UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On November 22, 2022, Caleres, Inc. (the "Company") issued a press release (the "Press Release") announcing, among other things, its results of operations for the quarter ended October 29, 2022. A copy of the Press Release is being furnished as Exhibit 99.1 hereto, and the statements contained therein are incorporated by reference herein.
In accordance with General Instruction B.2. of Form 8-K, the information contained in Item 2.02 and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) | Exhibits |
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Exhibit Number | Description | ||
99.1 | |||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| CALERES, INC. |
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| (Registrant) |
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Date: November 22, 2022 | /s/ Thomas C. Burke | |
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| Thomas C. Burke |
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| Senior Vice President, General Counsel and Secretary |
Exhibit 99.1
News
| Investor Contact: |
| Logan Bonacorsi |
| lbonacorsi@caleres.com |
Caleres Reports Strong Results in Third Quarter 2022
| ● | Delivers record quarterly consolidated net sales of $798.3 million |
| ● | Improves inventory position with a 15.8 percent sequential decline from second quarter 2022 |
| ● | Returns $24.1 million to shareholders via share repurchases and dividends |
| ● | Tightens fiscal year 2022 adjusted earnings per share outlook at upper end of previous guidance range |
ST. LOUIS, November 22, 2022 - Caleres (NYSE: CAL), a diverse portfolio of consumer-driven footwear brands, today reported financial results for the third quarter ended October 29, 2022. During the quarter, Caleres continued its strong performance, achieving record quarterly sales and delivering another period of solid earnings. Net sales rose 1.8 percent year-over-year driven by positive momentum in the Brand Portfolio segment reflecting robust consumer demand for its fashion brands and products. The company achieved net income of $39.2 million, or earnings per diluted share of $1.08. Adjusted net income was $42.0 million, or adjusted earnings per diluted share of $1.15. Notably, Caleres improved its inventory position sequentially with total inventory levels declining 15.8 percent from the second quarter 2022.
“Caleres executed another strong operational and financial performance in the third quarter and closed the first nine months of the year with record earnings,” said Diane Sullivan, Chairman and Chief Executive Officer. “These results underscore the strength and versatility of our brands, highlight our compelling product and product creation power, and demonstrate the portfolio’s significantly enhanced agility and resilience during periods of macroeconomic uncertainty. We are particularly pleased that our Brand Portfolio segment achieved near-record third quarter earnings and that Famous Footwear delivered a strong operating margin of 12.3 percent.”
“We are encouraged by the recent market share gains from our brands and expect to build on this progress as we drive forward by enhancing the digital experience and elevating our product design and offerings,” said Jay Schmidt, President. “As we move through the remaining months of 2022, and in light of the more challenging macroeconomic environment, we will be even more focused on controlling our spending, prioritizing inventory management and leaning into our competitive advantages in order to drive long-term shareholder value.”
Third Quarter 2022 Highlights
(13-weeks ended October 29, 2022, compared to 13-weeks ended October 30, 2021)
| ● | Net sales were $798.3 million, up 1.8 percent from the third quarter of fiscal 2021; |
| ‒ | A 2.6 percent sales decline in the Famous Footwear segment, with comparable store sales down 0.8 percent |
| ‒ | A 7.6 percent sales increase in the Brand Portfolio segment |
| ‒ | Direct-to-consumer sales represented approximately 74 percent of total net sales |
| ● | Gross profit was $339.9 million, while gross margin was 42.6 percent; |
| ‒ | A 44.7 percent gross margin in the Famous Footwear segment |
| ‒ | A 37.9 percent gross margin in the Brand Portfolio segment |
| ● | SG&A as percentage of sales was 35.5 percent, 307 basis points higher than third quarter of fiscal 2021; |
| ● | Net earnings of $39.2 million, or earnings per diluted share of $1.08, compared to net earnings of $59.6 million, or earnings per diluted share of $1.54 in the third quarter of fiscal 2021; |
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| ● | Adjusted net earnings of $42.0 million, or adjusted earnings per diluted share of $1.15, compared to adjusted net earnings of $61.5 million, or adjusted earnings per diluted share of $1.59 in the third quarter of fiscal 2021; |
| ● | Trailing twelve-month adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $298.6 million; or 10.1 percent of sales; |
| ● | Inventory was up approximately 19.5 percent, in-line with expectations, and 15.8 percent below the second quarter of 2022 – representing significant sequential progress; |
| ● | Returned $24.1 million to shareholders through dividends and share repurchases. |
Capital Allocation Update
During the third quarter, Caleres continued to strategically invest in value-driving growth opportunities while at the same time returning $24.1 million to shareholders through share repurchases and dividend payments. Specifically, Caleres repurchased 838,025 shares of common stock, at a total cost of $21.6 million and an average share price of $25.72. Year-to-date, the company has repurchased 2.6 million shares, representing approximately 7 percent of shares outstanding, at an average share price of $24.11. In addition to buybacks, Caleres returned $2.5 million to shareholders through its recurring quarterly cash dividend during the third quarter.
