CAL Caleres Inc

Caleres (NYSE: CAL), a market-leading portfolio of consumer-driven footwear brands, today reported financial results for the second quarter 2024.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240911641867/en/

Sam Edelman Sylvia Knee High Boot (Photo: Business Wire)

• Reported Sales of $683.3 million, down 1.8% year-on-year;
  • Famous Footwear sales increased 1.5% versus the second quarter of 2023 with a later than expected back- to-school season;
  • Brand Portfolio sales declined 5.1% versus the second quarter of 2023 due to operational reporting challenges in connection with its SAP ERP implementation, and pockets of weak seasonal demand;
• Improved second quarter consolidated gross margin rate to 45.5 percent, up 30 basis points year-on-year;
• Reported $0.85 in earnings per share for the second quarter, below expectations;
• Generated second quarter EBITDA of $57.2 million;
• Announces restructuring actions that will result in $7.5 million in annualized SG&A savings and $2 million in SG&A savings in fiscal 2024;
• Lowers fiscal 2024 outlook of net sales to down low-single-digits percent versus previous guidance of flat to up 2 percent;
• Lowers fiscal 2024 outlook for earnings per diluted share to $3.94 - $4.09 versus prior guidance of $4.30 to $4.60 and provides guidance for adjusted earnings per diluted share of $4.00 to $4.15, which excludes $3 million in restructuring costs expected to occur in the third quarter.

“Caleres reported second quarter results that were below expectations. While our brands and products continue to resonate with consumers and we remain confident in our long-term vision, our second quarter results in both segments fell short of our potential. Our systems implementation led to lack of visibility that prevented us from delivering our expected results. We also experienced weak seasonal demand and back-to-school business came later than expected,” said Jay Schmidt, president and chief executive officer. “Despite the sales miss, our gross margin remained strong, driven by the Brand Portfolio. At the same time, Famous Footwear gained market share in the strategically important Kids category. Furthermore, back-to-school sales surged in August bringing the season in total in-line with our expectations.”

“We are confident in our ability to get back on track and have addressed the issues from the ERP implementation that temporarily impacted visibility. We are also accelerating certain restructuring actions to improve the efficiency and effectiveness of our teams. Looking ahead, we are confident in our ability to deliver earnings per share in line with our revised guidance,” said Schmidt. “Longer-term, we believe we are exceptionally well positioned to execute our strategic plan, invest to fuel our growth initiatives, and drive sustained value for our shareholders.”

Second Quarter 2024 Results

(13-weeks ended August 3, 2024 compared to 13-weeks ended July 29, 2023)

• Net sales were $683.3 million, down 1.8 percent from the second quarter of 2023;
  • Famous Footwear segment net sales increased 1.5 percent, with comparable sales down 2.9 percent
  • Brand Portfolio segment net sales declined 5.1 percent
  • Direct-to-consumer sales represented approximately 75 percent of total net sales
• Gross profit was $310.9 million, while gross margin was 45.5 percent, up 30 basis points versus last year;
  • Famous Footwear segment gross margin of 45.0 percent, down 120 basis points versus last year
  • Brand Portfolio segment gross margin of 42.7 percent, up 140 basis points versus last year
• SG&A as a percentage of net sales was 39.3 percent, reflecting planned investment in marketing at certain Lead Brands, international expansion and the implementation of the integrated SAP platform;
• Net earnings of $30.0 million, or earnings per diluted share of $0.85, compared to net earnings of $33.9 million, or earnings per diluted share of $0.95 in the second quarter 2023 and adjusted net earnings of $35.2 million, or adjusted earnings per diluted share of $0.98 in the second quarter of 2023;
• Inventory was flat to the second quarter 2023 in total;
• Borrowings under the asset-based revolving credit facility were $146.5 million at the end of the period, down $98 million from the second quarter of 2023, and included the benefit from a deferred vendor payment of $49 million.

