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Caleres Reports First Quarter 2020 Results

06/04/2020

ST. LOUIS--(BUSINESS WIRE)-- Caleres (NYSE: CAL) (caleres.com), today announced financial results for the first quarter ended May 2, 2020. Following a strong start to the year, first quarter 2020 results were significantly impacted by the COVID-19 health crisis and subsequent closures of the company’s retail stores along with the closure of its wholesale partners’ store operations. Despite this, actions taken by Caleres to preserve cash, protect liquidity and capitalize on its enhanced capabilities enabled the company to finish the first quarter with cash levels consistent with when the stores closed in mid-March and the financial flexibility necessary to operate in this dynamic environment.

First Quarter 2020 Highlights

Operating Results: (13-weeks ended May 2, 2020 compared to 13-weeks ended May 4, 2019)

  • Net Sales were $397.2 million compared to $677.8 million in the first quarter of fiscal 2019;
    • Famous Footwear total sales of $191.3 million, down 45.7 percent with same-store-sales up 12.8 percent through mid-March, and up 12.6 percent for the entire quarter; and
    • Brand Portfolio sales of $217.2 million, down 36.3 percent.
  • Gross profit was $121.9 million, while gross margin was 30.7 percent and adjusted gross margin was 39.5 percent, excluding additional markdowns associated with COVID-19;
  • SG&A expense of $225.2 million, down $36.9 million compared to first quarter 2019;
  • Net loss of $345.8 million or a loss of $8.95 per diluted share compared to net income of $9.1 million, or $0.22 per diluted share in the first quarter of fiscal 2019. The loss of $8.95 per share includes $7.56 of adjustments related to COVID-19, consisting primarily of non-cash impairments; and
  • Adjusted net loss was $50.4 million; or an adjusted loss of $1.30 per diluted share compared to adjusted net income of $15.0 million, or adjusted earnings of $0.36 per diluted share in the first quarter of fiscal 2019.

Liquidity and Capital Allocation:

  • Ended the quarter with $187.7 million of cash and $438.5 million of revolving credit facility borrowings;
  • Increased the available borrowing capacity of the revolving credit facility from $500 million to $600 million with no significant debt maturities until 2023;
  • Reduced inventory by 9.7 percent at quarter end from the same period last year, reflecting actions to cancel seasonal orders and delay on-order receipts; and
  • Returned $15.7 million to shareholders during the quarter through its long-standing quarterly dividend and share repurchases.

“This past quarter represented a period of tremendous uncertainty and challenge for the global community, our consumers and our company,” said Diane Sullivan, chief executive officer, president and chairman. “After a strong start – with year-over-year sales at Famous Footwear up nearly 13 percent through mid-March – Caleres pivoted sharply to address the rapidly escalating global health crisis. We temporarily closed our entire network of Famous Footwear and branded retail stores; instituted work from home capabilities for the vast majority of our Associates; shifted our focus to ecommerce; and repurposed our Allen Edmonds factory to assist in the production of personal protective equipment to support frontline healthcare workers.”

“The Caleres team has risen to the occasion during the current crisis – adapting to the quickly moving market environment, serving our consumers consistently, providing security of supply to our retail partners and showing compassion to our communities. While we are taking a realistic view of the broader economic recovery, we are encouraged by the reception we have seen in the regions where our stores are now open. Looking ahead, as consumers move to their next version of normal, we expect they will gravitate to trusted and well-known brands that stand for value and continuity – and we have a powerful suite of them. At the same time, we plan to manage our brand portfolio as intensely as ever and will be adjusting our offerings to ensure we are anticipating and addressing evolving consumer preferences and needs,” said Sullivan.

