- Brand Portfolio FY’18 sales up
7.0%
- Sam Edelman delivered record sales in
FY’18
- Naturalizer FY’18 same-store-sales up
4.6%
- Famous Footwear FY’18 same-store-sales
up 1.5%
- Acquired Vionic and Blowfish Malibu in
FY’18
- Completed transition to in-house
distribution center
- Repositioning Allen Edmonds for
FY’19
Caleres (NYSE: CAL)(caleres.com), a diverse portfolio of global
footwear brands, today reported fourth quarter 2018 financial
results.
“In 2018, we continued to build on our strategic plan, as we
gained market share in Brand Portfolio, delivered our seventh
consecutive year of same-store-sales improvement at Famous
Footwear, transitioned to an in-house distribution center facility,
and acquired two new brands. This work has prepared us for the
future and also positioned us for growth,” said Diane Sullivan,
CEO, president and chairman of Caleres. “For 2019, we are focused
on elevating our product assortment and our marketing at Famous
Footwear, while delivering profitable growth. At Brand Portfolio,
we plan to continue to expand our market share gains with strong
organic growth and contribution from our new brands, Vionic and
Blowfish. For Allen Edmonds, we will reduce our level of
promotional activity to strengthen brand equity for the
long-term.”
Fourth Quarter 2018 Results Versus 2017
- Consolidated sales of $720.3 million,
up 2.5%.
- Brand Portfolio sales of $355.1 million
were up 14.8%, including Vionic.
- Famous Footwear same-store-sales were
up 1.1%. Total sales of $365.2 million were down, as expected, as
the fourth quarter of 2017 included an additional week.
- Gross profit was $277.7 million, while
gross margin was 38.6% and adjusted gross margin was 39.9%.
- SG&A expense of $267.2 million
represented 37.1% of sales, an improvement of nearly 90 basis
points.
- Operating loss of $94.4 million and
adjusted operating earnings of $20.5 million.
- The net loss for the quarter was $75.5
million, resulting in a loss per diluted share of $1.83 including
$2.31 for the below items and a $0.10 benefit primarily related to
the 2017 Tax Cuts and Jobs Act.
- Allen Edmonds $2.01 non-cash impairment
of goodwill and intangible assets and $0.02 of integration and
reorganization expense.
- Blowfish Malibu and Vionic acquisition
and integration related expense of $0.15.
- Distribution center transition expenses
of $0.08 total.
- Brand Portfolio expense of $0.04
related to brand exits.
- Famous Footwear retail operations
restructuring expense of $0.01.
- Non-cash loss on early extinguishment
of debt.
- Adjusted net earnings were $16.0
million, while adjusted diluted net earnings per share were $0.38
and included approximately $0.08 of dilution related to Vionic
interest and amortization expense.
Fiscal 2018 Results Versus 2017
- Consolidated sales of $2,834.8 million,
up 1.8%.
- Brand Portfolio sales of $1,228.0
million were up 7.0%, including Vionic and Blowfish.
- Famous Footwear same-store-sales were
up 1.5%. Total sales of $1,606.8 million were down, as expected, as
2017 included a 53rd week.
- Gross profit was $1,156.3 million,
while gross margin was 40.8% and adjusted gross margin was
41.2%.
- SG&A expense of $1,041.8 million
represented 36.7% of sales, an improvement of nearly 45 basis
points.
- Operating earnings were $0.4 million
and adjusted operating earnings of $127.0 million.
- The net loss for the year was $5.4
million, resulting in a loss per diluted share of $0.13 including
$2.43 for the below items and a $0.09 benefit primarily related to
the 2017 Tax Cuts and Jobs Act.
- Allen Edmonds $1.93 non-cash impairment
of goodwill and intangible assets and $0.10 of acquisition,
integration and reorganization expense.
- Blowfish Malibu and Vionic acquisition
and integration related expense of $0.27.
- Distribution center transition expenses
of $0.08 total.
- Brand Portfolio expense of $0.04
related to brand exits.
- Famous Footwear retail operations
restructuring expense of $0.01.
