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Caleres Reports Fourth Quarter and Full Year 2020 Results

03/16/2021

Famous Footwear delivers strong fourth quarter earnings

Paid down $50 million of debt during the quarter, ending fiscal 2020 below pre-COVID levels

Caleres (NYSE: CAL) (caleres.com), diverse portfolio of consumer-driven footwear brands, today reported financial results for the fourth quarter and fiscal year ended January 30, 2021.

“I am proud of the Caleres team and the tremendous progress we have made on a wide range of strategic objectives during an unprecedented year that saw the pervasive impact of the pandemic and protracted economic lockdown,” said Diane Sullivan, Chairman and CEO. “Among the highlights, we:

  • Streamlined the organization and rightsized our expense base, resulting in $100 million in ongoing annualized expense savings;
  • Achieved a 40 percent increase in ecommerce sales via our rapidly growing owned websites;
  • Commenced the strategic closure of a portion of our brick-and-mortar portfolio to better align with the accelerated consumer shift toward digital;
  • Generated approximately $126 million in cash from operations;
  • Strengthened the balance sheet – restoring overall debt to below pre-pandemic levels by fiscal year-end and significantly reducing our working capital position;
  • Returned approximately $34 million to shareholders through our long-standing dividend and share repurchase program.

“We continued to execute at a very high level at Famous Footwear, which rebounded quickly following the extended store closures and capped off 2020 with a modest decline in fourth quarter sales and a significant increase in year-over-year earnings. For the Brand Portfolio, we have identified areas of opportunity that are expected to position this segment for improved performance including actions to ensure the optimal alignment of our product assortment and omnichannel capabilities to more closely reflect rapidly evolving consumer behaviors, preferences and priorities.”

“While the pace of recovery is still uncertain, there are signs of stabilization in the marketplace,” said, Sullivan. “We believe we are well-positioned to capitalize as the market rebounds and the world returns to a greater degree of normalcy. As we plan for future success, we will focus on maintaining our strong momentum at Famous Footwear; driving enhanced consumer alignment and improved performance in the Brand Portfolio; taking a careful and disciplined approach to cost control and capital spending; reducing debt levels still further; and returning excess cash to shareholders. In short, Caleres is a more agile and focused organization than it was at the start of 2020, with an even more vigorous commitment to connecting with our consumers and providing them with compelling and fresh product – across growing footwear categories — when, where and how they want to shop. We are confident that we can leverage our talented and dedicated workforce, strong operating platform, powerful portfolio and improved financial position to capitalize on the opportunities we see ahead in order to drive long-term value for our shareholders.”

Key Financial Information:
Fourth Quarter 2020 Highlights
(13-weeks ended January 30, 2021 compared to 13-weeks ended February 1, 2020)

  • Net sales were $571.0 million, down 18.3 percent from the fourth quarter of fiscal 2019
    • Direct-to-consumer represented 75 percent of total net sales
    • A 6.2 percent sales decline in the Famous Footwear segment
    • A 32.4 percent sales decline in the Brand Portfolio segment
    • Total company owned ecommerce website sales increased approximately 25 percent, with ecommerce penetration rising to approximately 30 percent of net sales
  • Gross profit was $225.6 million, while gross margin was 39.5 percent
  • SG&A expense of $226.1 million, down $34.7 million compared to the fourth quarter of 2019
  • Net loss of $77.0 million, or loss of $2.11 per diluted share, compared to net earnings of $0.4 million, or earnings of $0.01 per diluted share in the fourth quarter of fiscal 2019. Loss of $2.11 per share includes $2.14 for the below items:
    • COVID-19 related impairments and other expenses of $1.03;
    • Intangible asset impairment charges of $0.49;
    • Brand Portfolio expense of $0.37 related to the Naturalizer brand retail exits;
    • Fair value adjustment of $0.18 associated with the mandatory purchase obligation for Blowfish Malibu; and
    • Vionic integration-related costs of $0.07.
  • Adjusted net income of $1.3 million, or $0.03 per diluted share compared to adjusted net income of $13.9 million, or $0.34 per diluted share in the fourth quarter of fiscal 2019
  • Generated $24.6 million in cash from operations and ended the fourth quarter with $88.3 million of cash on hand
  • Reduced credit facility borrowings by $50 million during the fourth quarter to end the year at $250 million, or $25 million below last year’s pre-virus levels
  • Reduced inventory levels by approximately 21 percent year-over-year, reflecting ongoing actions taken to align with consumer demand and the ongoing liquidation of Naturalizer store inventory

