Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Caleres Reports First Quarter 2021 Results By: Caleres via Business Wire May 28, 2021 at 06:45 AM EDT Exceeded first quarter 2019 earnings levels Drove sequential sales and operating earnings improvement Famous Footwear achieved first quarter record sales and operating earnings Paid down an additional $50 million of debt during the first quarter Caleres (NYSE: CAL) (caleres.com), a diverse portfolio of consumer-centric footwear brands, today reported financial results for the first quarter ended May 1, 2021. Caleres continued its strong recovery in the quarter just ended – recording sequential top-line and earnings growth, stronger gross margins and an improved working capital and expense position. For the fourth straight period, the company put its free cash flow to work strengthening its balance sheet and reducing further its overall indebtedness, paying down an additional $50 million during the quarter. In total, the company has reduced its total debt levels by approximately $240 million since March of 2020. “Caleres had a strong start to the year, maintaining its solid upward momentum in the first quarter of 2021, driven in large part by an outstanding performance in our Famous Footwear business, where we achieved record quarterly earnings and delivered record first quarter sales levels,” said Diane Sullivan, Chairman and Chief Executive Officer. “Notably, Famous Footwear’s quarterly sales increased 13 percent over the first quarter of 2019, benefitting from strong demand for the category, increased consumer confidence and improving in-store traffic trends. Famous continues to leverage its enhanced omni-channel capabilities and capitalize on its direct-to-consumer model, as evidenced by a 13.2 percent increase in new rewards members – compared to the first quarter 2019 – and still-strong ecommerce sales levels.” “We remain positive about our outlook and expect continued strength at Famous Footwear to be combined with an improving performance in our Brand Portfolio as we progress through the year,” said Sullivan. We are particularly enthusiastic about the recent strong performances from our Vionic, Sam Edelman, Blowfish Malibu and Ryka brands, and are increasingly optimistic about our ability to drive margin growth and return to 2019 earnings levels for the segment in the year’s second half.” “Looking ahead, we plan to lean into the robust momentum at Famous Footwear and our enhanced direct-to-consumer capabilities; ensure alignment of supply and demand; and – as always – maintain our balanced approach to capital allocation. In short, we are excited about our strategy for continued value creation and believe we are exceptionally well positioned to capitalize on the accelerated recovery in the marketplace and to chase and capture market share opportunities as they develop throughout the year.” First Quarter 2021 Highlights (13-weeks ended May 1, 2021 compared to 13-weeks ended May 2, 2020) Net sales were $638.6 million, up 60.8 percent from the first quarter of fiscal 2020 Direct-to-consumer sales represented 74.5 percent of total net sales; A 108.2 percent sales increase in the Famous Footwear segment; A 15.2 percent sales increase in the Brand Portfolio segment; Total company owned ecommerce website sales increased 21.4 percent, with ecommerce penetration of 25.6 percent of net sales; Gross profit was $274.9 million, while gross margin was 43.0 percent; SG&A expense of $243.5 million, up $18.3 million compared to the first quarter of 2020; Net income of $6.1 million, or earnings of $0.16 per diluted share, compared to net loss of $345.8 million, or a loss of $8.95 per diluted share, in the first quarter of fiscal 2020. Earnings of $0.16 per share includes $0.44 for the below items: Brand Portfolio expense of $0.31 related to the Naturalizer brand retail exits; and Fair value adjustment of $0.13 associated with the mandatory purchase obligation for Blowfish Malibu; and Adjusted net income was $22.8 million, or adjusted earnings of $0.60 per diluted share compared to adjusted net loss of $50.4 million, or adjusted loss of $1.30 per diluted share, in the first quarter of fiscal 2020; Generated $70.4 million in cash from operations and ended the first quarter with $98.2 million of cash on hand; Reduced inventory levels approximately 24 percent year-over-year, reflecting the final liquidation of Naturalizer store inventory and global/industry-wide supply chain disruptions; Reduced credit facility borrowings by $50 million from the fourth quarter of 2020 to end the first quarter at $200 million; Returned $2.7 million to shareholders during the quarter through its long-standing quarterly dividend. Quarterly Cash Dividend The company’s board of directors declared a regular quarterly cash dividend of $0.07 per share to be paid on June 30, 2021 to shareholders of record as of June 11, 2021. This dividend will be the 393rd consecutive quarterly dividend paid by the company. Fiscal Second Quarter 2021 Outlook For the second quarter of 2021, Caleres expects sales levels to be between $625 million and $650 million – effectively flat to the first quarter of 2021 – and adjusted earnings per share of between $0.50 and $0.55, which excludes $0.06 related to the fair value adjustment to Blowfish purchase obligation. Investor Conference Call Caleres will host an investor conference call at 10:00 a.m. ET today, Friday, May 28. The webcast and associated 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 7644157. 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 7644157 through Thursday, June 10. 