- Non-cash loss on early extinguishment
of debt.
- Adjusted net earnings of $95.1 million
were up 2.1%, while adjusted diluted net earnings per share of
$2.21 were up 2.3% and included approximately $0.10 of dilution
related to Vionic interest and amortization expense.
Balance Sheet and Cash Flow
- Cash and equivalents of $30.2 million
and cash from operations of $129.6 million.
- There was $335.0 million of outstanding
borrowings under the revolving credit facility, following the
October 18, 2018, acquisition of Vionic.
- Inventory of $683.2 million was up
20.0% year-over-year and included $66.5 million of Vionic and
Blowfish inventory.
- Capital expenditures of $66.9 million
were up year-over-year, due to investment in in-house distribution
center capabilities.
- Returned $55.8 million to
shareholders in 2018 via share repurchases and dividends.
2019 Outlook
Consolidated net sales $3.0
billion to $3.05 billion Brand Portfolio sales Up low- to
mid-teens, including acquisitions Famous Footwear same-store-sales
Up low- to mid-single digits Adjusted earnings per diluted share*
$2.45 to $2.55
* Excludes ~$0.16 of expenses
related to brand acquisitions and exits
Pension Presentation
Results for this year reflect the new accounting standard
related to the presentation of retirement benefits, which impacted
reported and adjusted 2017 operating income and margin. The effect
of this new standard resulted in a shift of $4.7
million of retirement plan income from fourth quarter 2017
SG&A expense to other income, net. For fiscal 2017, this amount
was $12.3 million. There was no impact to net earnings or earnings
per share for the fourth quarter or for fiscal 2017, due to the
adoption of this standard.
Investor Conference Call
Caleres will host an investor conference call at 4:30 p.m. ET
today, Thursday, March 21. 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
1580868. 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 1580868 through Wednesday, March 27.
Definitions
All references in this press release, outside of the condensed
consolidated financial statements that follow, unless otherwise
noted, related to net earnings attributable to Caleres, Inc. and
diluted earnings per common share attributable to Caleres, Inc.
shareholders, are presented as net earnings and earnings per
diluted share, respectively.
Non-GAAP Financial Measures
In this press release, the company’s financial results are
provided both in accordance with generally accepted accounting
principles (GAAP) and using certain non-GAAP financial measures. In
particular, the company provides historic and estimated future
gross profit, operating earnings, net earnings and earnings per
diluted share adjusted to exclude certain gains, charges and
recoveries, which are non-GAAP financial measures. These results
are included as a complement to results provided in accordance with
GAAP because management believes these non-GAAP financial measures
help identify underlying trends in the company’s business and
provide useful information to both management and investors by
excluding certain items that may not be indicative of the company’s
core operating results. These measures should not be considered a
substitute for or superior to GAAP results.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
This press release contains certain forward-looking statements
and expectations regarding the company’s future performance and the
performance of its brands. Such statements are subject to various
risks and uncertainties that could cause actual results to differ
materially. These risks include (i) changing consumer demands,
which may be influenced by consumers' disposable income, which in
turn can be influenced by general economic conditions and other
factors; (ii) rapidly changing fashion trends and consumer
preferences and purchasing patterns; (iii) intense competition
within the footwear industry; (iv) political and economic
conditions or other threats to the continued and uninterrupted flow
of inventory from China and other countries, where the Company
relies heavily on third-party manufacturing facilities for a
significant amount of its inventory; (v) imposition of tariffs;
(vi) the ability to accurately forecast sales and manage inventory
levels; (vii) cybersecurity threats or other major disruption to
the Company’s information technology systems; (viii) customer
concentration and increased consolidation in the retail industry;
(ix) transitional challenges with acquisitions; (x) a
disruption in the Company’s distribution centers; (xi) foreign
currency fluctuations; (xii) changes to tax laws, policies and
treaties; (xiii) the ability to recruit and retain senior
management and other key associates; (xiv) compliance with
applicable laws and standards with respect to labor, trade and
product safety issues; (xv) the ability to secure/exit leases on
favorable terms; (xvi) the ability to maintain relationships with
current suppliers; 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,
2018, which information is incorporated by reference herein and
updated by the company’s Quarterly Reports on Form 10-Q. The
company does not undertake any obligation or plan to update these
forward-looking statements, even though its situation may
change.
