Caleres Reports Second Quarter 2018 Results

  • Record second quarter sales for consolidated, Famous Footwear and Brand Portfolio
  • Record second quarter operating earnings for Famous Footwear
  • On-track to deliver seventh consecutive year of positive back-to-school same-store-sales
  • Continued to grow top brands in Brand Portfolio and to take consumer share in the market
  • Maintained strong balance sheet, cash flow and return on invested capital
  • Executed against company strategy and invested in the business
Tuesday, September 4, 2018 3:15 pm CDT

Dateline:

ST. LOUIS

Public Company Information:

NYSE:
CAL
"Record second quarter consolidated sales were up 4.4%, while adjusted earnings per share were up 22.9%. Famous Footwear also delivered a record second quarter – for both sales and operating profit – with strength in women’s sandals and athletic-inspired styles driving improvement"

ST. LOUIS--(BUSINESS WIRE)--Caleres (NYSE: CAL)(caleres.com), a diverse portfolio of global footwear brands, today reported second quarter 2018 financial results.

“Record second quarter consolidated sales were up 4.4%, while adjusted earnings per share were up 22.9%. Famous Footwear also delivered a record second quarter – for both sales and operating profit – with strength in women’s sandals and athletic-inspired styles driving improvement,” said Diane Sullivan, CEO, president and chairman of Caleres. “For Brand Portfolio, second quarter sales were up 1.9%, as Sam Edelman delivered the largest second quarter in its history, and Naturalizer reported its fourth consecutive quarter of wholesale growth in North America. During the quarter, we also announced the acquisition of Blowfish Malibu, which allows us to continue to expand and diversify our overall business.”

Second Quarter 2018 Results Versus 2017

  • Consolidated sales of $706.6 million, up 4.4%.
    • Famous Footwear total sales of $429.5 million were up 6.1%, while same-store-sales were up 2.6%.
    • Brand Portfolio sales of $277.1 million were up 1.9%.
  • Gross profit was $293.1 million, while gross margin was 41.5%.
  • SG&A expense of $258.8 million represented 36.6% of sales – a 121 basis point improvement.
  • Operating earnings were $32.1 million and operating margin was 4.5%, while adjusted operating earnings were $34.8 million and adjusted operating margin was 4.9%.
  • Net earnings were $23.6 million, while diluted earnings per share were $0.55 and included a $0.04 charge for the previously announced transition of Allen Edmonds’ consumer-facing activities to St. Louis and for the July acquisition of Blowfish Malibu.
  • Adjusted net earnings of $25.6 million were up 24.1%, while adjusted diluted net earnings per share of $0.59 were up 22.9%.

First Half 2018 Results Versus 2017

  • Consolidated sales of $1,338.8 million, up 2.3%.
    • Famous Footwear total sales of $792.9 million were up 2.8%, while same-store-sales were up 1.0% – in-line with FY’18 guidance.
    • Brand Portfolio sales of $545.9 million were up 1.6%.
  • Gross profit was $568.0 million, while gross margin was 42.4%.
  • SG&A expense of $509.0 million represented 38.0% of sales – a 39 basis point improvement.
  • Operating earnings were $55.1 million and operating margin was 4.1%, while adjusted operating earnings were $59.5 million and adjusted operating margin was 4.4%.
  • Net earnings were $40.9 million, while diluted earnings per share were $0.94 and included an $0.08 charge for the previously announced transition of Allen Edmonds’ consumer-facing activities to St. Louis and for the acquisition of Blowfish Malibu.
  • Adjusted net earnings of $44.1 million were up 16.0%, while adjusted diluted net earnings per share of $1.02 were up 15.9%.

Balance Sheet and Cash Flow

  • Cash and equivalents were $102.9 million and up $49.9 million year-over-year, including the acquisition of Blowfish Malibu.
  • There were no outstanding borrowings under the revolving credit facility.
  • Inventory of $715.7 million was down 0.9% year-over-year.
  • Capital expenditures of $12.1 million were down 19.2% year-over-year.

2018 Outlook

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

Pension Presentation

Results for this year reflect the new accounting standard related to the presentation of retirement benefits, which impacted reported and adjusted 2017 operating income and margin. The effect of this new standard resulted in a shift of $2.7 million of retirement plan income from second quarter 2017 SG&A expense to other income, net. For the first half of 2017, this amount was $5.1 million. There was no impact to second quarter or first half 2017 net earnings or earnings per share, due to the adoption of this standard.

