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 Fourth Quarter and Full Year 2023 Results By: Caleres via Business Wire March 19, 2024 at 06:45 AM EDT Generates fourth quarter earnings per share of $1.57 and adjusted earnings per share of $0.86, up 32% year over year Achieves third consecutive year of adjusted earnings per share in excess of $4.00 baseline Delivers fourth quarter sales growth and record adjusted operating earnings in Brand Portfolio segment Reduces revolver borrowings by $40 million compared to third quarter 2023 and more than $125 million from fiscal 2022 Expects fiscal 2024 net sales to be flat to up 2 percent compared to fiscal 2023 Expects fiscal 2024 earnings per share of $4.30 to $4.60 Caleres (NYSE: CAL), a market-leading portfolio of consumer-driven footwear brands, today reported financial results for the fourth quarter and fiscal 2023 and provided guidance for fiscal 2024. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240318757386/en/Caleres Brand Portfolio Lead Brands -- Sam Edelman, Allen Edmonds, Naturalizer, and Vionic.(Graphic: Business Wire) “The Caleres team delivered another strong operational performance in the fourth quarter, culminating in a third consecutive year of adjusted earnings per share in excess of our $4.00 baseline and underscoring the durability of our earnings power,” said Jay Schmidt, president and chief executive officer. “Our fourth quarter results were led by our Brand Portfolio, which achieved a record-setting performance across key financial metrics. Complementing that strong result, Famous Footwear leaned into its competitive advantages to expand market share, particularly in Kids, which has outpaced the total business for 12 straight quarters.” Specifically, during the quarter, the Brand Portfolio capitalized on ongoing strength in its Lead Brands to power a 4.5-percent increase in year-over-year net sales and a 660-basis-point improvement in gross margin. The Brand Portfolio segment also delivered its best-ever annual adjusted operating earnings, which topped $148 million and was accompanied by an 11.7-percent adjusted return on sales. Notably, the segment led the financial performance of the company. At the same time, Famous Footwear navigated a competitive market environment, capitalizing on pockets of holiday demand and delivering positive sales trends in its Kids business. For the full year, Famous gained share in shoe chains in the important Family Channel and achieved record annual sales in the Kids category while generating robust levels of cash flow. “I am proud of the Caleres team and the tremendous progress we have made across a wide range of strategic objectives,” said Schmidt. “The transformation in earnings power that we have achieved in recent years – combined with our value-driving organizational structure, powerful brands, and best-in-class capabilities – positions us exceptionally well for growth in 2024 and beyond. Our Brand Portfolio – powered by our Lead Brands – has tremendous growth potential, and Famous is poised to strengthen its position as the No. 1 footwear destination for the Millennial family. Looking ahead, we are confident in our ability to execute on our growth strategy, deliver on our long-term financial targets, and create sustained value for our shareholders.” Fourth Quarter 2023 Results (14-weeks ended February 3, 2024, compared to 13-weeks ended January 28, 2023) Net sales were $697.1 million, up 0.1 percent from the fourth quarter of 2022; Famous Footwear segment net sales declined 1.5 percent, with comparable sales down 5.9 percent on a 13-week basis Brand Portfolio segment net sales increased 4.5 percent Direct-to-consumer sales represented approximately 74 percent of total net sales Gross profit was $305.7 million, while gross margin was 43.9 percent; Famous Footwear segment gross margin of 42.9 percent Brand Portfolio segment gross margin of 42.6 percent SG&A as a percentage of net sales was 39.1 percent; Net earnings of $55.8 million, or earnings per diluted share of $1.57, compared to net earnings of $40.8 million, or earnings per diluted share of $1.13 in the fourth quarter of fiscal 2022. Earnings per diluted share of $1.57 include: Deferred tax valuation allowance releases of $0.76 per diluted share; and Expense reduction initiatives of ($0.05) per diluted share. Adjusted net earnings of $30.8 million, or adjusted earnings per diluted share of $0.86, compared to adjusted net earnings of $23.4 million, or adjusted earnings per diluted share of $0.65 in the fourth quarter of fiscal 2022. Fiscal Year 2023 Results (53-weeks ended February 3, 2024, compared to 52-weeks ended January 28, 2023) Net sales were $2.82 billion, down 5.1 percent from fiscal 2022; Famous Footwear segment net sales declined 5.6 percent, with comparable sales down 6.3 percent on a 52-week basis Brand Portfolio segment net sales declined 3.9 percent Direct-to-consumer sales represented approximately 72 percent of total net sales Gross profit was $1.26 billion, while gross margin was 44.8 percent; Famous Footwear segment gross margin of 44.7 percent Brand Portfolio segment gross margin of 43.0 percent SG&A as a percentage of net sales was 37.7 percent; Net earnings of $171.4 million, or earnings per diluted share of $4.80, compared to net earnings of $181.7 million, or earnings per diluted share of $4.92 in fiscal 2022. Earnings of $4.80 per diluted share include: Deferred tax valuation allowance releases of $0.75 per diluted share; and Expense reduction initiatives of ($0.13) per diluted share Adjusted net earnings of $149.3 million, or adjusted earnings per diluted share of $4.18, compared to adjusted net earnings of $167.1 million, or adjusted earnings per diluted share of $4.52 in fiscal 2022; Earnings before interest, taxes, depreciation, and amortization (EBITDA) of $253.5 million and adjusted EBITDA of $259.6 million, or 9.2 percent of sales; Inventory was down 6.8 percent compared to fiscal year-end 2022, due to strategic inventory management – primarily in the Brand Portfolio segment; and Borrowings under the asset-based revolving credit facility were $182.0 million at the end of the period. Fiscal 2023 Benefit from 53rd Week Consolidated net sales $25.0 million Famous Footwear sales $18.2 million Brand Portfolio sales $6.8 million Capital Allocation Update Caleres continued to reduce the borrowings under its asset-based revolving credit facility, paying down $40.0 million during the fourth quarter. The company also returned $2.5 million to shareholders through its quarterly dividend. In fiscal 2023, Caleres continued to invest in value-driving growth opportunities while at the same time reduced short-term borrowings by $125.5 million. The company ended fiscal 2023 with $182.0 million of borrowings. This represents its lowest total indebtedness since the fiscal first quarter 2010. In addition, Caleres returned $27.4 million to shareholders through share repurchases and dividend payments. Specifically, the company repurchased 763,000 shares of common stock, or approximately 2 percent of shares outstanding, for $17.4 million and an average price of $22.86 per share. The company returned $10.0 million to shareholders through quarterly dividend payments. Fiscal 2024 Outlook: The company is introducing its financial outlook for fiscal 2024 and first quarter of 2024 and notes that its fiscal 2024 is a 52-week year and compares to a 53-week year in fiscal 2023. Caleres expects consolidated net sales to be flat to up 2 percent, compared to 2023, and earnings per diluted share to be in the range of $4.30 to $4.60. This outlook considers and balances the positive momentum in our Brand Portfolio segment and ongoing companywide cost reduction initiatives against anticipated headwinds that include a forecasted decline in the footwear market, inflationary pressures that could affect consumer demand at Famous Footwear, and higher freight costs. In addition, for fiscal 2024, the company expects: Consolidated operating margin of 7.3 percent to 7.5 percent; Effective tax rate of about 24 percent; and Capital expenditures of $60 million to $70 million. For first quarter 2024, the company expects: Consolidated net sales to be flat to up 1 percent; and Earnings per diluted share in line with fourth quarter 2023 on an adjusted basis. Investor Conference Call Caleres will host a conference call at 10:00 a.m. ET today, Tuesday, March 19. The webcast and associated slides will be available at investor.caleres.com/news/events. A live conference call will be available at (877) 704-4453 for North America participants or (201) 389-0920 for international participants, no passcode necessary. A replay will be also available at investor.caleres.com/news/events/archive for a limited period. Investors may also access the replay by dialing (844) 512-2921 in North America or (412) 317-6671 internationally and using the conference pin 13744814. 