About Caleres
Caleres is a diverse portfolio of global footwear brands. Our
products are available virtually everywhere - in the over 1,200
retail stores we operate, in hundreds of major department and
specialty stores, on our branded e-commerce sites, and on many
additional third-party retail websites. Famous Footwear offers
great casual and athletic brands for the entire family with
convenient, curated, affordable collections. Sam Edelman keeps
expressive women in step with the latest trends in a playful,
whimsical way. Naturalizer shoes are beautiful from the inside out,
with elegant simplicity and legendary fit re-imagined for today’s
consumer. Allen Edmonds combines old world craft with new world
technology to create luxe footwear for the discerning man who wants
sophisticated, modern classics. Rounding out our family of brands
are Vionic, Vince, Franco Sarto, Dr. Scholl’s Shoes, LifeStride,
Via Spiga, Blowfish Malibu, Bzees, Circus by Sam Edelman, Fergie
and Ryka. Combined, these brands make Caleres a company with both a
legacy and a mission. Our legacy is our more than 140 years of
craftsmanship and our passion for fit, while our mission is to
continue to inspire people to feel great… feet
first. Visit caleres.com to learn more about us.
SCHEDULE 1
CALERES,
INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(LOSS) (Unaudited) Thirteen
Weeks Ended
Fourteen
Weeks Ended
Fifty-Two
Weeks Ended
Fifty-Three
Weeks Ended
(Thousands, except per share data) February 2, 2019 February 3,
2018 February 2, 2019 February 3, 2018 Net sales $ 720,263 $
702,465 $ 2,834,846 $ 2,785,584 Cost of goods sold 442,551
409,070 1,678,502 1,616,935 Gross profit
277,712 293,395 1,156,344 1,168,649
Selling and administrative expenses 267,210 266,862 1,041,765
1,036,051 Impairment of goodwill and intangible assets 98,044 —
98,044 — Restructuring and other special charges, net 6,895
942 16,134 4,915 Operating (loss) earnings
(94,437 ) 25,591 401 127,683 Interest expense,
net (6,782 ) (4,095 ) (18,277 ) (17,325 ) Loss on early
extinguishment of debt (186 ) — (186 ) — Other income, net 3,054
4,749 12,308 12,348 (Loss) earnings
before income taxes (98,351 ) 26,245 (5,754 ) 122,706
Income tax benefit (provision) 22,924 (5,944 ) 273
(35,475 ) Net (loss) earnings (75,427 ) 20,301 (5,481 )
87,231 Net earnings (loss) attributable to noncontrolling
interests 25 (15 ) (40 ) 31 Net (loss) earnings
attributable to Caleres, Inc. $ (75,452 ) $ 20,316 $ (5,441
) $ 87,200 Basic (loss) earnings per common share
attributable to Caleres, Inc. shareholders $ (1.83 ) $ 0.47
$ (0.13 ) $ 2.03 Diluted (loss) earnings per common
share attributable to Caleres, Inc. shareholders $ (1.83 ) $ 0.47
$ (0.13 ) $ 2.02
SCHEDULE 2 CALERES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) February 2, 2019 February 3, 2018
(Thousands)
ASSETS Cash and cash equivalents $ 30,200 $
64,047 Receivables, net 191,722 152,613 Inventories, net 683,171
569,379 Prepaid expenses and other current assets 71,354 60,750
Total current assets 976,447 846,789 Property and equipment,
net 230,784 212,799 Goodwill and intangible assets, net 549,897
339,168 Other assets 81,440 90,659 Total assets $ 1,838,568 $
1,489,415
LIABILITIES AND EQUITY Borrowings under
revolving credit agreement $ 335,000 $ — Trade accounts payable
316,298 272,962 Other accrued expenses 202,038 157,197 Total
current liabilities 853,336 430,159 Long-term debt 197,932
197,472 Deferred rent 54,850 53,071 Other liabilities 97,015 89,751
Total other liabilities 349,797 340,294 Total Caleres, Inc.