Investor Conference Call

Caleres will host an investor conference call at 4:30 p.m. ET today, Tuesday, September 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 2559419. 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 2559419 through Tuesday, September 11.

Definitions

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

Non-GAAP Financial Measures

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

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

This press release contains certain forward-looking statements and expectations regarding the company’s future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) changing consumer demands, which may be influenced by consumers' disposable income, which in turn can be influenced by general economic conditions and other factors; (ii) rapidly changing fashion trends and consumer preferences and purchasing patterns; (iii) intense competition within the footwear industry; (iv) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the Company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (v) foreign currency fluctuations; (vi) the ability to accurately forecast sales and manage inventory levels; (vii) cybersecurity threats or other major disruption to the Company’s information technology systems; (viii) customer concentration and increased consolidation in the retail industry; (ix) transitional challenges with acquisitions; (x) a disruption in the Company’s distribution centers; (xi) changes to tax laws, policies and treaties; (xii) the ability to recruit and retain senior management and other key associates; (xiii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; (xiv) the ability to secure/exit leases on favorable terms; (xv) the ability to maintain relationships with current suppliers; and (xvi) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights. The company's reports to the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation, the information under the caption Risk Factors in Item 1A of the company’s Annual Report on Form 10-K for the year ended February 3, 2018, which information is incorporated by reference herein and updated by the company’s Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change.

About Caleres

Caleres is a diverse portfolio of global footwear brands. Our products are available virtually everywhere - in the over 1,200 retail stores we operate, in hundreds of major department and specialty stores, on our branded e-commerce sites, and on many additional third-party retail websites. Famous Footwear 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 Vince, Franco Sarto, Dr. Scholl’s Shoes, LifeStride, Via Spiga, Diane von Furstenberg, Blowfish Malibu, Bzees, Carlos by Carlos Santana, Circus by Sam Edelman, Fergie 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, our passion for fit and our business savvy, while our mission is to continue to inspire people to feel good… feet first. Visit caleres.com to learn more about us.

   
SCHEDULE 1
   
CALERES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
 
(Unaudited)
Thirteen Weeks Ended Twenty-six Weeks Ended
(Thousands, except per share data) August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017
Net sales $ 706,612 $ 676,954 $ 1,338,754 $ 1,308,463
Cost of goods sold 413,511   389,493   770,731   750,094  
Gross profit 293,101   287,461   568,023   558,369  
Selling and administrative expenses 258,835 256,170 509,033 502,681
Restructuring and other special charges, net 2,123   2,865   3,900   3,973  
Operating earnings 32,143   28,426   55,090   51,715  
Interest expense, net (3,602 ) (4,375 ) (7,285 ) (9,184 )
Other income, net 3,078   2,670   6,169   5,106  
Earnings before income taxes 31,619   26,721   53,974   47,637  
Income tax provision (8,008 ) (9,047 ) (13,183 ) (15,079 )
Net earnings 23,611   17,674   40,791   32,558  
Net (loss) earnings attributable to noncontrolling interests (35 ) 79   (67 ) 61  
Net earnings attributable to Caleres, Inc. $ 23,646   $ 17,595   $ 40,858   $ 32,497  
 
Basic earnings per common share attributable to Caleres, Inc. shareholders $ 0.55   $ 0.41   $ 0.95   $ 0.76  
 
Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 0.55   $ 0.41   $ 0.94   $ 0.75  
 
 
SCHEDULE 2
 
CALERES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
August 4, 2018 July 29, 2017 February 3, 2018
(Thousands)
ASSETS
Cash and cash equivalents $ 102,884 $ 52,942 $ 64,047
Receivables, net 153,421 143,616 152,613
Inventories, net 715,705 722,005 569,379
Prepaid expenses and other current assets 62,159   36,972   60,750
Total current assets 1,034,169   955,535   846,789
 
Property and equipment, net 207,726 217,838 212,799
Goodwill and intangible assets, net 362,049 341,195 339,168
Other assets 89,701   69,589   90,659
Total assets $ 1,693,645   $ 1,584,157   $ 1,489,415
 
LIABILITIES AND EQUITY
Borrowings under revolving credit agreement $ $ 35,000 $
Trade accounts payable 400,391 402,812 272,962
Other accrued expenses 195,987   170,499   157,197
Total current liabilities 596,378   608,311   430,159
 