Fiscal 2020 Results Versus 2019
(52-weeks ended January 30, 2021 compared to 52-weeks ended February 1, 2020)

  • Consolidated sales of $2,117.1 million were down 27.5 percent
    • Direct-to-consumer sales represented 73 percent of total net sales
    • A 20.4 percent sales decline in the Famous Footwear segment
    • A 35.8 percent sales decline in the Brand Portfolio segment
    • Total company owned ecommerce website sales increased approximately 40 percent, with ecommerce penetration rising to approximately 30 percent of net sales
  • Gross profit was $787.0 million, while gross margin was 37.2%
  • SG&A expense of $889.5 million represented 42.0% of sales
  • Net loss for the year was $439.1 million, resulting in a loss per diluted share of $11.80 including $10.40 for the below items:
    • Goodwill and intangible asset impairment charges of $6.35;
    • COVID-19 related impairments and other expenses of $3.10;
    • Fair value adjustment of $0.48 associated with the mandatory purchase obligation for Blowfish Malibu;
    • Brand Portfolio expense of $0.40 related to brand exits, primarily Naturalizer retail; and
    • Vionic integration-related costs of $0.07.
  • Adjusted net loss of $52.0 million, or adjusted loss of $1.40 per diluted share compared to adjusted net income of $86.4 million, or adjusted earnings of $2.10 per diluted share, in fiscal 2019
  • Generated $126.4 million in cash from operations
  • Returned $34.1 million to shareholders during the year through:
    • $10.8 million in dividend payouts; and
    • $23.3 million to repurchase 2.9 million shares, or seven percent of shares outstanding, at an average share price of $8.05.

2021 Outlook
Given the ongoing disruption related to the virus, supply chain dislocations and associated near-term uncertainty in the marketplace, Caleres is not providing fiscal year 2021 guidance at this time. The company will evaluate market conditions as the year progresses and will endeavor to reinstate its more traditional guidance practices in the future.

Investor Conference Call
Caleres will host an investor conference call at 5:00 p.m. Eastern time today, Tuesday, March 16. 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 9787564. 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 9787564 through Monday, March 29.

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 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.

 

SCHEDULE 1

 

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Fifty-Two Weeks Ended

($ thousands, except per share data)

 

January 30, 2021

 

February 1, 2020

 

January 30, 2021

 

February 1, 2020

Net sales

 

$

570,959

 

 

$

698,948

 

 

$

2,117,070

 

 

$

2,921,562

 

Cost of goods sold

 

 

345,400

 

 

 

420,138

 

 

 

1,330,021

 

 

 

1,737,202

 

Gross profit

 

 

225,559

 

 

 

278,810

 

 

 

787,049

 

 

 

1,184,360

 

Selling and administrative expenses

 

 

226,063

 

 

 

260,788

 

 

 

889,489

 

 

 

1,065,760

 

Impairment of goodwill and intangible assets

 

 

23,805

 

 

 

 

 

 

286,524

 

 

 

 

Restructuring and other special charges, net

 

 

31,070

 

 

 

12,353

 

 

 

96,694

 

 

 

14,787

 

Operating (loss) earnings

 

 

(55,379

)

 

 

5,669

 

 

 

(485,658

)

 

 

103,813

 

Interest expense, net

 

 

(14,541

)

 

 

(7,835

)

 

 

(48,287

)

 

 

(33,123

)

Other income, net

 

 

4,117

 

 

 

1

 

 

 

16,834

 

 

 

7,903

 

(Loss) earnings before income taxes

 

 

(65,803

)

 

 

(2,165

)

 

 

(517,111

)

 

 

78,593

 

Income tax (provision) benefit

 

 

(11,276

)

 

 

2,174

 

 

 

78,117

 

 

 

(16,511

)

Net (loss) earnings

 

 

(77,079

)

 

 

9

 

 

 

(438,994

)

 

 

62,082

 

Net (loss) earnings attributable to noncontrolling interests

 

 

(103

)

 

 

(399

)

 

 

120

 

 

 

(737

)

Net (loss) earnings attributable to Caleres, Inc.