shareholders’ equity 634,053 717,489 Noncontrolling interests 1,382
1,473 Total equity 635,435 718,962 Total liabilities and equity $
1,838,568 $ 1,489,415
SCHEDULE 3
CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited) Fifty-Two
Weeks Ended
Fifty-Three
Weeks Ended
(Thousands) February 2, 2019 February 3, 2018 OPERATING ACTIVITIES:
Net cash provided by operating activities $ 129,589
$ 191,375 INVESTING ACTIVITIES: Purchases of
property and equipment (62,483 ) (44,720 ) Capitalized software
(4,416 ) (6,458 ) Acquisition of Blowfish Malibu, net of cash
received (16,792 ) — Acquisition of Vionic, net of cash received
(352,666 ) — Net cash used for investing activities (436,357
) (51,178 ) FINANCING ACTIVITIES: Borrowings under revolving
credit agreement 360,000 454,000 Repayments under revolving credit
agreement (25,000 ) (564,000 ) Repayments of capital lease
obligations (406 ) — Dividends paid (11,983 ) (12,027 ) Debt
issuance costs (1,298 ) — Acquisition of treasury stock (43,771 )
(5,993 ) Issuance of common stock under share-based plans, net
(4,372 ) (3,816 ) Net cash provided by (used for) financing
activities 273,170 (131,836 ) Effect of exchange rate
changes on cash and cash equivalents (249 ) 354 (Decrease)
increase in cash and cash equivalents (33,847 ) 8,715 Cash and cash
equivalents at beginning of period 64,047 55,332 Cash
and cash equivalents at end of period $ 30,200 $ 64,047
SCHEDULE 4
CALERES, INC.
RECONCILIATION OF NET EARNINGS (LOSS) AND DILUTED EARNINGS
(LOSS) PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED
DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) (Unaudited)
Thirteen Weeks Ended Fourteen Weeks Ended February 2, 2019
February 3, 2018 (Thousands, except per share data)
Pre-Tax
Impact of
Charges/
Other Items
Net (Loss)
Earnings
Attributable
to Caleres,
Inc.
Diluted
(Loss)
Earnings
Per Share
Pre-Tax
Impact of
Charges/
Other Items
Net Earnings
(Loss)
Attributable
to Caleres,
Inc.
Diluted
Earnings
(Loss) Per
Share
GAAP (loss) earnings $ (75,452 ) $ (1.83 ) $ 20,316 $ 0.47
Charges/other
items:
Impairment of goodwill and intangible assets $ 98,044 83,044 2.01 $
— — — Integration and reorganization of men's brands 1,014 754 0.02
— — — Logistics transition 4,488 3,326 0.08 — — — Blowfish Malibu
acquisition and integration-related costs 244 238 0.01 — — — Vionic
acquisition and integration-related costs 8,346 5,756 0.14 — — —
Brand Portfolio - business exits 2,395 1,779 0.04 — — — Retail
operations restructuring 392 287 0.01 942 596 0.02 Loss on early
extinguishment of debt 186 138 0.00 — — — Income tax reform —
(3,891 ) (0.10 ) —
(294 ) (0.01 ) Total charges/other items $
115,109 $ 91,431 $ 2.21
$ 942 $ 302 $ 0.01
Adjusted earnings $ 15,979 $ 0.38
$ 20,618 $ 0.48
SCHEDULE 4
CALERES, INC. RECONCILIATION OF NET
EARNINGS (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE (GAAP BASIS)
TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE
(NON-GAAP BASIS) (Unaudited) Fifty-Two Weeks Ended
Fifty-Three Weeks Ended February 2, 2019 February 3, 2018
(Thousands, except per share data)
Pre-Tax
Impact of
Charges/
Other Items
Net (Loss)
Earnings
Attributable
to Caleres,
Inc.
Diluted
(Loss)
Earnings
Per Share
Pre-Tax
Impact of
Charges/
Other Items
Net Earnings
(Loss)
Attributable
to Caleres,
Inc.
