,362 $ 161,830 $ 118,033 $ 101,813 $ $ $ 293,395 $ 263,643
Gross profit rate 44.6 % 44.0 % 38.2 % 36.4 % % % 41.8 % 40.8 %
Adjusted gross profit rate 44.6 % 44.0 % 38.2 % 37.4 % % % 41.8 % 41.2 %
Operating earnings (loss) $ 13,093 $ 2,668 $ 26,700 $ 18,709 $ (9,453 ) $ (26,845 ) $ 30,340 $ (5,468 )
Adjusted operating earnings (loss) $ 13,657 $ 2,668 $ 26,855 $ 25,370 $ (9,230 ) $ (7,331 ) $ 31,282 $ 20,707
Operating earnings % 3.3 % 0.7 % 8.6 % 6.9 % % % 4.3 % (0.9 )%
Adjusted operating earnings % 3.5 % 0.7 % 8.7 % 9.3 % % % 4.5 % 3.2 %
Same-store sales % (on a 13-week basis) (1) 2.8 % 0.3 % 5.9 % 4.4 % % % % %
Number of stores     1,026       1,055       236       234                   1,262       1,289  
                   
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
(Unaudited)
Famous Footwear     Brand Portfolio     Other     Consolidated

14 Weeks

Ended

   

13 Weeks

Ended

   

14 Weeks

Ended

   

13 Weeks

Ended

   

14 Weeks

Ended

   

13 Weeks

Ended

   

14 Weeks

Ended

   

13 Weeks

Ended

(Thousands)

February 3,

2018

   

January 28,

2017

   

February 3,

2018

   

January 28,

2017

   

February 3,

2018

   

January 28,

2017

   

February 3,

2018

   

January 28,

2017

Gross profit $ 175,362 $ 161,830 $ 118,033 $ 99,042 $ $ $ 293,395 $ 260,872

Charges/Other Items:

Acquisition, integration and reorganization of men's brands 1,201 1,201
Brand Portfolio - business exits and restructuring                   1,570                         1,570  
Total charges/other items                   2,771                         2,771  
Adjusted gross profit $ 175,362       $ 161,830       $ 118,033       $ 101,813       $       $       $ 293,395       $ 263,643  
Operating earnings (loss) $ 13,093 $ 2,668 $ 26,700 $ 18,709 $ (9,453 ) $ (26,845 ) $ 30,340 $ (5,468 )

Charges/Other Items:

Retail operations restructuring 564 155 223 942
Acquisition, integration and reorganization of men's brands 1,743 12,232 13,975
Brand Portfolio - business exits and restructuring 4,200 4,200
Impairment of note and account receivable                   718             7,282             8,000  
Total charges/other items 564             155       6,661       223       19,514       942       26,175  

Adjusted operating earnings (loss)

    $ 13,657       $ 2,668       $ 26,855       $ 25,370       $ (9,230 )     $ (7,331 )     $ 31,282       $ 20,707  
 

(1) Excludes sales from Allen Edmonds

 
SCHEDULE 5
                               
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
                   
SUMMARY FINANCIAL RESULTS                              
 
(Unaudited)
Famous Footwear     Brand Portfolio     Other     Consolidated

53 Weeks

Ended

   

52 Weeks

Ended

   

53 Weeks

Ended

   

52 Weeks

Ended

   

53 Weeks

Ended

   

52 Weeks

Ended

   

53 Weeks

Ended

   

52 Weeks

Ended

(Thousands)

February 3,

2018

   

January 28,

2017

   

February 3,

2018

   

January 28,

2017

   

February 3,

2018

   

January 28,

2017

   

February 3,

2018

   

January 28,

2017

Net sales $ 1,637,627 $ 1,590,065 $ 1,147,957 $ 989,323 $ $ $ 2,785,584 $ 2,579,388
Gross profit $ 724,434 $ 702,604 $ 444,215 $ 359,387 $ $ $ 1,168,649 $ 1,061,991
Adjusted gross profit $ 724,434 $ 702,604 $ 449,154 $ 362,158 $ $ $ 1,173,588 $ 1,064,762
Gross profit rate 44.2 % 44.2 % 38.7 % 36.3 % % % 42.0 % 41.2 %
Adjusted gross profit rate 44.2 % 44.2 % 39.1 % 36.6 % % % 42.1 % 41.3 %
Operating earnings (loss) $ 92,230 $ 83,735 $ 80,211 $ 76,248 $ (32,410 ) $ (48,998 ) $ 140,031 $ 110,985
Adjusted operating earnings (loss) $ 92,794 $ 83,735 $ 86,787 $ 82,909 $ (29,696 ) $ (29,484 ) $ 149,885 $ 137,160
Operating earnings % 5.6 % 5.3 % 7.0 % 7.7 % % % 5.0 % 4.3 %
Adjusted operating earnings % 5.7 % 5.3 % 7.6 % 8.4 % % % 5.4 % 5.3 %
Same-store sales % (on a 52-week basis) (1) 1.4 % 0.6 % 6.4 % (2.9 )% % % % %
Number of stores     1,026       1,055       236       234                   1,262       1,289  
                   
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
(Unaudited)

53 Weeks

Ended

   

52 Weeks

Ended

   

53 Weeks

Ended

   

52 Weeks

Ended

   

53 Weeks

Ended

   

52 Weeks

Ended

   