COVID-19 Mitigation Efforts

Caleres took swift and decisive actions to manage through the economic shutdown. Early in the quarter, the company established a leadership response team tasked with addressing the challenges of operating in an environment of significantly reduced economic activity. By March 19, the company had temporarily shuttered its entire brick and mortar fleet. Subsequently, the company:

  • Aligned its workforce and related expenses to meet the needs of a lower demand environment;
  • Managed inventory levels – continuously balancing supply and demand;
  • Leveraged strong partnerships to reduce product receipts and extend payment terms;
  • Began negotiations to modify leases, including the deferral and abatement of certain lease payments;
  • Eliminated or deferred all non-essential capital projects;
  • Expanded ecommerce sales by capitalizing on the significant enhancements in its omni channel capabilities;
  • Utilized expansive network of temporarily closed brick and mortar stores as distribution centers to support increased ecommerce business;
  • Adapted buy online, pick-up-in-store capability to include a contactless curbside pickup option; and
  • Implemented health and safety measures to ensure a comfortable work environment and shopping experience for returning Associates and customers.

Operations Update

On May 11, Caleres initiated a careful and systematic reopening of its Famous Footwear and branded retail stores. To date, the company has successfully resumed in-store operations at approximately 625 locations, including 555 Famous Footwear stores, or approximately 60 percent of the store fleet. Caleres expects nearly 90 percent of its Famous Footwear stores to be open by late-June with the remaining locations – primarily in regions heavily impacted by the virus and still under state and local closure restrictions – reopening when it is safe to do so.

In recent weeks, the company has seen continued strength in its ecommerce-related businesses and sales at the stores that have reopened are running ahead of expectations with the Famous Footwear stores running ahead of last year. Importantly, Caleres was successful in maintaining its skilled Associate base through the course of the shutdown, and has achieved a nearly 95 percent retention rate among store managers at stores reopened so far. Caleres views this continuity as instrumental in maintaining the high level of service and quality of experience its customers have come to expect.

“We shifted quickly taking a series of deliberate steps to reduce costs and preserve cash, while working to maximize ecommerce sales during the period of stores closures,” said Ken Hannah, senior vice president and chief financial officer. “We reduced capital spending – cutting 40 percent from the planned 2020 budget – exercised the accordion feature of our revolving credit facility in order to boost liquidity; implemented a disciplined cash management process; tightly managed our inventory position to ensure our inventory balance was in line with demand; and leveraged our prior investments to expand ecommerce-related sales at Famous Footwear and across our branded portfolio sites.”

2020 Guidance

Given the evolving nature of today’s retail marketplace, we continue to plan for multiple scenarios while remaining intensely focused on the disciplined management of inventory and expense. However, due to the ongoing business disruption and substantial uncertainty surrounding the impact of COVID-19, the company is not providing formal financial guidance for fiscal year 2020.

Investor Conference Call

Caleres will host an investor conference call at 4:30 p.m. ET today, Thursday, June 4. 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 7665925. 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 7665925 through Wednesday, June 17.

Definitions

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

Non-GAAP Financial Measures

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

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

This press release contains certain forward-looking statements and expectations regarding the company’s future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) 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

(Thousands, except per share data)

 

May 2, 2020

 

May 4, 2019

Net sales

 

$

397,184

 

 

$

677,754

 

Cost of goods sold

 

 

275,286

 

 

 

397,918

 

Gross profit

 

 

121,898

 

 

 

279,836

 

Selling and administrative expenses

 

 

225,194

 

 

 

262,111

 

Impairment of goodwill and intangible assets

 

 

262,719

 

 

 

 

Restructuring and other special charges, net

 

 

60,196

 

 

 

856

 

Operating (loss) earnings

 

 

(426,211

)

 

 

16,869

 

Interest expense, net

 

 

(9,478

)

 

 

(7,340

)

Other income, net

 

 

3,585

 

 

 

2,619

 

(Loss) earnings before income taxes

 

 

(432,104

)

 

 

12,148

 

Income tax benefit (provision)

 

 

85,932

 

 

 

(3,063

)

Net (loss) earnings

 

 

(346,172

)

 

 

9,085

 

Net (loss) earnings attributable to noncontrolling interests

 

 

(334

)

 

 

2

 

Net (loss) earnings attributable to Caleres, Inc.