Long-term debt 197,702 197,233 197,472
Deferred rent 52,396 52,227 53,071
Other liabilities 109,975   85,212   89,751
Total other liabilities 360,073   334,672   340,294
 
Total Caleres, Inc. shareholders’ equity 735,853 639,729 717,489
Noncontrolling interests 1,341   1,445   1,473
Total equity 737,194   641,174   718,962
Total liabilities and equity $ 1,693,645   $ 1,584,157   $ 1,489,415
 
 
SCHEDULE 3
   
CALERES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Twenty-six Weeks Ended
(Thousands) August 4, 2018 July 29, 2017
OPERATING ACTIVITIES:    
Net cash provided by operating activities $ 91,007   $ 114,280  
 
INVESTING ACTIVITIES:
Purchases of property and equipment (18,559 ) (24,251 )
Capitalized software (2,951 ) (3,152 )
Acquisition cost, net of cash received (16,793 )  
Net cash used for investing activities (38,303 ) (27,403 )
 
FINANCING ACTIVITIES:
Borrowings under revolving credit agreement 400,000
Repayments under revolving credit agreement (475,000 )
Dividends paid (6,053 ) (6,030 )
Acquisition of treasury stock (3,288 ) (5,993 )
Issuance of common stock under share-based plans, net (4,365 ) (2,490 )
Net cash used for financing activities (13,706 ) (89,513 )
Effect of exchange rate changes on cash and cash equivalents (161 ) 246  

Increase (decrease) in cash and cash equivalents

38,837 (2,390 )
Cash and cash equivalents at beginning of period 64,047   55,332  
Cash and cash equivalents at end of period $ 102,884   $ 52,942  
 
SCHEDULE 4
           
CALERES, INC.
RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS)
 
(Unaudited)
Thirteen Weeks Ended
August 4, 2018 July 29, 2017
(Thousands, except per share data)

Pre-Tax
Impact of
Charges/Other
Items

 

Net
Earnings
Attributable
to Caleres,
Inc.

 

Diluted
Earnings
Per Share

Pre-Tax
Impact of
Charges/Other
Items

 

Net
Earnings
Attributable
to Caleres,
Inc.

 

Diluted
Earnings
Per Share

 
GAAP earnings $ 23,646 $ 0.55 $ 17,595 $ 0.41
 

Charges/other items:

Blowfish Malibu acquisition-related costs $ 778 576 0.01 $
Acquisition, integration and reorganization of men's brands 1,885     1,394     0.03   4,775     3,041     0.07
Total charges/other items $ 2,663     $ 1,970     $ 0.04   $ 4,775     $ 3,041     $ 0.07
Adjusted earnings $ 25,616     $ 0.59   $ 20,636     $ 0.48
 
(Unaudited)
Twenty-six Weeks Ended
August 4, 2018 July 29, 2017
(Thousands, except per share data)

Pre-Tax
Impact of
Charges/Other
Items

 

Net
Earnings
Attributable
to Caleres,
Inc.

 

Diluted
Earnings
Per Share

Pre-Tax
Impact of
Charges/Other
Items

 

Net
Earnings
Attributable
to Caleres,
Inc.

 

Diluted
Earnings
Per Share

 
GAAP earnings $ 40,858 $ 0.94 $ 32,497 $ 0.75
 

Charges/other items:

Blowfish Malibu acquisition-related costs $ 778 576 0.01 $
Acquisition, integration and reorganization of men's brands 3,662     2,709     0.07   8,912     5,569     0.13
Total charges/other items $ 4,440     $ 3,285     $ 0.08   $ 8,912     $ 5,569     $ 0.13
Adjusted earnings $ 44,143     $ 1.02   $ 38,066     $ 0.88
 
 
SCHEDULE 5
               
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
 
SUMMARY FINANCIAL RESULTS
 
(Unaudited)
Thirteen Weeks Ended
Famous Footwear   Brand Portfolio   Other   Consolidated
(Thousands)

