News Details


Caleres Reports Fourth Quarter and Full Year 2021 Results

March 15, 2022
  • Achieves all-time record annual operating earnings and operating margins
  • Announces Board authorization of an incremental 7 million shares to its share repurchase program
  • Provides full-year 2022 earnings per share guidance of $3.75 to $4.00

Caleres (NYSE: CAL, caleres.com), a diverse portfolio of consumer-driven footwear brands, today reported financial results for the fourth quarter and fiscal year ended January 29, 2022.

“The Caleres team delivered its best-ever financial performance in 2021, with adjusted earnings per share that was nearly double the company’s previous all-time record,” said Diane Sullivan, Chairman and Chief Executive Officer. “Caleres capped off that exceptional 2021 performance with record-setting fourth quarter results, providing significant momentum as we head into fiscal 2022. These excellent results demonstrate the strength of our portfolio of brands, the success of our advanced operating capabilities, the tremendous efforts and talents of our global Associates and the significant value-enhancing transformation of the organization.”

During the quarter, Famous Footwear leveraged its concentration of sought-after brands and trend-right products to capitalize on robust consumer demand, resulting in an exceptional quarterly sales performance that was 8.8 percent higher than fourth quarter 2019, as well as a gross margin rate that was 641 basis points higher than the same period two years ago. At the same time, the Brand Portfolio continued its steady recovery post the pandemic, returning to solid profitability and establishing a strong foundation for a significantly improved earnings contribution in 2022. Notably, four of the portfolio’s key leadership brands – Sam Edelman, Allen Edmonds, Vionic and Blowfish – surpassed fourth quarter 2019 earnings levels.

“Looking ahead, given the positive structural changes we’ve made across the business, Caleres is poised for another strong earnings performance in 2022,” said Sullivan. “As we begin the year, we are intently focused on unlocking growth opportunities across the enterprise while taking additional steps to mitigate supply chain and inflationary pressures. Our powerful and diverse portfolio is uniquely positioned to meet consumer needs and capture growth across trending footwear categories such as event, occasion, and work, while at the same time continuing to capitalize on robust demand for still-popular athletic and sport-inspired styles.

“In short, Caleres is a much more agile and financially fit organization than it was two years ago. We have intensified our commitment to connect with current consumers, engage new customers and provide an elevated omni-channel experience, while also delivering fresh and compelling footwear across our portfolio of brands. We are confident that the investments we have made and the strategic priorities we have set in motion will enable Caleres to continue to drive long-term, sustainable value for our shareholders.”

Commitment to Enhancing Shareholder Value

During 2021, Caleres generated $168.4 million in cash from operations and used that cash to improve its financial position and continue its balanced capital return program. Among the highlights, the company:

  • Proactively replaced its higher-cost long-term debt with additional drawings under its lower-cost revolving credit facility.
  • Ended fiscal 2021 with $290 million of total debt – down from $448.9 million at the end of fiscal 2020. The actions to reduce and reposition the debt should lower the company’s 2022 annual interest expense by approximately $20 million versus 2019 levels.
  • Paid $10.6 million in dividends.
  • Repurchased 661,265 shares for approximately $17 million.

This strengthened financial position and potential for ongoing robust cash generation provides Caleres the flexibility to continue to return capital to shareholders, better align supply with consumer demand and invest in its long-term strategic initiatives.

The company’s Board of Directors recently authorized an incremental 7 million shares to its opportunistic share repurchase program. With this increase, the company has 9 million shares of Caleres common stock remaining for purchase under the program.

Key Financial Information:

Fourth Quarter 2021 Highlights

(13-weeks ended January 29, 2022 compared to 13-weeks ended January 30, 2021)