 

$

(76,976

)

 

$

408

 

 

$

(439,114

)

 

$

62,819

 

 

 

 

 

 

 

 

 

 

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

 

$

(2.11

)

 

$

0.01

 

 

$

(11.80

)

 

$

1.53

 

 

 

 

 

 

 

 

 

 

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

 

$

(2.11

)

 

$

0.01

 

 

$

(11.80

)

 

$

1.53

 

SCHEDULE 2

 

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

(Unaudited)

($ thousands)

 

January 30, 2021

 

February 1, 2020

ASSETS

 

 

 

 

Cash and cash equivalents

 

$

88,295

 

$

45,218

Receivables, net

 

 

126,994

 

 

162,181

Inventories, net

 

 

487,955

 

 

618,406

Prepaid expenses and other current assets

 

 

79,312

 

 

56,494

Total current assets

 

 

782,556

 

 

882,299

 

 

 

 

 

Lease right-of-use assets

 

 

554,303

 

 

695,594

Property and equipment, net

 

 

172,437

 

 

224,846

Goodwill and intangible assets, net

 

 

240,071

 

 

539,579

Other assets

 

 

117,683

 

 

89,389

Total assets

 

$

1,867,050

 

$

2,431,707

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Borrowings under revolving credit agreement

 

$

250,000

 

$

275,000

Mandatory purchase obligation - Blowfish Malibu

 

 

39,134

 

 

Trade accounts payable

 

 

280,501

 

 

267,018

Lease obligations

 

 

153,060

 

 

127,869

Other accrued expenses

 

 

182,814

 

 

181,063

Total current liabilities

 

 

905,509

 

 

850,950

 

 

 

 

 

Noncurrent lease obligations

 

 

518,942

 

 

629,032

Long-term debt

 

 

198,851

 

 

198,391

Other liabilities

 

 

39,894

 

 

104,204

Total other liabilities

 

 

757,687

 

 

931,627

 

 

 

 

 

Total Caleres, Inc. shareholders’ equity

 

 

200,247

 

 

645,950

Noncontrolling interests

 

 

3,607

 

 

3,180

Total equity

 

 

203,854

 

 

649,130

Total liabilities and equity

 

$

1,867,050

 

$

2,431,707

SCHEDULE 3

 

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

(Unaudited)

 

 

Fifty-Two Weeks Ended

($ thousands)

 

January 30, 2021

 

February 1, 2020

OPERATING ACTIVITIES:

 

 

 

 

Net cash provided by operating activities

 

$

126,353

 

 

$

170,786

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

Purchases of property and equipment

 

 

(16,786

)

 

 

(44,533

)

Disposals of property and equipment

 

 

 

 

 

636

 

Capitalized software

 

 

(5,274

)

 

 

(5,619

)

Net cash used for investing activities

 

 

(22,060

)

 

 

(49,516

)

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

Borrowings under revolving credit agreement

 

 

438,500

 

 

 

288,500

 

Repayments under revolving credit agreement

 

 

(463,500

)

 

 

(348,500

)

Dividends paid

 

 

(10,764

)

 

 

(11,422

)

Acquisition of treasury stock

 

 

(23,348

)

 

 

(33,424

)

Issuance of common stock under share-based plans, net

 

 

(1,135

)

 

 

(2,644

)

Contributions by noncontrolling interests, net

 

 

139

 

 

 

2,500

 

Other

 

 

(1,198

)

 

 

(1,342

)

Net cash used for financing activities

 

 

(61,306

)

 

 

(106,332

)

Effect of exchange rate changes on cash and cash equivalents

 

 

90

 

 

 

80

 

