Caleres (NYSE: CAL) (caleres.com), diverse portfolio of consumer-driven footwear brands, today reported financial results for the fourth quarter and fiscal year ended January 30, 2021.
“I am proud of the Caleres team and the tremendous progress we have made on a wide range of strategic objectives during an unprecedented year that saw the pervasive impact of the pandemic and protracted economic lockdown,” said Diane Sullivan, Chairman and CEO. “Among the highlights, we:
- Streamlined the organization and rightsized our expense base, resulting in $100 million in ongoing annualized expense savings;
- Achieved a 40 percent increase in ecommerce sales via our rapidly growing owned websites;
- Commenced the strategic closure of a portion of our brick-and-mortar portfolio to better align with the accelerated consumer shift toward digital;
- Generated approximately $126 million in cash from operations;
- Strengthened the balance sheet – restoring overall debt to below pre-pandemic levels by fiscal year-end and significantly reducing our working capital position;
- Returned approximately $34 million to shareholders through our long-standing dividend and share repurchase program.
“We continued to execute at a very high level at Famous Footwear, which rebounded quickly following the extended store closures and capped off 2020 with a modest decline in fourth quarter sales and a significant increase in year-over-year earnings. For the Brand Portfolio, we have identified areas of opportunity that are expected to position this segment for improved performance including actions to ensure the optimal alignment of our product assortment and omnichannel capabilities to more closely reflect rapidly evolving consumer behaviors, preferences and priorities.”
“While the pace of recovery is still uncertain, there are signs of stabilization in the marketplace,” said, Sullivan. “We believe we are well-positioned to capitalize as the market rebounds and the world returns to a greater degree of normalcy. As we plan for future success, we will focus on maintaining our strong momentum at Famous Footwear; driving enhanced consumer alignment and improved performance in the Brand Portfolio; taking a careful and disciplined approach to cost control and capital spending; reducing debt levels still further; and returning excess cash to shareholders. In short, Caleres is a more agile and focused organization than it was at the start of 2020, with an even more vigorous commitment to connecting with our consumers and providing them with compelling and fresh product – across growing footwear categories — when, where and how they want to shop. We are confident that we can leverage our talented and dedicated workforce, strong operating platform, powerful portfolio and improved financial position to capitalize on the opportunities we see ahead in order to drive long-term value for our shareholders.”
Key Financial Information:
Fourth Quarter 2020 Highlights
(13-weeks ended January 30, 2021 compared to 13-weeks ended February 1, 2020)
-
Net sales were $571.0 million, down 18.3 percent from the fourth quarter of fiscal 2019
- Direct-to-consumer represented 75 percent of total net sales
- A 6.2 percent sales decline in the Famous Footwear segment
- A 32.4 percent sales decline in the Brand Portfolio segment
- Total company owned ecommerce website sales increased approximately 25 percent, with ecommerce penetration rising to approximately 30 percent of net sales
- Gross profit was $225.6 million, while gross margin was 39.5 percent
- SG&A expense of $226.1 million, down $34.7 million compared to the fourth quarter of 2019
-
Net loss of $77.0 million, or loss of $2.11 per diluted share, compared to net earnings of $0.4 million, or earnings of $0.01 per diluted share in the fourth quarter of fiscal 2019. Loss of $2.11 per share includes $2.14 for the below items:
- COVID-19 related impairments and other expenses of $1.03;
- Intangible asset impairment charges of $0.49;
- Brand Portfolio expense of $0.37 related to the Naturalizer brand retail exits;
- Fair value adjustment of $0.18 associated with the mandatory purchase obligation for Blowfish Malibu; and
- Vionic integration-related costs of $0.07.