Fiscal Year 2022 Outlook:
“Looking ahead, we are confident that Caleres is well-positioned to close 2022 with record-setting earnings,” said Sullivan. “We believe our curated family of brands, powerful platform and robust capabilities in the areas of brand building, production creation, marketing, and logistics will enable us to navigate any market environment. In short, the Caleres team is enthusiastic about its prospects for long-term profitability and confident in our ability to generate strong levels of cash and unlock further value for our shareholders.”
Given the strong execution to date and expectations for the fourth quarter, Caleres is tightening its fiscal year 2022 earnings outlook at the upper end of its previous guidance range.
Specifically, the company expects adjusted earnings per share to be in the range of $4.30 and $4.40, representing another year of record earnings for the organization. In addition, the company is reiterating its full year sales outlook, with the range still expected to be between 4 percent and 6 percent as compared to fiscal year 2021.
The company anticipates continued improvement in its inventory position and expects to end fiscal year 2022 with inventory up mid-single digit percent as compared to fiscal year 2021.
Investor Conference Call
Caleres will host a conference call at 10:00 a.m. ET today, Tuesday, November 22. 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 13734096.
Definitions
All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings attributable to Caleres, Inc. and diluted earnings per common share attributable to Caleres, Inc. shareholders, are presented as net earnings and earnings per diluted share, respectively.
Non-GAAP Financial Measures
In this press release, the company’s financial results are provided both in accordance with generally accepted accounting principles (GAAP) and using certain non-GAAP financial measures. In particular, the company provides historic and estimated future gross profit, operating earnings, net earnings and earnings per diluted share, earnings before interest, taxes, depreciation and amortization 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
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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) supply chain disruptions and inflationary pressures; (ii) the coronavirus pandemic and its adverse impact on our business operations and financial condition (iii) changing consumer demands, which may be influenced by general economic conditions and other factors; (iv) rapidly changing consumer preferences and purchasing patterns and fashion trends; (v) customer concentration and increased consolidation in the retail industry; (vi) intense competition within the footwear industry; (vii) foreign currency fluctuations; (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 secure/exit leases on favorable terms; (xiv) the ability to maintain relationships with current suppliers; (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. 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 29, 2022, 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.
