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Caleres Reports Fourth Quarter and Full Year 2022 Results

  • Achieves record fourth quarter consolidated net sales of $696.4 million and record annual net sales of $2.97 billion
  • Generates record annual earnings per share of $4.92 and adjusted earnings per share of $4.52
  • Drives inventory decline of 2.8 percent compared to fiscal 2021
  • Expects fiscal 2023 net sales to be flat to up 2 percent over fiscal 2022
  • Expects fiscal 2023 earnings per share of $4.10 to $4.30

Caleres (NYSE: CAL), a diverse portfolio of consumer-driven footwear brands, today reported financial results for the fourth quarter and fiscal 2022, and provided guidance for fiscal 2023.

“Caleres closed a record-setting 2022 with another quarter of strong sales and earnings performance that exceeded initial expectations,” said Jay Schmidt, president and chief executive officer. “Our fourth quarter results were led by our Brand Portfolio, which experienced strong growth in sales, gross margin and earnings and a solid performance from Famous Footwear, which continues to provide the brands, trends and value aligned with consumer preferences.”

Specifically, during the quarter, the Brand Portfolio capitalized on continued strength to drive a 6.4 percent increase in year-over-year net sales and a nearly 200 basis point improvement in gross margin resulting in record fourth quarter earnings for the segment. The Brand Portfolio also delivered its best-ever annual operating earnings, which topped $112 million with an 8.5 percent return on sales. At the same time, Famous Footwear leaned into its improved inventory position to take advantage of strong pockets of demand – leading to record fourth quarter sales as well as an increase in comparable sales. For the full year, Famous achieved its second consecutive year of double-digit operating margin.

“Overall, Caleres generated annual results well ahead of pre-pandemic levels,” said Schmidt. “The power of the Caleres portfolio and the structural changes made in recent years have effectively doubled the baseline earnings power of the company. Looking ahead, we are confident in our ability to consistently deliver annual earnings per share of more than $4.00, generate strong cash flow, and create long-term value for our shareholders.”

Fourth Quarter 2022 Results

(13-weeks ended January 28, 2023, compared to 13-weeks ended January 29, 2022)

  • Net sales were $696.4 million, up 2.5 percent from the fourth quarter of 2021;
    • Famous Footwear segment sales improved 0.1 percent, with comparable sales up 0.7 percent
    • Brand Portfolio segment sales increased 6.4 percent
    • Direct-to-consumer sales represented approximately 75 percent of total net sales
  • Gross profit was $281.2 million, while gross margin was 40.4 percent;
    • Famous Footwear segment gross margin of 42.4 percent
    • Brand Portfolio segment gross margin of 36.0 percent
  • SG&A as a percentage of net sales was 36.7 percent, effectively in-line with the fourth quarter of fiscal 2021;
  • Net earnings of $40.8 million, or earnings per diluted share of $1.13, compared to net earnings of $33.9 million, or earnings per diluted share of $0.88 in the fourth quarter of fiscal 2021;
  • Adjusted net earnings of $23.4 million, or adjusted earnings per diluted share of $0.65, compared to adjusted net earnings of $34.9 million, or adjusted earnings per diluted share of $0.91 in the fourth quarter of fiscal 2021;

Fiscal Year 2022 Results

(52-weeks ended January 28, 2023, compared to 52-weeks ended January 29, 2022)