- Adjusted net income of $1.3 million, or $0.03 per diluted share compared to adjusted net income of $13.9 million, or $0.34 per diluted share in the fourth quarter of fiscal 2019
- Generated $24.6 million in cash from operations and ended the fourth quarter with $88.3 million of cash on hand
- Reduced credit facility borrowings by $50 million during the fourth quarter to end the year at $250 million, or $25 million below last year’s pre-virus levels
- Reduced inventory levels by approximately 21 percent year-over-year, reflecting ongoing actions taken to align with consumer demand and the ongoing liquidation of Naturalizer store inventory
Fiscal 2020 Results Versus 2019
(52-weeks ended January 30, 2021 compared to 52-weeks ended February 1, 2020)
-
Consolidated sales of $2,117.1 million were down 27.5 percent
- Direct-to-consumer sales represented 73 percent of total net sales
- A 20.4 percent sales decline in the Famous Footwear segment
- A 35.8 percent sales decline in the Brand Portfolio segment
- Total company owned ecommerce website sales increased approximately 40 percent, with ecommerce penetration rising to approximately 30 percent of net sales
- Gross profit was $787.0 million, while gross margin was 37.2%
- SG&A expense of $889.5 million represented 42.0% of sales
-
Net loss for the year was $439.1 million, resulting in a loss per diluted share of $11.80 including $10.40 for the below items:
- Goodwill and intangible asset impairment charges of $6.35;
- COVID-19 related impairments and other expenses of $3.10;
- Fair value adjustment of $0.48 associated with the mandatory purchase obligation for Blowfish Malibu;
- Brand Portfolio expense of $0.40 related to brand exits, primarily Naturalizer retail; and
- Vionic integration-related costs of $0.07.
- Adjusted net loss of $52.0 million, or adjusted loss of $1.40 per diluted share compared to adjusted net income of $86.4 million, or adjusted earnings of $2.10 per diluted share, in fiscal 2019
- Generated $126.4 million in cash from operations
-
Returned $34.1 million to shareholders during the year through:
- $10.8 million in dividend payouts; and
- $23.3 million to repurchase 2.9 million shares, or seven percent of shares outstanding, at an average share price of $8.05.
2021 Outlook
Given the ongoing disruption related to the virus, supply chain dislocations and associated near-term uncertainty in the marketplace, Caleres is not providing fiscal year 2021 guidance at this time. The company will evaluate market conditions as the year progresses and will endeavor to reinstate its more traditional guidance practices in the future.
Investor Conference Call
Caleres will host an investor conference call at 5:00 p.m. Eastern time today, Tuesday, March 16. The webcast and slides will be available at investor.caleres.com/news/events. A live conference call will be available at (877) 217-9089 for analysts in North America or (706) 679-1723 for international analysts by using the conference ID 9787564. A replay will be available at investor.caleres.com/news/events/archive for a limited period. Investors may also access the replay by dialing (855) 859-2056 in North America or (404) 537-3406 internationally and using the conference ID 9787564 through Monday, March 29.
Definitions
All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings (loss) attributable to Caleres, Inc. and diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders, are presented as net earnings (loss) and earnings (loss) per diluted share, respectively.
Non-GAAP Financial Measures
In this press release, the company’s financial results are provided both in accordance with generally accepted accounting principles (GAAP) and using certain non-GAAP financial measures. In particular, the company provides historic and estimated future gross profit, operating earnings (loss), net earnings (loss) and earnings (loss) per diluted share adjusted to exclude certain gains, charges and recoveries, which are non-GAAP financial measures. These results are included as a complement to results provided in accordance with GAAP because management believes these non-GAAP financial measures help identify underlying trends in the company’s business and provide useful information to both management and investors by excluding certain items that may not be indicative of the company’s core operating results. These measures should not be considered a substitute for or superior to GAAP results.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking statements and expectations regarding the company’s future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) the coronavirus outbreak and its adverse impact on our business operations, store traffic and financial condition (ii) changing consumer demands, which may be influenced by consumers' disposable income, which in turn can be influenced by general economic conditions and other factors; (iii) impairment charges resulting from a long-term decline in our stock price; (iv) rapidly changing fashion trends and consumer preferences and purchasing patterns; (v) intense competition within the footwear industry; (vi) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (vii) imposition of tariffs; (viii) the ability to accurately forecast sales and manage inventory levels; (ix) cybersecurity threats or other major disruption to the company’s information technology systems; (x) customer concentration and increased consolidation in the retail industry; (xi) transitional challenges with acquisitions; (xii) a disruption in the company’s distribution centers; (xiii) foreign currency fluctuations; (xiv) changes to tax laws, policies and treaties; (xv) the ability to recruit and retain senior management and other key associates; (xvi) compliance with applicable laws and standards with respect to labor, trade and product safety issues; (xvii) the ability to maintain relationships with current suppliers; (xviii) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights; and (xix) the ability to secure/exit leases on favorable terms. The company's reports to the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation, the information under the caption Risk Factors in Item 1A of the company’s Annual Report on Form 10-K for the year ended February 1, 2020, which information is incorporated by reference herein and updated by the company’s Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change.