  • Net sales were $679.3 million, up 19.0 percent from the fourth quarter of fiscal 2020;
    • A 15.9 percent sales increase in the Famous Footwear segment
    • A 24.4 percent sales increase in the Brand Portfolio segment
    • Direct-to-consumer sales represented 73.6 percent of total net sales
  • Gross profit was $294.8 million, while gross margin was 43.4 percent, or a 389-basis point improvement over the fourth quarter of 2020;
    • A 48.9 percent gross margin in the Famous Footwear segment
    • A 34.0 percent gross margin in the Brand Portfolio segment
  • SG&A as percentage of sales was 36.9 percent, 265-basis points lower than fourth quarter of fiscal 2020
  • Net earnings of $33.9 million, or earnings of $0.88 per diluted share, compared to a net loss of $77.0 million, or a loss of $2.11 per diluted share in the fourth quarter of fiscal 2020. Earnings of $0.88 per diluted share includes $0.03 for the below items:
    • Deferred tax valuation allowances of $0.02 per diluted share
    • Loss on early extinguishment of debt of $0.01 per diluted share related to the redemption of $100 million of senior notes
  • Adjusted net income of $34.9 million, or $0.91 per diluted share compared to adjusted net earnings of $1.3 million, or $0.03 per diluted share in the fourth quarter of fiscal 2020; and
  • Inventory levels were up 22.3 percent, year-over-year, with in-transit inventory approximately 1.9x higher than the fourth quarter of 2020, reflecting efforts to align inventory with robust consumer demand and ongoing supply chain disruptions.

Fiscal 2021 Results Versus 2020

(52-weeks ended January 29, 2022 compared to 52-weeks ended January 30, 2021)

  • Consolidated sales of $2,777.6 million, up 31.2 percent from fiscal year 2020;
    • A 38.4 percent sales increase in the Famous Footwear segment
    • A 19.8 percent sales increase in the Brand Portfolio segment
    • Direct-to-consumer sales represented 75.1 percent of total net sales
  • Gross profit was $1,227.3 million, while gross margin was 44.2 percent, or an approximately 701-basis point improvement over fiscal year 2020;
    • A 48.0 percent gross margin in the Famous Footwear segment
    • A 35.8 percent gross margin in the Brand Portfolio segment
  • SG&A expense of $1,008.0 million, or 36.3 percent of net sales, down from 42.0 percent of sales in fiscal year 2020;
  • Net earnings for the year was $137.0 million, resulting in earnings per diluted share of $3.56 including $0.73 per diluted share for the below items:
    • Brand Portfolio expense of $0.31 per diluted share related to Naturalizer retail exits;
    • Fair value adjustment of $0.30 per diluted share associated with the mandatory purchase obligation for Blowfish Malibu;
    • Deferred tax valuation allowances of $0.10 per diluted share; and
    • Loss on early extinguishment of debt of $0.02 per diluted share related to the redemption of $200 million of senior notes and the amendment to our credit facility;
  • Adjusted net earnings of $165.2 million, or adjusted earnings of $4.29 per diluted share compared to adjusted net loss of $52.0 million, or adjusted loss of $1.40 per diluted share, in fiscal 2020;
  • Earnings before interest, taxes, depreciation, and amortization (EBITDA) of $272.4 million;
  • Adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) of $285.9 million;
  • Generated $168.4 million in cash from operations; and
  • Returned $27.6 million to shareholders during the year through dividends and share repurchases.

Financial Outlook

“Clearly, fiscal 2021 was an exceptional year for Caleres with the company delivering record adjusted earnings per share,” said Sullivan. “We believe that our business has taken a step-change forward in its sustainable earnings expectations. Going forward, given the significant structural changes we have made across a range of critical performance areas, including financial, operational, marketing and logistics we expect our operating margin rate, return on sales and gross margin rate will exceed historical averages.”

Fiscal Year 2022 Outlook:

Inclusive of the company’s current expectations for its underlying business along with anticipated macro challenges that include inflationary pressures, ongoing supply chain dislocations, and lack of comparable governmental stimulus efforts, among others, Caleres expects consolidated sales to be flat to up 3 percent to 2021 sales and earnings per diluted share to be in the range of $3.75 to $4.00. Note this earnings range reflects an approximately 75 percent increase – at the midpoint – above the company’s pre-pandemic high-water mark of $2.21. With the momentum coming out of the fourth quarter, the company expects 50 percent of its earnings to be in the first half of 2022.

Investor Conference Call

Caleres will host an investor conference call at 5:00 p.m. Eastern time today, Tuesday, March 15. The webcast and slides will be available at https://investor.caleres.com/events-and-presentations. 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 1489541. A replay will be available at https://investor.caleres.com/events-and-presentations 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 28.

