Executing phased reopening strategy
Implements enhanced in-store health and safety
measures
Curbside pickup available at multiple
locations
Announces first quarter 2020 earnings call
Caleres (NYSE: CAL, caleres.com) today announced it has begun a
phased reopening of its Famous Footwear and branded – Allen
Edmonds, Naturalizer and Sam Edelman – retail stores in a safe and
systematic manner.
Recently, Caleres began to reopen retail stores in areas where
restrictions have been relaxed or lifted. The company will progress
with this approach over the next several weeks, and currently
expects to have approximately 435 locations open by the end of May.
Caleres is closely monitoring state and local restrictions and
guidelines as it moves forward with the resumption of in-store
operations across its entire store fleet. Caleres anticipates the
vast majority of its stores to restart in-store service by the end
of June.
“After careful and extensive planning, we are pleased to be
taking this important step in the resumption of our store
operations, which we view as a core component of the Caleres value
proposition and an essential complement to our digital platform,”
said Diane Sullivan, chief executive officer, president and
chairman. “With the reopening of our brick-and-mortar operations,
we will again be able to offer our customers a full suite of
shopping and delivery options, while providing them with the added
convenience, service and immediacy that an in-person experience
affords. Over the next several weeks, we look forward to welcoming
back Associates and safely greeting our customers.”
Enhanced health and safety measures
Caleres’ top priority is the health and safety of its Associates
and its customers, and the company is taking numerous steps and
following government guidelines to ensure a safe and comfortable
in-store experience for all parties. Caleres is customizing its
stores to ensure appropriate distancing and contactless
transactions; equipping its Associates to provide the most
health-conscious service; and intensifying its already rigorous
cleaning and sanitizing procedures.
“It is critically important that we make every effort to ensure
that our customers and Associates feel confident, comfortable and
safe as they return to a familiar shopping experience and work
environment,” Sullivan continued. “As we look toward the next round
of store openings, we will take lessons from this first phase and
adjust accordingly.”
As stores reopen, details on what specifics brands are doing to
create safe environments for customers can be found on:
famousfootwear.com, allenedmonds.com, naturalizer.com and
samedelman.com.
Curbside pickup
During the recent period of store closures, Caleres leveraged
its brand power and the upfront investments made in its ecommerce
platform to shift to a digital-only business. Since that time,
Caleres has consistently explored ways to reach its consumers and
meet their evolving needs. In recent weeks, the company has
implemented a contactless curbside pickup option at approximately
170 locations across the country, with the expectation that this
service will be expanded to reach nearly 300 stores by next week.
This additional service channel provides an important supplement to
the strong ecommerce-related sales the company has experienced –
particularly at Famous Footwear.
Solid financial position
Caleres has focused sharply on managing costs, reducing capital
expenditures, driving down inventory levels and boosting liquidity
and has maintained a stable cash position since the store closures
in mid-March. The company expects that the gradual add back of its
brick-and-mortar operations, coupled with strength in its
ecommerce-related business establishes a viable path to positive
cash generation in the year’s second half.
“Whether consumers are returning to the retail world in person,
opting to shop online or picking up curbside, we will be ready. Our
Associates are prepared, our capabilities are in place, and our
financial foundation is solid. Looking ahead, the actions we have
taken to improve our agility, flexibility and speed will enable us
to continue to evolve with the quickly changing expectations of our
consumers.”
Investor conference call
Caleres will host an investor conference call Thursday, June 4,
2020, at 4:30 p.m. Eastern time. The webcast and slides will be
available at investor.caleres.com/news/events. The 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 7665925.
A replay will be available at
investor.caleres.com/news/events/archive for a limited period.
Investors may also access a replay of the call through June 18,
2020, by dialing (855) 859-2056 in North America or (404) 537-3406
internationally and using the conference ID 7665925.
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 recent 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.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200513005156/en/
Logan Bonacorsi lbonacorsi@caleres.com
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