Diluted
Earnings
(Loss)
Per Share
GAAP (loss) earnings $ (5,441 ) $ (0.13 ) $ 87,200 $ 2.02
Charges/other
items:
Impairment of goodwill and intangible assets $ 98,044 83,044 1.93 $
— — — Integration and reorganization of men's brands 5,841 4,328
0.10 8,912 5,569 0.13 Logistics transition 4,488 3,326 0.08 — — —
Blowfish Malibu acquisition and integration-related costs 2,022
1,557 0.04 — — — Vionic acquisition and integration-related costs
13,368 9,926 0.23 — — — Brand Portfolio - business exits 2,395
1,779 0.04 — — — Retail operations restructuring 392 287 0.01 942
596 0.02 Loss on early extinguishment of debt 186 138 0.00 — — —
Income tax reform — (3,891 )
(0.09 ) — (294 ) (0.01 ) Total
charges/other items $ 126,736 $ 100,494
$ 2.34 $ 9,854 $ 5,871
$ 0.14 Adjusted earnings $ 95,053
$ 2.21 $ 93,071 $
2.16
SCHEDULE
5
CALERES, INC. SUMMARY FINANCIAL RESULTS BY
SEGMENT SUMMARY FINANCIAL RESULTS (Unaudited)
Famous Footwear Brand Portfolio Other
Consolidated
13 Weeks
Ended
14 Weeks
Ended
13 Weeks
Ended
14 Weeks
Ended
13 Weeks
Ended
14 Weeks
Ended
13 Weeks
Ended
14 Weeks
Ended
(Thousands)
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
Net sales $ 365,160 $ 393,085 $ 355,103 $ 309,380 $ — $ — $ 720,263
$ 702,465 Gross profit $ 156,028 $ 175,362 $ 121,684 $ 118,033 $ —
$ — $ 277,712 $ 293,395 Adjusted gross profit $ 156,028 $ 175,362 $
131,669 $ 118,033 $ — $ — $ 287,697 $ 293,395 Gross profit rate
42.7 % 44.6 % 34.3 % 38.2 % — % — % 38.6 % 41.8 % Adjusted gross
profit rate 42.7 % 44.6 % 37.1 % 38.2 % — % — % 39.9 % 41.8 %
Operating earnings (loss) $ 5,757 $ 13,093 $ (94,979 ) $ 26,700 $
(5,215 ) $ (14,202 ) $ (94,437 ) $ 25,591 Adjusted operating
earnings (loss) $ 6,149 $ 13,657 $ 19,149 $ 26,855 $ (4,812 ) $
(13,979 ) $ 20,486 $ 26,533 Operating earnings (loss) % 1.6 % 3.3 %
(26.7 )% 8.6 % — % — % (13.1 )% 3.6 % Adjusted operating earnings %
1.7 % 3.5 % 5.4 % 8.7 % — % — % 2.8 % 3.8 % Same-store sales % (on
a 13-week basis) (1) 1.1 % 2.8 % 0.2 % 5.9 % — % — % — % — % Number
of stores 992
1,026 229 236
— — 1,221
1,262
RECONCILIATION OF
ADJUSTED RESULTS (NON-GAAP) (Unaudited) Famous Footwear
Brand Portfolio Other
Consolidated
13 Weeks
Ended
14 Weeks
Ended
13 Weeks
Ended
14 Weeks
Ended
13 Weeks
Ended
14 Weeks
Ended
13 Weeks
Ended
14 Weeks
Ended
(Thousands)
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
Gross profit $ 156,028 $ 175,362 $ 121,684 $ 118,033 $ — $ — $
277,712 $ 293,395
Charges/Other
Items:
Blowfish Malibu acquisition and integration-related costs — — 244 —
— — 244 — Vionic acquisition and integration-related costs — —
7,973 — — — 7,973 — Brand Portfolio - business exits —
— 1,768 —
— —
1,768 — Total charges/other items —
— 9,985
— — —
9,985 — Adjusted gross
profit $ 156,028 $ 175,362
$ 131,669 $ 118,033
$ — $ — $ 287,697
$ 293,395 Operating earnings (loss) $
5,757 $ 13,093 $ (94,979 ) $ 26,700 $ (5,215 ) $ (14,202 ) $
(94,437 ) $ 25,591
Charges/Other
Items:
Impairment of goodwill and intangible assets — — 98,044 — — —
98,044 — Integration and reorganization of men's brands — — 984 —
30 — 1,014 — Logistics transition — — 4,488 — — — 4,488 — Blowfish
Malibu acquisition and integration-related costs — — 244 — — — 244
— Vionic acquisition and integration-related costs — — 7,973 — 373
— 8,346 — Brand Portfolio - business exits — — 2,395 — — — 2,395 —
Retail operations restructuring 392 564
— 155 —
223 392
942 Total charges/other items 392
564 114,128 155
403 223
114,923 942 Adjusted operating
earnings (loss) $ 6,149
$ 13,657 $ 19,149
$ 26,855 $ (4,812 ) $ (13,979 )
$ 20,486 $ 26,533 (1)
Fourteen week period ended February 3, 2018 excludes sales from
Allen Edmonds.