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

Net sales $ 429,472 $ 404,930 $ 277,140 $ 272,024 $ $ $ 706,612 $ 676,954
Gross profit $ 187,114 $ 183,309 $ 105,987 $ 104,152 $ $ $ 293,101 $ 287,461
Adjusted gross profit $ 187,114 $ 183,309 $ 106,527 $ 106,062 $ $ $ 293,641 $ 289,371
Gross profit rate 43.6 % 45.3 % 38.2 % 38.3 % % % 41.5 % 42.5 %
Adjusted gross profit rate 43.6 % 45.3 % 38.4 % 39.0 % % % 41.6 % 42.7 %
Operating earnings (loss) $ 33,240 $ 25,112 $ 13,607 $ 15,916 $ (14,704 ) $ (12,602 ) $ 32,143 $ 28,426
Adjusted operating earnings (loss) $ 33,240 $ 25,112 $ 15,946 $ 18,462 $ (14,380 ) $ (10,373 ) $ 34,806 $ 33,201
Operating earnings % 7.7 % 6.2 % 4.9 % 5.9 % % % 4.5 % 4.2 %
Adjusted operating earnings % 7.7 % 6.2 % 5.8 % 6.8 % % % 4.9 % 4.9 %
Same-store sales % (on a 13-week basis) (1) 2.6 % 2.8 % (1.3 )% 15.8 % % % % %
Number of stores   1,008     1,055     233     238             1,241     1,293  
 
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
(Unaudited)
Thirteen Weeks Ended
Famous Footwear   Brand Portfolio   Other   Consolidated
(Thousands)

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

Gross profit $ 187,114 $ 183,309 $ 105,987 $ 104,152 $ $ $ 293,101 $ 287,461

Charges/Other Items:

Blowfish Malibu acquisition-related costs 540 540
Acquisition, integration and reorganization of men's brands             1,910                 1,910  
Total charges/other items         540     1,910             540     1,910  
Adjusted gross profit $ 187,114     $ 183,309     $ 106,527     $ 106,062     $     $     $ 293,641     $ 289,371  
Operating earnings (loss) $ 33,240 $ 25,112 $ 13,607 $ 15,916 $ (14,704 ) $ (12,602 ) $ 32,143 $ 28,426

Charges/Other Items:

Blowfish Malibu acquisition-related costs 540 238 778
Acquisition, integration and reorganization of men's brands         1,799     2,546     86     2,229     1,885     4,775  
Total charges/other items         2,339     2,546     324     2,229     2,663     4,775  
Adjusted operating earnings (loss)   $ 33,240     $ 25,112     $ 15,946     $ 18,462     $ (14,380 )   $ (10,373 )   $ 34,806     $ 33,201  
 

(1) The thirteen-week period ended July 29, 2017 excludes sales from Allen Edmonds.

 

SCHEDULE 5
               
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
 
SUMMARY FINANCIAL RESULTS
 
(Unaudited)
Twenty-six Weeks Ended
Famous Footwear   Brand Portfolio   Other   Consolidated
(Thousands)

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

Net sales $ 792,883 $ 771,424 $ 545,871 $ 537,039 $ $ $ 1,338,754 $ 1,308,463
Gross profit $ 352,315 $ 350,999 $ 215,708 $ 207,370 $ $ $ 568,023 $ 558,369
Adjusted gross profit $ 352,315 $ 350,999 $ 216,248 $ 212,309 $ $ $ 568,563 $ 563,308
Gross profit rate 44.4 % 45.5 % 39.5 % 38.6 % % % 42.4 % 42.7 %
Adjusted gross profit rate 44.4 % 45.5 % 39.6 % 39.5 % % % 42.5 % 43.1 %
Operating earnings (loss) $ 55,097 $ 45,391 $ 26,094 $ 29,230 $ (26,101 ) $ (22,906 ) $ 55,090 $ 51,715
Adjusted operating earnings (loss) $ 55,097 $ 45,391 $ 30,016 $ 35,651 $ (25,583 ) $ (20,415 ) $ 59,530 $ 60,627
Operating earnings % 6.9 % 5.9 % 4.8 % 5.4 % % % 4.1 % 4.0 %
Adjusted operating earnings % 6.9 % 5.9 % 5.5 % 6.6 % % % 4.4 % 4.6 %
Same-store sales % (on a 26-week basis) (1) 1.0 % 1.1 % (1.2 )% 9.2 % % % % %
Number of stores   1,008     1,055     233     238             1,241     1,293  
 
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
(Unaudited)
Twenty-six Weeks Ended
Famous Footwear   Brand Portfolio   Other   Consolidated
(Thousands)

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

Gross profit $ 352,315 $ 350,999 $ 215,708 $ 207,370 $ $ $ 568,023 $ 558,369

Charges/Other Items:

Blowfish Malibu acquisition-related costs 540 540
Acquisition, integration and reorganization of men's brands             4,939                 4,939  
Total charges/other items         540     4,939             540     4,939  
Adjusted gross profit $ 352,315     $ 350,999     $ 216,248     $ 212,309     $     $     $ 568,563     $ 563,308  
Operating earnings (loss) $ 55,097 $ 45,391 $ 26,094 $ 29,230 $ (26,101 ) $ (22,906 ) $ 55,090 $ 51,715

Charges/Other Items:

Blowfish Malibu acquisition-related costs 540 238 778
Acquisition, integration and reorganization of men's brands         3,382     6,421     280     2,491     3,662     8,912  
Total charges/other items         3,922     6,421     518     2,491     4,440     8,912  
Adjusted operating earnings (loss) $ 55,097 $ 45,391 $ 30,016 $ 35,651 $ (25,583 ) $ (20,415 ) $ 59,530 $ 60,627
 

(1) The twenty-six-week period ended July 29, 2017 excludes sales from Allen Edmonds.

 
   
SCHEDULE 6
   
CALERES, INC.
BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION        
 
(Unaudited)
Thirteen Weeks Ended Twenty-six Weeks Ended
(Thousands, except per share data)

August 4,
2018

 

July 29,
2017

August 4,
2018

 

July 29,
2017

 
Net earnings attributable to Caleres, Inc.:
Net earnings $ 23,611 $ 17,674 $ 40,791 $ 32,558
Net loss (earnings) attributable to noncontrolling interests 35     (79 ) 67     (61 )
Net earnings attributable to Caleres, Inc. 23,646 17,595 40,858 32,497
Net earnings allocated to participating securities (673 )   (490 ) (1,148 )   (895 )
Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities 22,973     17,105   $ 39,710     $ 31,602  
 
Basic and diluted common shares attributable to Caleres, Inc.:
Basic common shares 41,964 41,783 41,937 41,807
Dilutive effect of share-based awards 117     171   120     172  
Diluted common shares attributable to Caleres, Inc. 42,081     41,954   42,057     41,979  
 
Basic earnings per common share attributable to Caleres, Inc. shareholders $ 0.55     $ 0.41   $ 0.95     $ 0.76  
 
Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 0.55     $ 0.41   $ 0.94     $ 0.75  
 
 
SCHEDULE 7
     
CALERES, INC.
BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION
 
(Unaudited)
Thirteen Weeks Ended Twenty-six Weeks Ended
(Thousands, except per share data)

August 4,
2018

 

July 29,
2017

August 4,
2018

 

July 29,
2017

 
Adjusted net earnings attributable to Caleres, Inc.:
Adjusted net earnings $ 25,581 $ 20,715 $ 44,076 $ 38,127
Net loss (earnings) attributable to noncontrolling interests 35     (79 ) 67     (61 )
Adjusted net earnings attributable to Caleres, Inc. 25,616 20,636 44,143 38,066
Net earnings allocated to participating securities (729 )   (575 ) (1,241 )   (1,048 )
Adjusted net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities 24,887     20,061   $ 42,902     $ 37,018  
 
Basic and diluted common shares attributable to Caleres, Inc.:
Basic common shares 41,964 41,783 41,937 41,807
Dilutive effect of share-based awards 117     171   120     172  
Diluted common shares attributable to Caleres, Inc. 42,081     41,954   42,057     41,979  
 
Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.59     $ 0.48   $ 1.02     $ 0.89  
 
Diluted adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.59     $ 0.48   $ 1.02     $ 0.88  
 
 
SCHEDULE 8
 
CALERES, INC.
CALCULATION OF RETURN ON AVERAGE INVESTED CAPITAL AND ADJUSTED RETURN ON AVERAGE INVESTED CAPITAL (NON-GAAP METRICS)
   
(Unaudited)
Thirteen Weeks Ended
August 4, 2018   July 29, 2017
(in 000's)
Return on Average Invested Capital
Net earnings (trailing twelve months) $ 95,561 $ 60,605
Average invested capital (1) 556,576 529,917
Return on average invested capital 17.2 % 11.4 %
 
Adjusted Return on Average Invested Capital
Adjusted net earnings (trailing twelve months) $ 99,148 $ 87,061
Average invested capital (1) 556,576 529,917
Adjusted return on average invested capital 17.8 % 16.4 %
 

(1) Calculated as the 13-month average of each month-end invested capital balance. Invested capital is defined as current assets, excluding cash and cash equivalents, plus property and equipment, net, less current liabilities, excluding borrowings under revolving credit agreement.

 

Contact:

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