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 pandemic 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) rapidly changing consumer preferences and purchasing patterns and fashion trends; (iv) intense competition within the footwear industry; (v) customer concentration and increased consolidation in the retail industry; (vi) foreign currency fluctuations; (vii) impairment charges resulting from a long-term decline in our stock price; (viii) 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; (ix) cybersecurity threats or other major disruption to the company’s information technology systems; (x) the ability to accurately forecast sales and manage inventory levels; (xi) a disruption in the company’s distribution centers; (xii) the ability to recruit and retain senior management and other key associates; (xiii) the ability to maintain relationships with current suppliers; (xiv) the ability to secure/exit leases on favorable terms; (xv) transitional challenges with acquisitions and divestitures; (xvi) changes to tax laws, policies and treaties; (xvii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xviii) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights. About Caleres Caleres is a diverse portfolio of global footwear brands. Our products are available virtually everywhere - in the more than 1,000 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, Blowfish Malibu, Bzees, Circus by Sam Edelman 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 ($ thousands, except per share data) May 1, 2021 May 2, 2020 Net sales $ 638,636 $ 397,184 Cost of goods sold 363,749 275,286 Gross profit 274,887 121,898 Selling and administrative expenses 243,535 225,194 Impairment of goodwill and intangible assets — 262,719 Restructuring and other special charges, net 13,482 60,196 Operating earnings (loss) 17,870 (426,211 ) Interest expense, net (11,792 ) (9,478 ) Other income, net 3,828 3,585 Earnings (loss) before income taxes 9,906 (432,104 ) Income tax (provision) benefit (3,521 ) 85,932 Net earnings (loss) 6,385 (346,172 ) Net earnings (loss) attributable to noncontrolling interests 238 (334 ) Net earnings (loss) attributable to Caleres, Inc. $ 6,147 $ (345,838 ) Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.16 $ (8.95 ) Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.16 $ (8.95 ) SCHEDULE 2 CALERES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) ($ thousands) May 1, 2021 May 2, 2020 January 30, 2021 ASSETS Cash and cash equivalents $ 98,244 $ 187,717 $ 88,295 Receivables, net 132,698 145,333 126,994 Inventories, net 445,299 585,307 487,955 Prepaid expenses and other current assets 80,877 91,433 79,312 Total current assets 757,118 1,009,790 782,556 Lease right-of-use assets 526,011 648,534 554,303 Property and equipment, net 165,118 200,800 172,437 Goodwill and intangible assets, net 236,924 273,648 240,071 Other assets 117,652 90,913 117,683 Total assets $ 1,802,823 $ 2,223,685 $ 1,867,050 LIABILITIES AND EQUITY Borrowings under revolving credit agreement $ 200,000 $ 438,500 $ 250,000 Mandatory purchase obligation - Blowfish Malibu 45,523 — 39,134 Trade accounts payable 293,309 297,557 280,501 Lease obligations 133,327 160,138 153,060 Other accrued expenses 193,778 181,344 182,814 Total current liabilities 865,937 1,077,539 905,509 Noncurrent lease obligations 490,355 601,133 518,942 Long-term debt 198,966 198,506 198,851 Other liabilities 40,909 61,384 39,894 Total other liabilities 730,230 861,023 757,687 Total Caleres, Inc. shareholders’ equity 202,869 282,296 200,247 Noncontrolling interests 3,787 2,827 3,607 Total equity 206,656 285,123 203,854 Total liabilities and equity $ 1,802,823 $ 2,223,685 $ 1,867,050 SCHEDULE 3 CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Thirteen Weeks Ended ($ thousands) May 1, 2021 May 2, 2020 OPERATING ACTIVITIES: Net cash provided by operating activities $ 70,378 $ 728 INVESTING ACTIVITIES: Purchases of property and equipment (2,659 ) (3,523 ) Capitalized software (1,218 ) (977 ) Net cash used for investing activities (3,877 ) (4,500 ) FINANCING ACTIVITIES: Borrowings under revolving credit agreement 110,500 168,500 Repayments under revolving credit agreement (160,500 ) (5,000 ) Dividends paid (2,663 ) (2,810 ) Acquisition of treasury stock — (12,932 ) Issuance of common stock under share-based plans, net (3,501 ) (906 ) Other (450 ) (323 ) Net cash (used for) provided by financing activities (56,614 ) 146,529 Effect of exchange rate changes on cash and cash equivalents 62 (258 ) Increase in cash and cash equivalents 9,949 142,499 Cash and cash equivalents at beginning of period 88,295 45,218 Cash and cash equivalents at end of period $ 98,244 $ 187,717 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 May 1, 2021 May 2, 2020 Net Net (Loss) Pre-Tax Earnings Pre-Tax Earnings Diluted Impact of Attributable Diluted Impact of Attributable (Loss) 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 (loss) $ 6,147 $ 0.16 $ (345,838 ) $ (8.95 ) Charges/other items: Brand Portfolio - business exits $ 13,482 11,927 0.31 $ 1,598 1,187 0.03 Fair value adjustment to Blowfish purchase obligation 6,389 4,745 0.13 3,233 2,401 0.06 Goodwill and intangible asset impairment charges — — — 262,719 218,506 5.66 COVID-19-related expenses (1) — — — 93,612 73,338 1.90 Total charges/other items $ 19,871 $ 16,672 $ 0.44 $ 361,162 $ 295,432 $ 7.65 Adjusted earnings (loss) $ 22,819 $ 0.60 $ (50,406 ) $ (1.30 ) __________________________ (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, 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 ($ thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 Net sales $ 398,104 $ 191,252 $ 250,305 $ 217,238 $ (9,773 ) $ (11,306 ) $ 638,636 $ 397,184 Gross profit 