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3
SCHEDULE 1 |
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CALERES, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
| | (Unaudited) | ||||||||||
| | Thirteen Weeks Ended | | Thirty-Nine Weeks Ended | ||||||||
($ thousands, except per share data) |
| October 29, 2022 |
| October 30, 2021 |
| October 29, 2022 |
| October 30, 2021 | ||||
Net sales | | $ | 798,258 | | $ | 784,156 | | $ | 2,271,704 | | $ | 2,098,323 |
Cost of goods sold | |
| 458,382 | |
| 448,805 | |
| 1,268,019 | |
| 1,165,792 |
Gross profit | |
| 339,876 | |
| 335,351 | |
| 1,003,685 | |
| 932,531 |
Selling and administrative expenses | |
| 283,119 | |
| 254,033 | |
| 812,313 | |
| 757,070 |
Restructuring and other special charges, net | |
| 2,910 | |
| — | |
| 2,910 | |
| 13,482 |
Operating earnings | |
| 53,847 | |
| 81,318 | |
| 188,462 | |
| 161,979 |
Interest expense, net | |
| (4,003) | |
| (5,069) | |
| (8,886) | |
| (28,803) |
Loss on early extinguishment of debt | | | — | |
| (649) | |
| — | |
| (649) |
Other income, net | |
| 2,997 | |
| 3,844 | |
| 9,636 | |
| 11,533 |
Earnings before income taxes | |
| 52,841 | |
| 79,444 | |
| 189,212 | |
| 144,060 |
Income tax provision | |
| (13,849) | |
| (19,759) | |
| (48,683) | |
| (39,838) |
Net earnings | |
| 38,992 | |
| 59,685 | |
| 140,529 | |
| 104,222 |
Net (loss) earnings attributable to noncontrolling interests | |
| (254) | |
| 63 | |
| (404) | |
| 1,057 |
Net earnings attributable to Caleres, Inc. | | $ | 39,246 | | $ | 59,622 | | $ | 140,933 | | $ | 103,165 |
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Basic earnings per common share attributable to Caleres, Inc. shareholders | | $ | 1.09 | | $ | 1.56 | | $ | 3.83 | | $ | 2.70 |
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Diluted earnings per common share attributable to Caleres, Inc. shareholders | | $ | 1.08 | | $ | 1.54 | | $ | 3.79 | | $ | 2.68 |
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SCHEDULE 2 |
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CALERES, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
| | (Unaudited) | ||||
($ thousands) |
| October 29, 2022 |
| October 30, 2021 | ||
ASSETS |
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Cash and cash equivalents | | $ | 32,773 | | $ | 74,772 |
Receivables, net | |
| 161,367 | |
| 161,892 |
Inventories, net | |
| 649,257 | |
| 543,218 |
Property and equipment, held for sale | | | 16,777 | | | — |
Prepaid expenses and other current assets | |
| 60,910 | |
| 82,816 |
Total current assets | |
| 921,084 | |
| 862,698 |
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Lease right-of-use assets | |
| 523,011 | |
| 500,308 |
Property and equipment, net | |
| 151,798 | |
| 155,516 |
Goodwill and intangible assets, net | |
| 218,420 | |
| 230,625 |
Other assets | |
| 134,000 | |
| 125,411 |
Total assets | | $ | 1,948,313 | | $ | 1,874,558 |
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LIABILITIES AND EQUITY | |
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Borrowings under revolving credit agreement | | $ | 364,500 | | $ | 175,000 |
Current portion of long-term debt | | | — | | | 99,598 |
Mandatory purchase obligation - Blowfish Malibu | | | — | | | 54,558 |
Trade accounts payable | |
| 279,704 | |
| 352,084 |
Lease obligations | |
| 133,227 | |
| 128,151 |
Other accrued expenses | |
| 261,483 | |
| 260,669 |
Total current liabilities | |
| 1,038,914 | |
| 1,070,060 |
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Noncurrent lease obligations | |
| 453,718 | |
| 452,786 |
Other liabilities | |
| 50,270 | |
| 45,967 |
Total other liabilities | |
| 503,988 | |
| 498,753 |