Capital Allocation Update

During the quarter, Caleres continued to invest in value-driving growth opportunities while at the same time returning cash to shareholders through our dividend. In the near term, the company expects to continue to focus on reducing debt and still expects borrowings under its asset-based revolving credit facility will be less than $100 million by 2026. Caleres will continue to consider business performance and market conditions as it evaluates all opportunities for free cash flow as the year progresses, including share repurchases.

Fiscal 2024 Outlook:

Caleres is revising its fiscal 2024 financial outlook. As previously noted, its fiscal 2024 is a 52-week year and compares to a 53-week year in fiscal 2023. The revised assumptions are summarized in the table below. Our tax rate expectation of 24% is unchanged.

 

Metric

Prior 2024 Annual Guidance

Revised 2024 Annual Guidance

Third Quarter Guidance

Sales Change

Flat to up 2%

Down low single digits

Flat to down 2%

Operating Margin

7.3% - 7.5%

7.0% - 7.1%

 

GAAP EPS

$4.30 - $4.60

$3.94 - $4.09

$1.24 - $1.34

Adjusted EPS

$4.30 - $4.60

$4.00 - $4.15*

$1.30 - $1.40*

Capital Expenditures

$60 - $70 million

$50 - $55 million

 

* Adjusted EPS excludes $0.06 associated with restructuring costs in the third quarter.

Investor Conference Call

Caleres will host a conference call at 10:00 a.m. ET today, Thursday, September 12, 2024. The webcast and associated slides will be available at investor.caleres.com/events-and-presentations. 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 investor.caleres.com/events-and-presentations/archive 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 13748562.

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 and Metrics

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 and metrics. In particular, the company provides earnings before interest, taxes, depreciation and amortization (EBITDA) and estimated and future operating earnings, net earnings and earnings per diluted share, adjusted to exclude certain gains, charges and recoveries, which are non-GAAP financial measures, and the debt to EBITDA leverage ratio, which is a non-GAAP financial metric. These results are included as a complement to results provided in accordance with GAAP because management believes this non-GAAP financial measure and metric 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. This measure and metric 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 general economic conditions and other factors; (ii) inflationary pressures and supply chain disruptions (iii) rapidly changing consumer preferences and purchasing patterns and fashion trends; (iv) supplier concentration, customer concentration and increased consolidation in the retail industry; (v) intense competition within the footwear industry; (vi) foreign currency fluctuations; (vii) 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; (viii) cybersecurity threats or other major disruption to the company’s information technology systems including those related to our ERP upgrade; (ix) the ability to accurately forecast sales and manage inventory levels; (x) a disruption in the company’s distribution centers; (xi) the ability to recruit and retain senior management and other key associates; (xii) the ability to secure/exit leases on favorable terms; (xiii) the ability to maintain relationships with current suppliers; (xiv) transitional challenges with acquisitions and divestitures; (xiv) changes to tax laws, policies and treaties; (xvi) our commitments and shareholder expectations related to environmental, social and governance considerations; (xvii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xvii) 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, 2024, 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

 

Twenty-Six Weeks Ended

($ thousands, except per share data)

 

August 3, 2024

 

July 29, 2023

 

August 3, 2024

 

July 29, 2023

Net sales

 

$

683,317

 

 

$

695,533

 

 

$

1,342,515

 

 

$

1,358,267

 

Cost of goods sold

 

 

372,439

 

 

 

381,360

 

 

 

722,542

 

 

 

741,412

 

Gross profit

 

 

310,878

 

 

 

314,173

 

 

 

619,973

 

 

 

616,855

 

Selling and administrative expenses

 

 

268,349

 

 

 

262,823

 

 

 

534,685

 

 

 

515,918

 

Restructuring and other special charges, net

 

 

—

 

 

 

1,647

 

 

 

—

 

 

 

1,647

 

Operating earnings

 

 

42,529

 

 

 

49,703

 

 

 

85,288

 

 