Increase in cash and cash equivalents

 

 

43,077

 

 

 

15,018

 

Cash and cash equivalents at beginning of period

 

 

45,218

 

 

 

30,200

 

Cash and cash equivalents at end of period

 

$

88,295

 

 

$

45,218

 

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

 

 

January 30, 2021

 

February 1, 2020

 

 

 

 

Net (Loss)

 

 

 

 

 

Net

 

 

 

 

Pre-Tax

 

Earnings

 

Diluted

 

Pre-Tax

 

Earnings

 

 

 

 

Impact of

 

Attributable

 

(Loss)

 

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 (loss) earnings

 

 

 

$

(76,976

)

 

$

(2.11

)

 

 

 

$

408

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

Intangible asset impairment charges

 

$

23,805

 

 

17,854

 

 

 

0.49

 

 

$

 

 

 

 

COVID-19-related expenses (1)

 

 

15,245

 

 

37,486

 

 

 

1.03

 

 

 

 

 

 

 

Brand Portfolio - business exits

 

 

14,774

 

 

13,680

 

 

 

0.37

 

 

 

1,615

 

 

1,198

 

 

0.03

Fair value adjustment to Blowfish purchase obligation

 

 

8,989

 

 

6,675

 

 

 

0.18

 

 

 

1,545

 

 

1,147

 

 

0.03

Vionic integration-related costs

 

 

3,436

 

 

2,552

 

 

 

0.07

 

 

 

 

 

 

 

Expense containment initiatives

 

 

 

 

 

 

 

 

 

 

15,033

 

 

11,189

 

 

0.27

Total charges/other items

 

$

66,249

 

$

78,247

 

 

$

2.14

 

 

$

18,193

 

$

13,534

 

$

0.33

Adjusted earnings

 

 

 

$

1,271

 

 

$

0.03

 

 

 

 

$

13,942

 

$

0.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Fifty-Two Weeks Ended

 

 

January 30, 2021

 

February 1, 2020

 

 

 

 

Net (Loss)

 

 

 

 

 

Net

 

 

 

 

Pre-Tax

 

Earnings

 

Diluted

 

Pre-Tax

 

Earnings

 

 

 

 

Impact of

 

Attributable

 

(Loss)

 

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 (loss) earnings

 

 

 

$

(439,114

)

 

$

(11.80

)

 

 

 

$

62,819

 

$

1.53

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and intangible asset impairment charges

 

$

286,524

 

 

236,360

 

 

 

6.35

 

 

$

 

 

 

 

COVID-19-related expenses (2)

 

 

114,285

 

 

115,533

 

 

 

3.10

 

 

 

 

 

 

 

Fair value adjustment to Blowfish purchase obligation

 

 

23,935

 

 

17,773

 

 

 

0.48

 

 

 

5,428

 

 

4,031

 

 

0.10

Brand Portfolio - business exits

 

 

16,372

 

 

14,867

 

 

 

0.40

 

 

 

3,520

 

 

2,613

 

 

0.06

Vionic acquisition and integration-related costs

 

 

3,436

 

 

2,552

 

 

 

0.07

 

 

 

7,696

 

 

5,714

 

 

0.14

Expense containment initiatives

 

 

 

 

 

 

 

 

 

 

15,033

 

 

11,189

 

 

0.27

Total charges/other items

 

$

444,552

 

$

387,085

 

 

$

10.40

 

 

$

31,677

 

$

23,547

 

$

0.57

Adjusted (loss) earnings

 

 

 

$

(52,029

)

 

$

(1.40

)

 

 

 

$

86,366

 

$

2.10

____________________

(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.