SCHEDULE 1 |
CALERES, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) |
(Unaudited) | ||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||
($ thousands, except per share data) | January 30, 2021 | February 1, 2020 | January 30, 2021 | February 1, 2020 | ||||||||||||
Net sales | $ | 570,959 | $ | 698,948 | $ | 2,117,070 | $ | 2,921,562 | ||||||||
Cost of goods sold | 345,400 | 420,138 | 1,330,021 | 1,737,202 | ||||||||||||
Gross profit | 225,559 | 278,810 | 787,049 | 1,184,360 | ||||||||||||
Selling and administrative expenses | 226,063 | 260,788 | 889,489 | 1,065,760 | ||||||||||||
Impairment of goodwill and intangible assets | 23,805 | — | 286,524 | — | ||||||||||||
Restructuring and other special charges, net | 31,070 | 12,353 | 96,694 | 14,787 | ||||||||||||
Operating (loss) earnings | (55,379 | ) | 5,669 | (485,658 | ) | 103,813 | ||||||||||
Interest expense, net | (14,541 | ) | (7,835 | ) | (48,287 | ) | (33,123 | ) | ||||||||
Other income, net | 4,117 | 1 | 16,834 | 7,903 | ||||||||||||
(Loss) earnings before income taxes | (65,803 | ) | (2,165 | ) | (517,111 | ) | 78,593 | |||||||||
Income tax (provision) benefit | (11,276 | ) | 2,174 | 78,117 | (16,511 | ) | ||||||||||
Net (loss) earnings | (77,079 | ) | 9 | (438,994 | ) | 62,082 | ||||||||||
Net (loss) earnings attributable to noncontrolling interests | (103 | ) | (399 | ) | 120 | (737 | ) | |||||||||
Net (loss) earnings attributable to Caleres, Inc. | $ | (76,976 | ) | $ | 408 | $ | (439,114 | ) | $ | 62,819 | ||||||
Basic (loss) earnings per common share attributable to Caleres, Inc. shareholders | $ | (2.11 | ) | $ | 0.01 | $ | (11.80 | ) | $ | 1.53 | ||||||
Diluted (loss) earnings per common share attributable to Caleres, Inc. shareholders | $ | (2.11 | ) | $ | 0.01 | $ | (11.80 | ) | $ | 1.53 | ||||||
SCHEDULE 2 |
CALERES, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(Unaudited) | ||||||
($ thousands) | January 30, 2021 | February 1, 2020 | ||||
ASSETS | ||||||
Cash and cash equivalents | $ | 88,295 | $ | 45,218 | ||
Receivables, net | 126,994 | 162,181 | ||||
Inventories, net | 487,955 | 618,406 | ||||
Prepaid expenses and other current assets | 79,312 | 56,494 | ||||
Total current assets | 782,556 | 882,299 | ||||
Lease right-of-use assets | 554,303 | 695,594 | ||||
Property and equipment, net | 172,437 | 224,846 | ||||
Goodwill and intangible assets, net | 240,071 | 539,579 | ||||
Other assets | 117,683 | 89,389 | ||||
Total assets | $ | 1,867,050 | $ | 2,431,707 | ||
LIABILITIES AND EQUITY | ||||||
Borrowings under revolving credit agreement | $ | 250,000 | $ | 275,000 | ||
Mandatory purchase obligation - Blowfish Malibu | 39,134 | — | ||||
Trade accounts payable | 280,501 | 267,018 | ||||
Lease obligations | 153,060 | 127,869 | ||||
Other accrued expenses | 182,814 | 181,063 | ||||
Total current liabilities | 905,509 | 850,950 | ||||
Noncurrent lease obligations | 518,942 | 629,032 | ||||
Long-term debt | 198,851 | 198,391 | ||||
Other liabilities | 39,894 | 104,204 | ||||
Total other liabilities | 757,687 | 931,627 | ||||
Total Caleres, Inc. shareholders’ equity | 200,247 | 645,950 | ||||
Noncontrolling interests | 3,607 | 3,180 | ||||
Total equity | 203,854 | 649,130 | ||||
Total liabilities and equity | $ | 1,867,050 | $ | 2,431,707 | ||