 

99,290

 

Interest expense, net

 

 

(3,332

)

 

 

(5,128

)

 

 

(7,111

)

 

 

(10,751

)

Other income, net

 

 

1,177

 

 

 

1,616

 

 

 

2,169

 

 

 

3,108

 

Earnings before income taxes

 

 

40,374

 

 

 

46,191

 

 

 

80,346

 

 

 

91,647

 

Income tax provision

 

 

(10,101

)

 

 

(11,826

)

 

 

(19,275

)

 

 

(22,490

)

Net earnings

 

 

30,273

 

 

 

34,365

 

 

 

61,071

 

 

 

69,157

 

Net earnings attributable to noncontrolling interests

 

 

315

 

 

 

422

 

 

 

173

 

 

 

487

 

Net earnings attributable to Caleres, Inc.

 

$

29,958

 

 

$

33,943

 

 

$

60,898

 

 

$

68,670

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.85

 

 

$

0.95

 

 

$

1.73

 

 

$

1.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.85

 

 

$

0.95

 

 

$

1.73

 

 

$

1.91

 

SCHEDULE 2

 

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

(Unaudited)

($ thousands)

 

August 3, 2024

 

July 29, 2023

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

51,753

 

$

47,098

Receivables, net

 

 

151,055

 

 

136,549

Inventories, net

 

 

661,146

 

 

660,690

Property and equipment, held for sale

 

 

16,777

 

 

16,777

Prepaid expenses and other current assets

 

 

58,969

 

 

53,709

Total current assets

 

 

939,700

 

 

914,823

 

 

 

 

 

 

 

Lease right-of-use assets

 

 

588,842

 

 

505,423

Property and equipment, net

 

 

169,459

 

 

157,717

Goodwill and intangible assets, net

 

 

197,792

 

 

209,314

Other assets

 

 

124,192

 

 

116,683

Total assets

 

$

2,019,985

 

$

1,903,960

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

$

146,500

 

$

244,000

Trade accounts payable

 

 

396,450

 

 

350,020

Lease obligations

 

 

116,619

 

 

133,743

Other accrued expenses

 

 

200,854

 

 

228,608

Total current liabilities

 

 

860,423

 

 

956,371

 

 

 

 

 

 

 

Noncurrent lease obligations

 

 

508,950

 

 

429,192

Other liabilities

 

 

37,128

 

 

46,816

Total other liabilities

 

 

546,078

 

 

476,008

 

 

 

 

 

 

 

Total Caleres, Inc. shareholders’ equity

 

 

606,062

 

 

464,992

Noncontrolling interests

 

 

7,422

 

 

6,589

Total equity

 

 

613,484

 

 

471,581

Total liabilities and equity

 

$

2,019,985

 

$

1,903,960

SCHEDULE 3

 

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Twenty-Six Weeks Ended

($ thousands)

 

August 3, 2024

 

July 29, 2023

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net cash provided by operating activities

 

$

115,696

 

 

$

125,176

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(20,886

)

 

 

(15,044

)

Capitalized software

 

 

(922

)

 

 

(1,833

)

Net cash used for investing activities

 

 

(21,808

)

 

 

(16,877

)

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

 

306,868

 

 

 

252,000

 

Repayments under revolving credit agreement

 

 

(342,368

)

 

 

(315,500

)

Dividends paid

 

 

(4,899

)

 

 

(4,997

)

Acquisition of treasury stock

 

 

(15,070

)

 

 

(17,445

)

Issuance of common stock under share-based plans, net

 

 

(8,457

)

 

 

(10,010

)

Contributions by noncontrolling interests

 

 

500

 

 

 

1,000

 

Net cash used for financing activities

 

 

(63,426

)

 

 

(94,952

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(67

)

 

 

51

 

Increase in cash and cash equivalents

 

 

30,395

 

 

 

13,398

 

Cash and cash equivalents at beginning of period

 

 

