Caleres Provides Update on COVID-19
19 März 2020 - 12:41AM
Business Wire
Withdraws 2020 financial guidance
Closes remaining Famous Footwear stores
Caleres (NYSE: CAL, caleres.com), a diverse portfolio of global
footwear brands, today provided an update on its ongoing response
to the extensive spread of COVID-19. In addition to the previous
steps the Company has taken to temporarily close its branded retail
stores and certain Famous Footwear stores located in highly
impacted areas, Caleres has elected to close its remaining Famous
Footwear locations.
These additional closures will begin March 19, with all retail
locations, both branded and Famous Footwear, expected to remain
closed through April 2, 2020. During this time, Caleres understands
the need to balance overall health and safety with the ongoing
requirements of our consumers. To that end, consumers can still
purchase products online from Famous Footwear, Naturalizer, Allen
Edmonds and Sam Edelman for shipment directly to their home during
this closure period.
As a result, Caleres is withdrawing its 2020 financial guidance,
which only included estimated impacts from virus-related supply
chain disruptions and did not accommodate any virus-related decline
in consumer demand. While it remains difficult to quantify the
impact on full year financial results, the company will reassess
and expects to discuss its outlook on its first quarter 2020
conference call.
“During these extraordinary times we are taking steps to manage
the company conservatively,” said Ken Hannah, senior vice president
and chief financial officer. “We are reducing capital expenditures
and operating expenses and we have the flexibility to leverage our
strong balance sheet to shift our capital allocation priorities to
align with the best interest of our shareholders. As of March 18,
2020, we had a cash and liquidity position in excess of $175
million. Caleres has the ability to bolster its liquidity position
through an accordion feature, which allows for an increase in the
capacity of the asset based credit facility by up to $250 million.
We remain confident in our ability to service our debt and in the
long-term outlook for Caleres.”
“As we progress through this very volatile health crisis, we
will continue to balance the distinct needs of our communities with
ongoing requirements of our consumers, while working tirelessly to
ensure the safety of our team members and to protect our business,”
said Diane Sullivan, CEO, president and chairman of Caleres.
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;
(xvii) the ability to attract, retain, and maintain good
relationships with licensors and protect our intellectual property
rights; and(xviii) the recent coronavirus outbreak and its adverse
impact on our supply chain operations and our business, sales and
results of operations around the world. 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 2,
2019, 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 the home of today’s most coveted footwear brands and
represents a diverse portfolio spanning all of life’s styles and
experiences. Every shoe tells a story and Caleres has the perfect
fit for every one of them. Our collections have been developed and
acquired to meet the evolving needs of today’s assorted and growing
global audiences, with consumer insights driving every aspect of
the innovation, design, and craft that go into our distinctly
positioned brands, including Famous Footwear, Sam Edelman,
Naturalizer, Allen Edmonds, Vionic, Dr. Scholl’s Shoes, and more.
The Caleres story is most simply defined by the company’s mission:
Inspire people to feel great…feet first.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200318005804/en/
Ken Hannah khannah@caleres.com Logan Bonacorsi
lbonacorsi@caleres.com
Caleres (NYSE:CAL)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Caleres (NYSE:CAL)
Historical Stock Chart
Von Apr 2023 bis Apr 2024