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Total Caleres, Inc. shareholders’ equity | |
| 398,444 | |
| 301,098 |
Noncontrolling interests | |
| 6,967 | |
| 4,647 |
Total equity | |
| 405,411 | |
| 305,745 |
Total liabilities and equity | | $ | 1,948,313 | | $ | 1,874,558 |
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SCHEDULE 3 |
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CALERES, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| | (Unaudited) | ||||
| | Thirty-Nine Weeks Ended | ||||
($ thousands) |
| October 29, 2022 |
| October 30, 2021 | ||
OPERATING ACTIVITIES: |
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Net cash provided by operating activities | | $ | 46,266 | | $ | 189,728 |
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INVESTING ACTIVITIES: | |
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Purchases of property and equipment | |
| (40,056) | |
| (10,437) |
Capitalized software | |
| (5,350) | |
| (4,122) |
Net cash used for investing activities | |
| (45,406) | |
| (14,559) |
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FINANCING ACTIVITIES: | |
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Borrowings under revolving credit agreement | |
| 708,500 | |
| 363,000 |
Repayments under revolving credit agreement | |
| (634,000) | |
| (438,000) |
Redemption of senior notes | | | — | | | (100,000) |
Dividends paid | |
| (7,698) | |
| (8,011) |
Debt issuance costs | | | — | | | (1,190) |
Acquisition of treasury stock | |
| (63,225) | |
| — |
Issuance of common stock under share-based plans, net | |
| (4,804) | |
| (3,779) |
Contributions by noncontrolling interests, net | | | 3,142 | | | — |
Other | |
| — | |
| (676) |
Net cash provided by (used for) financing activities | |
| 1,915 | |
| (188,656) |
Effect of exchange rate changes on cash and cash equivalents | |
| (117) | |
| (36) |
Increase (decrease) in cash and cash equivalents | |
| 2,658 | |
| (13,523) |
Cash and cash equivalents at beginning of period | |
| 30,115 | |
| 88,295 |
Cash and cash equivalents at end of period | | $ | 32,773 | | $ | 74,772 |
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SCHEDULE 4 |
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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) | ||||||||||||||||
| | Thirteen Weeks Ended | ||||||||||||||||
| | October 29, 2022 | | October 30, 2021 | ||||||||||||||
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| | 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 | |||||
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GAAP earnings | | | | | $ | 39,246 | | $ | 1.08 | | | |
| $ | 59,622 | | $ | 1.54 |
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Charges/other items: | | | | | | | | | | |
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Organizational changes | | $ | 2,910 | | | 2,723 | | | 0.07 | | $ | — | | | — |
| | — |
Fair value adjustment to Blowfish purchase obligation | | | — | | | — | | | — | | | 1,918 |
| | 1,424 |
| | 0.04 |
Loss on early extinguishment of debt | | | — | |
| — | |
| — | | | 649 | | | 482 |
| | 0.01 |
Total charges/other items | | $ | 2,910 | | $ | 2,723 | | $ | 0.07 | | $ | 2,567 | | $ | 1,906 | | $ | 0.05 |
Adjusted earnings | | | | | $ | 41,969 | | $ | 1.15 | | | | | $ | 61,528 | | $ | 1.59 |
| | (Unaudited) | ||||||||||||||||
| | Thirty-Nine Weeks Ended | ||||||||||||||||
| | October 29, 2022 | | October 30, 2021 | ||||||||||||||
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| | 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 | ||||||
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GAAP earnings | | | | | $ | 140,933 | | $ | 3.79 | | | |