  • Net sales were $2.97 billion, up 6.9 percent from fiscal 2021;
    • Famous Footwear segment sales declined 2.5 percent, with comparable sales down 1.8 percent
    • Brand Portfolio segment sales increased 22.4 percent
    • Direct-to-consumer sales represented approximately 72 percent of total net sales
  • Gross profit was $1.28 billion, while gross margin was 43.3 percent;
    • Famous Footwear segment gross margin of 46.3 percent
    • Brand Portfolio segment gross margin of 37.6 percent
  • SG&A as a percentage of net sales was 36.0 percent, down 30 basis points compared to fiscal 2021;
  • Net earnings of $181.7 million, or earnings per diluted share of $4.92, compared to net earnings of $137.0 million, or earnings per diluted share of $3.56 in fiscal 2021;
  • Adjusted net earnings of $167.1 million, or adjusted earnings per diluted share of $4.52, compared to adjusted net earnings of $165.2 million, or adjusted earnings per diluted share of $4.29 in fiscal 2021;
  • Trailing twelve-month earnings before interest, taxes, depreciation, and amortization (EBITDA) of $278.4 million and adjusted EBITDA of $281.3 million, or 9.5 percent of sales;
  • Inventory was down 2.8 percent compared to fiscal 2021, reflecting the company’s disciplined approach to inventory management;
  • Returned $73.4 million to shareholders through dividends and share repurchases; and
  • Ended the year with $307.5 million of borrowings under its asset-based revolving credit facility.

Capital Allocation Update

Caleres continued to reduce the borrowings under its asset-based revolving credit facility – paying down $57 million during the fourth quarter. The company also returned $2.5 million to shareholders through its quarterly dividend. The Caleres board of directors recently approved its next quarterly dividend.

In fiscal 2022, Caleres continued to invest in value-driving growth opportunities while at the same time returning $73.4 million to shareholders through share repurchases and dividend payments. Specifically, Caleres repurchased 2.6 million shares of common stock, or approximately 7 percent of shares outstanding, for $63.2 million. The company returned $10.2 million to shareholders through its quarterly dividend.

Fiscal 2023 Outlook:

The Company is introducing its financial outlook for fiscal 2023 and first quarter of 2023 and notes that its fiscal 2023 is a 53-week year and compares to a 52-week year in fiscal 2022.

Caleres expects consolidated net sales to be flat to up 2 percent, including the 53rd week this year, compared to 2022 and earnings per diluted share to be in the range of $4.10 to $4.30. This outlook balances strong momentum in our business and structural improvements in our earnings ability against anticipated headwinds that include inflationary pressures, higher interest rates, and continuing uncertainty in the macro-economic environment.

In addition, for fiscal 2023, the company expects:

  • Consolidated operating margin of 7.1 percent to 7.3 percent;
  • Interest expense of $18 million to $20 million, reflecting higher interest rates;
  • Capital expenditures of $60 million to $70 million; and
  • Effective tax rate of about 25 percent.

For first quarter 2023 the company expects:

  • Consolidated net sales down 4 percent to 6 percent, due to timing of wholesale shipments in the Brand Portfolio in first quarter 2022 to satisfy customer restocking efforts; and
  • Diluted earnings per share of $0.92 to $0.97.

Investor Conference Call

Caleres will host a conference call at 10:00 a.m. ET today, Tuesday, March 14. The webcast and associated slides will be available at https://investor.caleres.com/events-and-presentations/default.aspx. A live conference call will be available at (877) 704-4453 for North America participants or (201) 389-0920 for international participants, no passcode necessary. A replay will be also available at https://investor.caleres.com/events-and-presentations/default.aspx for a limited period. Investors may also access the replay by dialing (844) 512-2921 in North America or (412) 317-6671 internationally and using the conference pin 13736520.

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, earnings before interest, taxes, depreciation and amortization 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) inflationary pressures; (ii) supply chain disruptions (iii) changing consumer demands, which may be influenced by general economic conditions and other factors; (iv) rapidly changing consumer preferences and purchasing patterns and fashion trends; (v) customer concentration and increased consolidation in the retail industry; (vi) intense competition within the footwear industry; (vii) foreign currency fluctuations; (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 secure/exit leases on favorable terms; (xiv) the ability to maintain relationships with current suppliers; (xv) transitional challenges with acquisitions and divestitures; (xvi) changes to tax laws, policies and treaties; (xvii) our commitments and shareholder expectations related to environmental, social and governance considerations; (xviii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xix) 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 29, 2022, 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Fifty-Two Weeks Ended

($ thousands, except per share data)

 

January 28, 2023

 