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 earnings before interest, taxes, depreciation and amortization, and estimated and future operating earnings, net earnings and earnings per diluted share, adjusted to exclude certain gains, charges, and recoveries, which are non-GAAP financial measures. 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 general economic conditions and other factors; (ii) inflationary pressures and supply chain disruptions (iii) rapidly changing consumer preferences and purchasing patterns and fashion trends; (iv) supplier concentration, customer concentration and increased consolidation in the retail industry; (v) intense competition within the footwear industry; (vi) foreign currency fluctuations; (vii) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (viii) cybersecurity threats or other major disruption to the company’s information technology systems; (ix) the ability to accurately forecast sales and manage inventory levels; (x) a disruption in the company’s distribution centers; (xi) the ability to recruit and retain senior management and other key associates; (xii) the ability to secure/exit leases on favorable terms; (xiii) the ability to maintain relationships with current suppliers; (xiv) transitional challenges with acquisitions and divestitures; (xv) changes to tax laws, policies and treaties; (xvi) our commitments and shareholder expectations related to environmental, social and governance considerations; (xvii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xviii) 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 January 28, 2023, which information is incorporated by reference herein and updated by the company’s Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change. SCHEDULE 1 CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended Fifty-three Weeks Ended Fifty-two Weeks Ended ($ thousands, except per share data) February 3, 2024 January 28, 2023 February 3, 2024 January 28, 2023 Net sales $ 697,123 $ 696,434 $ 2,817,294 $ 2,968,138 Cost of goods sold 391,395 415,246 1,554,337 1,683,265 Gross profit 305,728 281,188 1,262,957 1,284,873 Selling and administrative expenses 272,830 255,323 1,062,399 1,067,636 Restructuring and other special charges, net 2,151 — 6,103 2,910 Operating earnings 30,747 25,865 194,455 214,327 Interest expense, net (4,103 ) (5,378 ) (19,343 ) (14,264 ) Other income, net 1,550 3,335 6,210 12,971 Earnings before income taxes 28,194 23,822 181,322 213,034 Income tax benefit (provision) 27,466 15,343 (9,490 ) (33,339 ) Net earnings 55,660 39,165 171,832 179,695 Net (loss) earnings attributable to noncontrolling interests (148 ) (1,643 ) 441 (2,047 ) Net earnings attributable to Caleres, Inc. $ 55,808 $ 40,808 $ 171,391 $ 181,742 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 1.57 $ 1.14 $ 4.80 $ 4.98 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 1.57 $ 1.13 $ 4.80 $ 4.92 SCHEDULE 2 CALERES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) ($ thousands) February 3, 2024 January 28, 2023 ASSETS Cash and cash equivalents $ 21,358 $ 33,700 Receivables, net 140,400 132,802 Inventories, net 540,674 580,215 Property and equipment, held for sale 16,777 16,777 Prepaid expenses and other current assets 69,700 67,961 Total current assets 788,909 831,455 Lease right-of-use assets 528,029 518,196 Property and equipment, net 167,583 160,883 Goodwill and intangible assets, net 203,310 215,392 Other assets 116,915 110,546 Total assets $ 1,804,746 $ 1,836,472 LIABILITIES AND EQUITY Borrowings under revolving credit agreement $ 182,000 $ 307,500 Trade accounts payable 251,912 229,908 Lease obligations 112,764 136,051 Other accrued expenses 196,280 237,737 Total current liabilities 742,956 911,196 Noncurrent lease obligations 453,097 444,074 Other liabilities 41,123 55,089 Total other liabilities 494,220 499,163 Total Caleres, Inc. shareholders’ equity 560,631 420,683 Noncontrolling interests 6,939 5,430 Total equity 567,570 426,113 Total liabilities and equity $ 1,804,746 $ 1,836,472 SCHEDULE 3 CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Fifty-three Weeks Ended Fifty-two Weeks Ended ($ thousands) February 3, 2024 January 28, 2023 OPERATING ACTIVITIES: Net cash provided by operating activities $ 200,151 $ 125,879 INVESTING ACTIVITIES: Purchases of property and equipment (44,584 ) (55,913 ) Capitalized software (5,034 ) (8,124 ) Net cash used for investing activities (49,618 ) (64,037 ) FINANCING ACTIVITIES: Borrowings under revolving credit agreement 532,500 859,500 Repayments under revolving credit agreement (658,000 ) (842,000 ) Dividends paid (9,954 ) (10,184 ) Acquisition of treasury stock (17,445 ) (63,225 ) Issuance of common stock under share-based plans, net (11,094 ) (5,387 ) Contributions by noncontrolling interests 1,000 3,142 Net cash used for financing activities (162,993 ) (58,154 ) Effect of exchange rate changes on cash and cash equivalents 118 (103 ) (Decrease) increase in cash and cash equivalents (12,342 ) 3,585 Cash and cash equivalents at beginning of period 33,700 30,115 Cash and cash equivalents at end of period $ 21,358 $ 33,700 SCHEDULE 4 CALERES, INC. RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended February 3, 2024 January 28, 2023 ($ thousands, except per share data) Pre-Tax Impact of Charges/Other Items Net Earnings Attributable to Caleres, Inc. Diluted Earnings Per Share Pre-Tax Impact of Charges/Other Items Net Earnings Attributable to Caleres, Inc. Diluted Earnings Per Share GAAP earnings $ 55,808 $ 1.57 $ 40,808 $ 1.13 Charges/other items: Deferred tax valuation allowances adjustment $ — (26,654 ) (0.76 ) $ — (17,374 ) (0.48 ) Expense reduction initiatives 2,151 1,597 0.05 — — — Total charges/other items $ 2,151 $ (25,057 ) $ (0.71 ) $ — $ (17,374 ) $ (0.48 ) Adjusted earnings $ 30,751 $ 0.86 $ 23,434 $ 0.65 (Unaudited) Fifty-three Weeks Ended Fifty-two Weeks Ended February 3, 2024 January 28, 2023 Pre-Tax Net Earnings Pre-Tax Net Earnings Impact of Attributable Diluted Impact of Attributable Diluted Charges/Other to Caleres, Earnings Charges/Other to Caleres, Earnings ($ thousands, except per share data) Items Inc. Per Share Items Inc. Per Share GAAP earnings $ 171,391 $ 4.80 $ 181,742 $ 4.92 Charges/other items: Deferred tax valuation allowance adjustment $ — (26,654 ) (0.75 ) $ — (17,374 ) (0.47 ) Expense reduction initiatives 6,103 4,532 0.13 — — — Organizational changes — — — 2,910 2,723 0.07 Total charges/other items $ 6,103 $ (22,122 ) $ (0.62 ) $ 2,910 $ (14,651 ) $ (0.40 ) Adjusted earnings $ 149,269 $ 4.18 $ 167,091 $ 4.52 SCHEDULE 5 CALERES, INC. SUMMARY FINANCIAL RESULTS BY SEGMENT SUMMARY FINANCIAL RESULTS (Unaudited) Famous Footwear Brand Portfolio Eliminations and Other Consolidated 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended February 3, January 28, February 3, January 28, February 3, January 28, February 3, January 28, ($ thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Net sales $ 396,227 $ 402,265 $ 323,689 $ 309,729 $ (22,793 ) $ (15,560 ) $ 697,123 $ 696,434 Gross profit 170,129 170,562 137,868 111,465 (2,269 ) (839 ) 305,728 281,188 Gross margin 42.9 % 42.4 % 42.6 % 36.0 % 10.0 % 5.4 % 43.9 % 40.4 % Operating earnings (loss) 19,551 24,386 37,751 19,281 (26,555 ) (17,802 ) 30,747 25,865 Adjusted operating earnings (loss) 19,551 24,386 38,634 19,281 (25,287 ) (17,802 ) 32,898 25,865 Operating margin 4.9 % 6.1 % 11.7 % 6.2 % n/m % n/m % 4.4 % 3.7 % Adjusted operating earnings % 4.9 % 6.1 % 11.9 % 6.2 % n/m % n/m % 4.7 % 3.7 % Comparable sales % (on a 13-week basis) (5.9 )% 0.7 % (3.8 )% 20.4 % — % — % — % — % Number of stores 860 873 98 92 — — 958 965 n/m – Not meaningful RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) (Unaudited) Famous Footwear Brand Portfolio Eliminations and Other Consolidated 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended February 3, January 28, February 3, January 28, February 3, January 28, February 3, January 28, ($ thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Operating earnings (loss) $ 19,551 $ 24,386 $ 37,751 $ 19,281 $ (26,555 ) $ (17,802 ) $ 30,747 $ 25,865 Charges/Other Items: Expense reduction initiatives — — 883 — 1,268 — 2,151 — Total charges/other items — — 883 — 1,268 — 2,151 — Adjusted operating earnings (loss) $ 19,551 $ 24,386 $ 38,634 $ 19,281 $ (25,287 ) $ (17,802 ) $ 32,898 $ 25,865 SCHEDULE 5 CALERES, INC. SUMMARY FINANCIAL RESULTS BY SEGMENT SUMMARY FINANCIAL RESULTS (Unaudited) Famous Footwear Brand Portfolio Eliminations and Other Consolidated 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended February 3, January 28, February 3, January 28, February 3, January 28, February 3, January 28, ($ thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Net sales $ 1,609,396 $ 1,705,093 $ 1,270,853 $ 1,322,772 $ (62,955 ) $ (59,727 ) $ 