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, earnings before interest, taxes, depreciation and amortization, 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. 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 30, 2021, 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 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

 

Fifty-Two Weeks Ended

($ thousands, except per share data)

 

January 29, 2022

 

January 30, 2021

 

January 29, 2022

 

January 30, 2021

Net sales

 

$

679,280

 

 

$

570,959

 

 

$

2,777,604

 

 

$

2,117,070

 

Cost of goods sold

 

 

384,494

 

 

 

345,400

 

 

 

1,550,287

 

 

 

1,330,021

 

Gross profit

 

 

294,786

 

 

 

225,559

 

 

 

1,227,317

 

 

 

787,049

 

Selling and administrative expenses

 

 

250,958

 

 

 

226,063

 

 

 

1,008,028

 

 

 

889,489

 

Impairment of goodwill and intangible assets

 

 

 

 

 

23,805

 

 

 

 

 

 

286,524

 

Restructuring and other special charges, net

 

 

 

 

 

31,070

 

 

 

13,482

 

 

 

96,694

 

Operating earnings (loss)

 

 

43,828

 

 

 

(55,379

)

 

 

205,807

 

 

 

(485,658

)

Interest expense, net

 

 

(2,128

)

 

 

(14,541

)

 

 

(30,930

)

 

 

(48,287

)

Loss on early extinguishment of debt

 

 

(361

)

 

 

 

 

 

(1,011

)

 

 

 

Other income, net

 

 

3,845

 

 

 

4,117

 

 

 

15,378

 

 

 

16,834

 

Earnings (loss) before income taxes

 

 

45,184

 

 

 

(65,803

)

 

 

189,244

 

 

 

(517,111

)

Income tax (provision) benefit

 

 

(11,242

)

 

 

(11,276

)

 

 

(51,081

)

 

 

78,117

 

Net earnings (loss)

 

 

33,942

 

 

 

(77,079

)

 

 

138,163

 

 

 

(438,994

)

Net earnings (loss) attributable to noncontrolling interests

 

 

88

 

 

 

(103

)

 

 

1,144

 

 

 

120

 

Net earnings (loss) attributable to Caleres, Inc.

 

$

33,854

 

 

$

(76,976

)

 

$

137,019

 

 

$

(439,114

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.89

 

 

$

(2.11

)

 

$

3.59

 

 

$

(11.80

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.88

 

 

$

(2.11

)

 

$

3.56

 

 

$

(11.80

)

SCHEDULE 2

 

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

(Unaudited)

($ thousands)

 

January 29, 2022

 

January 30, 2021

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

30,115

 

 

$

88,295

 

Receivables, net

 

 

122,236

 

 

 

126,994

 

Inventories, net

 

 

596,807

 

 

 

487,955

 

Property and equipment, held for sale

 

 

5,455

 

 

 

 

Prepaid expenses and other current assets

 

 

81,863

 

 

 

79,312

 

Total current assets

 

 

836,476

 

 

 

782,556

 

 

 

 

 

 

 

 

Lease right-of-use assets

 

 

503,430

 

 

 

554,303

 

Property and equipment, net

 

 

150,238

 

 

 

172,437

 

Goodwill and intangible assets, net

 

 

227,503

 

 

 

240,071

 

Other assets

 

 

126,279

 

 

 

117,683

 

Total assets

 

$

1,843,926

 

 

$

1,867,050

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

$

290,000

 

 

$

250,000

 

Mandatory purchase obligation - Blowfish Malibu

 

 

 

 

 

39,134

 

Trade accounts payable

 

 

331,470

 

 

 

280,501

 

Lease obligations

 

 

128,495

 

 

 

153,060

 

Other accrued expenses

 

 

275,648

 

 

 

182,814

 

Total current liabilities

 

 

1,025,613

 

 

 

905,509

 

 

 

 

 

 

 

 

Noncurrent lease obligations

 

 

452,909

 

 

 

518,942

 

Long-term debt

 

 

 

 

 

198,851

 

Other liabilities

 

 

42,017

 

 

 

39,894

 

Total other liabilities

 

 

494,926

 

 

 

757,687

 

 

 

 

 

 

 

 

Total Caleres, Inc. shareholders’ equity

 

 

318,570

 

 

 

200,247

 

Noncontrolling interests

 

 

4,817

 

 

 

3,607

 

Total equity

 

 

323,387

 

 

 

203,854

 

Total liabilities and equity

 

$

1,843,926

 

$

1,867,050

SCHEDULE 3

 

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Fifty-Two Weeks Ended

($ thousands)

 

January 29, 2022

 

January 30, 2021

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net cash provided by operating activities

 

$

168,441

 

 

$

126,353

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(18,393

)

 