21,358

 

 

 

33,700

 

Cash and cash equivalents at end of period

 

$

51,753

 

 

$

47,098

 

 

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 3, 2024

 

July 29, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

$

29,958

 

$

0.85

 

 

 

 

$

33,943

 

$

0.95

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense reduction initiatives

 

 

—

 

 

—

 

 

—

 

 

1,647

 

 

1,224

 

 

0.03

Total charges/other items

 

$

—

 

$

—

 

$

—

 

$

1,647

 

$

1,224

 

$

0.03

Adjusted earnings

 

 

 

 

$

29,958

 

$

0.85

 

 

 

 

$

35,167

 

$

0.98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Twenty-Six Weeks Ended

 

 

August 3, 2024

 

July 29, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

$

60,898

 

$

1.73

 

 

 

 

$

68,670

 

$

1.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense reduction initiatives

 

 

—

 

 

—

 

 

—

 

 

1,647

 

 

1,224

 

 

0.04

Total charges/other items

 

$

—

 

$

—

 

$

—

 

$

1,647

 

$

1,224

 

$

0.04

Adjusted earnings

 

 

 

 

$

60,898

 

$

1.73

 

 

 

 

$

69,894

 

$

1.95

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Trailing Twelve Months Ended

 

 

August 3, 2024

 

July 29, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Tax

 

Net Earnings (Loss)

 

 

Pre-Tax

 

Net Earnings (Loss)

 

 

Impact of

 

Attributable

 

 

Impact of

 

Attributable

 

 

Charges/Other

 

to Caleres,

 

 

Charges/Other

 

to Caleres,

($ thousands)

 

Items

 

Inc.

 

 

Items

 

Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP earnings

 

 

 

 

$

163,619

 

 

 

 

 

 

$

148,725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred tax valuation allowance adjustments

 

$

—

 

 

(26,654

)

 

 

$

—

 

 

(17,374

)

Expense reduction initiatives

 

 

4,456

 

 

3,308

 

 

 

 

1,647

 

 

1,224

 

Organizational changes

 

 

—

 

 

—

 

 

 

 

2,910

 

 

2,723

 

Total charges/other items

 

$

4,456

 

$

(23,346

)

 

 

$

4,557

 

$

(13,427

)

Adjusted earnings

 

 

 

 

$

140,273

 

 

 

 

 

 

$

135,298

 

 

SCHEDULE 5

 

 

 

 

 

 

 

 

 

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

 

 

 

 

 

 

 

 

 

SUMMARY FINANCIAL RESULTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

Thirteen Weeks Ended

 

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

 

August 3,

 

July 29,

 

August 3,

 

July 29,

 

August 3,

 

July 29,

 

August 3,

 

July 29,

 

($ thousands)

 

2024

 

 

2023

 

 

2024

 

2023

 

2024

 

 

2023

 

 

2024

 

2023

 

Net sales

 

$

420,289

 

 

$

414,238

 

 

$

285,497

 

$

300,873

 

$

(22,469

)

 

$

(19,578

)

 

$

683,317

 

$

695,533

 

Gross profit

 

 

189,337

 

 

 

191,479

 

 

 

121,883

 

 

124,124

 

 

(342

)

 

 

(1,430

)

 

 

310,878

 

 

314,173

 

Gross margin

 

 

45.0

 

%

 

46.2

 

%

 

42.7

%

 

41.3

%

 

1.5

 

%

 

7.3

 

%

 

45.5

%

 

45.2

%

Operating earnings (loss)

 

 

34,384

 

 

 

40,630

 

 

 

23,620

 

 

26,828

 

 

(15,475

)

 

 

(17,755

)

 

 

42,529

 

 

49,703

 

Adjusted operating earnings (loss)

 

 

34,384

 

 

 

40,830

 

 

 

23,620

 

 

27,709

 

 

(15,475

)

 

 

(17,189

)

 

 

42,529

 

 