2,817,294 $ 2,968,138 Gross profit 719,549 789,004 546,005 497,265 (2,597 ) (1,396 ) 1,262,957 1,284,873 Gross profit rate 44.7 % 46.3 % 43.0 % 37.6 % 4.1 % 2.3 % 44.8 % 43.3 % Operating earnings (loss) 123,838 195,837 145,459 112,345 (74,842 ) (93,855 ) 194,455 214,327 Adjusted operating earnings (loss) 125,204 195,837 148,067 112,345 (72,713 ) (90,945 ) 200,558 217,237 Operating earnings % 7.7 % 11.5 % 11.4 % 8.5 % n/m% n/m% 6.9 % 7.2 % Adjusted operating earnings % 7.8 % 11.5 % 11.7 % 8.5 % n/m% n/m% 7.1 % 7.3 % Comparable sales % (on a 52-week basis) (6.3 )% (1.8 )% 1.3 % 31.4 % — % — % — % — % Number of stores 860 873 98 92 — — 958 965 n/m – Not meaningful RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) (Unaudited) Famous Footwear Brand Portfolio Eliminations and Other Consolidated 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended February 3, January 28, February 3, January 28, February 3, January 28, February 3, January 28, ($ thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Operating earnings (loss) $ 123,838 $ 195,837 $ 145,459 $ 112,345 $ (74,842) $ (93,855) $ 194,455 $ 214,327 Charges/Other Items: Expense reduction initiatives 1,366 — 2,608 — 2,129 — 6,103 — Organizational changes — — — — — 2,910 — 2,910 Total charges/other items 1,366 — 2,608 — 2,129 2,910 6,103 2,910 Adjusted operating earnings (loss) $ 125,204 $ 195,837 $ 148,067 $ 112,345 $ (72,713) $ (90,945) $ 200,558 $ 217,237 SCHEDULE 6 CALERES, INC. BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended Fifty-three Weeks Ended Fifty-two Weeks Ended February 3, January 28, February 3, January 28, 2024 2023 2024 2023 ($ thousands, except per share data) Net earnings attributable to Caleres, Inc.: Net earnings $ 55,660 $ 39,165 $ 171,832 $ 179,695 Net loss (earnings) attributable to noncontrolling interests 148 1,643 (441 ) 2,047 Net earnings attributable to Caleres, Inc. 55,808 40,808 171,391 181,742 Net earnings allocated to participating securities (2,414 ) (1,763 ) (7,517 ) (7,716 ) Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 53,394 $ 39,045 $ 163,874 $ 174,026 Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 33,965 34,102 34,142 34,930 Dilutive effect of share-based awards 115 548 10 475 Diluted common shares attributable to Caleres, Inc. 34,080 34,650 34,152 35,405 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 1.57 $ 1.14 $ 4.80 $ 4.98 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 1.57 $ 1.13 $ 4.80 $ 4.92 SCHEDULE 7 CALERES, INC. BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended Fifty-three Weeks Ended Fifty-two Weeks Ended February 3, January 28, February 3, January 28, 2024 2023 2024 2023 ($ thousands, except per share data) Adjusted net earnings attributable to Caleres, Inc.: Adjusted net earnings $ 30,603 $ 21,791 $ 149,710 $ 165,044 Net loss (earnings) attributable to noncontrolling interests 148 1,643 (441 ) 2,047 Adjusted net earnings attributable to Caleres, Inc. 30,751 23,434 149,269 167,091 Net earnings allocated to participating securities (1,324 ) (1,012 ) (6,537 ) (7,092 ) Adjusted net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 29,427 $ 22,422 $ 142,732 $ 159,999 Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 33,965 34,102 34,142 34,930 Dilutive effect of share-based awards 115 548 10 475 Diluted common shares attributable to Caleres, Inc. 34,080 34,650 34,152 35,405 Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.87 $ 0.66 $ 4.18 $ 4.58 Diluted adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.86 $ 0.65 $ 4.18 $ 4.52 SCHEDULE 8 CALERES, INC. CALCULATION OF EBITDA AND DEBT/EBITDA LEVERAGE RATIO (NON-GAAP METRICS) (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended ($ thousands) February 3, 2024 January 28, 2023 EBITDA: Net earnings attributable to Caleres, Inc. $ 55,808 $ 40,808 Income tax benefit (27,466 ) (15,343 ) Interest expense, net 4,103 5,378 Depreciation and amortization (1) 14,875 12,317 EBITDA $ 47,320 $ 43,160 EBITDA margin 6.8 % 6.2 % Adjusted EBITDA: Adjusted net earnings attributable to Caleres, Inc. (2) $ 30,751 $ 23,434 Income tax (benefit) provision (3) (258 ) 2,031 Interest expense, net 4,103 5,378 Depreciation and amortization (1) 14,875 12,317 Adjusted EBITDA $ 49,471 $ 43,160 Adjusted EBITDA margin 7.1 % 6.2 % (Unaudited) Trailing Twelve Months Ended ($ thousands) February 3, 2024 January 28, 2023 EBITDA: Net earnings attributable to Caleres, Inc. $ 171,391 $ 181,742 Income tax provision 9,490 33,339 Interest expense, net 19,343 14,264 Depreciation and amortization (1) 53,280 49,011 EBITDA $ 253,504 $ 278,356 EBITDA margin 9.0 % 9.4 % Adjusted EBITDA: Adjusted net earnings attributable to Caleres, Inc. (2) $ 149,269 $ 167,091 Income tax provision (3) 37,715 50,900 Interest expense, net 19,343 14,264 Depreciation and amortization (1) 53,280 49,011 Adjusted EBITDA $ 259,607 $ 281,266 Adjusted EBITDA margin 9.2 % 9.5 % (Unaudited) ($ thousands) February 3, 2024 January 28, 2023 Debt/EBITDA leverage ratio: Borrowings under revolving credit agreement (4) $ 182,000 $ 307,500 EBITDA (trailing twelve months) 253,504 278,356 Debt/EBITDA 0.7 1.1 ______________________________ (1) Includes depreciation and amortization of capitalized software and intangible assets. (2) Refer to Schedule 4 for the consolidated reconciliation of net earnings attributable to Caleres, Inc. to adjusted net earnings attributable to Caleres, Inc. (3) Excludes the income tax impacts of the adjustments on Schedule 4. (4) Total availability under the revolving credit agreement was $308.5 million and $181.9 million as of February 3, 2024 and January 28, 2023, respectively. Total liquidity, which includes cash and cash equivalents and availability under the revolving credit agreement, was $329.9 million and $215.6 million for the respective periods. View source version on businesswire.com: https://www.businesswire.com/news/home/20240318757386/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. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Caleres Reports Fourth Quarter and Full Year 2023 Results By: Caleres via Business Wire March 19, 2024 at 06:45 AM EDT Generates fourth quarter earnings per share of $1.57 and adjusted earnings per share of $0.86, up 32% year over year Achieves third consecutive year of adjusted earnings per share in excess of $4.00 baseline Delivers fourth quarter sales growth and record adjusted operating earnings in Brand Portfolio segment Reduces revolver borrowings by $40 million compared to third quarter 2023 and more than $125 million from fiscal 2022 Expects fiscal 2024 net sales to be flat to up 2 percent compared to fiscal 2023 Expects fiscal 2024 earnings per share of $4.30 to $4.60 Caleres (NYSE: CAL), a market-leading portfolio of consumer-driven footwear brands, today reported financial results for the fourth quarter and fiscal 2023 and provided guidance for fiscal 2024. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240318757386/en/Caleres Brand Portfolio Lead Brands -- Sam Edelman, Allen Edmonds, Naturalizer, and Vionic.(Graphic: Business Wire) “The Caleres team delivered another strong operational performance in the fourth quarter, culminating in a third consecutive year of adjusted earnings per share in excess of our $4.00 baseline and underscoring the durability of our earnings power,” said Jay Schmidt, president and chief executive officer. “Our fourth quarter results were led by our Brand Portfolio, which achieved a record-setting performance across key financial metrics. Complementing that strong result, Famous Footwear leaned into its competitive advantages to expand market share, particularly in Kids, which has outpaced the total business for 12 straight quarters.” Specifically, during the quarter, the Brand Portfolio capitalized on ongoing strength in its Lead Brands to power a 4.5-percent increase in year-over-year net sales and a 660-basis-point improvement in gross margin. The Brand Portfolio segment also delivered its best-ever annual adjusted operating earnings, which topped $148 million and was accompanied by an 11.7-percent adjusted return on sales. Notably, the segment led the financial performance of the company. At the same time, Famous Footwear navigated a competitive market environment, capitalizing on pockets of holiday demand and delivering positive sales trends in its Kids business. For the full year, Famous gained share in shoe chains in the important Family Channel and achieved record annual sales in the Kids category while generating robust levels of cash flow. “I am proud of the Caleres team and the tremendous progress we have made across a wide range of strategic objectives,” said Schmidt. “The transformation in earnings power that we have achieved in recent years – combined with our value-driving organizational structure, powerful brands, and best-in-class capabilities – positions us exceptionally