 

(16,786

)

Capitalized software

 

 

(5,752

)

 

 

(5,274

)

Net cash used for investing activities

 

 

(24,145

)

 

 

(22,060

)

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

 

632,000

 

 

 

438,500

 

Repayments under revolving credit agreement

 

 

(592,000

)

 

 

(463,500

)

Redemption of senior notes

 

 

(200,000

)

 

 

 

Dividends paid

 

 

(10,648

)

 

 

(10,764

)

Blowfish Malibu mandatory purchase obligation

 

 

(8,996

)

 

 

 

Debt issuance costs

 

 

(1,190

)

 

 

 

Acquisition of treasury stock

 

 

(16,965

)

 

 

(23,348

)

Issuance of common stock under share-based plans, net

 

 

(3,910

)

 

 

(1,135

)

Contributions by noncontrolling interests, net

 

 

 

 

 

139

 

Other

 

 

(676

)

 

 

(1,198

)

Net cash used for provided by financing activities

 

 

(202,385

)

 

 

(61,306

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(91

)

 

 

90

 

(Decrease) increase in cash and cash equivalents

 

 

(58,180

)

 

 

43,077

 

Cash and cash equivalents at beginning of period

 

 

88,295

 

 

 

45,218

 

Cash and cash equivalents at end of period

 

$

30,115

 

 

$

88,295

 

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 29, 2022

 

January 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Net (Loss)

 

 

 

 

 

Pre-Tax

 

Net Earnings

 

 

 

Pre-Tax

 

Earnings

 

Diluted

 

 

Impact of

 

Attributable

 

Diluted

 

Impact of

 

Attributable

 

(Loss)

 

 

Charges/Other

 

to Caleres,

 

Earnings

 

Charges/Other

 

to Caleres,

 

Earnings

($ thousands, except per share data)

 

Items

 

Inc.

 

Per Share

 

Items

 

Inc.

 

Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP earnings (loss)

 

 

 

 

$

33,854

 

 

$

0.88

 

 

 

 

 

$

(76,976

)

 

$

(2.11

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on early extinguishment of debt

 

$

361

 

 

 

268

 

 

 

0.01

 

 

$

 

 

 

 

 

 

 

Deferred tax valuation allowances

 

 

 

 

 

746

 

 

 

0.02

 

 

 

 

 

 

 

 

 

 

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

 

Fair value adjustment to Blowfish purchase obligation

 

 

 

 

 

 

 

 

 

 

 

8,989

 

 

 

6,675

 

 

 

0.18

 

Vionic integration-related costs

 

 

 

 

 

 

 

 

 

 

 

3,436

 

 

 

2,552

 

 

 

0.07

 

Total charges/other items

 

$

361

 

 

$

1,014

 

 

$

0.03

 

 

$

66,249

 

 

$

78,247

 

 

$

2.14

 

Adjusted earnings (loss)

 

 

 

 

$

34,868

 

 

$

0.91

 

 

 

 

 

$

1,271

 

 

$

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Fifty-Two Weeks Ended

 

 

January 29, 2022

 

January 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Net (Loss)

 

 

 

 

 

Pre-Tax

 

Net Earnings

 

 

 

Pre-Tax

 

Earnings

 

Diluted

 

 

Impact of

 

Attributable

 

Diluted

 

Impact of

 

Attributable

 

(Loss)

 

 

Charges/Other

 

to Caleres,

 

Earnings

 

Charges/Other

 

to Caleres,

 

Earnings

($ thousands, except per share data)

 

Items

 

Inc.

 

Per Share

 

Items

 

Inc.

 

Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP earnings (loss)

 

 

 

 

$

137,019

 

 

$

3.56

 

 

 

 

 

$

(439,114

)

 

$

(11.80

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment to Blowfish purchase obligation

 

$

15,423

 

 

 

11,454

 

 

 

0.30

 

 

$

23,935

 

 

 

17,773

 

 

 

0.48

 

Brand Portfolio - business exits

 

 

13,482

 

 

 

11,927

 

 

 

0.31

 

 

 

16,372

 

 

 

14,867

 

 

 

0.40

 

Loss on early extinguishment of debt

 

 

1,011

 

 

 

750

 

 

 

0.02

 

 

 

 

 

 

 

 

 

 

Deferred tax valuation allowances

 

 

 

 

 

4,040

 

 

 

0.10

 

 

 

 