SCHEDULE 3 |
CALERES, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) | ||||||||
Fifty-Two Weeks Ended | ||||||||
($ thousands) | January 30, 2021 | February 1, 2020 | ||||||
OPERATING ACTIVITIES: | ||||||||
Net cash provided by operating activities | $ | 126,353 | $ | 170,786 | ||||
INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | (16,786 | ) | (44,533 | ) | ||||
Disposals of property and equipment | — | 636 | ||||||
Capitalized software | (5,274 | ) | (5,619 | ) | ||||
Net cash used for investing activities | (22,060 | ) | (49,516 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Borrowings under revolving credit agreement | 438,500 | 288,500 | ||||||
Repayments under revolving credit agreement | (463,500 | ) | (348,500 | ) | ||||
Dividends paid | (10,764 | ) | (11,422 | ) | ||||
Acquisition of treasury stock | (23,348 | ) | (33,424 | ) | ||||
Issuance of common stock under share-based plans, net | (1,135 | ) | (2,644 | ) | ||||
Contributions by noncontrolling interests, net | 139 | 2,500 | ||||||
Other | (1,198 | ) | (1,342 | ) | ||||
Net cash used for financing activities | (61,306 | ) | (106,332 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 90 | 80 | ||||||
Increase in cash and cash equivalents | 43,077 | 15,018 | ||||||
Cash and cash equivalents at beginning of period | 45,218 | 30,200 | ||||||
Cash and cash equivalents at end of period | $ | 88,295 | $ | 45,218 | ||||
SCHEDULE 4 |
CALERES, INC. |
RECONCILIATION OF NET EARNINGS (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS (LOSS) AND ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE (NON-GAAP BASIS) |
(Unaudited) | ||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||
January 30, 2021 | February 1, 2020 | |||||||||||||||||||
Net (Loss) | Net | |||||||||||||||||||
Pre-Tax | Earnings | Diluted | Pre-Tax | Earnings | ||||||||||||||||
Impact of | Attributable | (Loss) | Impact of | Attributable | Diluted | |||||||||||||||
Charges/Other | to Caleres, | Earnings | Charges/Other | to Caleres, | Earnings | |||||||||||||||
($ thousands, except per share data) | Items | Inc. | Per Share | Items | Inc. | Per Share | ||||||||||||||
GAAP (loss) earnings | $ | (76,976 | ) | $ | (2.11 | ) | $ | 408 | $ | 0.01 | ||||||||||
Charges/other items: | ||||||||||||||||||||
Intangible asset impairment charges | $ | 23,805 | 17,854 | 0.49 | $ | — | — | — | ||||||||||||
COVID-19-related expenses (1) | 15,245 | 37,486 | 1.03 | — | — | — | ||||||||||||||
Brand Portfolio - business exits | 14,774 | 13,680 | 0.37 | 1,615 | 1,198 | 0.03 | ||||||||||||||
Fair value adjustment to Blowfish purchase obligation | 8,989 | 6,675 | 0.18 | 1,545 | 1,147 | 0.03 | ||||||||||||||
Vionic integration-related costs | 3,436 | 2,552 | 0.07 | — | — | — | ||||||||||||||
Expense containment initiatives | — | — | — | 15,033 | 11,189 | 0.27 | ||||||||||||||
Total charges/other items | $ | 66,249 | $ | 78,247 | $ | 2.14 | $ | 18,193 | $ | 13,534 | $ | 0.33 | ||||||||
Adjusted earnings | $ | 1,271 | $ | 0.03 | $ | 13,942 | $ | 0.34 | ||||||||||||
(Unaudited) | ||||||||||||||||||||
Fifty-Two Weeks Ended | ||||||||||||||||||||
January 30, 2021 | February 1, 2020 | |||||||||||||||||||
Net (Loss) | Net | |||||||||||||||||||
Pre-Tax | Earnings | Diluted | Pre-Tax | Earnings | ||||||||||||||||