SCHEDULE 5
CALERES, INC. SUMMARY FINANCIAL RESULTS BY
SEGMENT SUMMARY FINANCIAL RESULTS
(Unaudited) Famous Footwear Brand Portfolio
Other Consolidated
52 Weeks
Ended
53 Weeks
Ended
52 Weeks
Ended
53 Weeks
Ended
52 Weeks
Ended
53 Weeks
Ended
52 Weeks
Ended
53 Weeks
Ended
(Thousands)
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
Net sales $ 1,606,808 $ 1,637,627 $ 1,228,038 $ 1,147,957 $ — $ — $
2,834,846 $ 2,785,584 Gross profit $ 690,830 $ 724,434 $ 465,514 $
444,215 $ — $ — $ 1,156,344 $ 1,168,649 Adjusted gross profit $
690,830 $ 724,434 $ 477,886 $ 449,154 $ — $ — $ 1,168,716 $
1,173,588 Gross profit rate 43.0 % 44.2 % 37.9 % 38.7 % — % — %
40.8 % 42.0 % Adjusted gross profit rate 43.0 % 44.2 % 38.9 % 39.1
% — % — % 41.2 % 42.1 % Operating earnings (loss) $ 85,268 $ 92,230
$ (42,206 ) $ 80,211 $ (42,661 ) $ (44,758 ) $ 401 $ 127,683
Adjusted operating earnings (loss) $ 85,660 $ 92,794 $ 78,745 $
86,787 $ (37,454 ) $ (42,044 ) $ 126,951 $ 137,537 Operating
earnings (loss) % 5.3 % 5.6 % (3.4 )% 7.0 % — % — % 0.0 % 4.6 %
Adjusted operating earnings % 5.3 % 5.7 % 6.4 % 7.6 % — % — % 4.5 %
4.9 % Same-store sales % (on a 52-week basis) (1) 1.5 % 1.4 % (0.1
)% 6.4 % — % — % — % — % Number of stores
992 1,026 229
236 —
— 1,221 1,262
(1) Fifty-three week period ended February 3, 2018 excludes
sales from Allen Edmonds
SCHEDULE 5
CALERES, INC. SUMMARY FINANCIAL RESULTS BY
SEGMENT RECONCILIATION OF ADJUSTED RESULTS
(NON-GAAP) (Unaudited) Famous Footwear
Brand Portfolio Other Consolidated
52 Weeks
Ended
53 Weeks
Ended
52 Weeks
Ended
53 Weeks
Ended
52 Weeks
Ended
53 Weeks
Ended
52 Weeks
Ended
53 Weeks
Ended
(Thousands)
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
Gross profit $ 690,830 $ 724,434 $ 465,514 $ 444,215 $ — $ — $
1,156,344 $ 1,168,649
Charges/Other
Items:
Integration and reorganization of men's brands — — — 4,939 — — —
4,939 Blowfish Malibu acquisition and integration-related costs — —
1,717 — — — 1,717 — Vionic acquisition and integration-related
costs — — 8,886 — — — 8,886 — Brand Portfolio - business exits —
— 1,769
— — —
1,769 — Total charges/other