 

 

 

 

 

 

Goodwill and intangible asset impairment charges

 

 

 

 

 

 

 

 

 

 

 

286,524

 

 

 

236,360

 

 

 

6.35

 

COVID-19-related expenses (2)

 

 

 

 

 

 

 

 

 

 

 

114,285

 

 

 

115,533

 

 

 

3.10

 

Vionic integration-related costs

 

 

 

 

 

 

 

 

 

 

 

3,436

 

 

 

2,552

 

 

 

0.07

 

Total charges/other items

 

$

29,916

 

$

28,171

 

 

$

0.73

 

 

$

444,552

 

$

387,085

 

 

$

10.40

 

Adjusted earnings (loss)

 

 

 

 

$

165,190

 

$

4.29

 

 

 

 

$

(52,029

)

 

$

(1.40

)

 
(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 29,

 

January 30,

 

January 29,

 

January 30,

 

January 29,

 

January 30,

 

January 29,

 

January 30,

 

($ thousands)

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

Net sales

 

$

401,877

 

 

$

346,657

 

 

$

291,171

 

 

$

234,034

 

 

$

(13,768

)

 

$

(9,732

)

 

$

679,280

 

 

$

570,959

 

 

Gross profit

 

 

196,686

 

 

 

141,616

 

 

 

98,989

 

 

 

83,121

 

 

 

(889

)

 

 

822

 

 

 

294,786

 

 

 

225,559

 

 

Adjusted gross profit

 

 

196,686

 

 

 

141,616

 

 

 

98,989

 

 

 

85,506

 

 

 

(889

)

 

 

822

 

 

 

294,786

 

 

 

227,944

 

 

Gross profit rate

 

 

48.9

 

%

 

40.9

 

%

 

34.0

 

%

 

35.5

 

%

 

6.5

 

%

 

(8.4

)

%

 

43.4

 

%

 

39.5

 

%

Adjusted gross profit rate

 

 

48.9

 

%

 

40.9

 

%

 

34.0

 

%

 

36.5

 

%

 

6.5

 

%

 

(8.4

)

%

 

43.4

 

%

 

39.9

 

%

Operating earnings (loss)

 

 

55,668

 

 

 

14,830

 

 

 

10,812

 

 

 

(55,888

)

 

 

(22,652

)

 

 

(14,321

)

 

 

43,828

 

 

 

(55,379

)

 

Adjusted operating earnings (loss)

 

 

55,668

 

 

 

14,830

 

 

 

10,812

 

 

 

1,214

 

 

 

(22,652

)

 

 

(14,163

)

 

 

43,828

 

 

 

1,881

 

 

Operating earnings (loss) %

 

 

13.9

 

%

 

4.3

 

%

 

3.7

 

%

 

(23.9

)

%

 

n/m

 

%

 

n/m

 

%

 

6.5

 

%

 

(9.7

)

%

Adjusted operating earnings (loss) %

 

 

13.9

 

%

 

4.3

 

%

 

3.7

 

%

 

0.5

 

%

 

n/m

 

%

 

n/m

 

%

 

6.5

 

%

 

0.3

 

%

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

 

 

15.2

 

%

 

(1.8

)

%

 

46.4

 

%

 

(28.3

)

%

 

 

%

 

 

%

 

 

%

 

 

%

Number of stores

 

 

894

 

 

916

 

 

 

86

 

 

170

 

 

 

 

 

 

 

 

 

980

 

 

1,086

 

 

 

n/m – Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

January 29,

 

January 30,

 

January 29,

 

January 30,

 

January 29,

 

January 30,

 

January 29,

 

January 30,

($ thousands)

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

Gross profit

 

$

196,686

 

 

$

141,616

 

 

$

98,989

 

 

$

83,121

 

 

$

(889

)

 

$

822

 

 

$

294,786

 

 

$

225,559

 

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

 

 

 

2,385

 

 

 

 

 

 

 

 

 

 

 

 

2,385

 

Total charges/other items

 

 

 

 

 

 

 

 

 

 

 

2,385

 

 

 

 

 

 

 

 

 

 

 

 

2,385

 

Adjusted gross profit

 

$

196,686

 

 

$

141,616

 

 

$

98,989

 

 

$

85,506

 

 

$

(889

)

 

$

822

 

 

$

294,786

 

 

$

227,944

 

Operating earnings (loss)

 

$

55,668

 