Impact of | Attributable | (Loss) | Impact of | Attributable | Diluted | |||||||||||||||
Charges/Other | to Caleres, | Earnings | Charges/Other | to Caleres, | Earnings | |||||||||||||||
($ thousands, except per share data) | Items | Inc. | Per Share | Items | Inc. | Per Share | ||||||||||||||
GAAP (loss) earnings | $ | (439,114 | ) | $ | (11.80 | ) | $ | 62,819 | $ | 1.53 | ||||||||||
Charges/other items: | ||||||||||||||||||||
Goodwill and intangible asset impairment charges | $ | 286,524 | 236,360 | 6.35 | $ | — | — | — | ||||||||||||
COVID-19-related expenses (2) | 114,285 | 115,533 | 3.10 | — | — | — | ||||||||||||||
Fair value adjustment to Blowfish purchase obligation | 23,935 | 17,773 | 0.48 | 5,428 | 4,031 | 0.10 | ||||||||||||||
Brand Portfolio - business exits | 16,372 | 14,867 | 0.40 | 3,520 | 2,613 | 0.06 | ||||||||||||||
Vionic acquisition and integration-related costs | 3,436 | 2,552 | 0.07 | 7,696 | 5,714 | 0.14 | ||||||||||||||
Expense containment initiatives | — | — | — | 15,033 | 11,189 | 0.27 | ||||||||||||||
Total charges/other items | $ | 444,552 | $ | 387,085 | $ | 10.40 | $ | 31,677 | $ | 23,547 | $ | 0.57 | ||||||||
Adjusted (loss) earnings | $ | (52,029 | ) | $ | (1.40 | ) | $ | 86,366 | $ | 2.10 | ||||||||||
| ____________________ | ||
(1) | Represents costs associated with the economic impact of the COVID-19 pandemic, primarily consisting of impairment charges associated with property and equipment and lease right-of use assets. | |
(2) | Represents costs associated with the economic impact of the COVID 19 pandemic, primarily consisting of impairment charges associated with property and equipment and lease right-of-use assets, inventory markdowns, expenses associated with factory order cancellations, provision for expected credit losses and severance. | |
SCHEDULE 5 | ||||||||
CALERES, INC. | ||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT | ||||||||
SUMMARY FINANCIAL RESULTS | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||||||||||
Famous Footwear | Brand Portfolio | Eliminations and Other | Consolidated | |||||||||||||||||||||||||||||
January 30, | February 1, | January 30, | February 1, | January 30, | February 1, | January 30, | February 1, | |||||||||||||||||||||||||
($ thousands) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Net sales | $ | 346,657 | $ | 369,468 | $ | 234,034 | $ | 345,972 | $ | (9,732 | ) | $ | (16,492 | ) | $ | 570,959 | $ | 698,948 | ||||||||||||||
Gross profit | 141,616 | 157,140 | 83,121 | 121,095 | 822 | 575 | 225,559 | 278,810 | ||||||||||||||||||||||||
Adjusted gross profit | 141,616 | 157,140 | 85,506 | 122,710 | 822 | 575 | 227,944 | 280,425 | ||||||||||||||||||||||||
Gross profit rate | 40.9 | % | 42.5 | % | 35.5 | % | 35.0 | % | (8.4 | )% | (3.5 | )% | 39.5 | % | 39.9 | % | ||||||||||||||||
Adjusted gross profit rate | 40.9 | % | 42.5 | % | 36.5 | % | 35.5 | % | (8.4 | )% | (3.5 | )% | 39.9 | % | 40.1 | % | ||||||||||||||||
Operating earnings (loss) | 14,830 | 6,860 | (55,888 | ) | 11,928 | (14,321 | ) | (13,119 | ) | (55,379 | ) | 5,669 | ||||||||||||||||||||
Adjusted operating earnings (loss) | 14,830 | 10,343 | 1,214 | 18,621 | (14,163 | ) | (9,327 | ) | 1,881 | 19,637 | ||||||||||||||||||||||