| $ | 103,165 | | $ | 2.68 |
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Charges/other items: | |
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Organizational changes | | $ | 2,910 | | | 2,723 | | | 0.07 | | $ | — | | | — | | $ | — |
Fair value adjustment to Blowfish purchase obligation | | | — | | | — | | | — | | | 15,423 | | | 11,454 | | | 0.30 |
Brand Portfolio - business exits | | | — | | | — | | | — | | | 13,482 | | | 11,927 | | | 0.31 |
Loss on early extinguishment of debt | | | — | | | — | | | — | | | 649 | | | 482 | | | 0.01 |
Deferred tax valuation allowances | | | — | | | — | | | — | | | — | | | 3,294 | | | 0.08 |
Total charges/other items | | $ | 2,910 | | $ | 2,723 | | $ | 0.07 | | $ | 29,554 | | $ | 27,157 | | $ | 0.70 |
Adjusted earnings | | | | | $ | 143,656 | | $ | 3.86 | | | | | $ | 130,322 | | $ | 3.38 |
| | (Unaudited) | |||||||||||
| | Trailing Twelve Months Ended | |||||||||||
| | October 29, 2022 | | October 30, 2021 | |||||||||
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| | Pre-Tax | | Net Earnings | | | Pre-Tax | | Net Earnings | ||||
| | Impact of | | Attributable | | | Impact of | | Attributable | ||||
| | Charges/Other | | to Caleres, | | | Charges/Other | | to Caleres, | ||||
($ thousands) | | Items | | Inc. | | | Items | | Inc. | ||||
| | | | | | | | | | | | | |
GAAP earnings | | | | | $ | 174,787 | | | | |
| $ | 26,189 |
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Charges/other items: | |
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Organizational changes | | $ | 2,910 | |
| 2,723 | | | $ | — | | | — |
Loss on early extinguishment of debt | | | 362 | | | 268 | | | | 649 | | | 482 |
Deferred tax valuation allowances | | | — | | | 746 | | | | — | | | 3,294 |
Brand Portfolio - business exits | | | — | |
| — | | |
| 28,256 |
| | 25,607 |
Fair value adjustment to Blowfish purchase obligation | | | — | | | — | | | | 24,412 | | | 18,129 |
Intangible asset impairment charges | | | — | | | — | | | | 23,805 | | | 17,854 |
COVID-19-related expenses | | | — | | | — | | | | 15,245 | | | 37,486 |
Vionic integration-related costs | |
| — | |
| — | | |
| 3,436 |
| | 2,552 |
Total charges/other items | | $ | 3,272 | | $ | 3,737 | | | $ | 95,803 | | $ | 105,404 |
Adjusted earnings | | | | | $ | 178,524 | | | | | | $ | 131,593 |
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SCHEDULE 5 | ||||||||
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CALERES, INC. | ||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT | ||||||||
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SUMMARY FINANCIAL RESULTS |
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| | (Unaudited) |
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| | Thirteen Weeks Ended |
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| | Famous Footwear | | Brand Portfolio | | Eliminations and Other | | Consolidated |
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| October 29, |
| October 30, |
| October 29, |
| October 30, |
| October 29, |
| October 30, |
| October 29, |
| October 30, |
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($ thousands) | | 2022 | | 2021 | | 2022 | | 2021 | | 2022 | | 2021 | | 2022 | | 2021 |
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Net sales | | $ | 481,951 | | $ | 494,660 | | $ | 323,242 | | $ | 300,513 | | $ | (6,935) | | $ | (11,017) | | $ | 798,258 | | $ | 784,156 | |
Gross profit | |
| 215,603 | |
| 235,487 | |
| 122,359 | |
| 98,898 | |
| 1,914 | |
| 966 | |
| 339,876 | |
| 335,351 | |
Adjusted gross profit | |
| 215,603 | |
| 235,487 | |
| 122,359 | |
| 98,898 | |
| 1,914 | |
| 966 | |
| 339,876 | |
| 335,351 | |
Gross profit rate | |
| 44.7 | % |