51,350

 

Operating margin

 

 

8.2

 

%

 

9.8

 

%

 

8.3

%

 

8.9

%

 

n/m

 

%

 

n/m

 

%

 

6.2

%

 

7.1

%

Adjusted operating earnings %

 

 

8.2

 

%

 

9.9

 

%

 

8.3

%

 

9.2

%

 

n/m

 

%

 

n/m

 

%

 

6.2

%

 

7.4

%

Comparable sales % (on a 13-week basis)

 

 

(2.9

)

%

 

(4.3

)

%

 

4.4

%

 

3.9

%

 

—

 

%

 

—

 

%

 

—

%

 

—

%

Company-operated stores, end of period

 

 

855

 

 

 

861

 

 

 

104

 

 

94

 

 

—

 

 

 

—

 

 

 

959

 

 

955

 

 

n/m – Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

August 3,

 

July 29,

 

August 3,

 

July 29,

 

August 3,

 

July 29,

 

August 3,

 

July 29,

($ thousands)

 

2024

 

2023

 

2024

 

2023

 

2024

 

 

2023

 

 

2024

 

2023

Operating earnings (loss)

 

$

34,384

 

$

40,630

 

$

23,620

 

$

26,828

 

$

(15,475

)

 

$

(17,755

)

 

$

42,529

 

$

49,703

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense reduction initiatives

 

 

—

 

 

200

 

 

—

 

 

881

 

 

—

 

 

 

566

 

 

 

—

 

 

1,647

Total charges/other items

 

 

—

 

 

200

 

 

—

 

 

881

 

 

—

 

 

 

566

 

 

 

—

 

 

1,647

Adjusted operating earnings (loss)

 

$

34,384

 

$

40,830

 

$

23,620

 

$

27,709

 

$

(15,475

)

 

$

(17,189

)

 

$

42,529

 

$

51,350

 

SCHEDULE 5

 

 

 

 

 

 

 

 

 

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

 

 

 

 

 

 

 

 

 

SUMMARY FINANCIAL RESULTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

Twenty-Six Weeks Ended

 

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

 

August 3,

 

July 29,

 

August 3,

 

July 29,

 

August 3,

 

July 29,

 

August 3,

 

July 29,

 

($ thousands)

 

2024

 

 

2023

 

 

2024

 

2023

 

2024

 

 

2023

 

 

2024

 

2023

 

Net sales

 

$

769,841

 

 

$

763,396

 

 

$

602,708

 

$

626,389

 

$

(30,034

)

 

$

(31,518

)

 

$

1,342,515

 

$

1,358,267

 

Gross profit

 

 

350,342

 

 

 

350,611

 

 

 

269,695

 

 

267,982

 

 

(64

)

 

 

(1,738

)

 

 

619,973

 

 

616,855

 

Gross profit rate

 

 

45.5

 

%

 

45.9

 

%

 

44.7

%

 

42.8

%

 

0.2

 

%

 

5.5

 

%

 

46.2

%

 

45.4

%

Operating earnings (loss)

 

 

51,240

 

 

 

57,686

 

 

 

65,045

 

 

69,497

 

 

(30,997

)

 

 

(27,893

)

 

 

85,288

 

 

99,290

 

Adjusted operating earnings (loss)

 

 

51,240

 

 

 

57,886

 

 

 

65,045

 

 

70,378

 

 

(30,997

)

 

 

(27,327

)

 

 

85,288

 

 

100,937

 

Operating earnings %

 

 

6.7

 

%

 

7.6

 

%

 

10.8

%

 

11.1

%

 

n/m

 

%

 

n/m

 

%

 

6.4

%

 

7.3

%

Adjusted operating earnings %

 

 

6.7

 

%

 

7.6

 

%

 

10.8

%

 

11.2

%

 

n/m

 

%

 

n/m

 

%

 

6.4

%

 

7.4

%

Comparable sales % (on a 26-week basis)