Operating earnings (loss) % | 4.3 | % | 1.9 | % | (23.9 | )% | 3.4 | % | 147.2 | % | 79.5 | % | (9.7 | )% | 0.8 | % | ||||||||||||||||
Adjusted operating earnings % | 4.3 | % | 2.8 | % | 0.5 | % | 5.4 | % | 145.5 | % | 56.6 | % | 0.3 | % | 2.8 | % | ||||||||||||||||
Same-store sales % (on a 13-week basis) | (1.8 | )% | 5.1 | % | (28.3 | )% | (0.6 | )% | — | % | — | % | — | % | — | % | ||||||||||||||||
Number of stores | 916 | 949 | 170 | 228 | — | — | 1,086 | 1,177 | ||||||||||||||||||||||||
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||||||
Famous Footwear | Brand Portfolio | Eliminations and Other | Consolidated | |||||||||||||||||||||||||
January 30, | February 1, | January 30, | February 1, | January 30, | February 1, | January 30, | February 1, | |||||||||||||||||||||
($ thousands) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Gross profit | $ | 141,616 | $ | 157,140 | $ | 83,121 | $ | 121,095 | $ | 822 | $ | 575 | $ | 225,559 | $ | 278,810 | ||||||||||||
Charges/Other Items: | ||||||||||||||||||||||||||||
Brand Portfolio - business exits | — | — | 2,385 | 1,615 | — | — | 2,385 | 1,615 | ||||||||||||||||||||
Total charges/other items | — | — | 2,385 | 1,615 | — | — | 2,385 | 1,615 | ||||||||||||||||||||
Adjusted gross profit | $ | 141,616 | $ | 157,140 | $ | 85,506 | $ | 122,710 | $ | 822 | $ | 575 | $ | 227,944 | $ | 280,425 | ||||||||||||
Operating earnings (loss) | $ | 14,830 | $ | 6,860 | $ | (55,888 | ) | $ | 11,928 | $ | (14,321 | ) | $ | (13,119 | ) | $ | (55,379 | ) | $ | 5,669 | ||||||||
Charges/Other Items: | ||||||||||||||||||||||||||||
Intangible asset impairment charges | — | — | 23,805 | — | — | — | 23,805 | — | ||||||||||||||||||||
COVID-19-related expenses | — | — | 15,245 | — | — | — | 15,245 | — | ||||||||||||||||||||
Brand Portfolio - business exits | — | — | 14,774 | 1,615 | — | — | 14,774 | 1,615 | ||||||||||||||||||||
Vionic integration-related costs | — | — | 3,278 | — | 158 | — | 3,436 | — | ||||||||||||||||||||
Expense containment initiatives | — | 3,483 | — | 5,078 | — | 3,792 | — | 12,353 | ||||||||||||||||||||
Total charges/other items | — | 3,483 | 57,102 | 6,693 | 158 | 3,792 | 57,260 | 13,968 | ||||||||||||||||||||
Adjusted operating earnings (loss) | $ | 14,830 | $ | 10,343 | $ | 1,214 | $ | 18,621 | $ | (14,163 | ) | $ | (9,327 | ) | $ | 1,881 | $ | 19,637 | ||||||||||
SCHEDULE 5 | ||||||||
CALERES, INC. | ||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT | ||||||||
SUMMARY FINANCIAL RESULTS | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Fifty-Two Weeks Ended | ||||||||||||||||||||||||||||||||
Famous Footwear | Brand Portfolio | Eliminations and Other | Consolidated | |||||||||||||||||||||||||||||
January 30, | February 1, | January 30, | February 1, | January 30, | February 1, | January 30, | February 1, | |||||||||||||||||||||||||
($ thousands) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Net sales | $ | 1,263,551 | $ | 1,588,057 | $ | 902,481 | $ | 1,406,460 | $ | (48,962 | ) | $ | (72,955 | ) | $ | 2,117,070 | $ | 2,921,562 | ||||||||||||||
Gross profit | 489,883 | 675,401 | 294,828 | 506,556 | 2,338 | 2,403 | 787,049 | 1,184,360 | ||||||||||||||||||||||||
Adjusted gross profit | 495,841 | 675,401 | 326,269 | 515,337 | 2,338 | 2,403 | 824,448 | 1,193,141 | ||||||||||||||||||||||||