 

$

(345,838

)

 

$

9,083

 

 

 

 

 

 

 

 

 

 

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

 

$

(8.95

)

 

$

0.22

 

 

 

 

 

 

 

 

 

 

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

 

$

(8.95

)

 

$

0.22

 

SCHEDULE 2

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

(Unaudited)

 

 

 

 

 

 

May 2, 2020

 

May 4, 2019

 

February 1, 2020

(Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

187,717

 

 

$

35,778

 

 

$

45,218

 

Receivables, net

 

 

145,333

 

 

 

148,487

 

 

 

162,181

 

Inventories, net

 

 

585,307

 

 

 

648,145

 

 

 

618,406

 

Prepaid expenses and other current assets

 

 

91,433

 

 

 

54,902

 

 

 

56,494

 

Total current assets

 

 

1,009,790

 

 

 

887,312

 

 

 

882,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease right-of-use assets

 

 

648,534

 

 

 

735,282

 

 

 

695,594

 

Property and equipment, net

 

 

200,800

 

 

 

236,257

 

 

 

224,846

 

Goodwill and intangible assets, net

 

 

273,648

 

 

 

548,508

 

 

 

539,579

 

Other assets

 

 

90,913

 

 

 

85,711

 

 

 

89,389

 

Total assets

 

$

2,223,685

 

 

$

2,493,070

 

 

$

2,431,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

$

438,500

 

 

$

318,000

 

 

$

275,000

 

Trade accounts payable

 

 

297,557

 

 

 

289,071

 

 

 

267,018

 

Lease obligations

 

 

160,138

 

 

 

136,005

 

 

 

127,869

 

Other accrued expenses

 

 

181,344

 

 

 

168,224

 

 

 

181,063

 

Total current liabilities

 

 

1,077,539

 

 

 

911,300

 

 

 

850,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent lease obligations

 

 

601,133

 

 

 

662,750

 

 

 

629,032

 

Long-term debt

 

 

198,506

 

 

 

198,046

 

 

 

198,391

 

Other liabilities

 

 

61,384

 

 

 

92,342

 

 

 

104,204

 

Total other liabilities

 

 

861,023

 

 

 

953,138

 

 

 

931,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Caleres, Inc. shareholders’ equity

 

 

282,296

 

 

 

627,236

 

 

 

645,950

 

Noncontrolling interests

 

 

2,827

 

 

 

1,396

 

 

 

3,180

 

Total equity

 

 

285,123

 

 

 

628,632

 

 

 

649,130

 

Total liabilities and equity

 

$

2,223,685

 

 

$

2,493,070

 

 

$

2,431,707

 

SCHEDULE 3

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

(Thousands)

 

May 2, 2020

 

May 4, 2019

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

728

 

 

$

49,910

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(3,523

)

 

 

(18,443

)

Capitalized software

 

 

(977

)

 

 

(2,917

)

Net cash used for investing activities

 

 

(4,500

)

 

 

(21,360

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

 

168,500

 

 

 

84,000

 

Repayments under revolving credit agreement

 

 

(5,000

)

 

 

(101,000

)

Dividends paid

 

 

(2,810

)

 

 

(2,947

)

Acquisition of treasury stock

 

 

(12,932

)

 

 

 

Issuance of common stock under share-based plans, net

 

 

(906

)

 

 

(2,559

)

Other

 

 

(323

)

 

 

(394

)

Net cash provided by (used for) financing activities

 

 

146,529

 

 

 

(22,900

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(258

)

 

 

(72

)

Increase in cash and cash equivalents

 

 

142,499

 

 

 

5,578

 

Cash and cash equivalents at beginning of period

 

 

45,218

 

 

 

30,200

 

Cash and cash equivalents at end of period

 

$

187,717

 

 

$

35,778

 

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

 

 

May 2, 2020

 

May 4, 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

 

 

 

 

 

$

(345,838

)

 

$

(8.95

)

 

 

 

 

 

$

9,083

 