179,815 69,093 94,003 53,393 1,069 (588 ) 274,887 121,898 Adjusted gross profit 179,815 75,051 94,003 82,449 1,069 (588 ) 274,887 156,912 Gross profit rate 45.2 % 36.1 % 37.6 % 24.6 % (10.9 ) % 5.2 % 43.0 % 30.7 % Adjusted gross profit rate 45.2 % 39.2 % 37.6 % 38.0 % (10.9 ) % 5.2 % 43.0 % 39.5 % Operating earnings (loss) 47,873 (67,540 ) (2,821 ) (345,748 ) (27,182 ) (12,923 ) 17,870 (426,211 ) Adjusted operating earnings (loss) 47,873 (45,578 ) 10,661 (10,138 ) (27,182 ) (12,566 ) 31,352 (68,282 ) Operating earnings (loss) % 12.0 % (35.3 ) % (1.1 ) % (159.2 ) % 278.1 % 114.3 % 2.8 % (107.3 ) % Adjusted operating earnings (loss) % 12.0 % (23.8 ) % 4.3 % (4.7 ) % 278.1 % 111.1 % 4.9 % (17.2 ) % Same-store sales % (on a 13-week basis) 3.3 % 12.6 % 5.1 % (24.8 ) % — % — % — % — % Number of stores 913 934 95 203 — — 1,008 1,137 RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) (Unaudited) Thirteen Weeks Ended Famous Footwear Brand Portfolio Eliminations and Other Consolidated ($ thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 Gross profit $ 179,815 $ 69,093 $ 94,003 $ 53,393 $ 1,069 $ (588 ) $ 274,887 $ 121,898 Charges/Other Items: COVID-19-related expenses — 5,958 — 27,458 — — — 33,416 Brand Portfolio - business exits — — — 1,598 — — — 1,598 Total charges/other items — 5,958 — 29,056 — — — 35,014 Adjusted gross profit $ 179,815 $ 75,051 $ 94,003 $ 82,449 $ 1,069 $ (588 ) $ 274,887 $ 156,912 Operating earnings (loss) $ 47,873 $ (67,540 ) $ (2,821 ) $ (345,748 ) $ (27,182 ) $ (12,923 ) $ 17,870 $ (426,211 ) Charges/Other Items: Brand Portfolio - business exits — — 13,482 1,598 — — 13,482 1,598 Goodwill and intangible asset impairment charges — — — 262,719 — — — 262,719 COVID-19-related expenses — 21,962 — 71,293 — 357 — 93,612 Total charges/other items — 21,962 13,482 335,610 — 357 13,482 357,929 Adjusted operating earnings (loss) $ 47,873 $ (45,578 ) $ 10,661 $ (10,138 ) $ (27,182 ) $ (12,566 ) $ 31,352 $ (68,282 ) SCHEDULE 6 CALERES, INC. BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION (Unaudited) Thirteen Weeks Ended May 1, 2021 May 2, 2020 ($ thousands, except per share data) Net earnings (loss) attributable to Caleres, Inc.: Net earnings (loss) $ 6,385 $ (346,172 ) Net (earnings) loss attributable to noncontrolling interests (238 ) 334 Net earnings (loss) attributable to Caleres, Inc. 6,147 (345,838 ) Net earnings allocated to participating securities (210 ) — Net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities $ 5,937 $ (345,838 ) Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 36,707 38,649 Dilutive effect of share-based awards 158 — Diluted common shares attributable to Caleres, Inc. 36,865 38,649 Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.16 $ (8.95 ) Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.16 $ (8.95 ) SCHEDULE 7 CALERES, INC. BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION (Unaudited) Thirteen Weeks Ended May 1, 2021 May 2, 2020 ($ thousands, except per share data) Adjusted net earnings (loss) attributable to Caleres, Inc.: Adjusted net earnings (loss) $ 23,057 $ (50,740 ) Net (earnings) loss attributable to noncontrolling interests (238 ) 334 Adjusted net earnings (loss) attributable to Caleres, Inc. 22,819 (50,406 ) Net earnings allocated to participating securities (828 ) — Adjusted net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities $ 21,991 $ (50,406 ) Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 36,707 38,649 Dilutive effect of share-based awards 158 — Diluted common shares attributable to Caleres, Inc. 36,865 38,649 Basic adjusted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.60 $ (1.30 ) Diluted adjusted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.60 $ (1.30 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20210528005052/en/Contacts Logan Bonacorsi lbonacorsi@caleres.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Caleres Reports First Quarter 2021 Results By: Caleres via Business Wire May 28, 2021 at 06:45 AM EDT Exceeded first quarter 2019 earnings levels Drove sequential sales and operating earnings improvement Famous Footwear achieved first quarter record sales and operating earnings Paid down an additional $50 million of debt during the first quarter Caleres (NYSE: CAL) (caleres.com), a diverse portfolio of consumer-centric footwear brands, today reported financial results for the first quarter ended May 1, 2021. Caleres continued its strong recovery in the quarter just ended – recording sequential top-line and earnings growth, stronger gross margins and an improved working capital and expense position. For the fourth straight period, the company put its free cash flow to work strengthening its balance sheet and reducing further its overall indebtedness, paying down an additional $50 million during the quarter. In total, the company has reduced its total debt levels by approximately $240 million since March of 2020. “Caleres had a strong start to the year, maintaining its solid upward momentum in the first quarter of 2021, driven in large part by an outstanding performance in our Famous Footwear business, where we achieved record quarterly earnings and delivered record first quarter sales levels,” said Diane Sullivan, Chairman and Chief Executive Officer. “Notably, Famous Footwear’s quarterly sales increased 13 percent over the first quarter of 2019, benefitting from strong demand for the category, increased consumer confidence and improving in-store traffic trends. Famous continues to leverage its enhanced omni-channel capabilities and capitalize on its direct-to-consumer model, as evidenced by a 13.2 percent increase in new rewards members – compared to the