 

 

(2.6

)

%

 

(6.3

)

%

 

1.9

%

 

7.0

%

 

—

 

%

 

—

 

%

 

—

%

 

—

%

Company-operated stores, end of period

 

 

855

 

 

 

861

 

 

 

104

 

 

94

 

 

—

 

 

 

—

 

 

 

959

 

 

955

 

 

n/m – Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Twenty-Six Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

August 3,

 

July 29,

 

August 3,

 

July 29,

 

August 3,

 

July 29,

 

August 3,

 

July 29,

($ thousands)

 

2024

 

2023

 

2024

 

2023

 

2024

 

 

2023

 

 

2024

 

2023

Operating earnings (loss)

 

$

51,240

 

$

57,686

 

$

65,045

 

$

69,497

 

$

(30,997

)

 

$

(27,893

)

 

$

85,288

 

$

99,290

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense reduction initiatives

 

 

—

 

 

200

 

 

—

 

 

881

 

 

—

 

 

 

566

 

 

 

—

 

 

1,647

Total charges/other items

 

 

—

 

 

200

 

 

—

 

 

881

 

 

—

 

 

 

566

 

 

 

—

 

 

1,647

Adjusted operating earnings (loss)

 

$

51,240

 

$

57,886

 

$

65,045

 

$

70,378

 

$

(30,997

)

 

$

(27,327

)

 

$

85,288

 

$

100,937

SCHEDULE 6

 

CALERES, INC.

BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Twenty-Six Weeks Ended

 

 

August 3, 2024

 

July 29, 2023

 

August 3, 2024

 

July 29, 2023

($ thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings attributable to Caleres, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

30,273

 

 

$

34,365

 

 

$

61,071

 

 

$

69,157

 

Net earnings attributable to noncontrolling interests

 

 

(315

)

 

 

(422

)

 

 

(173

)

 

 

(487

)

Net earnings attributable to Caleres, Inc.

 

 

29,958

 

 

 

33,943

 

 

 

60,898

 

 

 

68,670

 

Net earnings allocated to participating securities

 

 

(1,065

)

 

 

(1,513

)

 

 

(2,278

)

 

 

(2,990

)

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

 

$

28,893

 

 

$

32,430

 

 

$

58,620

 

 

$

65,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

33,883

 

 

 

34,280

 

 

 

33,838

 

 

 

34,343

 

Dilutive effect of share-based awards

 

 

106

 

 

 

—

 

 

 

106

 

 

 

—

 

Diluted common shares attributable to Caleres, Inc.

 

 

33,989

 

 

 

34,280

 

 

 

33,944

 

 

 

34,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.85

 

 

$

0.95

 

 

$

1.73

 

 

$

1.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.85

 

 

$

0.95

 

 

$

1.73

 

 

$

1.91

 

SCHEDULE 7

 

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Twenty-Six Weeks Ended

 

 

August 3, 2024

 

July 29, 2023

 

August 3, 2024

 

July 29, 2023

($ thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings attributable to Caleres, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings

 

$

30,273

 

 

$

35,589

 

 

$

61,071

 

 

$

70,381

 

Net earnings attributable to noncontrolling interests

 

 

(315

)

 

 

(422

)

 

 

(173

)

 

 

(487

)

Adjusted net earnings attributable to Caleres, Inc.

 

 

29,958

 

 

 

35,167

 

 

 

60,898

 

 

 

69,894

 

Net earnings allocated to participating securities

 

 

(1,065

)

 

 

(1,568

)

 

 

(2,278

)

 

 

(3,044

)

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

 

$

28,893

 

 

$

33,599

 

 

$

58,620

 

 

$

66,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

33,883

 

 

 

34,280

 

 

 

33,838

 

 

 

34,343

 

Dilutive effect of share-based awards

 

 

106

 

 

 

—

 

 

 

106

 

 

 

—

 

Diluted common shares attributable to Caleres, Inc.