(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

 

January 30,

 

February 1,

 

January 30,

 

February 1,

 

January 30,

 

February 1,

 

January 30,

 

February 1,

($ thousands)

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

Net sales

$

346,657

 

$

369,468

 

$

234,034

 

$

345,972

 

$

(9,732

)

$

(16,492

)

$

570,959

 

$

698,948

 

Gross profit

 

141,616

 

 

157,140

 

 

83,121

 

 

121,095

 

 

822

 

 

575

 

 

225,559

 

 

278,810

 

Adjusted gross profit

 

141,616

 

 

157,140

 

 

85,506

 

 

122,710

 

 

822

 

 

575

 

 

227,944

 

 

280,425

 

Gross profit rate

 

40.9

%

 

42.5

%

 

35.5

%

 

35.0

%

 

(8.4

)%

 

(3.5

)%

 

39.5

%

 

39.9

%

Adjusted gross profit rate

 

40.9

%

 

42.5

%

 

36.5

%

 

35.5

%

 

(8.4

)%

 

(3.5

)%

 

39.9

%

 

40.1

%

Operating earnings (loss)

 

14,830

 

 

6,860

 

 

(55,888

)

 

11,928

 

 

(14,321

)

 

(13,119

)

 

(55,379

)

 

5,669

 

Adjusted operating earnings (loss)

 

14,830

 

 

10,343

 

 

1,214

 

 

18,621

 

 

(14,163

)

 

(9,327

)

 

1,881

 

 

19,637

 

Operating earnings (loss) %

 

4.3

%

 

1.9

%

 

(23.9

)%

 

3.4

%

 

147.2

%

 

79.5

%

 

(9.7

)%

 

0.8

%

Adjusted operating earnings %

 

4.3

%

 

2.8

%

 

0.5

%

 

5.4

%

 

145.5

%

 

56.6

%

 

0.3

%

 

2.8

%

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

 

(1.8

)%

 

5.1

%

 

(28.3

)%

 

(0.6

)%

 

%

 

%

 

%

 

%

Number of stores

 

916

 

 

949

 

 

170

 

 

228

 

 

 

 

 

 

1,086

 

 

1,177

 

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

January 30,

 

February 1,

 

January 30,

 

February 1,

 

January 30,

 

February 1,

 

January 30,

 

February 1,

($ thousands)

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

Gross profit

 

$

141,616

 

$

157,140

 

$

83,121

 

 

$

121,095

 

$

822

 

 

$

575

 

 

$

225,559

 

 

$

278,810

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

2,385

 

 

 

1,615

 

 

 

 

 

 

 

 

2,385

 

 

 

1,615

Total charges/other items

 

 

 

 

 

 

2,385

 

 

 

1,615

 

 

 

 

 

 

 

 

2,385

 

 

 

1,615

Adjusted gross profit

 

$

141,616

 

$

157,140

 

$

85,506

 

 

$

122,710

 

$

822

 

 

$

575

 

 

$

227,944

 

 

$

280,425

Operating earnings (loss)

 

$

14,830

 

$

6,860

 

$

(55,888

)

 

$

11,928

 

$

(14,321

)

 

$

(13,119

)

 

$

(55,379

)

 

$

5,669

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible asset impairment charges

 

 

 

 

 

 

23,805

 

 

 

 

 

 

 

 

 

 

 

23,805

 

 

 

COVID-19-related expenses

 

 

 

 

 

 

15,245

 

 

 

 

 

 

 

 

 

 

 

15,245

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

14,774

 

 

 

1,615

 

 

 

 

 

 

 

 

14,774

 

 

 

1,615

Vionic integration-related costs

 

 

 

 

 

 

3,278

 

 

 

 

 

158

 

 

 

 

 

 

3,436

 

 

 

Expense containment initiatives

 

 

 

 

3,483

 

 

 

 

 

5,078

 

 

 

 

 

3,792

 

 

 

 

 

 

12,353

Total charges/other items

 

 

 

 

3,483

 

 

57,102

 

 

 

6,693

 

 

158

 

 

 

3,792

 

 

 

57,260

 

 

 

13,968

Adjusted operating earnings (loss)

 

$

14,830

 

$

10,343

 

$

1,214

 

 

$

18,621

 

$

(14,163

)

 

$

(9,327

)

 

$

1,881

 

 

$

19,637

 

SCHEDULE 5

 

 

 

 

 

 

 

 

 

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

SUMMARY FINANCIAL RESULTS

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Fifty-Two Weeks Ended

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

January 30,

 

February 1,

 

January 30,

 