first quarter 2019 – and still-strong ecommerce sales levels.” “We remain positive about our outlook and expect continued strength at Famous Footwear to be combined with an improving performance in our Brand Portfolio as we progress through the year,” said Sullivan. We are particularly enthusiastic about the recent strong performances from our Vionic, Sam Edelman, Blowfish Malibu and Ryka brands, and are increasingly optimistic about our ability to drive margin growth and return to 2019 earnings levels for the segment in the year’s second half.” “Looking ahead, we plan to lean into the robust momentum at Famous Footwear and our enhanced direct-to-consumer capabilities; ensure alignment of supply and demand; and – as always – maintain our balanced approach to capital allocation. In short, we are excited about our strategy for continued value creation and believe we are exceptionally well positioned to capitalize on the accelerated recovery in the marketplace and to chase and capture market share opportunities as they develop throughout the year.” First Quarter 2021 Highlights (13-weeks ended May 1, 2021 compared to 13-weeks ended May 2, 2020) Net sales were $638.6 million, up 60.8 percent from the first quarter of fiscal 2020 Direct-to-consumer sales represented 74.5 percent of total net sales; A 108.2 percent sales increase in the Famous Footwear segment; A 15.2 percent sales increase in the Brand Portfolio segment; Total company owned ecommerce website sales increased 21.4 percent, with ecommerce penetration of 25.6 percent of net sales; Gross profit was $274.9 million, while gross margin was 43.0 percent; SG&A expense of $243.5 million, up $18.3 million compared to the first quarter of 2020; Net income of $6.1 million, or earnings of $0.16 per diluted share, compared to net loss of $345.8 million, or a loss of $8.95 per diluted share, in the first quarter of fiscal 2020. Earnings of $0.16 per share includes $0.44 for the below items: Brand Portfolio expense of $0.31 related to the Naturalizer brand retail exits; and Fair value adjustment of $0.13 associated with the mandatory purchase obligation for Blowfish Malibu; and Adjusted net income was $22.8 million, or adjusted earnings of $0.60 per diluted share compared to adjusted net loss of $50.4 million, or adjusted loss of $1.30 per diluted share, in the first quarter of fiscal 2020; Generated $70.4 million in cash from operations and ended the first quarter with $98.2 million of cash on hand; Reduced inventory levels approximately 24 percent year-over-year, reflecting the final liquidation of Naturalizer store inventory and global/industry-wide supply chain disruptions; Reduced credit facility borrowings by $50 million from the fourth quarter of 2020 to end the first quarter at $200 million; Returned $2.7 million to shareholders during the quarter through its long-standing quarterly dividend. Quarterly Cash Dividend The company’s board of directors declared a regular quarterly cash dividend of $0.07 per share to be paid on June 30, 2021 to shareholders of record as of June 11, 2021. This dividend will be the 393rd consecutive quarterly dividend paid by the company. Fiscal Second Quarter 2021 Outlook For the second quarter of 2021, Caleres expects sales levels to be between $625 million and $650 million – effectively flat to the first quarter of 2021 – and adjusted earnings per share of between $0.50 and $0.55, which excludes $0.06 related to the fair value adjustment to Blowfish purchase obligation. Investor Conference Call Caleres will host an investor conference call at 10:00 a.m. ET today, Friday, May 28. The webcast and associated 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 7644157. 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 7644157 through Thursday, June 10. 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 pandemic 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) rapidly changing consumer preferences and purchasing patterns and fashion trends; (iv) intense competition within the footwear industry; (v) customer concentration and increased consolidation in the retail industry; (vi) foreign currency fluctuations; (vii) impairment charges resulting from a long-term decline in our stock price; (viii) 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; (ix) cybersecurity threats or other major disruption to the company’s information technology systems; (x) the ability to accurately forecast sales and manage inventory levels; (xi) a disruption in the company’s distribution centers; (xii) the ability to recruit and retain senior management and other key associates; (xiii) the ability to maintain relationships with current suppliers; (xiv) the ability to secure/exit leases on favorable terms; (xv) transitional challenges with acquisitions and divestitures; (xvi) changes to tax laws, policies and treaties; (xvii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xviii) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights. About Caleres Caleres is a diverse portfolio of global footwear brands. Our products are available virtually everywhere - in the more than 1,000 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, Blowfish Malibu, Bzees, Circus by Sam Edelman 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 ($ thousands, except per share data) May 1, 2021 May 2, 2020 Net sales $ 638,636 $ 397,184 Cost of goods sold 363,749 275,286 Gross profit 274,887 121,898 Selling and administrative expenses 243,535 225,194 Impairment of goodwill and intangible assets — 262,719 Restructuring and other special charges, net 13,482 60,196 Operating earnings (loss) 17,870 (426,211 ) Interest expense, net (11,792 ) (9,478 ) Other income, net 3,828 3,585 Earnings (loss) before income taxes 9,906 (432,104 ) Income tax (provision) benefit (3,521 ) 85,932 Net earnings (loss) 6,385 (346,172 ) Net earnings (loss) attributable to noncontrolling interests 238 (334 ) Net earnings (loss) attributable to Caleres, Inc. $ 6,147 $ (345,838 ) Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.16 $ (8.95 ) Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.16 $ (8.95 ) SCHEDULE 2 CALERES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) ($ thousands) May 1, 2021 May 2, 2020 January 30, 2021 ASSETS Cash and cash equivalents $ 98,244 $ 187,717 $ 88,295 Receivables, net 132,698 145,333 126,994 Inventories, net 445,299 585,307 487,955 Prepaid expenses and other current assets 80,877 91,433 79,312 Total current assets 757,118 1,009,790 782,556 Lease right-of-use assets 526,011 648,534 554,303 Property and equipment, net 165,118 200,800 172,437 Goodwill and intangible assets, net 236,924 273,648 240,071 Other assets 117,652 90,913 117,683 Total assets $ 1,802,823 $ 2,223,685 $ 1,867,050 LIABILITIES AND EQUITY Borrowings under revolving credit agreement $ 200,000 $ 438,500 $ 250,000 Mandatory purchase obligation - Blowfish Malibu 45,523 — 39,134 Trade accounts payable 293,309 297,557 280,501 Lease obligations 133,327 160,138 153,060 Other accrued expenses 193,778 181,344 182,814 Total current liabilities 865,937 1,077,539 905,509 Noncurrent lease obligations 490,355 601,133 518,942 Long-term debt 198,966 198,506 198,851 Other liabilities 40,909 61,384 39,894 Total other liabilities 730,230 861,023 757,687 Total Caleres, Inc. shareholders’ equity 202,869 282,296 200,247 Noncontrolling interests 3,787 2,827 3,607 Total equity 206,656 285,123 203,854 Total liabilities and equity $ 1,802,823 $ 2,223,685 $ 1,867,050 SCHEDULE 3 CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Thirteen Weeks Ended ($ thousands) May 1, 2021 May 2, 2020 OPERATING ACTIVITIES: Net cash provided by operating activities $ 70,378 $ 728 INVESTING ACTIVITIES: Purchases of property and equipment (2,659 ) (3,523 ) Capitalized software (1,218 ) (977 ) Net cash used for investing activities (3,877 ) (4,500 ) FINANCING ACTIVITIES: Borrowings under revolving credit agreement 110,500 168,500 Repayments under revolving credit agreement (160,500 ) (5,000 ) Dividends paid (2,663 ) (2,810 ) Acquisition of treasury stock — (12,932 ) Issuance of common stock under share-based plans, net (3,501 ) (906 ) Other (450 ) (323 ) Net cash (used for) provided by financing activities (56,614 ) 146,529 Effect of exchange rate changes on cash and cash equivalents 62 (258 ) Increase in cash and cash equivalents 9,949 142,499 Cash and cash equivalents at beginning of period 88,295 45,218 Cash and cash equivalents at end of period $ 98,244 $ 187,717 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 May 1, 2021 May 2, 2020 Net Net (Loss) Pre-Tax Earnings Pre-Tax Earnings Diluted Impact of Attributable Diluted Impact of Attributable (Loss) 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 (loss) $ 6,147 $ 0.16 $ (345,838 ) $ (8.95 ) Charges/other items: Brand Portfolio - business exits $ 13,482 11,927 0.31 $ 1,598 1,187 0.03 Fair value adjustment to Blowfish purchase obligation 6,389 4,745 0.13 3,233 2,401 0.06 Goodwill and intangible asset impairment charges — — — 262,719 218,506 5.66 COVID-19-related expenses (1) — — — 93,612 73,338 1.90 Total charges/other items $ 19,871 $ 16,672 $ 0.44 $ 361,162 $ 295,432 $ 7.65 Adjusted earnings (loss) $ 22,819 $ 0.60 $ (50,406 ) $ (1.30 ) __________________________ (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, 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 ($ thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 Net sales $ 398,104 $ 191,252 $ 250,305 $ 217,238 $ (9,773 ) $ (11,306 ) $ 638,636 $ 397,184 Gross profit 179,815 69,093 94,003 53,393 1,069 (588 ) 274,887 121,898 Adjusted gross profit 179,815 75,051 94,003 82,449 1,069 (588 ) 274,887 156,912 Gross profit rate 45.2 % 36.1 % 37.6 % 24.6 % (10.9 ) % 5.2 % 43.0 % 30.7 % Adjusted gross profit rate 45.2 % 39.2 % 37.6 % 38.0 % (10.9 ) % 5.2 % 43.0 % 39.5 % Operating earnings (loss) 47,873 (67,540 ) (2,821 ) (345,748 ) (27,182 ) (12,923 ) 17,870 (426,211 ) Adjusted operating earnings (loss) 47,873 (45,578 ) 10,661 (10,138 ) (27,182 ) (12,566 ) 31,352 (68,282 ) Operating earnings (loss) % 12.0 % (35.3 ) % (1.1 ) % (159.2 ) % 278.1 % 114.3 % 2.8 % (107.3 ) % Adjusted operating earnings (loss) % 12.0 % (23.8 ) % 4.3 % (4.7 ) % 278.1 % 111.1 % 4.9 % (17.2 ) % Same-store sales % (on a 13-week basis) 3.3 % 12.6 % 5.1 % (24.8 ) % — % — % — % — % Number of stores 913 934 95 203 — — 1,008 1,137 RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) (Unaudited) Thirteen Weeks Ended Famous Footwear Brand Portfolio Eliminations and Other Consolidated ($ thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 Gross profit $ 179,815 $ 69,093 $ 94,003 $ 53,393 $ 1,069 $ (588 ) $ 274,887 $ 121,898 Charges/Other Items: COVID-19-related expenses — 5,958 — 27,458 — — — 33,416 Brand Portfolio - business exits — — — 1,598 — — — 1,598 Total charges/other items — 5,958 — 29,056 — — — 35,014 Adjusted gross profit $ 179,815 $ 75,051 $ 94,003 $ 82,449 $ 1,069 $ (588 ) $ 274,887 $ 156,912 Operating earnings (loss) $ 47,873 $ (67,540 ) $ (2,821 ) $ (345,748 ) $ (27,182 ) $ (12,923 ) $ 17,870 $ (426,211 ) Charges/Other Items: Brand Portfolio - business exits — — 13,482 1,598 — — 13,482 1,598 Goodwill and intangible asset impairment charges — — — 262,719 — — — 262,719 COVID-19-related expenses — 21,962 — 71,293 — 357 — 93,612 Total charges/other items — 21,962 13,482 335,610 — 357 13,482 