 

$

14,830

 

 

$

10,812

 

 

$

(55,888

)

 

$

(22,652

)

 

$

(14,321

)

 

$

43,828

 

 

$

(55,379

)

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

 

 

 

14,774

 

 

 

 

 

 

 

 

 

 

 

 

14,774

 

Intangible asset impairment charges

 

 

 

 

 

 

 

 

 

 

 

23,805

 

 

 

 

 

 

 

 

 

 

 

 

23,805

 

COVID-19-related expenses

 

 

 

 

 

 

 

 

 

 

 

15,245

 

 

 

 

 

 

 

 

 

 

 

 

15,245

 

Vionic integration-related costs

 

 

 

 

 

 

 

 

 

 

 

3,278

 

 

 

 

 

 

158

 

 

 

 

 

 

3,436

 

Total charges/other items

 

 

 

 

 

 

 

 

 

 

 

57,102

 

 

 

 

 

 

158

 

 

 

 

 

 

57,260

 

Adjusted operating earnings (loss)

 

$

55,668

 

$

14,830

 

$

10,812

 

$

1,214

 

 

$

(22,652

)

 

$

(14,163

)

 

$

43,828

 

$

1,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 29,

 

January 30,

 

January 29,

 

January 30,

 

January 29,

 

January 30,

 

January 29,

 

January 30,

 

($ thousands)

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

 

2021

 

Net sales

 

$

1,748,291

 

 

$

1,263,551

 

 

$

1,081,003

 

 

$

902,481

 

 

$

(51,690

)

 

$

(48,962

)

 

$

2,777,604

 

 

$

2,117,070

 

 

Gross profit

 

 

839,401

 

 

 

489,883

 

 

 

386,780

 

 

 

294,828

 

 

 

1,136

 

 

 

2,338

 

 

 

1,227,317

 

 

 

787,049

 

 

Adjusted gross profit

 

 

839,401

 

 

 

495,841

 

 

 

386,780

 

 

 

326,269

 

 

 

1,136

 

 

 

2,338

 

 

 

1,227,317

 

 

 

824,448

 

 

Gross profit rate

 

 

48.0

 

%

 

38.8

 

%

 

35.8

 

%

 

32.7

 

%

 

(2.2

)

%

 

(4.8

)

%

 

44.2

 

%

 

37.2

 

%

Adjusted gross profit rate

 

 

48.0

 

%

 

39.2

 

%

 

35.8

 

%

 

36.2

 

%

 

(2.2

)

%

 

(4.8

)

%

 

44.2

 

%

 

38.9

 

%

Operating earnings (loss)

 

 

276,415

 

 

 

(23,821

)

 

 

35,928

 

 

 

(408,444

)

 

 

(106,536

)

 

 

(53,393

)

 

 

205,807

 

 

 

(485,658

)

 

Adjusted operating earnings (loss)

 

 

276,415

 

 

 

(1,270

)

 

 

49,410

 

 

 

(11,172

)

 

 

(106,536

)

 

 

(52,599

)

 

 

219,289

 

 

 

(65,041

)

 

Operating earnings (loss)%

 

 

15.8

 

%

 

(1.9

)

%

 

3.3

 

%

 

(45.3

)

%

 

n/m

 

%

 

n/m

 

%

 

7.4

 

%

 

(22.9

)

%

Adjusted operating earnings (loss)%

 

 

15.8

 

%

 

(0.1

)

%

 

4.6

 

%

 

(1.2

)

%

 

n/m

 

%

 

n/m

 

%

 

7.9

 

%

 

(3.1

)

%

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

 

 

12.5

 

%

 

1.6

 

%

 

30.6

 

%

 

(31.0

)

%

 

 

%

 

 

%

 

 

%

 

 

%

Number of stores

 

 

894

 

 

916

 

 

 

86

 

 

170

 

 

 

 

 

 

 

 

 

980

 

 

1,086

 

 

   

n/m – Not meaningful

 

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Fifty-Two Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

January 29,

 

January 30,

 

January 29,

 

January 30,

 

January 29,

 

January 30,

 

January 29,

 

January 30,

($ thousands)

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

Gross profit

 

$

839,401

 

 

$

489,883

 

 

$

386,780

 

 

$

294,828

 

 

$

1,136

 

 

$

2,338

 

 

$

1,227,317

 

 

$

787,049

 

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID-19-related expenses

 