| 47.6 | % |
| 37.9 | % |
| 32.9 | % |
| (27.6) | % |
| (8.8) | % |
| 42.6 | % |
| 42.8 | % |
Adjusted gross profit rate | |
| 44.7 | % |
| 47.6 | % |
| 37.9 | % |
| 32.9 | % |
| (27.6) | % |
| (8.8) | % |
| 42.6 | % |
| 42.8 | % |
Operating earnings (loss) | |
| 59,267 | |
| 87,375 | |
| 22,304 | |
| 11,383 | |
| (27,724) | |
| (17,440) | |
| 53,847 | |
| 81,318 | |
Adjusted operating earnings (loss) | |
| 59,267 | |
| 87,375 | |
| 22,304 | |
| 11,383 | |
| (24,814) | |
| (17,440) | |
| 56,757 | |
| 81,318 | |
Operating earnings % |
|
| 12.3 | % |
| 17.7 | % |
| 6.9 | % |
| 3.8 | % |
| n/m | % |
| n/m | % |
| 6.7 | % |
| 10.4 | % |
Adjusted operating earnings % |
|
| 12.3 | % |
| 17.7 | % |
| 6.9 | % |
| 3.8 | % |
| n/m | % |
| n/m | % |
| 7.1 | % |
| 10.4 | % |
Same-store sales % (on a 13-week basis) | |
| (0.8) | % |
| 26.5 | % |
| 26.0 | % |
| 45.8 | % |
| — | % |
| — | % |
| — | % |
| — | % |
Number of stores | |
| 876 | |
| 905 | |
| 89 | |
| 90 | |
| — | |
| — | |
| 965 | |
| 995 | |
n/m – Not meaningful
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) |
|
|
|
|
|
| | (Unaudited) | ||||||||||||||||||||||
| | Thirteen Weeks Ended | ||||||||||||||||||||||
| | Famous Footwear | | Brand Portfolio | | Eliminations and Other | | Consolidated | ||||||||||||||||
|
| October 29, |
| October 30, |
| October 29, |
| October 30, |
| October 29, |
| October 30, |
| October 29, |
| October 30, | ||||||||
($ thousands) | | 2022 | | 2021 | | 2022 | | 2021 | | 2022 | | 2021 | | 2022 | | 2021 | ||||||||
Gross profit | | $ | 215,603 | | $ | 235,487 | | $ | 122,359 | | $ | 98,898 | | $ | 1,914 | | $ | 966 | | $ | 339,876 | | $ | 335,351 |
Charges/Other Items: | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Brand Portfolio - business exits | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Total charges/other items | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Adjusted gross profit | | $ | 215,603 | | $ | 235,487 | | $ | 122,359 | | $ | 98,898 | | $ | 1,914 | | $ | 966 | | $ | 339,876 | | $ | 335,351 |
Operating earnings (loss) | | $ | 59,267 | | $ | 87,375 | | $ | 22,304 | | $ | 11,383 | | $ | (27,724) | | $ | (17,440) | | $ | 53,847 | | $ | 81,318 |
Charges/Other Items: | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Organizational changes | |
| — | |
| — | |
| — | |
| — | |
| 2,910 | |
| — | |
| 2,910 | |
| — |
Total charges/other items | |
| — | |
| — | |
| — | |
| — | |
| 2,910 | |
| — | |
| 2,910 | |
| — |
Adjusted operating earnings (loss) | | $ | 59,267 | | $ | 87,375 | | $ | 22,304 | | $ | 11,383 | | $ | (24,814) | | $ | (17,440) | | $ | 56,757 | | $ | 81,318 |
8
SCHEDULE 5 | ||||||||
|
|
|
|
|
|
|
|
|
CALERES, INC. | ||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT | ||||||||
|
|
|
|
|
|
|
|
|
SUMMARY FINANCIAL RESULTS |
|
|
|
|
| |||
| | (Unaudited) |
| ||||||||||||||||||||||
| | Thirty-Nine Weeks Ended |
| ||||||||||||||||||||||
| | Famous Footwear | | Brand Portfolio | | Eliminations and Other | | Consolidated |
| ||||||||||||||||
|
| October 29, |
| October 30, |
| October 29, |
| October 30, |
| October 29, |
| October 30, |
| October 29, |
| October 30, |
| ||||||||
($ thousands) | | 2022 | | 2021 | | 2022 | | 2021 | | 2022 | | 2021 | | 2022 | | 2021 |
| ||||||||
Net sales | | $ | 1,302,828 | | $ | 1,346,413 | | $ | 1,013,043 | | $ | 789,832 | | $ | (44,167) | | $ | (37,922) | | $ | 2,271,704 | | $ | 2,098,323 | |
Gross profit | |
| 618,442 | |
| 642,715 | |
| 385,800 | |
| 287,791 | |
| (557) | |
| 2,025 | |
| 1,003,685 | |
| 932,531 | |
Adjusted gross profit | |
| 618,442 | |
| 642,715 | |
| 385,800 | |
| 287,791 | |
| (557) | |
| 2,025 | |
| 1,003,685 | |
| 932,531 | |
Gross profit rate | |