January 29, 2022

 

January 28, 2023

 

January 29, 2022

Net sales

 

$

696,434

 

 

$

679,280

 

 

$

2,968,138

 

 

$

2,777,604

 

Cost of goods sold

 

 

415,246

 

 

 

384,494

 

 

 

1,683,265

 

 

 

1,550,287

 

Gross profit

 

 

281,188

 

 

 

294,786

 

 

 

1,284,873

 

 

 

1,227,317

 

Selling and administrative expenses

 

 

255,323

 

 

 

250,958

 

 

 

1,067,636

 

 

 

1,008,028

 

Restructuring and other special charges, net

 

 

 

 

 

 

 

 

2,910

 

 

 

13,482

 

Operating earnings

 

 

25,865

 

 

 

43,828

 

 

 

214,327

 

 

 

205,807

 

Interest expense, net

 

 

(5,378

)

 

 

(2,128

)

 

 

(14,264

)

 

 

(30,930

)

Loss on early extinguishment of debt

 

 

 

 

 

(361

)

 

 

 

 

 

(1,011

)

Other income, net

 

 

3,335

 

 

 

3,845

 

 

 

12,971

 

 

 

15,378

 

Earnings before income taxes

 

 

23,822

 

 

 

45,184

 

 

 

213,034

 

 

 

189,244

 

Income tax benefit (provision)

 

 

15,343

 

 

 

(11,242

)

 

 

(33,339

)

 

 

(51,081

)

Net earnings

 

 

39,165

 

 

 

33,942

 

 

 

179,695

 

 

 

138,163

 

Net (loss) earnings attributable to noncontrolling interests

 

 

(1,643

)

 

 

88

 

 

 

(2,047

)

 

 

1,144

 

Net earnings attributable to Caleres, Inc.

 

$

40,808

 

 

$

33,854

 

 

$

181,742

 

 

$

137,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.14

 

 

$

0.89

 

 

$

4.98

 

 

$

3.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.13

 

 

$

0.88

 

 

$

4.92

 

 

$

3.56

 

SCHEDULE 2

 

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

(Unaudited)

($ thousands)

 

January 28, 2023

 

January 29, 2022

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

33,700

 

 

$

30,115

 

Receivables, net

 

 

132,802

 

 

 

122,236

 

Inventories, net

 

 

580,215

 

 

 

596,807

 

Property and equipment, held for sale

 

 

16,777

 

 

 

5,455

 

Prepaid expenses and other current assets

 

 

67,961

 

 

 

81,863

 

Total current assets

 

 

831,455

 

 

 

836,476

 

 

 

 

 

 

 

 

Lease right-of-use assets

 

 

518,196

 

 

 

503,430

 

Property and equipment, net

 

 

160,883

 

 

 

150,238

 

Goodwill and intangible assets, net

 

 

215,392

 

 

 

227,503

 

Other assets

 

 

110,546

 

 

 

126,279

 

Total assets

 

$

1,836,472

 

 

$

1,843,926

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

$

307,500

 

 

$

290,000

 

Trade accounts payable

 

 

229,908

 

 

 

331,470

 

Lease obligations

 

 

136,051

 

 

 

128,495

 

Other accrued expenses

 

 

237,737

 

 

 

275,648

 

Total current liabilities

 

 

911,196

 

 

 

1,025,613

 

 

 

 

 

 

 

 

Noncurrent lease obligations

 

 

444,074

 

 

 

452,909

 

Other liabilities

 

 

55,089

 

 

 

42,017

 

Total other liabilities

 

 

499,163

 

 

 

494,926

 

 

 

 

 

 

 

 

Total Caleres, Inc. shareholders’ equity

 

 

420,683

 

 

 

318,570

 

Noncontrolling interests

 

 

5,430

 

 

 

4,817

 

Total equity

 

 

426,113

 

 

 

323,387

 

Total liabilities and equity

 

$

1,836,472

 

$

1,843,926

SCHEDULE 3

 

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Fifty-Two Weeks Ended

($ thousands)