 

$

0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and intangible asset impairment charges

 

$

262,719

 

 

 

218,506

 

 

 

5.66

 

 

$

 

 

 

 

 

 

 

COVID-19-related expenses (1)

 

 

93,612

 

 

 

73,338

 

 

 

1.90

 

 

 

 

 

 

 

 

 

 

Fair value adjustment to Blowfish purchase obligation

 

 

3,233

 

 

 

2,401

 

 

 

0.06

 

 

 

 

 

 

 

 

 

 

Brand Portfolio - business exits

 

 

1,598

 

 

 

1,187

 

 

 

0.03

 

 

 

1,905

 

 

 

1,415

 

 

 

0.03

 

Vionic acquisition and integration-related costs

 

 

 

 

 

 

 

 

 

 

 

6,118

 

 

 

4,544

 

 

 

0.11

 

Total charges/other items

 

$

361,162

 

 

$

295,432

 

 

$

7.65

 

 

$

8,023

 

 

$

5,959

 

 

$

0.14

 

Adjusted (loss) earnings

 

 

 

 

 

$

(50,406

)

 

$

(1.30

)

 

 

 

 

 

$

15,042

 

 

$

0.36

 

 

(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 and provision for expected credit losses.

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)

 

May 2, 2020

 

May 4, 2019

 

May 2, 2020

 

May 4, 2019

 

May 2, 2020

 

May 4, 2019

 

May 2, 2020

 

May 4, 2019

Net sales

 

$

191,252

 

 

$

352,165

 

 

$

217,238

 

 

$

341,050

 

 

$

(11,306

)

 

$

(15,461

)

 

$

397,184

 

 

$

677,754

 

Gross profit

 

 

69,093

 

 

 

152,693

 

 

 

53,393

 

 

 

126,860

 

 

 

(588

)

 

 

283

 

 

 

121,898

 

 

 

279,836

 

Adjusted gross profit

 

 

75,051

 

 

 

152,693

 

 

 

82,449

 

 

 

134,027

 

 

 

(588

)

 

 

283

 

 

 

156,912

 

 

 

287,003

 

Gross profit rate

 

 

36.1

%

 

 

43.4

%

 

 

24.6

%

 

 

37.2

%

 

 

5.2

%

 

 

(1.8

)%

 

 

30.7

%

 

 

41.3

%

Adjusted gross profit rate

 

 

39.2

%

 

 

43.4

%

 

 

38.0

%

 

 

39.3

%

 

 

5.2

%

 

 

(1.8

)%

 

 

39.5

%

 

 

42.3

%

Operating (loss) earnings

 

 

(67,540

)

 

 

10,813

 

 

 

(345,748

)

 

 

12,929

 

 

 

(12,923

)

 

 

(6,873

)

 

 

(426,211

)

 

 

16,869

 

Adjusted operating (loss) earnings

 

 

(45,578

)

 

 

10,813

 

 

 

(10,138

)

 

 

20,705

 

 

 

(12,566

)

 

 

(6,626

)

 

 

(68,282

)

 

 

24,892

 

Operating (loss) earnings %

 

 

(35.3

)%

 

 

3.1

%

 

 

(159.2

)%

 

 

3.8

%

 

 

114.3

%

 

 

44.5

%

 

 

(107.3

)%

 

 

2.5

%

Adjusted (loss) operating earnings %

 

 

(23.8

)%

 

 

3.1

%

 

 

(4.7

)%

 

 

6.1

%

 

 

111.1

%

 

 

42.9

%

 

 

(17.2

)%

 

 

3.7

%

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

 

 

12.6

%

 

 

(1.0

)%

 

 

(24.8

)%

 

 

(8.6

)%

 

 

%

 

 

%

 

 

%

 

 

%

Number of stores

 

 

934

 

 

 

985

 

 

 

203

 

 

 

230

 

 

 

 

 

 

 

 

 

1,137

 

 

 

1,215

 

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

(Thousands)

 

May 2, 2020

 