Gross profit rate | 38.8 | % | 42.5 | % | 32.7 | % | 36.0 | % | (4.8 | )% | (3.3 | )% | 37.2 | % | 40.5 | % | ||||||||||||||||
Adjusted gross profit rate | 39.2 | % | 42.5 | % | 36.2 | % | 36.6 | % | (4.8 | )% | (3.3 | )% | 38.9 | % | 40.8 | % | ||||||||||||||||
Operating (loss) earnings | (23,821 | ) | 76,896 | (408,444 | ) | 58,153 | (53,393 | ) | (31,236 | ) | (485,658 | ) | 103,813 | |||||||||||||||||||
Adjusted (loss) operating earnings | (1,270 | ) | 80,379 | (11,172 | ) | 72,640 | (52,599 | ) | (25,637 | ) | (65,041 | ) | 127,382 | |||||||||||||||||||
Operating (loss) earnings% | (1.9 | )% | 4.8 | % | (45.3 | )% | 4.1 | % | 109.1 | % | 42.8 | % | (22.9 | )% | 3.6 | % | ||||||||||||||||
Adjusted (loss) operating earnings% | (0.1 | )% | 5.1 | % | (1.2 | )% | 5.2 | % | 107.4 | % | 35.1 | % | (3.1 | )% | 4.4 | % | ||||||||||||||||
Same-store sales % (on a 52-week basis) | 1.6 | % | 2.0 | % | (31.0 | )% | (5.8 | )% | — | % | — | % | — | % | — | % | ||||||||||||||||
Number of stores | 916 | 949 | 170 | 228 | — | — | 1,086 | 1,177 | ||||||||||||||||||||||||
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
Fifty-Two Weeks Ended | |||||||||||||||||||||||||||||
Famous Footwear | Brand Portfolio | Eliminations and Other | Consolidated | ||||||||||||||||||||||||||
January 30, | February 1, | January 30, | February 1, | January 30, | February 1, | January 30, | February 1, | ||||||||||||||||||||||
($ thousands) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||
Gross profit | $ | 489,883 | $ | 675,401 | $ | 294,828 | $ | 506,556 | $ | 2,338 | $ | 2,403 | $ | 787,049 | $ | 1,184,360 | |||||||||||||
Charges/Other Items: | |||||||||||||||||||||||||||||
COVID-19-related expenses | 5,958 | — | 27,458 | — | — | — | 33,416 | — | |||||||||||||||||||||
Brand Portfolio - business exits | — | — | 3,983 | 2,969 | — | — | 3,983 | 2,969 | |||||||||||||||||||||
Vionic acquisition and integration-related costs | — | — | — | 5,812 | — | — | — | 5,812 | |||||||||||||||||||||
Total charges/other items | 5,958 | — | 31,441 | 8,781 | — | — | 37,399 | 8,781 | |||||||||||||||||||||
Adjusted gross profit | $ | 495,841 | $ | 675,401 | $ | 326,269 | $ | 515,337 | $ | 2,338 | $ | 2,403 | $ | 824,448 | $ | 1,193,141 | |||||||||||||
Operating (loss) earnings | $ | (23,821 | ) | $ | 76,896 | $ | (408,444 | ) | $ | 58,153 | $ | (53,393 | ) | $ | (31,236 | ) | $ | (485,658 | ) | $ | 103,813 | ||||||||
Charges/Other Items: | |||||||||||||||||||||||||||||
Goodwill and intangible asset impairment charges | — | — | 286,524 | — | — | — | 286,524 | — | |||||||||||||||||||||
COVID-19-related expenses | 22,551 | — | 91,098 | — | 636 | — | 114,285 | — | |||||||||||||||||||||
Brand Portfolio - business exits | — | — | 16,372 | 3,520 | — | — | 16,372 | 3,520 | |||||||||||||||||||||
Vionic acquisition and integration-related costs | — | — | 3,278 | 5,889 | 158 | 1,807 | 3,436 | 7,696 | |||||||||||||||||||||
Expense containment initiatives | — | 3,483 | — | 5,078 | — | 3,792 | — | 12,353 | |||||||||||||||||||||
Total charges/other items | 22,551 | 3,483 | 397,272 | 14,487 | 794 | 5,599 | 420,617 | 23,569 | |||||||||||||||||||||
Adjusted operating (loss) earnings | $ | (1,270 | ) | $ | 80,379 | $ | (11,172 | ) | $ | 72,640 | $ | (52,599 | ) | $ | (25,637 | ) | $ | (65,041 | ) | $ | 127,382 | ||||||||