 

January 28, 2023

 

January 29, 2022

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net cash provided by operating activities

 

$

125,879

 

 

$

168,441

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(55,913

)

 

 

(18,393

)

Capitalized software

 

 

(8,124

)

 

 

(5,752

)

Net cash used for investing activities

 

 

(64,037

)

 

 

(24,145

)

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

 

859,500

 

 

 

632,000

 

Repayments under revolving credit agreement

 

 

(842,000

)

 

 

(592,000

)

Redemption of senior notes

 

 

 

 

 

(200,000

)

Dividends paid

 

 

(10,184

)

 

 

(10,648

)

Acquisition of treasury stock

 

 

(63,225

)

 

 

(16,965

)

Issuance of common stock under share-based plans, net

 

 

(5,387

)

 

 

(3,910

)

Contributions by noncontrolling interests, net

 

 

3,142

 

 

 

 

Blowfish Malibu mandatory purchase obligation

 

 

 

 

 

(8,996

)

Debt issuance costs

 

 

 

 

 

(1,190

)

Other

 

 

 

 

 

(676

)

Net cash used for financing activities

 

 

(58,154

)

 

 

(202,385

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(103

)

 

 

(91

)

Increase (decrease) in cash and cash equivalents

 

 

3,585

 

 

 

(58,180

)

Cash and cash equivalents at beginning of period

 

 

30,115

 

 

 

88,295

 

Cash and cash equivalents at end of period

 

$

33,700

 

 

$

30,115

 

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

 

 

January 28, 2023

 

January 29, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Tax

 

Net Earnings

 

 

 

 

Pre-Tax

 

Net Earnings

 

 

 

 

Impact of

 

Attributable

 

 

Diluted

 

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 earnings

 

 

 

 

$

40,808

 

 

$

1.13

 

 

 

 

 

$

33,854

 

 

$

0.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred tax valuation allowance adjustment

 

$

 

 

 

(17,374

)

 

 

(0.48

)

 

$

 

 

 

746

 

 

 

0.02

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

361

 

 

 

268

 

 

 

0.01

 

Total charges/other items

 

$

 

$

(17,374

)

 

$

(0.48

)

 

$

361

 

$

1,014

 

 

$

0.03

 

Adjusted earnings

 

 

 

$

23,434

 

 

$

0.65

 

 

 

 

$

34,868

 

$

0.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Fifty-Two Weeks Ended

 

 

January 28, 2023

 

January 29, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Tax

 

Net Earnings

 

 

 

Pre-Tax

 

Net Earnings

 

 

 

 

Impact of

 

Attributable

 

Diluted

 

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 earnings

 

 

 

 

$

181,742

 

 

$

4.92

 

 

 

 

 

$

137,019

 

 

$

3.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred tax valuation allowance adjustment

 

$

 

 

 

(17,374

)

 

 

(0.47

)

 

$

 

 

 

4,040

 

 

$

0.10

 

Organizational changes

 

 

2,910

 

 

 

2,723

 

 

 

0.07

 

 

 

 

 

 

 

 

 

 

Fair value adjustment to Blowfish purchase obligation

 

 

 

 

 

 

 

 

 

 

 

15,423

 

 

 

11,454

 

 

 

0.30

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

 

 

 

13,482

 

 

 

11,927

 

 

 

0.31

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

1,011

 

 

 

750

 

 

 

0.02

 

Total charges/other items

 

$

2,910

 

$

(14,651

)

 

$

(0.40

)

 

$

29,916

 

$

28,171

 

 

$

0.73

 

Adjusted earnings

 

 

 

 

$

167,091

 

 

$

4.52

 

 

 

 

 

$

165,190

 

$

4.29

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 28,

 

January 29,

 

January 28,

 

January 29,

 

January 28,

 

January 29,

 

January 28,

 

January 29,

 

($ thousands)

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

Net sales

 

$

402,265

 

 

$

401,877

 

 

$

309,729

 

 

$

291,171

 