| 47.5 | % |
| 47.7 | % |
| 38.1 | % |
| 36.4 | % |
| 1.3 | % |
| (5.3) | % |
| 44.2 | % |
| 44.4 | % |
Adjusted gross profit rate | |
| 47.5 | % |
| 47.7 | % |
| 38.1 | % |
| 36.4 | % |
| 1.3 | % |
| (5.3) | % |
| 44.2 | % |
| 44.4 | % |
Operating earnings (loss) | |
| 171,451 | |
| 220,746 | |
| 93,063 | |
| 25,116 | |
| (76,052) | |
| (83,883) | |
| 188,462 | |
| 161,979 | |
Adjusted operating earnings (loss) | |
| 171,451 | |
| 220,746 | |
| 93,063 | |
| 38,598 | |
| (73,142) | |
| (83,883) | |
| 191,372 | |
| 175,461 | |
Operating earnings % | |
| 13.2 | % |
| 16.4 | % |
| 9.2 | % |
| 3.2 | % |
| n/m | % |
| n/m | % |
| 8.3 | % |
| 7.7 | % |
Adjusted operating earnings % |
|
| 13.2 | % |
| 16.4 | % |
| 9.2 | % |
| 4.9 | % |
| n/m | % |
| n/m | % |
| 8.4 | % |
| 8.4 | % |
Same-store sales % (on a 39-week basis) | |
| (2.5) | % |
| 11.5 | % |
| 36.4 | % |
| 24.3 | % |
| — | % |
| — | % |
| — | % |
| — | % |
Number of stores | |
| 876 | |
| 905 | |
| 89 | |
| 90 | |
| — | |
| — | |
| 965 | |
| 995 | |
n/m – Not meaningful
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) |
|
|
|
|
|
| | (Unaudited) | ||||||||||||||||||||||
| | Thirty-Nine Weeks Ended | ||||||||||||||||||||||
| | Famous Footwear | | Brand Portfolio | | Eliminations and Other | | Consolidated | ||||||||||||||||
|
| October 29, |
| October 30, |
| October 29, |
| October 30, |
| October 29, |
| October 30, |
| October 29, |
| October 30, | ||||||||
($ thousands) | | 2022 | | 2021 | | 2022 | | 2021 | | 2022 | | 2021 | | 2022 | | 2021 | ||||||||
Gross profit | | $ | 618,442 | | $ | 642,715 | | $ | 385,800 | | $ | 287,791 | | $ | (557) | | $ | 2,025 | | $ | 1,003,685 | | $ | 932,531 |
Charges/Other Items: | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Brand Portfolio - brand exits | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Total charges/other items | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Adjusted gross profit | | $ | 618,442 | | $ | 642,715 | | $ | 385,800 | | $ | 287,791 | | $ | (557) | | $ | 2,025 | | $ | 1,003,685 | | $ | 932,531 |
Operating earnings (loss) | | $ | 171,451 | | $ | 220,746 | | $ | 93,063 | | $ | 25,116 | | $ | (76,052) | | $ | (83,883) | | $ | 188,462 | | $ | 161,979 |
Charges/Other Items: | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Organizational changes | | | — | | | — | | | — | | | — | | | 2,910 | | | — | | | 2,910 | |
| — |
Brand Portfolio - business exits | |
| — | |
| — | |
| — | |
| 13,482 | |
| — | |
| — | |
| — | |
| 13,482 |
Total charges/other items | |
| — | |
| — | |
| — | |
| 13,482 | |
| 2,910 | |
| — | |
| 2,910 | |
| 13,482 |
Adjusted operating earnings (loss) | | $ | 171,451 | | $ | 220,746 | | $ | 93,063 | | $ | 38,598 | | $ | (73,142) | | $ | (83,883) | | $ | 191,372 | | $ | 175,461 |
9
SCHEDULE 6 |
|
CALERES, INC. |
BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION |
| | (Unaudited) | ||||||||||
| | Thirteen Weeks Ended | | Thirty-Nine Weeks Ended | ||||||||
|
| October 29, | | October 30, |
| October 29, |
| October 30, | ||||
| | 2022 | | 2021 | | 2022 | | 2021 | ||||
($ thousands, except per share data) | | | | | | | | | | | | |
Net earnings attributable to Caleres, Inc.: |
| |
|
| |
|
| |
|
| |
|
Net earnings | | $ | 38,992 | | $ | 59,685 | | $ | 140,529 | | $ | 104,222 |
Net loss (earnings) attributable to noncontrolling interests | |
| 254 | |
| (63) | |
| 404 | |
| (1,057) |
Net earnings attributable to Caleres, Inc. | |
| 39,246 | |
| 59,622 | |
| 140,933 | |
| 103,165 |
Net earnings allocated to participating securities | |
| (1,723) | |
| (2,140) | |
| (5,951) | |
| (3,737) |
Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities | | $ | 37,523 | | $ | 57,482 | | $ | 134,982 | | $ | 99,428 |