items — — 12,372
4,939 — —
12,372 4,939 Adjusted
gross profit $ 690,830 $ 724,434
$ 477,886 $ 449,154
$ — $ — $
1,168,716 $ 1,173,588 Operating earnings
(loss) $ 85,268 $ 92,230 $ (42,206 ) $ 80,211 $ (42,661 ) $ (44,758
) $ 401 $ 127,683
Charges/Other
Items:
Impairment of goodwill and intangible assets — — 98,044 — — —
98,044 — Integration and reorganization of men's brands — — 5,421
6,421 420 2,491 5,841 8,912 Logistics transition — — 4,488 — — —
4,488 — Blowfish Malibu acquisition and integration-related costs —
— 1,717 — 305 — 2,022 — Vionic acquisition and integration-related
costs — — 8,886 — 4,482 — 13,368 — Brand Portfolio - business exits
— — 2,395 — — — 2,395 — Retail operations restructuring 392
564 — 155
— 223
392 942 Total charges/other items 392
564 120,951
6,576 5,207 2,714
126,550 9,854 Adjusted
operating earnings (loss) 85,660 92,794
78,745 86,787
(37,454 ) (42,044 ) 126,951
137,537
SCHEDULE 6
CALERES, INC. BASIC AND DILUTED
EARNINGS (LOSS) PER SHARE RECONCILIATION (Unaudited)
Thirteen
Weeks Ended
Fourteen
Weeks Ended
Fifty-Two
Weeks Ended
Fifty-Three
Weeks Ended
(Thousands, except per share data)
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
Net (loss) earnings attributable to Caleres, Inc.: Net
(loss) earnings $ (75,427 ) $ 20,301 $ (5,481 ) $ 87,231 Net
(earnings) loss attributable to noncontrolling interests (25 )
15 40 (31 ) Net (loss)
earnings attributable to Caleres, Inc. (75,452 ) 20,316 (5,441 )
87,200 Net earnings allocated to participating securities —
(545 ) — (2,384 ) Net (loss)
earnings attributable to Caleres, Inc. after allocation of earnings
to participating securities $ (75,452 ) $ 19,771
$ (5,441 ) $ 84,816 Basic and
diluted common shares attributable to Caleres, Inc.: Basic common
shares 41,150 41,799 41,756 41,801 Dilutive effect of share-based
awards — 198 — 179
Diluted common shares attributable to Caleres, Inc. 41,150
41,997 41,756
41,980 Basic (loss) earnings per common share
attributable to Caleres, Inc. shareholders $ (1.83 )
$ 0.47 $ (0.13 ) $ 2.03 Diluted
(loss) earnings per common share attributable to Caleres, Inc.