May 4, 2019

 

May 2, 2020

 

May 4, 2019

 

May 2, 2020

 

May 4, 2019

 

May 2, 2020

 

May 4, 2019

Gross profit

 

$

69,093

 

 

$

152,693

 

 

$

53,393

 

 

$

126,860

 

 

$

(588

)

 

$

283

 

 

$

121,898

 

 

$

279,836

 

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

 

$

75,051

 

 

$

152,693

 

 

$

82,449

 

 

$

134,027

 

 

$

(588

)

 

$

283

 

 

$

156,912

 

 

$

287,003

 

Operating (loss) earnings

 

$

(67,540

)

 

$

10,813

 

 

$

(345,748

)

 

$

12,929

 

 

$

(12,923

)

 

$

(6,873

)

 

$

(426,211

)

 

$

16,869

 

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and intangible asset impairment charges

 

 

 

 

 

 

 

 

262,719

 

 

 

 

 

 

 

 

 

 

 

 

262,719

 

 

 

 

COVID-19-related expenses

 

 

21,962

 

 

 

 

 

 

71,293

 

 

 

 

 

 

357

 

 

 

 

 

 

93,612

 

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

1,598

 

 

 

1,905

 

 

 

 

 

 

 

 

 

1,598

 

 

 

1,905

 

Vionic acquisition and integration-related costs

 

 

 

 

 

 

 

 

 

 

 

5,871

 

 

 

 

 

 

247

 

 

 

 

 

 

6,118

 

Total charges/other items

 

 

21,962

 

 

 

 

 

 

335,610

 

 

 

7,776

 

 

 

357

 

 

 

247

 

 

 

357,929

 

 

 

8,023

 

Adjusted operating (loss) earnings

 

$

(45,578

)

 

$

10,813

 

 

$

(10,138

)

 

$

20,705

 

 

$

(12,566

)

 

$

(6,626

)

 

$

(68,282

)

 

$

24,892

 

SCHEDULE 6

CALERES, INC.

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

(Thousands, except per share data)

 

May 2, 2020

 

May 4, 2019

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Net (loss) earnings

 

$

(346,172

)

 

$

9,085

 

Net loss (earnings) attributable to noncontrolling interests

 

 

334

 

 

 

(2

)

Net (loss) earnings attributable to Caleres, Inc.

 

 

(345,838

)

 

 

9,083

 

Net earnings allocated to participating securities

 

 

 

 

 

(283

)

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

 

$

(345,838

)

 

$

8,800

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic common shares

 

 

38,649

 

 

 

40,741

 

Dilutive effect of share-based awards

 

 

 

 

 

60

 

Diluted common shares attributable to Caleres, Inc.

 

 

38,649

 

 

 

40,801

 

 

 

 

 

 

 

 

 

 

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

 

$

(8.95

)

 

$

0.22

 

 

 

 

 

 

 

 

 

 

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

 

$

(8.95

)

 

$

0.22

 

SCHEDULE 7

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

(Thousands, except per share data)

 

May 2, 2020

 

May 4, 2019

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Adjusted net (loss) earnings

 

$

(50,740

)

 

$

15,044

 

Net loss (earnings) attributable to noncontrolling interests

 

 

334

 

 

 

(2

)

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

 

 

(50,406

)

 

 

15,042

 

Net earnings allocated to participating securities

 

 

 

 

 

(472

)

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

 

$

(50,406

)

 

$

14,570

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic common shares

 

 

38,649

 

 

 

40,741

 

Dilutive effect of share-based awards

 

 

 

 

 

60

 

Diluted common shares attributable to Caleres, Inc.

 

 

38,649

 

 

 

40,801

 

 

 

 

 

 

 

 

 

 

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

 

$

(1.30

)

 

$

0.36

 

 

 

 

 

 

 

 

 

 

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

 

$

(1.30

)

 

$

0.36

 

 

Logan Bonacorsi
lbonacorsi@caleres.com

Source: Caleres

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