 

$

(15,560

)

 

$

(13,768

)

 

$

696,434

 

 

$

679,280

 

 

Gross profit

 

 

170,562

 

 

 

196,686

 

 

 

111,465

 

 

 

98,989

 

 

 

(839

)

 

 

(889

)

 

 

281,188

 

 

 

294,786

 

 

Adjusted gross profit

 

 

170,562

 

 

 

196,686

 

 

 

111,465

 

 

 

98,989

 

 

 

(839

)

 

 

(889

)

 

 

281,188

 

 

 

294,786

 

 

Gross profit rate

 

 

42.4

 

%

 

48.9

 

%

 

36.0

 

%

 

34.0

 

%

 

5.4

 

%

 

6.5

 

%

 

40.4

 

%

 

43.4

 

%

Adjusted gross profit rate

 

 

42.4

 

%

 

48.9

 

%

 

36.0

 

%

 

34.0

 

%

 

5.4

 

%

 

6.5

 

%

 

40.4

 

%

 

43.4

 

%

Operating earnings (loss)

 

 

24,386

 

 

 

55,668

 

 

 

19,281

 

 

 

10,812

 

 

 

(17,802

)

 

 

(22,652

)

 

 

25,865

 

 

 

43,828

 

 

Adjusted operating earnings (loss)

 

 

24,386

 

 

 

55,668

 

 

 

19,281

 

 

 

10,812

 

 

 

(17,802

)

 

 

(22,652

)

 

 

25,865

 

 

 

43,828

 

 

Operating earnings %

 

 

6.1

 

%

 

13.9

 

%

 

6.2

 

%

 

3.7

 

%

 

n/m

 

%

 

n/m

 

%

 

3.7

 

%

 

6.5

 

%

Adjusted operating earnings %

 

 

6.1

 

%

 

13.9

 

%

 

6.2

 

%

 

3.7

 

%

 

n/m

 

%

 

n/m

 

%

 

3.7

 

%

 

6.5

 

%

Comparable sales % (on a 13-week basis)

 

 

0.7

 

%

 

15.2

 

%

 

20.4

 

%

 

46.4

 

%

 

 

%

 

 

%

 

 

%

 

 

%

Number of stores

 

 

873

 

 

894

 

 

92

 

 

86

 

 

 

 

 

 

 

 

965

 

 

980

 

 

n/m – Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

January 28,

 

January 29,

 

January 28,

 

January 29,

 

January 28,

 

January 29,

 

January 28,

 

January 29,

($ thousands)

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

Gross profit

 

$

170,562

 

 

$

196,686

 

 

$

111,465

 

 

$

98,989

 

 

$

(839

)

 

$

(889

)

 

$

281,188

 

 

$

294,786

 

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total charges/other items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted gross profit

 

$

170,562

 

 

$

196,686

 

 

$

111,465

 

 

$

98,989

 

 

$

(839

)

 

$

(889

)

 

$

281,188

 

 

$

294,786

 

Operating earnings (loss)

 

$

24,386

 

 

$

55,668

 

 

$

19,281

 

 

$

10,812

 

 

$

(17,802

)

 

$

(22,652

)

 

$

25,865

 

 

$

43,828

 

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total charges/other items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings (loss)

 

$

24,386

 

$

55,668

 

$

19,281

 

$

10,812

 

$

(17,802

)

 

$

(22,652

)

 

$

25,865

 

$

43,828

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 28,

 

January 29,

 

January 28,

 

January 29,

 

January 28,

 

January 29,

 

January 28,

 

January 29,

 

($ thousands)

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

Net sales

 

$

1,705,093

 

 

$

1,748,291

 

 

$

1,322,772

 

 

$

1,081,003

 

 

$

(59,727

)

 

$

(51,690

)

 

$

2,968,138

 

 

$

2,777,604

 

 

Gross profit

 

 

789,004

 

 

 

839,401

 

 

 

497,265

 

 

 

386,780

 

 

 

(1,396

)

 

 