 

 

 

 

5,958

 

 

 

 

 

 

27,458

 

 

 

 

 

 

 

 

 

 

 

 

33,416

 

Brand Portfolio - brand exits

 

 

 

 

 

 

 

 

 

 

 

3,983

 

 

 

 

 

 

 

 

 

 

 

 

3,983

 

Total charges/other items

 

 

 

 

 

5,958

 

 

 

 

 

 

31,441

 

 

 

 

 

 

 

 

 

 

 

 

37,399

 

Adjusted gross profit

 

$

839,401

 

 

$

495,841

 

 

$

386,780

 

 

$

326,269

 

 

$

1,136

 

 

$

2,338

 

 

$

1,227,317

 

 

$

824,448

 

Operating earnings (loss)

 

$

276,415

 

 

$

(23,821

)

 

$

35,928

 

 

$

(408,444

)

 

$

(106,536

)

 

$

(53,393

)

 

$

205,807

 

 

$

(485,658

)

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

13,482

 

 

 

16,372

 

 

 

 

 

 

 

 

 

13,482

 

 

 

16,372

 

Goodwill and intangible asset impairment charges

 

 

 

 

 

 

 

 

 

 

 

286,524

 

 

 

 

 

 

 

 

 

 

 

 

286,524

 

COVID-19-related expenses

 

 

 

 

 

22,551

 

 

 

 

 

 

91,098

 

 

 

 

 

 

636

 

 

 

 

 

 

114,285

 

Vionic integration-related costs

 

 

 

 

 

 

 

 

 

 

 

3,278

 

 

 

 

 

 

158

 

 

 

 

 

 

3,436

 

Total charges/other items

 

 

 

 

 

22,551

 

 

 

13,482

 

 

 

397,272

 

 

 

 

 

 

794

 

 

 

13,482

 

 

 

420,617

 

Adjusted operating earnings (loss)

 

$

276,415

 

$

(1,270

)

 

$

49,410

 

$

(11,172

)

 

$

(106,536

)

 

$

(52,599

)

 

$

219,289

 

$

(65,041

)

SCHEDULE 6

 

CALERES, INC.

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Fifty-Two Weeks Ended

 

 

January 29,

 

January 30,

 

January 29,

 

January 30,

 

 

2022

 

2021

 

2022

 

2021

($ thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

33,942

 

 

$

(77,079

)

 

$

138,163

 

 

$

(438,994

)

Net (earnings) loss attributable to noncontrolling interests

 

 

(88

)

 

 

103

 

 

 

(1,144

)

 

 

(120

)

Net earnings (loss) attributable to Caleres, Inc.

 

 

33,854

 

 

 

(76,976

)

 

 

137,019

 

 

 

(439,114

)

Net earnings allocated to participating securities

 

 

(1,240

)

 

 

 

 

 

(4,982

)

 

 

 

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

 

$

32,614

 

 

$

(76,976

)

 

$

132,037

 

 

$

(439,114

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

36,486

 

 

 

36,564

 

 

 

36,741

 

 

 

37,220

 

Dilutive effect of share-based awards

 

 

533

 

 

 

 

 

 

354

 

 

 

 

Diluted common shares attributable to Caleres, Inc.

 

 

37,019

 

 

 

36,564

 

 

 

37,095

 

 

 

37,220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.89

 

 

$

(2.11

)

 

$

3.59

 

 

$

(11.80

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.88

 

 

$

(2.11

)

 

$

3.56

 

 

$

(11.80

)

SCHEDULE 7

 

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Fifty-Two Weeks Ended

 

 

January 29,

 

January 30,

 

January 29,

 

January 30,

 

 

2022

 

2021

 

2022

 

2021

($ thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings (loss)

 

$

34,956

 

 

$

1,168

 

 

$

166,334

 

 

$

(51,909

)

Net (earnings) loss attributable to noncontrolling interests

 

 

(88

)

 

 

103

 

 

 

(1,144

)

 

 

(120

)

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

 

 

34,868

 

 

 

1,271

 

 

 

165,190

 

 

 

(52,029

)

Net earnings allocated to participating securities

 

 

(1,277

)

 

 

(55

)

 

 

(6,013

)

 

 

 

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

 

$

33,591

 

 

$

1,216

 

 

$

159,177

 

 

$

(52,029

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

36,486

 

 

 

36,564

 

 

 

36,741

 

 

 

37,220

 

Dilutive effect of share-based awards

 

 

533

 

 

 

162

 

 

 

354

 

 

 

 

Diluted common shares attributable to Caleres, Inc.