357,929 Adjusted operating earnings (loss) $ 47,873 $ (45,578 ) $ 10,661 $ (10,138 ) $ (27,182 ) $ (12,566 ) $ 31,352 $ (68,282 ) SCHEDULE 6 CALERES, INC. BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION (Unaudited) Thirteen Weeks Ended May 1, 2021 May 2, 2020 ($ thousands, except per share data) Net earnings (loss) attributable to Caleres, Inc.: Net earnings (loss) $ 6,385 $ (346,172 ) Net (earnings) loss attributable to noncontrolling interests (238 ) 334 Net earnings (loss) attributable to Caleres, Inc. 6,147 (345,838 ) Net earnings allocated to participating securities (210 ) — Net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities $ 5,937 $ (345,838 ) Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 36,707 38,649 Dilutive effect of share-based awards 158 — Diluted common shares attributable to Caleres, Inc. 36,865 38,649 Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.16 $ (8.95 ) Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.16 $ (8.95 ) SCHEDULE 7 CALERES, INC. BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION (Unaudited) Thirteen Weeks Ended May 1, 2021 May 2, 2020 ($ thousands, except per share data) Adjusted net earnings (loss) attributable to Caleres, Inc.: Adjusted net earnings (loss) $ 23,057 $ (50,740 ) Net (earnings) loss attributable to noncontrolling interests (238 ) 334 Adjusted net earnings (loss) attributable to Caleres, Inc. 22,819 (50,406 ) Net earnings allocated to participating securities (828 ) — Adjusted net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities $ 21,991 $ (50,406 ) Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 36,707 38,649 Dilutive effect of share-based awards 158 — Diluted common shares attributable to Caleres, Inc. 36,865 38,649 Basic adjusted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.60 $ (1.30 ) Diluted adjusted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.60 $ (1.30 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20210528005052/en/Contacts Logan Bonacorsi lbonacorsi@caleres.com
Exceeded first quarter 2019 earnings levels Drove sequential sales and operating earnings improvement Famous Footwear achieved first quarter record sales and operating earnings Paid down an additional $50 million of debt during the first quarter
Caleres (NYSE: CAL) (caleres.com), a diverse portfolio of consumer-centric footwear brands, today reported financial results for the first quarter ended May 1, 2021. Caleres continued its strong recovery in the quarter just ended – recording sequential top-line and earnings growth, stronger gross margins and an improved working capital and expense position. For the fourth straight period, the company put its free cash flow to work strengthening its balance sheet and reducing further its overall indebtedness, paying down an additional $50 million during the quarter. In total, the company has reduced its total debt levels by approximately $240 million since March of 2020. “Caleres had a strong start to the year, maintaining its solid upward momentum in the first quarter of 2021, driven in large part by an outstanding performance in our Famous Footwear business, where we achieved record quarterly earnings and delivered record first quarter sales levels,” said Diane Sullivan, Chairman and Chief Executive Officer. “Notably, Famous Footwear’s quarterly sales increased 13 percent over the first quarter of 2019, benefitting from strong demand for the category, increased consumer confidence and improving in-store traffic trends. Famous continues to leverage its enhanced omni-channel capabilities and capitalize on its direct-to-consumer model, as evidenced by a 13.2 percent increase in new rewards members – compared to the first quarter 2019 – and still-strong ecommerce sales levels.” “We remain positive about our outlook and expect continued strength at Famous Footwear to be combined with an improving performance in our Brand Portfolio as we progress through the year,” said Sullivan. We are particularly enthusiastic about the recent strong performances from our Vionic, Sam Edelman, Blowfish Malibu and Ryka brands, and are increasingly optimistic about our ability to drive margin growth and return to 2019 earnings levels for the segment in the year’s second half.” “Looking ahead, we plan to lean into the robust momentum at Famous Footwear and our enhanced direct-to-consumer capabilities; ensure alignment of supply and demand; and – as always – maintain our balanced approach to capital allocation. In short, we are excited about our strategy for continued value creation and believe we are exceptionally well positioned to capitalize on the accelerated recovery in the marketplace and to chase and capture market share opportunities as they develop throughout the year.” First Quarter 2021 Highlights (13-weeks ended May 1, 2021 compared to 13-weeks ended May 2, 2020) Net sales were $638.6 million, up 60.8 percent from the first quarter of fiscal 2020 Direct-to-consumer sales represented 74.5 percent of total net sales; A 108.2 percent sales increase in the Famous Footwear segment; A 15.2 percent sales increase in the Brand Portfolio segment; Total company owned ecommerce website sales increased 21.4 percent, with ecommerce penetration of 25.6 percent of net sales; Gross profit was $274.9 million, while gross margin was 43.0 percent; SG&A expense of $243.5 million, up $18.3 million compared to the first quarter of 2020; Net income of $6.1 million, or earnings of $0.16 per diluted share, compared to net loss of $345.8 million, or a loss of $8.95 per diluted share, in the first quarter of fiscal 2020. Earnings of $0.16 per share includes $0.44 for the below items: Brand Portfolio