well for growth in 2024 and beyond. Our Brand Portfolio – powered by our Lead Brands – has tremendous growth potential, and Famous is poised to strengthen its position as the No. 1 footwear destination for the Millennial family. Looking ahead, we are confident in our ability to execute on our growth strategy, deliver on our long-term financial targets, and create sustained value for our shareholders.” Fourth Quarter 2023 Results (14-weeks ended February 3, 2024, compared to 13-weeks ended January 28, 2023) Net sales were $697.1 million, up 0.1 percent from the fourth quarter of 2022; Famous Footwear segment net sales declined 1.5 percent, with comparable sales down 5.9 percent on a 13-week basis Brand Portfolio segment net sales increased 4.5 percent Direct-to-consumer sales represented approximately 74 percent of total net sales Gross profit was $305.7 million, while gross margin was 43.9 percent; Famous Footwear segment gross margin of 42.9 percent Brand Portfolio segment gross margin of 42.6 percent SG&A as a percentage of net sales was 39.1 percent; Net earnings of $55.8 million, or earnings per diluted share of $1.57, compared to net earnings of $40.8 million, or earnings per diluted share of $1.13 in the fourth quarter of fiscal 2022. Earnings per diluted share of $1.57 include: Deferred tax valuation allowance releases of $0.76 per diluted share; and Expense reduction initiatives of ($0.05) per diluted share. Adjusted net earnings of $30.8 million, or adjusted earnings per diluted share of $0.86, compared to adjusted net earnings of $23.4 million, or adjusted earnings per diluted share of $0.65 in the fourth quarter of fiscal 2022. Fiscal Year 2023 Results (53-weeks ended February 3, 2024, compared to 52-weeks ended January 28, 2023) Net sales were $2.82 billion, down 5.1 percent from fiscal 2022; Famous Footwear segment net sales declined 5.6 percent, with comparable sales down 6.3 percent on a 52-week basis Brand Portfolio segment net sales declined 3.9 percent Direct-to-consumer sales represented approximately 72 percent of total net sales Gross profit was $1.26 billion, while gross margin was 44.8 percent; Famous Footwear segment gross margin of 44.7 percent Brand Portfolio segment gross margin of 43.0 percent SG&A as a percentage of net sales was 37.7 percent; Net earnings of $171.4 million, or earnings per diluted share of $4.80, compared to net earnings of $181.7 million, or earnings per diluted share of $4.92 in fiscal 2022. Earnings of $4.80 per diluted share include: Deferred tax valuation allowance releases of $0.75 per diluted share; and Expense reduction initiatives of ($0.13) per diluted share Adjusted net earnings of $149.3 million, or adjusted earnings per diluted share of $4.18, compared to adjusted net earnings of $167.1 million, or adjusted earnings per diluted share of $4.52 in fiscal 2022; Earnings before interest, taxes, depreciation, and amortization (EBITDA) of $253.5 million and adjusted EBITDA of $259.6 million, or 9.2 percent of sales; Inventory was down 6.8 percent compared to fiscal year-end 2022, due to strategic inventory management – primarily in the Brand Portfolio segment; and Borrowings under the asset-based revolving credit facility were $182.0 million at the end of the period. Fiscal 2023 Benefit from 53rd Week Consolidated net sales $25.0 million Famous Footwear sales $18.2 million Brand Portfolio sales $6.8 million Capital Allocation Update Caleres continued to reduce the borrowings under its asset-based revolving credit facility, paying down $40.0 million during the fourth quarter. The company also returned $2.5 million to shareholders through its quarterly dividend. In fiscal 2023, Caleres continued to invest in value-driving growth opportunities while at the same time reduced short-term borrowings by $125.5 million. The company ended fiscal 2023 with $182.0 million of borrowings. This represents its lowest total indebtedness since the fiscal first quarter 2010. In addition, Caleres returned $27.4 million to shareholders through share repurchases and dividend payments. Specifically, the company repurchased 763,000 shares of common stock, or approximately 2 percent of shares outstanding, for $17.4 million and an average price of $22.86 per share. The company returned $10.0 million to shareholders through quarterly dividend payments. Fiscal 2024 Outlook: The company is introducing its financial outlook for fiscal 2024 and first quarter of 2024 and notes that its fiscal 2024 is a 52-week year and compares to a 53-week year in fiscal 2023. Caleres expects consolidated net sales to be flat to up 2 percent, compared to 2023, and earnings per diluted share to be in the range of $4.30 to $4.60. This outlook considers and balances the positive momentum in our Brand Portfolio segment and ongoing companywide cost reduction initiatives against anticipated headwinds that include a forecasted decline in the footwear market, inflationary pressures that could affect consumer demand at Famous Footwear, and higher freight costs. In addition, for fiscal 2024, the company expects: Consolidated operating margin of 7.3 percent to 7.5 percent; Effective tax rate of about 24 percent; and Capital expenditures of $60 million to $70 million. For first quarter 2024, the company expects: Consolidated net sales to be flat to up 1 percent; and Earnings per diluted share in line with fourth quarter 2023 on an adjusted basis. Investor Conference Call Caleres will host a conference call at 10:00 a.m. ET today, Tuesday, March 19. The webcast and associated slides will be available at investor.caleres.com/news/events. A live conference call will be available at (877) 704-4453 for North America participants or (201) 389-0920 for international participants, no passcode necessary. A replay will be also available at investor.caleres.com/news/events/archive for a limited period. Investors may also access the replay by dialing (844) 512-2921 in North America or (412) 317-6671 internationally and using the conference pin 13744814. 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 earnings before interest, taxes, depreciation and amortization, and estimated and future operating earnings, net earnings and earnings per diluted share, adjusted to exclude certain gains, charges, and recoveries, which are non-GAAP financial measures. 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 general economic conditions and other factors; (ii) inflationary pressures and supply chain disruptions (iii) rapidly changing consumer preferences and purchasing patterns and fashion trends; (iv) supplier concentration, customer concentration and increased consolidation in the retail industry; (v) intense competition within the footwear industry; (vi) foreign currency fluctuations; (vii) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (viii) cybersecurity threats or other major disruption to the company’s information technology systems; (ix) the ability to accurately forecast sales and manage inventory levels; (x) a disruption in the company’s distribution centers; (xi) the ability to recruit and retain senior management and other key associates; (xii) the ability to secure/exit leases on favorable terms; (xiii) the ability to maintain relationships with current suppliers; (xiv) transitional challenges with acquisitions and divestitures; (xv) changes to tax laws, policies and treaties; (xvi) our commitments and shareholder expectations related to environmental, social and governance considerations; (xvii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xviii) 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 January 28, 2023, which information is incorporated by reference herein and updated by the company’s Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change. SCHEDULE 1 CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended Fifty-three Weeks Ended Fifty-two Weeks Ended ($ thousands, except per share data) February 3, 2024 January 28, 2023 February 3, 2024 January 28, 2023 Net sales $ 697,123 $ 696,434 $ 2,817,294 $ 2,968,138 Cost of goods sold 391,395 415,246 1,554,337 1,683,265 Gross profit 305,728 281,188 1,262,957 1,284,873 Selling and administrative expenses 272,830 255,323 1,062,399 1,067,636 Restructuring and other special charges, net 2,151 — 6,103 2,910 Operating earnings 30,747 25,865 194,455 214,327 Interest expense, net (4,103 ) (5,378 ) (19,343 ) (14,264 ) Other income, net 1,550 3,335 6,210 12,971 Earnings before income taxes 28,194 23,822 181,322 213,034 Income tax benefit (provision) 27,466 15,343 (9,490 ) (33,339 ) Net earnings 55,660 39,165 171,832 179,695 Net (loss) earnings attributable to noncontrolling interests (148 ) (1,643 ) 441 (2,047 ) Net earnings attributable to Caleres, Inc. $ 55,808 $ 40,808 $ 171,391 $ 181,742 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 1.57 $ 1.14 $ 4.80 $ 4.98 