February 1,

 

January 30,

 

February 1,

 

January 30,

 

February 1,

($ thousands)

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

Net sales

$

1,263,551

 

$

1,588,057

 

$

902,481

 

$

1,406,460

 

$

(48,962

)

$

(72,955

)

$

2,117,070

 

$

2,921,562

 

Gross profit

 

489,883

 

 

675,401

 

 

294,828

 

 

506,556

 

 

2,338

 

 

2,403

 

 

787,049

 

 

1,184,360

 

Adjusted gross profit

 

495,841

 

 

675,401

 

 

326,269

 

 

515,337

 

 

2,338

 

 

2,403

 

 

824,448

 

 

1,193,141

 

Gross profit rate

 

38.8

%

 

42.5

%

 

32.7

%

 

36.0

%

 

(4.8

)%

 

(3.3

)%

 

37.2

%

 

40.5

%

Adjusted gross profit rate

 

39.2

%

 

42.5

%

 

36.2

%

 

36.6

%

 

(4.8

)%

 

(3.3

)%

 

38.9

%

 

40.8

%

Operating (loss) earnings

 

(23,821

)

 

76,896

 

 

(408,444

)

 

58,153

 

 

(53,393

)

 

(31,236

)

 

(485,658

)

 

103,813

 

Adjusted (loss) operating earnings

 

(1,270

)

 

80,379

 

 

(11,172

)

 

72,640

 

 

(52,599

)

 

(25,637

)

 

(65,041

)

 

127,382

 

Operating (loss) earnings%

 

(1.9

)%

 

4.8

%

 

(45.3

)%

 

4.1

%

 

109.1

%

 

42.8

%

 

(22.9

)%

 

3.6

%

Adjusted (loss) operating earnings%

 

(0.1

)%

 

5.1

%

 

(1.2

)%

 

5.2

%

 

107.4

%

 

35.1

%

 

(3.1

)%

 

4.4

%

Same-store sales % (on a 52-week basis)

 

1.6

%

 

2.0

%

 

(31.0

)%

 

(5.8

)%

 

%

 

%

 

%

 

%

Number of stores

 

916

 

 

949

 

 

170

 

 

228

 

 

 

 

 

 

1,086

 

 

1,177

 

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Fifty-Two Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

January 30,

 

February 1,

 

January 30,

 

February 1,

 

January 30,

 

February 1,

 

January 30,

 

February 1,

($ thousands)

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

Gross profit

 

$

489,883

 

 

$

675,401

 

$

294,828

 

 

$

506,556

 

$

2,338

 

 

$

2,403

 

 

$

787,049

 

 

$

1,184,360

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID-19-related expenses

 

 

5,958

 

 

 

 

 

27,458

 

 

 

 

 

 

 

 

 

 

 

33,416

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

3,983

 

 

 

2,969

 

 

 

 

 

 

 

 

3,983

 

 

 

2,969

Vionic acquisition and integration-related costs

 

 

 

 

 

 

 

 

 

 

5,812

 

 

 

 

 

 

 

 

 

 

 

5,812

Total charges/other items

 

 

5,958

 

 

 

 

 

31,441

 

 

 

8,781

 

 

 

 

 

 

 

 

37,399

 

 

 

8,781

Adjusted gross profit

 

$

495,841

 

 

$

675,401

 

$

326,269

 

 

$

515,337

 

$

2,338

 

 

$

2,403

 

 

$

824,448

 

 

$

1,193,141

Operating (loss) earnings

 

$

(23,821

)

 

$

76,896

 

$

(408,444

)

 

$

58,153

 

$

(53,393

)

 

$

(31,236

)

 

$

(485,658

)

 

$

103,813

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and intangible asset impairment charges

 

 

 

 

 

 

 

286,524

 

 

 

 

 

 

 

 

 

 

 

286,524

 

 

 

COVID-19-related expenses

 

 

22,551

 

 

 

 

 

91,098

 

 

 

 

 

636

 

 

 

 

 

 

114,285

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

16,372

 

 

 

3,520

 

 

 

 

 

 

 

 