53 Weeks

Ended

   

52 Weeks

Ended

Famous Footwear     Brand Portfolio     Other     Consolidated
(Thousands)

February 3,

2018

   

January 28,

2017

   

February 3,

2018

   

January 28,

2017

   

February 3,

2018

   

January 28,

2017

   

February 3,

2018

   

January 28,

2017

Gross profit $ 724,434 $ 702,604 $ 444,215 $ 359,387 $ $ $ 1,168,649 $ 1,061,991

Charges/Other Items:

Acquisition, integration and reorganization of men's brands 4,939 1,201 4,939 1,201
Brand Portfolio - business exits and restructuring                   1,570                         1,570  
Total charges/other items             4,939       2,771                   4,939       2,771  
Adjusted gross profit $ 724,434       $ 702,604       $ 449,154       $ 362,158       $       $       $ 1,173,588       $ 1,064,762  
Operating earnings (loss) $ 92,230 $ 83,735 $ 80,211 $ 76,248 $ (32,410 ) $ (48,998 ) $ 140,031 $ 110,985

Charges/Other Items:

Retail operations restructuring 564 155 223 942
Acquisition, integration and reorganization of men's brands 6,421 1,743 2,491 12,232 8,912 13,975
Brand Portfolio - business exits and restructuring 4,200 4,200
Impairment of note and account receivable                   718             7,282             8,000  
Total charges/other items 564             6,576       6,661       2,714       19,514       9,854       26,175  
Adjusted operating earnings (loss)     $ 92,794       $ 83,735       $ 86,787       $ 82,909       $ (29,696 )     $ (29,484 )     $ 149,885       $ 137,160  
 

(1) Excludes sales from Allen Edmonds

 
       
SCHEDULE 6
       
CALERES, INC.
BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION            
 
(Unaudited)

Fourteen

Weeks Ended

   

Thirteen

Weeks Ended

Fifty-three

Weeks Ended

   

Fifty-two

Weeks Ended

(Thousands, except per share data) February 3, 2018     January 28, 2017 February 3, 2018     January 28, 2017
 
Net earnings attributable to Caleres, Inc.:
Net earnings (loss) $ 20,301 $ (6,196 ) $ 87,231 $ 66,086
Net loss (earnings) attributable to noncontrolling interests 15       (426 )     (31 )     (428 )
Net earnings attributable to Caleres, Inc. 20,316 (6,622 ) 87,200 65,658
Net earnings allocated to participating securities (545 )           (2,384 )     (1,750 )
Net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities $ 19,771       $ (6,622 )     $ 84,816       $ 63,908  
 
Basic and diluted common shares attributable to Caleres, Inc.:
Basic common shares 41,799 41,827 41,801 42,026
Dilutive effect of share-based awards 198       177       179       155  
Diluted common shares attributable to Caleres, Inc. 41,997       42,004       41,980       42,181  
 
Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.47       $ (0.16 )     $ 2.03       $ 1.52  
 
Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.47       $ (0.16 )     $ 2.02       $ 1.52  
   
SCHEDULE 7
           
CALERES, INC.
BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION  
 
(Unaudited)

Fourteen

Weeks Ended

Thirteen

Weeks Ended

Fifty-three

Weeks Ended

Fifty-two

Weeks Ended

(Thousands, except per share data) February 3, 2018 January 28, 2017 February 3, 2018 January 28, 2017
 
Adjusted net earnings attributable to Caleres, Inc.:
Adjusted net earnings $ 20,603 $ 14,692 $ 93,102 $ 86,974
Net loss (earnings) attributable to noncontrolling interests 15       (426 ) (31 )     (428 )
Adjusted net earnings attributable to Caleres, Inc. 20,618 14,266 93,071 86,546
Net earnings allocated to participating securities (553 )     (376 ) (2,546 )     (2,308 )
Adjusted net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 20,065       $ 13,890   $ 90,525       $ 84,238  
 
Basic and diluted common shares attributable to Caleres, Inc.:
Basic common shares 41,799 41,827 41,801 42,026
Dilutive effect of share-based awards 198       177   179       155  
Diluted common shares attributable to Caleres, Inc. 41,997       42,004   41,980       42,181  
 
Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.48       $ 0.33   $ 2.17       $ 2.00  
 
Diluted adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.48       $ 0.33   $ 2.16       $ 2.00  
     
SCHEDULE 8
     
CALERES, INC.
RECONCILIATION OF INCOME TAX PROVISION AND EFFECTIVE TAX RATE (GAAP BASIS) TO ADJUSTED INCOME TAX PROVISION AND ADJUSTED EFFECTIVE TAX RATE (NON-GAAP BASIS)
 
(Unaudited)
Fifty-three Weeks Ended
February 3, 2018

Earnings

Before

Income Taxes

Income Tax

Provision

Effective Tax

Rate

(Thousands)
 
GAAP basis $ 122,706 $ (35,475 ) 28.9 %
 

Charges/other items:

Tax Cuts and Jobs Act (294 )
Retail operations restructuring 942 (346 )
Acquisition, integration and reorganization of men's brands 8,912   (3,343 )
Total charges/other items $ 9,854   $ (3,983 )
Adjusted basis $ 132,560   $ (39,458 ) 29.8 %

Contact:

Caleres
Peggy Reilly Tharp, 314-854-4134
ptharp@caleres.com