1,136

 

 

 

1,284,873

 

 

 

1,227,317

 

 

Adjusted gross profit

 

 

789,004

 

 

 

839,401

 

 

 

497,265

 

 

 

386,780

 

 

 

(1,396

)

 

 

1,136

 

 

 

1,284,873

 

 

 

1,227,317

 

 

Gross profit rate

 

 

46.3

 

%

 

48.0

 

%

 

37.6

 

%

 

35.8

 

%

 

2.3

 

%

 

(2.2

)

%

 

43.3

 

%

 

44.2

 

%

Adjusted gross profit rate

 

 

46.3

 

%

 

48.0

 

%

 

37.6

 

%

 

35.8

 

%

 

2.3

 

%

 

(2.2

)

%

 

43.3

 

%

 

44.2

 

%

Operating earnings (loss)

 

 

195,837

 

 

 

276,415

 

 

 

112,345

 

 

 

35,928

 

 

 

(93,855

)

 

 

(106,536

)

 

 

214,327

 

 

 

205,807

 

 

Adjusted operating earnings (loss)

 

 

195,837

 

 

 

276,415

 

 

 

112,345

 

 

 

49,410

 

 

 

(90,945

)

 

 

(106,536

)

 

 

217,237

 

 

 

219,289

 

 

Operating earnings %

 

 

11.5

 

%

 

15.8

 

%

 

8.5

 

%

 

3.3

 

%

 

n/m

 

%

 

n/m

 

%

 

7.2

 

%

 

7.4

 

%

Adjusted operating earnings %

 

 

11.5

 

%

 

15.8

 

%

 

8.5

 

%

 

4.6

 

%

 

n/m

 

%

 

n/m

 

%

 

7.3

 

%

 

7.9

 

%

Comparable sales % (on a 52-week basis)

 

 

(1.8

)

%

 

12.5

 

%

 

31.4

 

%

 

30.6

 

%

 

 

%

 

 

%

 

 

%

 

 

%

Number of stores

 

 

873

 

 

 

894

 

 

92

 

 

86

 

 

 

 

 

 

 

 

965

 

 

980

 

 

n/m – Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Fifty-Two Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

January 28,

 

January 29,

 

January 28,

 

January 29,

 

January 28,

 

January 29,

 

January 28,

 

January 29,

($ thousands)

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

Gross profit

 

$

789,004

 

 

$

839,401

 

 

$

497,265

 

 

$

386,780

 

 

$

(1,396

)

 

$

1,136

 

 

$

1,284,873

 

 

$

1,227,317

 

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Portfolio - brand exits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total charges/other items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted gross profit

 

$

789,004

 

 

$

839,401

 

 

$

497,265

 

 

$

386,780

 

 

$

(1,396

)

 

$

1,136

 

 

$

1,284,873

 

 

$

1,227,317

 

Operating earnings (loss)

 

$

195,837

 

 

$

276,415

 

 

$

112,345

 

 

$

35,928

 

 

$

(93,855

)

 

$

(106,536

)

 

$

214,327

 

 

$

205,807

 

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Organizational changes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,910

 

 

 

 

 

 

2,910

 

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

 

 

 

13,482

 

 

 

 

 

 

 

 

 

 

 

 

13,482

 

Total charges/other items

 

 

 

 

 

 

 

 

 

 

 

13,482

 

 

 

2,910

 

 

 

 

 

 

2,910

 

 

 

13,482

 

Adjusted operating earnings (loss)

 

$

195,837

 

$

276,415

 

$

112,345

 

$

49,410

 

$

(90,945

)

 

$

(106,536

)

 

$

217,237

 

$

219,289

SCHEDULE 6

 

CALERES, INC.

BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Fifty-Two Weeks Ended

 

 

January 28,

 

January 29,

 

January 28,

 

January 29,

 

 

2023

 

2022

 

2023

 

2022

($ thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings attributable to Caleres, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

39,165

 

 

$

33,942

 

 

$

179,695

 

 

$

138,163

 

Net loss (earnings) attributable to noncontrolling interests

 

 

1,643

 

 

 

(88

)

 

 

2,047

 

 

 

(1,144

)

Net earnings attributable to Caleres, Inc.