expense of $0.31 related to the Naturalizer brand retail exits; and Fair value adjustment of $0.13 associated with the mandatory purchase obligation for Blowfish Malibu; and Adjusted net income was $22.8 million, or adjusted earnings of $0.60 per diluted share compared to adjusted net loss of $50.4 million, or adjusted loss of $1.30 per diluted share, in the first quarter of fiscal 2020; Generated $70.4 million in cash from operations and ended the first quarter with $98.2 million of cash on hand; Reduced inventory levels approximately 24 percent year-over-year, reflecting the final liquidation of Naturalizer store inventory and global/industry-wide supply chain disruptions; Reduced credit facility borrowings by $50 million from the fourth quarter of 2020 to end the first quarter at $200 million; Returned $2.7 million to shareholders during the quarter through its long-standing quarterly dividend. Quarterly Cash Dividend The company’s board of directors declared a regular quarterly cash dividend of $0.07 per share to be paid on June 30, 2021 to shareholders of record as of June 11, 2021. This dividend will be the 393rd consecutive quarterly dividend paid by the company. Fiscal Second Quarter 2021 Outlook For the second quarter of 2021, Caleres expects sales levels to be between $625 million and $650 million – effectively flat to the first quarter of 2021 – and adjusted earnings per share of between $0.50 and $0.55, which excludes $0.06 related to the fair value adjustment to Blowfish purchase obligation. Investor Conference Call Caleres will host an investor conference call at 10:00 a.m. ET today, Friday, May 28. The webcast and associated 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 7644157. 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 7644157 through Thursday, June 10. 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 pandemic 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) rapidly changing consumer preferences and purchasing patterns and fashion trends; (iv) intense competition within the footwear industry; (v) customer concentration and increased consolidation in the retail industry; (vi) foreign currency fluctuations; (vii) impairment charges resulting from a long-term decline in our stock price; (viii) 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; (ix) cybersecurity threats or other major disruption to the company’s information technology systems; (x) the ability to accurately forecast sales and manage inventory levels; (xi) a disruption in the company’s distribution centers; (xii) the ability to recruit and retain senior management and other key associates; (xiii) the ability to maintain relationships with current suppliers; (xiv) the ability to secure/exit leases on favorable terms; (xv) transitional challenges with acquisitions and divestitures; (xvi) changes to tax laws, policies and treaties; (xvii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xviii) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights. About Caleres Caleres is a diverse portfolio of global footwear brands. Our products are available virtually everywhere - in the more than 1,000 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, Blowfish Malibu, Bzees, Circus by Sam Edelman 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 ($ thousands, except per share data) May 1, 2021 May 2, 2020 Net sales $ 638,636 $ 397,184 Cost of goods sold 363,749 275,286 Gross profit 274,887 121,898 Selling and administrative expenses 243,535 225,194 Impairment of goodwill and intangible assets — 262,719 Restructuring and other special charges, net 13,482 60,196 Operating earnings (loss) 17,870 (426,211 ) Interest expense, net (11,792 ) (9,478 ) Other income, net 3,828 3,585 Earnings (loss) before income taxes 9,906 (432,104 ) Income tax (provision) benefit (3,521 ) 85,932 Net earnings (loss) 6,385 (346,172 ) Net earnings (loss) attributable to noncontrolling interests 238 (334 ) Net earnings (loss) attributable to Caleres, Inc. $ 6,147 $ (345,838 ) Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.16 $ (8.95 ) Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.16 $ (8.95 ) SCHEDULE 2 CALERES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) ($ thousands) May 1, 2021 May 2, 2020 January 30, 2021 ASSETS Cash and cash equivalents $ 98,244 $ 187,717 $ 88,295 Receivables, net 132,698 145,333 126,994 Inventories, net 445,299 585,307 487,955 Prepaid expenses and other current assets 80,877 91,433 79,312 Total current assets 757,118 1,009,790 782,556 Lease right-of-use assets 526,011 648,534 554,303 Property and equipment, net 165,118 200,800 172,437 Goodwill and intangible assets, net 236,924 273,648 240,071 Other assets 117,652 90,913 117,683 Total assets $ 1,802,823 $ 2,223,685 $ 1,867,050 LIABILITIES AND EQUITY Borrowings under revolving credit agreement $ 200,000 $ 438,500 $ 250,000 Mandatory purchase obligation - Blowfish Malibu 45,523 — 39,134 Trade accounts payable 293,309 297,557 280,501 Lease obligations 133,327 160,138 153,060 Other accrued expenses 193,778 181,344 182,814 Total current liabilities 865,937 1,077,539 905,509 Noncurrent lease obligations 490,355 601,133 518,942 Long-term debt 198,966 198,506 198,851 Other liabilities 40,909 61,384 39,894 Total other liabilities 730,230 861,023 757,687 Total Caleres, Inc. shareholders’ equity 202,869 282,296 200,247 Noncontrolling interests 3,787 2,827 3,607 Total equity 206,656 285,123 203,854 Total liabilities and equity $ 1,802,823 $ 2,223,685 $ 1,867,050 SCHEDULE 3 CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Thirteen Weeks Ended ($ thousands) May 1, 2021 May 2, 2020 OPERATING ACTIVITIES: Net cash provided by operating