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 1.57 $ 1.13 $ 4.80 $ 4.92 SCHEDULE 2 CALERES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) ($ thousands) February 3, 2024 January 28, 2023 ASSETS Cash and cash equivalents $ 21,358 $ 33,700 Receivables, net 140,400 132,802 Inventories, net 540,674 580,215 Property and equipment, held for sale 16,777 16,777 Prepaid expenses and other current assets 69,700 67,961 Total current assets 788,909 831,455 Lease right-of-use assets 528,029 518,196 Property and equipment, net 167,583 160,883 Goodwill and intangible assets, net 203,310 215,392 Other assets 116,915 110,546 Total assets $ 1,804,746 $ 1,836,472 LIABILITIES AND EQUITY Borrowings under revolving credit agreement $ 182,000 $ 307,500 Trade accounts payable 251,912 229,908 Lease obligations 112,764 136,051 Other accrued expenses 196,280 237,737 Total current liabilities 742,956 911,196 Noncurrent lease obligations 453,097 444,074 Other liabilities 41,123 55,089 Total other liabilities 494,220 499,163 Total Caleres, Inc. shareholders’ equity 560,631 420,683 Noncontrolling interests 6,939 5,430 Total equity 567,570 426,113 Total liabilities and equity $ 1,804,746 $ 1,836,472 SCHEDULE 3 CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Fifty-three Weeks Ended Fifty-two Weeks Ended ($ thousands) February 3, 2024 January 28, 2023 OPERATING ACTIVITIES: Net cash provided by operating activities $ 200,151 $ 125,879 INVESTING ACTIVITIES: Purchases of property and equipment (44,584 ) (55,913 ) Capitalized software (5,034 ) (8,124 ) Net cash used for investing activities (49,618 ) (64,037 ) FINANCING ACTIVITIES: Borrowings under revolving credit agreement 532,500 859,500 Repayments under revolving credit agreement (658,000 ) (842,000 ) Dividends paid (9,954 ) (10,184 ) Acquisition of treasury stock (17,445 ) (63,225 ) Issuance of common stock under share-based plans, net (11,094 ) (5,387 ) Contributions by noncontrolling interests 1,000 3,142 Net cash used for financing activities (162,993 ) (58,154 ) Effect of exchange rate changes on cash and cash equivalents 118 (103 ) (Decrease) increase in cash and cash equivalents (12,342 ) 3,585 Cash and cash equivalents at beginning of period 33,700 30,115 Cash and cash equivalents at end of period $ 21,358 $ 33,700 SCHEDULE 4 CALERES, INC. RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended February 3, 2024 January 28, 2023 ($ thousands, except per share data) Pre-Tax Impact of Charges/Other Items Net Earnings Attributable to Caleres, Inc. Diluted Earnings Per Share Pre-Tax Impact of Charges/Other Items Net Earnings Attributable to Caleres, Inc. Diluted Earnings Per Share GAAP earnings $ 55,808 $ 1.57 $ 40,808 $ 1.13 Charges/other items: Deferred tax valuation allowances adjustment $ — (26,654 ) (0.76 ) $ — (17,374 ) (0.48 ) Expense reduction initiatives 2,151 1,597 0.05 — — — Total charges/other items $ 2,151 $ (25,057 ) $ (0.71 ) $ — $ (17,374 ) $ (0.48 ) Adjusted earnings $ 30,751 $ 0.86 $ 23,434 $ 0.65 (Unaudited) Fifty-three Weeks Ended Fifty-two Weeks Ended February 3, 2024 January 28, 2023 Pre-Tax Net Earnings Pre-Tax Net Earnings Impact of Attributable Diluted Impact of Attributable Diluted Charges/Other to Caleres, Earnings Charges/Other to Caleres, Earnings ($ thousands, except per share data) Items Inc. Per Share Items Inc. Per Share GAAP earnings $ 171,391 $ 4.80 $ 181,742 $ 4.92 Charges/other items: Deferred tax valuation allowance adjustment $ — (26,654 ) (0.75 ) $ — (17,374 ) (0.47 ) Expense reduction initiatives 6,103 4,532 0.13 — — — Organizational changes — — — 2,910 2,723 0.07 Total charges/other items $ 6,103 $ (22,122 ) $ (0.62 ) $ 2,910 $ (14,651 ) $ (0.40 ) Adjusted earnings $ 149,269 $ 4.18 $ 167,091 $ 4.52 SCHEDULE 5 CALERES, INC. SUMMARY FINANCIAL RESULTS BY SEGMENT SUMMARY FINANCIAL RESULTS (Unaudited) Famous Footwear Brand Portfolio Eliminations and Other Consolidated 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended February 3, January 28, February 3, January 28, February 3, January 28, February 3, January 28, ($ thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Net sales $ 396,227 $ 402,265 $ 323,689 $ 309,729 $ (22,793 ) $ (15,560 ) $ 697,123 $ 696,434 Gross profit 170,129 170,562 137,868 111,465 (2,269 ) (839 ) 305,728 281,188 Gross margin 42.9 % 42.4 % 42.6 % 36.0 % 10.0 % 5.4 % 43.9 % 40.4 % Operating earnings (loss) 19,551 24,386 37,751 19,281 (26,555 ) (17,802 ) 30,747 25,865 Adjusted operating earnings (loss) 19,551 24,386 38,634 19,281 (25,287 ) (17,802 ) 32,898 25,865 Operating margin 4.9 % 6.1 % 11.7 % 6.2 % n/m % n/m % 4.4 % 3.7 % Adjusted operating earnings % 4.9 % 6.1 % 11.9 % 6.2 % n/m % n/m % 4.7 % 3.7 % Comparable sales % (on a 13-week basis) (5.9 )% 0.7 % (3.8 )% 20.4 % — % — % — % — % Number of stores 860 873 98 92 — — 958 965 n/m – Not meaningful RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) (Unaudited) Famous Footwear Brand Portfolio Eliminations and Other Consolidated 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended February 3, January 28, February 3, January 28, February 3, January 28, February 3, January 28, ($ thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Operating earnings (loss) $ 19,551 $ 24,386 $ 37,751 $ 19,281 $ (26,555 ) $ (17,802 ) $ 30,747 $ 25,865 Charges/Other Items: Expense reduction initiatives — — 883 — 1,268 — 2,151 — Total charges/other items — — 883 — 1,268 — 2,151 — Adjusted operating earnings (loss) $ 19,551 $ 24,386 $ 38,634 $ 19,281 $ (25,287 ) $ (17,802 ) $ 32,898 $ 25,865 SCHEDULE 5 CALERES, INC. SUMMARY FINANCIAL RESULTS BY SEGMENT SUMMARY FINANCIAL RESULTS (Unaudited) Famous Footwear Brand Portfolio Eliminations and Other Consolidated 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended February 3, January 28, February 3, January 28, February 3, January 28, February 3, January 28, ($ thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Net sales $ 1,609,396 $ 1,705,093 $ 1,270,853 $ 1,322,772 $ (62,955 ) $ (59,727 ) $ 2,817,294 $ 2,968,138 Gross profit 719,549 789,004 546,005 497,265 (2,597 ) (1,396 ) 1,262,957 1,284,873 Gross profit rate 44.7 % 46.3 % 43.0 % 37.6 % 4.1 % 2.3 % 44.8 % 43.3 % Operating earnings (loss) 123,838 195,837 145,459 112,345 (74,842 ) (93,855 ) 194,455 214,327 Adjusted operating earnings (loss) 125,204 195,837 148,067 112,345 (72,713 ) (90,945 ) 200,558 217,237 Operating earnings % 7.7 % 11.5 % 11.4 % 8.5 % n/m% n/m% 6.9 % 7.2 % Adjusted operating earnings % 7.8 % 11.5 % 11.7 % 8.5 % n/m% n/m% 7.1 % 7.3 % Comparable sales % (on a 52-week basis) (6.3 )% (1.8 )% 1.3 % 31.4 % — % — % — % — % Number of stores 860 873 98 92 — — 958 965 n/m – Not meaningful RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) (Unaudited) Famous Footwear Brand Portfolio Eliminations and Other Consolidated 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended February 3, January 28, February 3, January 28, February 3, January 28, February 3, January 28, ($ thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Operating earnings (loss) $ 123,838 $ 195,837 $ 145,459 $ 112,345 $ (74,842) $ (93,855) $ 194,455 $ 214,327 Charges/Other Items: Expense reduction initiatives 1,366 — 2,608 — 2,129 — 6,103 — Organizational changes — — — — — 2,910 — 2,910 Total charges/other items 1,366 — 2,608 — 2,129 2,910 6,103 2,910 Adjusted operating earnings (loss) $ 125,204 $ 195,837 $ 148,067 $ 112,345 $ (72,713) $ (90,945) $ 200,558 $ 217,237 SCHEDULE 6 CALERES, INC. BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended Fifty-three Weeks Ended Fifty-two Weeks Ended February 3, January 28, February 3, January 28, 2024 2023 2024 2023 ($ thousands, except per share data) Net earnings attributable to Caleres, Inc.: Net earnings $ 55,660 $ 39,165 $ 171,832 $ 179,695 Net loss (earnings) attributable to noncontrolling interests 148 1,643 (441 ) 2,047 Net earnings attributable to Caleres, Inc. 55,808 40,808 171,391 181,742 Net earnings allocated to participating securities (2,414 ) (1,763 ) (7,517 ) (7,716 ) Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 53,394 $ 39,045 $ 163,874 $ 174,026 Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 33,965 34,102 34,142 34,930 Dilutive effect of share-based awards 115 548 10 475 Diluted common shares attributable to Caleres, Inc. 34,080 34,650 34,152 35,405 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 1.57 $ 1.14 $ 4.80 $ 4.98 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 1.57 $ 1.13 $ 4.80 $ 4.92 SCHEDULE 7 CALERES, INC. BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended Fifty-three Weeks Ended Fifty-two Weeks Ended February 3, January 28, February 3, January 28, 2024 2023 2024 2023 ($ thousands, except per share data) Adjusted net earnings attributable to Caleres, Inc.: Adjusted net earnings $ 30,603 $ 21,791 $ 149,710 $ 165,044 Net loss (earnings) attributable to noncontrolling interests 148 1,643 (441 ) 2,047 Adjusted