 

 

40,808

 

 

 

33,854

 

 

 

181,742

 

 

 

137,019

 

Net earnings allocated to participating securities

 

 

(1,763

)

 

 

(1,240

)

 

 

(7,716

)

 

 

(4,982

)

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

 

$

39,045

 

 

$

32,614

 

 

$

174,026

 

 

$

132,037

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

34,102

 

 

 

36,486

 

 

 

34,930

 

 

 

36,741

 

Dilutive effect of share-based awards

 

 

548

 

 

 

533

 

 

 

475

 

 

 

354

 

Diluted common shares attributable to Caleres, Inc.

 

 

34,650

 

 

 

37,019

 

 

 

35,405

 

 

 

37,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.14

 

 

$

0.89

 

 

$

4.98

 

 

$

3.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.13

 

 

$

0.88

 

 

$

4.92

 

 

$

3.56

 

SCHEDULE 7

 

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Fifty-Two Weeks Ended

 

 

January 28,

 

January 29,

 

January 28,

 

January 29,

 

 

2023

 

2022

 

2023

 

2022

($ thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings attributable to Caleres, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings

 

$

21,791

 

 

$

34,956

 

 

$

165,044

 

 

$

166,334

 

Net loss (earnings) attributable to noncontrolling interests

 

 

1,643

 

 

 

(88

)

 

 

2,047

 

 

 

(1,144

)

Adjusted net earnings attributable to Caleres, Inc.

 

 

23,434

 

 

 

34,868

 

 

 

167,091

 

 

 

165,190

 

Net earnings allocated to participating securities

 

 

(1,012

)

 

 

(1,277

)

 

 

(7,092

)

 

 

(6,013

)

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

 

$

22,422

 

 

$

33,591

 

 

$

159,999

 

 

$

159,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

34,102

 

 

 

36,486

 

 

 

34,930

 

 

 

36,741

 

Dilutive effect of share-based awards

 

 

548

 

 

 

533

 

 

 

475

 

 

 

354

 

Diluted common shares attributable to Caleres, Inc.

 

 

34,650

 

 

 

37,019

 

 

 

35,405

 

 

 

37,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.66

 

 

$

0.92

 

 

$

4.58

 

 

$

4.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.65

 

 

$

0.91

 

 

$

4.52

 

 

$

4.29

 

SCHEDULE 8

 

CALERES, INC.

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

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Trailing Twelve Months Ended

($ thousands)

 

January 28, 2023

 

January 29, 2022

EBITDA:

 

 

 

 

 

 

 

 

Net earnings attributable to Caleres, Inc.

 

$

181,742

 

 

$

137,019

 

Income tax provision

 

 

33,339

 

 

 

51,081

 

Interest expense, net

 

 

14,264

 

 

 

30,930

 

Loss on early extinguishment of debt

 

 

 

 

 

1,011

 

Depreciation and amortization (1)

 

 

49,011

 

 

 

52,330

 

EBITDA

 

$

278,356

 

 

$

272,371

 

 

 

 

 

 

 

 

 

 

EBITDA margin

 

 

9.4

%

 

 

9.8

%

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

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

 

$

167,091

 

 

$

165,190

 

Income tax provision (3)

 

 

50,900

 

 

 

52,825

 

Interest expense, net (4)

 

 

14,264

 

 

 

15,507

 

Depreciation and amortization (1)

 

 

49,011

 

 

 

52,330

 

Adjusted EBITDA

 

$

281,266

 

 

$

285,852

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

9.5

%

 

 

10.3

%

_______________________________________

(1)

Includes depreciation and amortization of capitalized software and intangible assets.

(2)

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

(3)

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

(4)

Excludes the fair value adjustment to the Blowfish purchase obligation, as reflected on Schedule 4.

 

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