 

 

37,019

 

 

 

36,726

 

 

 

37,095

 

 

 

37,220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.92

 

 

$

0.03

 

 

$

4.33

 

 

$

(1.40

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.91

 

 

$

0.03

 

 

$

4.29

 

 

$

(1.40

)

SCHEDULE 8

 

CALERES, INC.

CALCULATION OF EBITDA AND ADJUSTED EBITDA (NON-GAAP METRICS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Fifty-Two Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

($ thousands)

 

January 29, 2022

 

January 30, 2021

 

January 29, 2022

 

January 30, 2021

 

January 29, 2022

 

January 30, 2021

 

January 29, 2022

 

January 30, 2021

 

EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to Caleres, Inc.

 

$

202,572

 

 

$

(23,198

)

 

$

18,009

 

 

$

(358,798

)

 

$

(83,562

)

 

$

(57,118

)

 

$

137,019

 

 

$

(439,114

)

 

Income tax provision (benefit)

 

 

68,873

 

 

 

(7,118

)

 

 

50

 

 

 

(64,307

)

 

 

(17,842

)

 

 

(6,692

)

 

 

51,081

 

 

 

(78,117

)

 

Interest expense, net

 

 

4,969

 

 

 

6,496

 

 

 

17,441

 

 

 

16,846

 

 

 

8,520

 

 

 

24,945

 

 

 

30,930

 

 

 

48,287

 

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,011

 

 

 

 

 

 

1,011

 

 

 

 

 

Depreciation and amortization (1)

 

 

20,341

 

 

 

23,090

 

 

 

23,753

 

 

 

28,889

 

 

 

8,236

 

 

 

8,560

 

 

 

52,330

 

 

 

60,539

 

 

EBITDA

 

$

296,755

 

 

$

(730

)

 

$

59,253

 

 

$

(377,370

)

 

$

(83,637

)

 

$

(30,305

)

 

$

272,371

 

 

$

(408,405

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA margin

 

 

17.0

 

%

 

(0.1

)

%

 

5.5

 

%

 

(41.8

)

%

 

161.8

 

%

 

61.9

 

%

 

9.8

 

%

 

(19.3

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings (loss) attributable to Caleres, Inc. (2)

 

$

202,572

 

 

$

(6,228

)

 

$

29,937

 

 

$

(17,716

)

 

$

(67,319

)

 

$

(28,085

)

 

$

165,190

 

 

$

(52,029

)

 

Income tax provision (benefit) (3)

 

 

68,873

 

 

 

(1,538

)

 

 

1,605

 

 

 

(8,115

)

 

 

(17,653

)

 

 

(10,997

)

 

 

52,825

 

 

 

(20,650

)

 

Interest expense, net (4)

 

 

4,969

 

 

 

6,496

 

 

 

17,441

 

 

 

16,846

 

 

 

(6,903

)

 

 

1,010

 

 

 

15,507

 

 

 

24,352

 

 

Depreciation and amortization (1)

 

 

20,341

 

 

 

23,090

 

 

 

23,753

 

 

 

28,889

 

 

 

8,236

 

 

 

8,560

 

 

 

52,330

 

 

 

60,539

 

 

Adjusted EBITDA

 

$

296,755

 

 

$

21,820

 

 

$

72,736

 

 

$

19,904

 

 

$

(83,639

)

 

$

(29,512

)

 

$

285,852

 

 

$

12,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

17.0

%

 

1.7

 

%

 

6.7

%

 

2.2

 

%

 

161.8

 

%

 

60.3

 

%

 

10.3

%

 

0.6

 

%

 

(1)

Includes depreciation and amortization of capitalized software and intangible assets.

 

(2)

Refer to Schedule 4 for the consolidated reconciliation of net earnings (loss) attributable to Caleres, Inc. to adjusted net earnings (loss) attributable to Caleres, Inc.

 

(3)

Excludes the income tax impacts of the adjustments on Schedule 4.

 

(4)

Excludes the interest expense, net adjustments on Schedule 4, including the fair value adjustment to the Blowfish purchase obligation.

 

Investor Contact:
Logan Bonacorsi
lbonacorsi@caleres.com
314.854.4134

Source: Caleres