net earnings attributable to Caleres, Inc. 30,751 23,434 149,269 167,091 Net earnings allocated to participating securities (1,324 ) (1,012 ) (6,537 ) (7,092 ) Adjusted net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 29,427 $ 22,422 $ 142,732 $ 159,999 Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 33,965 34,102 34,142 34,930 Dilutive effect of share-based awards 115 548 10 475 Diluted common shares attributable to Caleres, Inc. 34,080 34,650 34,152 35,405 Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.87 $ 0.66 $ 4.18 $ 4.58 Diluted adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.86 $ 0.65 $ 4.18 $ 4.52 SCHEDULE 8 CALERES, INC. CALCULATION OF EBITDA AND DEBT/EBITDA LEVERAGE RATIO (NON-GAAP METRICS) (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended ($ thousands) February 3, 2024 January 28, 2023 EBITDA: Net earnings attributable to Caleres, Inc. $ 55,808 $ 40,808 Income tax benefit (27,466 ) (15,343 ) Interest expense, net 4,103 5,378 Depreciation and amortization (1) 14,875 12,317 EBITDA $ 47,320 $ 43,160 EBITDA margin 6.8 % 6.2 % Adjusted EBITDA: Adjusted net earnings attributable to Caleres, Inc. (2) $ 30,751 $ 23,434 Income tax (benefit) provision (3) (258 ) 2,031 Interest expense, net 4,103 5,378 Depreciation and amortization (1) 14,875 12,317 Adjusted EBITDA $ 49,471 $ 43,160 Adjusted EBITDA margin 7.1 % 6.2 % (Unaudited) Trailing Twelve Months Ended ($ thousands) February 3, 2024 January 28, 2023 EBITDA: Net earnings attributable to Caleres, Inc. $ 171,391 $ 181,742 Income tax provision 9,490 33,339 Interest expense, net 19,343 14,264 Depreciation and amortization (1) 53,280 49,011 EBITDA $ 253,504 $ 278,356 EBITDA margin 9.0 % 9.4 % Adjusted EBITDA: Adjusted net earnings attributable to Caleres, Inc. (2) $ 149,269 $ 167,091 Income tax provision (3) 37,715 50,900 Interest expense, net 19,343 14,264 Depreciation and amortization (1) 53,280 49,011 Adjusted EBITDA $ 259,607 $ 281,266 Adjusted EBITDA margin 9.2 % 9.5 % (Unaudited) ($ thousands) February 3, 2024 January 28, 2023 Debt/EBITDA leverage ratio: Borrowings under revolving credit agreement (4) $ 182,000 $ 307,500 EBITDA (trailing twelve months) 253,504 278,356 Debt/EBITDA 0.7 1.1 ______________________________ (1) Includes depreciation and amortization of capitalized software and intangible assets. (2) Refer to Schedule 4 for the consolidated reconciliation of net earnings attributable to Caleres, Inc. to adjusted net earnings attributable to Caleres, Inc. (3) Excludes the income tax impacts of the adjustments on Schedule 4. (4) Total availability under the revolving credit agreement was $308.5 million and $181.9 million as of February 3, 2024 and January 28, 2023, respectively. Total liquidity, which includes cash and cash equivalents and availability under the revolving credit agreement, was $329.9 million and $215.6 million for the respective periods. View source version on businesswire.com: https://www.businesswire.com/news/home/20240318757386/en/Contacts Logan Bonacorsi lbonacorsi@caleres.com
Generates fourth quarter earnings per share of $1.57 and adjusted earnings per share of $0.86, up 32% year over year Achieves third consecutive year of adjusted earnings per share in excess of $4.00 baseline Delivers fourth quarter sales growth and record adjusted operating earnings in Brand Portfolio segment Reduces revolver borrowings by $40 million compared to third quarter 2023 and more than $125 million from fiscal 2022 Expects fiscal 2024 net sales to be flat to up 2 percent compared to fiscal 2023 Expects fiscal 2024 earnings per share of $4.30 to $4.60
Caleres (NYSE: CAL), a market-leading portfolio of consumer-driven footwear brands, today reported financial results for the fourth quarter and fiscal 2023 and provided guidance for fiscal 2024. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240318757386/en/Caleres Brand Portfolio Lead Brands -- Sam Edelman, Allen Edmonds, Naturalizer, and Vionic.(Graphic: Business Wire) “The Caleres team delivered another strong operational performance in the fourth quarter, culminating in a third consecutive year of adjusted earnings per share in excess of our $4.00 baseline and underscoring the durability of our earnings power,” said Jay Schmidt, president and chief executive officer. “Our fourth quarter results were led by our Brand Portfolio, which achieved a record-setting performance across key financial metrics. Complementing that strong result, Famous Footwear leaned into its competitive advantages to expand market share, particularly in Kids, which has outpaced the total business for 12 straight quarters.” Specifically, during the quarter, the Brand Portfolio capitalized on ongoing strength in its Lead Brands to power a 4.5-percent increase in year-over-year net sales and a 660-basis-point improvement in gross margin. The Brand Portfolio segment also delivered its best-ever annual adjusted operating earnings, which topped $148 million and was accompanied by an 11.7-percent adjusted return on sales. Notably, the segment led the financial performance of the company. At the same time, Famous Footwear navigated a competitive market environment, capitalizing on pockets of holiday demand and delivering positive sales trends in its Kids business. For the full year, Famous gained share in shoe chains in the important Family Channel and achieved record annual sales in the Kids category while generating robust levels of cash flow. “I am proud of the Caleres team and the tremendous progress we have made across a wide range of strategic objectives,” said Schmidt. “The transformation in earnings power that we have achieved in recent years – combined with our value-driving organizational structure, powerful brands, and best-in-class capabilities – positions us exceptionally well for growth in 2024 and beyond. Our Brand Portfolio – powered by our Lead Brands – has tremendous growth potential, and Famous is poised to strengthen its position as the No. 1 footwear destination for the Millennial family. Looking ahead, we are confident in our ability to execute on our growth strategy, deliver on our long-term financial targets, and create sustained value for our shareholders.” Fourth Quarter 2023 Results (14-weeks ended February 3, 2024, compared to 13-weeks ended January 28, 2023) Net sales were $697.1 million, up 0.1 percent from the fourth quarter of 2022; Famous Footwear segment net sales declined 1.5 percent, with comparable sales down 5.9 percent on a 13-week basis Brand Portfolio segment net sales increased 4.5 percent Direct-to-consumer sales represented approximately 74 percent of total net sales Gross profit was $305.7 million, while gross margin was 43.9 percent; Famous Footwear segment gross margin of 42.9 percent Brand Portfolio segment gross margin of 42.6 percent SG&A as a percentage of net sales was 39.1 percent; Net earnings of $55.8 million, or earnings per diluted share of $1.57, compared to net earnings of $40.8 million, or earnings per diluted share of $1.13 in the fourth quarter of fiscal 2022. Earnings per diluted share of $1.57 include: Deferred tax valuation allowance releases of $0.76 per diluted share; and Expense reduction initiatives of ($0.05) per diluted share. Adjusted net earnings of $30.8 million, or adjusted earnings per diluted share of $0.86, compared to adjusted net earnings of $23.4 million, or adjusted earnings per diluted share of $0.65 in the fourth quarter of fiscal 2022. Fiscal Year 2023 Results (53-weeks ended February 3, 2024, compared to 52-weeks ended January 28, 2023) Net sales were $2.82 billion, down 5.1 percent from fiscal 2022; Famous Footwear segment net sales declined 5.6 percent, with comparable sales down 6.3 percent on a 52-week basis Brand Portfolio segment net sales declined 3.9 percent Direct-to-consumer sales represented approximately 72 percent of total net sales Gross profit was $1.26 billion, while gross margin was 44.8 percent; Famous Footwear segment gross margin of 44.7 percent Brand Portfolio segment gross margin of 43.0 percent SG&A as a percentage of net sales was 37.7 percent; Net earnings of $171.4 million, or earnings per diluted share of $4.80, compared to net earnings of $181.7 million, or earnings per diluted share of $4.92 in fiscal 2022. Earnings of $4.80 per diluted share include: Deferred tax valuation allowance releases of $0.75 per diluted share; and Expense reduction initiatives of ($0.13) per diluted share Adjusted net earnings of $149.3 million, or adjusted earnings per diluted share of $4.18, compared to adjusted net earnings of $167.1 million, or adjusted earnings per diluted share of $4.52 in fiscal 2022; Earnings before interest, taxes, depreciation, and amortization (EBITDA) of $253.5 million and adjusted EBITDA of $259.6 million, or 9.2 percent of sales; Inventory was down 6.8 percent compared to fiscal year-end 2022, due