16,372

 

 

 

3,520

Vionic acquisition and integration-related costs

 

 

 

 

 

 

 

3,278

 

 

 

5,889

 

 

158

 

 

 

1,807

 

 

 

3,436

 

 

 

7,696

Expense containment initiatives

 

 

 

 

 

3,483

 

 

 

 

 

5,078

 

 

 

 

 

3,792

 

 

 

 

 

 

12,353

Total charges/other items

 

 

22,551

 

 

 

3,483

 

 

397,272

 

 

 

14,487

 

 

794

 

 

 

5,599

 

 

 

420,617

 

 

 

23,569

Adjusted operating (loss) earnings

 

$

(1,270

)

 

$

80,379

 

$

(11,172

)

 

$

72,640

 

$

(52,599

)

 

$

(25,637

)

 

$

(65,041

)

 

$

127,382

SCHEDULE 6

 

CALERES, INC.

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Fifty-Two Weeks Ended

 

 

January 30,

 

February 1,

 

January 30,

 

February 1,

 

 

2021

 

2020

 

2021

 

2020

($ thousands, except per share data)

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Net (loss) earnings

 

$

(77,079

)

 

$

9

 

 

$

(438,994

)

 

$

62,082

 

Net loss (earnings) attributable to noncontrolling interests

 

 

103

 

 

 

399

 

 

 

(120

)

 

 

737

 

Net (loss) earnings attributable to Caleres, Inc.

 

 

(76,976

)

 

 

408

 

 

 

(439,114

)

 

 

62,819

 

Net earnings allocated to participating securities

 

 

 

 

 

(45

)

 

 

 

 

 

(1,988

)

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

 

$

(76,976

)

 

$

363

 

 

$

(439,114

)

 

$

60,831

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic common shares

 

 

36,564

 

 

 

39,235

 

 

 

37,220

 

 

 

39,796

 

Dilutive effect of share-based awards

 

 

 

 

 

55

 

 

 

 

 

 

57

 

Diluted common shares attributable to Caleres, Inc.

 

 

36,564

 

 

 

39,290

 

 

 

37,220

 

 

 

39,853

 

 

 

 

 

 

 

 

 

 

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

 

$

(2.11

)

 

$

0.01

 

 

$

(11.80

)

 

$

1.53

 

 

 

 

 

 

 

 

 

 

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

 

$

(2.11

)

 

$

0.01

 

 

$

(11.80

)

 

$

1.53

 

SCHEDULE 7

 

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Fifty-Two Weeks Ended

 

 

January 30,

 

February 1,

 

January 30,

 

February 1,

 

 

2021

 

2020

 

2021

 

2020

($ thousands, except per share data)

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Adjusted net earnings (loss)

 

$

1,168

 

 

$

13,543

 

 

$

(51,909

)

 

$

85,629

 

Net loss (earnings) attributable to noncontrolling interests

 

 

103

 

 

 

399

 

 

 

(120

)

 

 

737

 

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

 

 

1,271

 

 

 

13,942

 

 

 

(52,029

)

 

 

86,366

 

Net earnings allocated to participating securities

 

 

(55

)

 

 

(404

)

 

 

 

 

 

(2,766

)

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

 

$

1,216

 

 

$

13,538

 

 

$

(52,029

)

 

$

83,600

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic common shares

 

 

36,564

 

 

 

39,235

 

 

 

37,220

 

 

 

39,796

 

Dilutive effect of share-based awards

 

 

162

 

 

 

55

 

 

 

 

 

 

57

 

Diluted common shares attributable to Caleres, Inc.

 

 

36,726

 

 

 

39,290

 

 

 

37,220

 

 

 

39,853

 

 

 

 

 

 

 

 

 

 

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

 

$

0.03

 

 

$

0.35

 

 

$

(1.40

)

 

$

2.10

 

 

 

 

 

 

 

 

 

 

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

 

$

0.03

 

 

$

0.34

 

 

$

(1.40

)

 

$

2.10

 

 

Logan Bonacorsi
lbonacorsi@caleres.com
314.854.4134

Source: Caleres

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