SCHEDULE 6 |
CALERES, INC. |
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION |
(Unaudited) | ||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||
January 30, | February 1, | January 30, | February 1, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
($ thousands, except per share data) | ||||||||||||||||
Net (loss) earnings attributable to Caleres, Inc.: | ||||||||||||||||
Net (loss) earnings | $ | (77,079 | ) | $ | 9 | $ | (438,994 | ) | $ | 62,082 | ||||||
Net loss (earnings) attributable to noncontrolling interests | 103 | 399 | (120 | ) | 737 | |||||||||||
Net (loss) earnings attributable to Caleres, Inc. | (76,976 | ) | 408 | (439,114 | ) | 62,819 | ||||||||||
Net earnings allocated to participating securities | — | (45 | ) | — | (1,988 | ) | ||||||||||
Net (loss) earnings attributable to Caleres, Inc. after allocation of earnings to participating securities | $ | (76,976 | ) | $ | 363 | $ | (439,114 | ) | $ | 60,831 | ||||||
Basic and diluted common shares attributable to Caleres, Inc.: | ||||||||||||||||
Basic common shares | 36,564 | 39,235 | 37,220 | 39,796 | ||||||||||||
Dilutive effect of share-based awards | — | 55 | — | 57 | ||||||||||||
Diluted common shares attributable to Caleres, Inc. | 36,564 | 39,290 | 37,220 | 39,853 | ||||||||||||
Basic (loss) earnings per common share attributable to Caleres, Inc. shareholders | $ | (2.11 | ) | $ | 0.01 | $ | (11.80 | ) | $ | 1.53 | ||||||
Diluted (loss) earnings per common share attributable to Caleres, Inc. shareholders | $ | (2.11 | ) | $ | 0.01 | $ | (11.80 | ) | $ | 1.53 | ||||||
SCHEDULE 7 |
CALERES, INC. |
BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION |
(Unaudited) | ||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||
January 30, | February 1, | January 30, | February 1, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
($ thousands, except per share data) | ||||||||||||||||
Adjusted net earnings (loss) attributable to Caleres, Inc.: | ||||||||||||||||
Adjusted net earnings (loss) | $ | 1,168 | $ | 13,543 | $ | (51,909 | ) | $ | 85,629 | |||||||
Net loss (earnings) attributable to noncontrolling interests | 103 | 399 | (120 | ) | 737 | |||||||||||
Adjusted net earnings (loss) attributable to Caleres, Inc. | 1,271 | 13,942 | (52,029 | ) | 86,366 | |||||||||||
Net earnings allocated to participating securities | (55 | ) | (404 | ) | — | (2,766 | ) | |||||||||
Adjusted net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities | $ | 1,216 | $ | 13,538 | $ | (52,029 | ) | $ | 83,600 | |||||||
Basic and diluted common shares attributable to Caleres, Inc.: | ||||||||||||||||
Basic common shares | 36,564 | 39,235 | 37,220 | 39,796 | ||||||||||||
Dilutive effect of share-based awards | 162 | 55 | — | 57 | ||||||||||||
Diluted common shares attributable to Caleres, Inc. | 36,726 | 39,290 | 37,220 | 39,853 | ||||||||||||
Basic adjusted earnings (loss) per common share attributable to Caleres, Inc. shareholders | $ | 0.03 | $ | 0.35 | $ | (1.40 | ) | $ | 2.10 | |||||||
Diluted adjusted earnings (loss) per common share attributable to Caleres, Inc. shareholders | $ | 0.03 | $ | 0.34 | $ | (1.40 | ) | $ | 2.10 | |||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210316005983/en/
Contacts:
lbonacorsi@caleres.com
314.854.4134