to strategic inventory management – primarily in the Brand Portfolio segment; and Borrowings under the asset-based revolving credit facility were $182.0 million at the end of the period. Fiscal 2023 Benefit from 53rd Week Consolidated net sales $25.0 million Famous Footwear sales $18.2 million Brand Portfolio sales $6.8 million Capital Allocation Update Caleres continued to reduce the borrowings under its asset-based revolving credit facility, paying down $40.0 million during the fourth quarter. The company also returned $2.5 million to shareholders through its quarterly dividend. In fiscal 2023, Caleres continued to invest in value-driving growth opportunities while at the same time reduced short-term borrowings by $125.5 million. The company ended fiscal 2023 with $182.0 million of borrowings. This represents its lowest total indebtedness since the fiscal first quarter 2010. In addition, Caleres returned $27.4 million to shareholders through share repurchases and dividend payments. Specifically, the company repurchased 763,000 shares of common stock, or approximately 2 percent of shares outstanding, for $17.4 million and an average price of $22.86 per share. The company returned $10.0 million to shareholders through quarterly dividend payments. Fiscal 2024 Outlook: The company is introducing its financial outlook for fiscal 2024 and first quarter of 2024 and notes that its fiscal 2024 is a 52-week year and compares to a 53-week year in fiscal 2023. Caleres expects consolidated net sales to be flat to up 2 percent, compared to 2023, and earnings per diluted share to be in the range of $4.30 to $4.60. This outlook considers and balances the positive momentum in our Brand Portfolio segment and ongoing companywide cost reduction initiatives against anticipated headwinds that include a forecasted decline in the footwear market, inflationary pressures that could affect consumer demand at Famous Footwear, and higher freight costs. In addition, for fiscal 2024, the company expects: Consolidated operating margin of 7.3 percent to 7.5 percent; Effective tax rate of about 24 percent; and Capital expenditures of $60 million to $70 million. For first quarter 2024, the company expects: Consolidated net sales to be flat to up 1 percent; and Earnings per diluted share in line with fourth quarter 2023 on an adjusted basis. Investor Conference Call Caleres will host a conference call at 10:00 a.m. ET today, Tuesday, March 19. The webcast and associated slides will be available at investor.caleres.com/news/events. A live conference call will be available at (877) 704-4453 for North America participants or (201) 389-0920 for international participants, no passcode necessary. A replay will be also available at investor.caleres.com/news/events/archive for a limited period. Investors may also access the replay by dialing (844) 512-2921 in North America or (412) 317-6671 internationally and using the conference pin 13744814. 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 earnings before interest, taxes, depreciation and amortization, and estimated and future operating earnings, net earnings and earnings per diluted share, adjusted to exclude certain gains, charges, and recoveries, which are non-GAAP financial measures. 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 general economic conditions and other factors; (ii) inflationary pressures and supply chain disruptions (iii) rapidly changing consumer preferences and purchasing patterns and fashion trends; (iv) supplier concentration, customer concentration and increased consolidation in the retail industry; (v) intense competition within the footwear industry; (vi) foreign currency fluctuations; (vii) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (viii) cybersecurity threats or other major disruption to the company’s information technology systems; (ix) the ability to accurately forecast sales and manage inventory levels; (x) a disruption in the company’s distribution centers; (xi) the ability to recruit and retain senior management and other key associates; (xii) the ability to secure/exit leases on favorable terms; (xiii) the ability to maintain relationships with current suppliers; (xiv) transitional challenges with acquisitions and divestitures; (xv) changes to tax laws, policies and treaties; (xvi) our commitments and shareholder expectations related to environmental, social and governance considerations; (xvii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xviii) 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 January 28, 2023, which information is incorporated by reference herein and updated by the company’s Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change. SCHEDULE 1 CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended Fifty-three Weeks Ended Fifty-two Weeks Ended ($ thousands, except per share data) February 3, 2024 January 28, 2023 February 3, 2024 January 28, 2023 Net sales $ 697,123 $ 696,434 $ 2,817,294 $ 2,968,138 Cost of goods sold 391,395 415,246 1,554,337 1,683,265 Gross profit 305,728 281,188 1,262,957 1,284,873 Selling and administrative expenses 272,830 255,323 1,062,399 1,067,636 Restructuring and other special charges, net 2,151 — 6,103 2,910 Operating earnings 30,747 25,865 194,455 214,327 Interest expense, net (4,103 ) (5,378 ) (19,343 ) (14,264 ) Other income, net 1,550 3,335 6,210 12,971 Earnings before income taxes 28,194 23,822 181,322 213,034 Income tax benefit (provision) 27,466 15,343 (9,490 ) (33,339 ) Net earnings 55,660 39,165 171,832 179,695 Net (loss) earnings attributable to noncontrolling interests (148 ) (1,643 ) 441 (2,047 ) Net earnings attributable to Caleres, Inc. $ 55,808 $ 40,808 $ 171,391 $ 181,742 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 1.57 $ 1.14 $ 4.80 $ 4.98 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 1.57 $ 1.13 $ 4.80 $ 4.92 SCHEDULE 2 CALERES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) ($ thousands) February 3, 2024 January 28, 2023 ASSETS Cash and cash equivalents $ 21,358 $ 33,700 Receivables, net 140,400 132,802 Inventories, net 540,674 580,215 Property and equipment, held for sale 16,777 16,777 Prepaid expenses and other current assets 69,700 67,961 Total current assets 788,909 831,455 Lease right-of-use assets 528,029 518,196 Property and equipment, net 167,583 160,883 Goodwill and intangible assets, net 203,310 215,392 Other assets 116,915 110,546 Total assets $ 1,804,746 $ 1,836,472 LIABILITIES AND EQUITY Borrowings under revolving credit agreement $ 182,000 $ 307,500 Trade accounts payable 251,912 229,908 Lease obligations 112,764 136,051 Other accrued expenses 196,280 237,737 Total current liabilities 742,956 911,196 Noncurrent lease obligations 453,097 444,074 Other liabilities 41,123 55,089 Total other liabilities 494,220 499,163 Total Caleres, Inc. shareholders’ equity 560,631 420,683 Noncontrolling interests 6,939 5,430 Total equity 567,570 426,113 Total liabilities and equity $ 1,804,746 $ 1,836,472 SCHEDULE 3 CALERES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Fifty-three Weeks Ended Fifty-two Weeks Ended ($ thousands) February 3, 2024 January 28, 2023 OPERATING ACTIVITIES: Net cash provided by operating activities $ 200,151 $ 125,879 INVESTING ACTIVITIES: Purchases of property and equipment (44,584 ) (55,913 ) Capitalized software (5,034 ) (8,124 ) Net cash used for investing activities (49,618 ) (64,037 ) FINANCING ACTIVITIES: Borrowings under revolving credit agreement 532,500 859,500 Repayments under revolving credit agreement (658,000 ) (842,000 ) Dividends paid (9,954 ) (10,184 ) Acquisition of treasury stock (17,445 ) (63,225 ) Issuance of common stock under share-based plans, net (11,094 ) (5,387 ) Contributions by noncontrolling interests 1,000 3,142 Net cash used for financing activities (162,993 ) (58,154 ) Effect of exchange rate changes on cash and cash equivalents 118 (103 ) (Decrease) increase in cash and cash equivalents (12,342 ) 3,585 Cash and cash equivalents at beginning of period 33,700 30,115 Cash and cash equivalents at end of period $ 21,358 $ 33,700 SCHEDULE 4 CALERES, INC. RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended February 3, 2024 January 28, 2023 ($ thousands, except per share data) Pre-Tax Impact of Charges/Other Items Net Earnings Attributable to Caleres, Inc. Diluted Earnings Per Share Pre-Tax Impact of Charges/Other Items Net Earnings Attributable to Caleres, Inc. Diluted Earnings Per Share GAAP earnings $ 55,808 $ 1.57 $ 40,808 $ 1.13 Charges/other items: Deferred tax valuation allowances adjustment $ — (26,654 ) (0.76 ) $ — (17,374 ) (0.48 ) Expense reduction initiatives 2,151 1,597 0.05 — — — Total charges/other items $ 2,151 $ (25,057 ) $ (0.71 ) $ — $ (17,374 ) $ (0.48 ) Adjusted earnings $ 30,751 $ 0.86 $ 23,434 $ 0.65 (Unaudited) Fifty-three Weeks Ended Fifty-two Weeks Ended February 3, 2024 January 28, 2023 