activities $ 70,378 $ 728 INVESTING ACTIVITIES: Purchases of property and equipment (2,659 ) (3,523 ) Capitalized software (1,218 ) (977 ) Net cash used for investing activities (3,877 ) (4,500 ) FINANCING ACTIVITIES: Borrowings under revolving credit agreement 110,500 168,500 Repayments under revolving credit agreement (160,500 ) (5,000 ) Dividends paid (2,663 ) (2,810 ) Acquisition of treasury stock — (12,932 ) Issuance of common stock under share-based plans, net (3,501 ) (906 ) Other (450 ) (323 ) Net cash (used for) provided by financing activities (56,614 ) 146,529 Effect of exchange rate changes on cash and cash equivalents 62 (258 ) Increase in cash and cash equivalents 9,949 142,499 Cash and cash equivalents at beginning of period 88,295 45,218 Cash and cash equivalents at end of period $ 98,244 $ 187,717 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 May 1, 2021 May 2, 2020 Net Net (Loss) Pre-Tax Earnings Pre-Tax Earnings Diluted Impact of Attributable Diluted Impact of Attributable (Loss) 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 (loss) $ 6,147 $ 0.16 $ (345,838 ) $ (8.95 ) Charges/other items: Brand Portfolio - business exits $ 13,482 11,927 0.31 $ 1,598 1,187 0.03 Fair value adjustment to Blowfish purchase obligation 6,389 4,745 0.13 3,233 2,401 0.06 Goodwill and intangible asset impairment charges — — — 262,719 218,506 5.66 COVID-19-related expenses (1) — — — 93,612 73,338 1.90 Total charges/other items $ 19,871 $ 16,672 $ 0.44 $ 361,162 $ 295,432 $ 7.65 Adjusted earnings (loss) $ 22,819 $ 0.60 $ (50,406 ) $ (1.30 ) __________________________ (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, 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 ($ thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 Net sales $ 398,104 $ 191,252 $ 250,305 $ 217,238 $ (9,773 ) $ (11,306 ) $ 638,636 $ 397,184 Gross profit 179,815 69,093 94,003 53,393 1,069 (588 ) 274,887 121,898 Adjusted gross profit 179,815 75,051 94,003 82,449 1,069 (588 ) 274,887 156,912 Gross profit rate 45.2 % 36.1 % 37.6 % 24.6 % (10.9 ) % 5.2 % 43.0 % 30.7 % Adjusted gross profit rate 45.2 % 39.2 % 37.6 % 38.0 % (10.9 ) % 5.2 % 43.0 % 39.5 % Operating earnings (loss) 47,873 (67,540 ) (2,821 ) (345,748 ) (27,182 ) (12,923 ) 17,870 (426,211 ) Adjusted operating earnings (loss) 47,873 (45,578 ) 10,661 (10,138 ) (27,182 ) (12,566 ) 31,352 (68,282 ) Operating earnings (loss) % 12.0 % (35.3 ) % (1.1 ) % (159.2 ) % 278.1 % 114.3 % 2.8 % (107.3 ) % Adjusted operating earnings (loss) % 12.0 % (23.8 ) % 4.3 % (4.7 ) % 278.1 % 111.1 % 4.9 % (17.2 ) % Same-store sales % (on a 13-week basis) 3.3 % 12.6 % 5.1 % (24.8 ) % — % — % — % — % Number of stores 913 934 95 203 — — 1,008 1,137 RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) (Unaudited) Thirteen Weeks Ended Famous Footwear Brand Portfolio Eliminations and Other Consolidated ($ thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 Gross profit $ 179,815 $ 69,093 $ 94,003 $ 53,393 $ 1,069 $ (588 ) $ 274,887 $ 121,898 Charges/Other Items: COVID-19-related expenses — 5,958 — 27,458 — — — 33,416 Brand Portfolio - business exits — — — 1,598 — — — 1,598 Total charges/other items — 5,958 — 29,056 — — — 35,014 Adjusted gross profit $ 179,815 $ 75,051 $ 94,003 $ 82,449 $ 1,069 $ (588 ) $ 274,887 $ 156,912 Operating earnings (loss) $ 47,873 $ (67,540 ) $ (2,821 ) $ (345,748 ) $ (27,182 ) $ (12,923 ) $ 17,870 $ (426,211 ) Charges/Other Items: Brand Portfolio - business exits — — 13,482 1,598 — — 13,482 1,598 Goodwill and intangible asset impairment charges — — — 262,719 — — — 262,719 COVID-19-related expenses — 21,962 — 71,293 — 357 — 93,612 Total charges/other items — 21,962 13,482 335,610 — 357 13,482 357,929 Adjusted operating earnings (loss) $ 47,873 $ (45,578 ) $ 10,661 $ (10,138 ) $ (27,182 ) $ (12,566 ) $ 31,352 $ (68,282 ) SCHEDULE 6 CALERES, INC. BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION (Unaudited) Thirteen Weeks Ended May 1, 2021 May 2, 2020 ($ thousands, except per share data) Net earnings (loss) attributable to Caleres, Inc.: Net earnings (loss) $ 6,385 $ (346,172 ) Net (earnings) loss attributable to noncontrolling interests (238 ) 334 Net earnings (loss) attributable to Caleres, Inc. 6,147 (345,838 ) Net earnings allocated to participating securities (210 ) — Net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities $ 5,937 $ (345,838 ) Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 36,707 38,649 Dilutive effect of share-based awards 158 — Diluted common shares attributable to Caleres, Inc. 36,865 38,649 Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.16 $ (8.95 ) Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.16 $ (8.95 ) SCHEDULE 7 CALERES, INC. BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION (Unaudited) Thirteen Weeks Ended May 1, 2021 May 2, 2020 ($ thousands, except per share data) Adjusted net earnings (loss) attributable to Caleres, Inc.: Adjusted net earnings (loss) $ 23,057 $ (50,740 ) Net (earnings) loss attributable to noncontrolling interests (238 ) 334 Adjusted net earnings (loss) attributable to Caleres, Inc. 22,819 (50,406 ) Net earnings allocated to participating securities (828 ) — Adjusted net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities $ 21,991 $ (50,406 ) Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 36,707 38,649 Dilutive effect of share-based awards 158 — Diluted common shares attributable to Caleres, Inc. 36,865 38,649 Basic adjusted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.60 $ (1.30 ) Diluted adjusted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 0.60 $ (1.30 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20210528005052/en/