shareholders $ (1.83 ) $ 0.47 $ (0.13 )
$ 2.02
SCHEDULE 7
CALERES, INC. BASIC AND DILUTED ADJUSTED
EARNINGS PER SHARE RECONCILIATION (Unaudited) Thirteen
Weeks Ended
Fourteen
Weeks Ended
Fifty-Two
Weeks Ended
Fifty-Three
Weeks Ended
(Thousands, except per share data)
February 2,
2019
February 3,
2018
February 2,
2019
February 3,
2018
Adjusted net earnings attributable to Caleres, Inc.:
Adjusted net earnings $ 16,004 $ 20,603 $ 95,013 $ 93,102 Net
(earnings) loss attributable to noncontrolling interests (25 )
15 40 (31 ) Adjusted net
earnings attributable to Caleres, Inc. 15,979 20,618 95,053 93,071
Net earnings allocated to participating securities (462 )
(553 ) (2,678 ) (2,546 ) Adjusted net earnings
attributable to Caleres, Inc. after allocation of earnings to
participating securities $ 15,517 $ 20,065
$ 92,375 $ 90,525 Basic
and diluted common shares attributable to Caleres, Inc.: Basic
common shares 41,150 41,799 41,756 41,801 Dilutive effect of
share-based awards 127 198 118
179 Diluted common shares attributable to
Caleres, Inc. 41,277 41,997 41,874
41,980 Basic adjusted earnings
per common share attributable to Caleres, Inc. shareholders $ 0.38
$ 0.48 $ 2.21 $
2.17 Diluted adjusted earnings per common share
attributable to Caleres, Inc. shareholders $ 0.38 $ 0.48
$ 2.21 $ 2.16
SCHEDULE 8
CALERES, INC. RECONCILIATION OF INCOME TAX PROVISION AND
EFFECTIVE TAX RATE (GAAP BASIS) TO ADJUSTED INCOME TAX PROVISION
AND ADJUSTED EFFECTIVE TAX RATE (NON-GAAP BASIS)
(Unaudited) Thirteen Weeks Ended Fourteen Weeks Ended February 2,
2019 February 3, 2018
(Loss)
Earnings
Before
Income
Taxes
Income
Tax
Benefit
(Provision)
Effective
Tax Rate
Earnings
Before
Income
Taxes
Income
Tax
Provision
Effective
Tax Rate
(Thousands)
GAAP basis $ (98,351 ) $ 22,924 23.3 % $ 26,245 $ (5,944 )
22.6 %
Charges/other
items:
Impairment of goodwill and intangible assets 98,044 (15,000 ) — —
Integration and reorganization of men's brands 1,014 (260 ) — —
Logistics transition 4,488 (1,161 ) — — Blowfish Malibu acquisition
and integration-related costs 244 (6 ) — — Vionic acquisition and
integration-related costs 8,346 (2,590 ) — — Brand Portfolio -
business exits 2,395 (617 ) — — Retail operations restructuring 392
(105 ) 942 (346 ) Loss on early extinguishment of debt 186 (48 ) —
— Income tax reform — (3,891 )
— $ (294 ) Total
charges/other items $ 115,109 $ (23,678 )
20.6 % $ 942 $ (640 )
67.9 % Adjusted basis $ 16,758 $ (754 )
4.5 % $ 27,187 $ (6,584 )
24.2 %
SCHEDULE 8
CALERES, INC.
RECONCILIATION OF INCOME TAX PROVISION AND EFFECTIVE TAX RATE
(GAAP BASIS) TO ADJUSTED INCOME TAX PROVISION AND ADJUSTED
EFFECTIVE TAX RATE (NON-GAAP BASIS) (Unaudited)
Fifty-Two Weeks Ended Fifty-Three Weeks Ended February 2, 2019
February 3, 2018
(Loss)
Earnings
Before
Income
Taxes
Income Tax
Benefit
(Provision)
Effective
Tax Rate
Earnings
Before
Income
Taxes
Income Tax
Provision
Effective
Tax Rate
(Thousands)
GAAP basis $ (5,754 ) $ 273 4.7 % $ 122,706 $ (35,475 ) 28.9
%
Charges/other
items:
Impairment of goodwill and intangible assets 98,044 (15,000 ) — —
Acquisition, integration and reorganization of men's brands 5,841
(1,513 ) 8,912 (3,343 ) Logistics transition 4,488 (1,161 ) — —
Blowfish Malibu acquisition and integration-related costs 2,022
(465 ) — — Vionic acquisition and integration-related costs 13,368
(3,442 ) — — Brand Portfolio - business exits 2,395 (617 ) — —
Retail operations restructuring 392 (105 ) 942 (346 ) Loss on early
extinguishment of debt 186 (48 ) — — Income tax reform —
(3,891 ) —
$ (294 ) Total charges/other items $ 126,736
$ (26,242 ) 20.7 % $ 9,854
$ (3,983 ) 40.4 % Adjusted basis
$ 120,982 $ (25,969 ) 21.5 % $
132,560 $ (39,458 ) 29.8 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190321005741/en/
Investor and Media Contact:Peggy Reilly Tharp,
Caleres(314) 854-4134, ptharp@caleres.com
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