Pre-Tax Net Earnings Pre-Tax Net Earnings Impact of Attributable Diluted Impact of Attributable Diluted Charges/Other to Caleres, Earnings Charges/Other to Caleres, Earnings ($ thousands, except per share data) Items Inc. Per Share Items Inc. Per Share GAAP earnings $ 171,391 $ 4.80 $ 181,742 $ 4.92 Charges/other items: Deferred tax valuation allowance adjustment $ — (26,654 ) (0.75 ) $ — (17,374 ) (0.47 ) Expense reduction initiatives 6,103 4,532 0.13 — — — Organizational changes — — — 2,910 2,723 0.07 Total charges/other items $ 6,103 $ (22,122 ) $ (0.62 ) $ 2,910 $ (14,651 ) $ (0.40 ) Adjusted earnings $ 149,269 $ 4.18 $ 167,091 $ 4.52 SCHEDULE 5 CALERES, INC. SUMMARY FINANCIAL RESULTS BY SEGMENT SUMMARY FINANCIAL RESULTS (Unaudited) Famous Footwear Brand Portfolio Eliminations and Other Consolidated 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended February 3, January 28, February 3, January 28, February 3, January 28, February 3, January 28, ($ thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Net sales $ 396,227 $ 402,265 $ 323,689 $ 309,729 $ (22,793 ) $ (15,560 ) $ 697,123 $ 696,434 Gross profit 170,129 170,562 137,868 111,465 (2,269 ) (839 ) 305,728 281,188 Gross margin 42.9 % 42.4 % 42.6 % 36.0 % 10.0 % 5.4 % 43.9 % 40.4 % Operating earnings (loss) 19,551 24,386 37,751 19,281 (26,555 ) (17,802 ) 30,747 25,865 Adjusted operating earnings (loss) 19,551 24,386 38,634 19,281 (25,287 ) (17,802 ) 32,898 25,865 Operating margin 4.9 % 6.1 % 11.7 % 6.2 % n/m % n/m % 4.4 % 3.7 % Adjusted operating earnings % 4.9 % 6.1 % 11.9 % 6.2 % n/m % n/m % 4.7 % 3.7 % Comparable sales % (on a 13-week basis) (5.9 )% 0.7 % (3.8 )% 20.4 % — % — % — % — % Number of stores 860 873 98 92 — — 958 965 n/m – Not meaningful RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) (Unaudited) Famous Footwear Brand Portfolio Eliminations and Other Consolidated 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended 14 weeks ended 13 weeks ended February 3, January 28, February 3, January 28, February 3, January 28, February 3, January 28, ($ thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Operating earnings (loss) $ 19,551 $ 24,386 $ 37,751 $ 19,281 $ (26,555 ) $ (17,802 ) $ 30,747 $ 25,865 Charges/Other Items: Expense reduction initiatives — — 883 — 1,268 — 2,151 — Total charges/other items — — 883 — 1,268 — 2,151 — Adjusted operating earnings (loss) $ 19,551 $ 24,386 $ 38,634 $ 19,281 $ (25,287 ) $ (17,802 ) $ 32,898 $ 25,865 SCHEDULE 5 CALERES, INC. SUMMARY FINANCIAL RESULTS BY SEGMENT SUMMARY FINANCIAL RESULTS (Unaudited) Famous Footwear Brand Portfolio Eliminations and Other Consolidated 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended February 3, January 28, February 3, January 28, February 3, January 28, February 3, January 28, ($ thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Net sales $ 1,609,396 $ 1,705,093 $ 1,270,853 $ 1,322,772 $ (62,955 ) $ (59,727 ) $ 2,817,294 $ 2,968,138 Gross profit 719,549 789,004 546,005 497,265 (2,597 ) (1,396 ) 1,262,957 1,284,873 Gross profit rate 44.7 % 46.3 % 43.0 % 37.6 % 4.1 % 2.3 % 44.8 % 43.3 % Operating earnings (loss) 123,838 195,837 145,459 112,345 (74,842 ) (93,855 ) 194,455 214,327 Adjusted operating earnings (loss) 125,204 195,837 148,067 112,345 (72,713 ) (90,945 ) 200,558 217,237 Operating earnings % 7.7 % 11.5 % 11.4 % 8.5 % n/m% n/m% 6.9 % 7.2 % Adjusted operating earnings % 7.8 % 11.5 % 11.7 % 8.5 % n/m% n/m% 7.1 % 7.3 % Comparable sales % (on a 52-week basis) (6.3 )% (1.8 )% 1.3 % 31.4 % — % — % — % — % Number of stores 860 873 98 92 — — 958 965 n/m – Not meaningful RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) (Unaudited) Famous Footwear Brand Portfolio Eliminations and Other Consolidated 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended February 3, January 28, February 3, January 28, February 3, January 28, February 3, January 28, ($ thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Operating earnings (loss) $ 123,838 $ 195,837 $ 145,459 $ 112,345 $ (74,842) $ (93,855) $ 194,455 $ 214,327 Charges/Other Items: Expense reduction initiatives 1,366 — 2,608 — 2,129 — 6,103 — Organizational changes — — — — — 2,910 — 2,910 Total charges/other items 1,366 — 2,608 — 2,129 2,910 6,103 2,910 Adjusted operating earnings (loss) $ 125,204 $ 195,837 $ 148,067 $ 112,345 $ (72,713) $ (90,945) $ 200,558 $ 217,237 SCHEDULE 6 CALERES, INC. BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended Fifty-three Weeks Ended Fifty-two Weeks Ended February 3, January 28, February 3, January 28, 2024 2023 2024 2023 ($ thousands, except per share data) Net earnings attributable to Caleres, Inc.: Net earnings $ 55,660 $ 39,165 $ 171,832 $ 179,695 Net loss (earnings) attributable to noncontrolling interests 148 1,643 (441 ) 2,047 Net earnings attributable to Caleres, Inc. 55,808 40,808 171,391 181,742 Net earnings allocated to participating securities (2,414 ) (1,763 ) (7,517 ) (7,716 ) Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 53,394 $ 39,045 $ 163,874 $ 174,026 Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 33,965 34,102 34,142 34,930 Dilutive effect of share-based awards 115 548 10 475 Diluted common shares attributable to Caleres, Inc. 34,080 34,650 34,152 35,405 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 1.57 $ 1.14 $ 4.80 $ 4.98 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 1.57 $ 1.13 $ 4.80 $ 4.92 SCHEDULE 7 CALERES, INC. BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended Fifty-three Weeks Ended Fifty-two Weeks Ended February 3, January 28, February 3, January 28, 2024 2023 2024 2023 ($ thousands, except per share data) Adjusted net earnings attributable to Caleres, Inc.: Adjusted net earnings $ 30,603 $ 21,791 $ 149,710 $ 165,044 Net loss (earnings) attributable to noncontrolling interests 148 1,643 (441 ) 2,047 Adjusted net earnings attributable to Caleres, Inc. 30,751 23,434 149,269 167,091 Net earnings allocated to participating securities (1,324 ) (1,012 ) (6,537 ) (7,092 ) Adjusted net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 29,427 $ 22,422 $ 142,732 $ 159,999 Basic and diluted common shares attributable to Caleres, Inc.: Basic common shares 33,965 34,102 34,142 34,930 Dilutive effect of share-based awards 115 548 10 475 Diluted common shares attributable to Caleres, Inc. 34,080 34,650 34,152 35,405 Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.87 $ 0.66 $ 4.18 $ 4.58 Diluted adjusted earnings per common share attributable to Caleres, Inc. shareholders $ 0.86 $ 0.65 $ 4.18 $ 4.52 SCHEDULE 8 CALERES, INC. CALCULATION OF EBITDA AND DEBT/EBITDA LEVERAGE RATIO (NON-GAAP METRICS) (Unaudited) Fourteen Weeks Ended Thirteen Weeks Ended ($ thousands) February 3, 2024 January 28, 2023 EBITDA: Net earnings attributable to Caleres, Inc. $ 55,808 $ 40,808 Income tax benefit (27,466 ) (15,343 ) Interest expense, net 4,103 5,378 Depreciation and amortization (1) 14,875 12,317 EBITDA $ 47,320 $ 43,160 EBITDA margin 6.8 % 6.2 % Adjusted EBITDA: Adjusted net earnings attributable to Caleres, Inc. (2) $ 30,751 $ 23,434 Income tax (benefit) provision (3) (258 ) 2,031 Interest expense, net 4,103 5,378 Depreciation and amortization (1) 14,875 12,317 Adjusted EBITDA $ 49,471 $ 43,160 Adjusted EBITDA margin 7.1 % 6.2 % (Unaudited) Trailing Twelve Months Ended ($ thousands) February 3, 2024 January 28, 2023 EBITDA: Net earnings attributable to Caleres, Inc. $ 171,391 $ 181,742 Income tax provision 9,490 33,339 Interest expense, net 19,343 14,264 Depreciation and amortization (1) 53,280 49,011 EBITDA $ 253,504 $ 278,356 EBITDA margin 9.0 % 9.4 % Adjusted EBITDA: Adjusted net earnings attributable to Caleres, Inc. (2) $ 149,269 $ 167,091 Income tax provision (3) 37,715 50,900 Interest expense, net 19,343 14,264 Depreciation and amortization (1) 53,280 49,011 Adjusted EBITDA $ 259,607 $ 281,266 Adjusted EBITDA margin 9.2 % 9.5 % (Unaudited) ($ thousands) February 3, 2024 January 28, 2023 Debt/EBITDA leverage ratio: Borrowings under revolving credit agreement (4) $ 182,000 $ 307,500 EBITDA (trailing twelve months) 253,504 278,356 Debt/EBITDA 0.7 1.1 ______________________________ (1) Includes depreciation and amortization of capitalized software and intangible assets. (2) Refer to Schedule 4 for the consolidated reconciliation of net earnings attributable to Caleres, Inc. to adjusted net earnings attributable to Caleres, Inc. (3) Excludes the income tax impacts of the adjustments on Schedule 4. (4) Total availability under the revolving credit agreement was $308.5 million and $181.9 million as of February 3, 2024 and January 28, 2023, respectively. Total liquidity, which includes cash and cash equivalents and availability under the revolving credit agreement, was $329.9 million and $215.6 million for the respective periods. View source version on businesswire.com: https://www.businesswire.com/news/home/20240318757386/en/