 

 

33,989

 

 

 

34,280

 

 

 

33,944

 

 

 

34,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.85

 

 

$

0.98

 

 

$

1.73

 

 

$

1.95

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.85

 

 

$

0.98

 

 

$

1.73

 

 

$

1.95

 

SCHEDULE 8

 

CALERES, INC.

CALCULATION OF EBITDA AND DEBT/EBITDA LEVERAGE RATIO (NON-GAAP METRICS)

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

($ thousands)

 

August 3, 2024

 

July 29, 2023

EBITDA:

 

 

 

 

 

 

 

 

Net earnings attributable to Caleres, Inc.

 

$

29,958

 

 

$

33,943

 

Income tax provision

 

 

10,101

 

 

 

11,826

 

Interest expense, net

 

 

3,332

 

 

 

5,128

 

Depreciation and amortization (1)

 

 

13,818

 

 

 

12,734

 

EBITDA

 

$

57,209

 

 

$

63,631

 

 

 

 

 

 

 

 

 

 

EBITDA margin

 

 

8.4

%

 

 

9.1

%

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

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

 

$

29,958

 

 

$

35,167

 

Income tax provision (3)

 

 

10,101

 

 

 

12,249

 

Interest expense, net

 

 

3,332

 

 

 

5,128

 

Depreciation and amortization (1)

 

 

13,818

 

 

 

12,734

 

Adjusted EBITDA

 

$

57,209

 

 

$

65,278

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

8.4

%

 

 

9.4

%

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Trailing Twelve Months Ended

($ thousands)

 

August 3, 2024

 

July 29, 2023

EBITDA:

 

 

 

 

 

 

 

 

Net earnings attributable to Caleres, Inc.

 

$

163,619

 

 

$

148,725

 

Income tax provision

 

 

6,275

 

 

 

20,996

 

Interest expense, net

 

 

15,703

 

 

 

20,132

 

Depreciation and amortization (1)

 

 

55,140

 

 

 

50,105

 

EBITDA

 

$

240,737

 

 

$

239,958

 

 

 

 

 

 

 

 

 

 

EBITDA margin

 

 

8.6

%

 

 

8.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

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

 

$

140,273

 

 

$

135,298

 

Income tax provision (3)

 

 

34,077

 

 

 

38,980

 

Interest expense, net

 

 

15,703

 

 

 

20,132

 

Depreciation and amortization (1)

 

 

55,140

 

 

 

50,105

 

Adjusted EBITDA

 

$

245,193

 

 

$

244,515

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

8.8

%

 

 

8.6

%

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

($ thousands)

 

August 3, 2024

 

July 29, 2023

Debt/EBITDA leverage ratio:

 

 

 

 

 

 

 

 

Borrowings under revolving credit agreement (4)

 

$

146,500

 

 

$

244,000

 

EBITDA (trailing twelve months)

 

 

240,737

 

 

 

239,958

 

Debt/EBITDA

 

 

0.6

 

 

 

1.0

 

________________________

(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)

Total availability under the revolving credit agreement was $344.1 million and $245.3 million as of August 3, 2024 and July 29, 2023, respectively. Total liquidity, which includes cash and cash equivalents and availability under the revolving credit agreement, was $395.9 million and $292.4 million for the respective periods.

 

SCHEDULE 9

 

CALERES, INC.

RECONCILIATION OF DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) – GUIDANCE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Third Quarter 2024

 

Fiscal 2024

 

 

Low

 

High

 

Low

 

High

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted earnings per share

 

$

1.24

 

$

1.34

 

$

3.94

 

$

4.09

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring costs

 

 

0.06

 

 

0.06

 

 

0.06

 

 

0.06

Adjusted diluted earnings per share

 

$

1.30

 

$

1.40

 

$

4.00

 

$

4.15

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240911641867/en/

Investor Contact: Liz Dunn ldunn@caleres.com