| | | | | | | | | | | | |
Basic and diluted common shares attributable to Caleres, Inc.: | |
|
| |
|
| |
|
| |
|
|
Basic common shares | |
| 34,379 | |
| 36,889 | |
| 35,207 | |
| 36,825 |
Dilutive effect of share-based awards | |
| 507 | |
| 457 | |
| 450 | |
| 294 |
Diluted common shares attributable to Caleres, Inc. | |
| 34,886 | |
| 37,346 | |
| 35,657 | |
| 37,119 |
| | | | | | | | | | | | |
Basic earnings per common share attributable to Caleres, Inc. shareholders | | $ | 1.09 | | $ | 1.56 | | $ | 3.83 | | $ | 2.70 |
| | | | | | | | | | | | |
Diluted earnings per common share attributable to Caleres, Inc. shareholders | | $ | 1.08 | | $ | 1.54 | | $ | 3.79 | | $ | 2.68 |
10
SCHEDULE 7 |
|
CALERES, INC. |
BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION |
| | (Unaudited) | ||||||||||
| | Thirteen Weeks Ended | | Thirty-Nine Weeks Ended | ||||||||
|
| October 29, | | October 30, |
| October 29, |
| October 30, | ||||
| | 2022 | | 2021 | | 2022 | | 2021 | ||||
($ thousands, except per share data) | | | | | | | | | | | | |
Adjusted net earnings attributable to Caleres, Inc.: | | | | | | | | | | | | |
Adjusted net earnings | | $ | 41,715 | | $ | 61,591 | | $ | 143,252 | | $ | 131,379 |
Net loss (earnings) attributable to noncontrolling interests | |
| 254 | |
| (63) | |
| 404 | |
| (1,057) |
Adjusted net earnings attributable to Caleres, Inc. | |
| 41,969 | |
| 61,528 | |
| 143,656 | |
| 130,322 |
Net earnings allocated to participating securities | |
| (1,842) | |
| (2,208) | |
| (6,067) | |
| (4,729) |
Adjusted net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities | | $ | 40,127 | | $ | 59,320 | | $ | 137,589 | | $ | 125,593 |
| | | | | | | | | | | | |
Basic and diluted common shares attributable to Caleres, Inc.: | |
|
| |
|
| |
| | |
|
|
Basic common shares | |
| 34,379 | |
| 36,889 | |
| 35,207 | |
| 36,825 |
Dilutive effect of share-based awards | |
| 507 | |
| 457 | |
| 450 | |
| 294 |
Diluted common shares attributable to Caleres, Inc. | |
| 34,886 | |
| 37,346 | |
| 35,657 | |
| 37,119 |
| | | | | | | | | | | | |
Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders | | $ | 1.17 | | $ | 1.61 | | $ | 3.91 | | $ | 3.41 |
| | | | | | | | | | | | |
Diluted adjusted earnings per common share attributable to Caleres, Inc. shareholders | | $ | 1.15 | | $ | 1.59 | | $ | 3.86 | | $ | 3.38 |
11
SCHEDULE 8 |
|
CALERES, INC. |
CALCULATION OF EBITDA AND ADJUSTED EBITDA (NON-GAAP METRICS) |
| | (Unaudited) | ||||||
|
| Trailing Twelve Months Ended | ||||||
($ thousands) | | October 29, 2022 | | October 30, 2021 | ||||
EBITDA: | | | | | | | | |
Net earnings attributable to Caleres, Inc. | | $ | 174,787 | | | $ | 26,189 | |
Income tax provision | |
| 59,926 | | |
| 51,114 | |
Interest expense, net | |
| 11,013 | | |
| 43,343 | |
Loss on early extinguishment of debt | | | 362 | | | | 649 | |
Depreciation and amortization (1) | |
| 49,552 | | |
| 53,900 | |
EBITDA | | $ | 295,640 | | | $ | 175,195 | |
| | | | | | | | |
EBITDA margin | |
| 10.0 | % | |
| 6.6 | % |
| | | | | | | | |
Adjusted EBITDA: | | | | | | | | |
Adjusted net earnings attributable to Caleres, Inc. (2) | | $ | 178,524 | | | $ | 131,593 | |
Income tax provision (3) | |
| 59,461 | | |
| 41,514 | |
Interest expense, net (4) | |
| 11,013 | | |
| 18,932 | |
Depreciation and amortization (1) | |
| 49,552 | | |
| 53,900 | |
Adjusted EBITDA | | $ | 298,550 | | | $ | 245,939 | |
| | | | | | | | |
Adjusted EBITDA margin | |
| 10.1 | % | |
| 9.2 | % |
| (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) | Excludes the fair value adjustment to the Blowfish purchase obligation, as reflected on Schedule 4. |
12
Document and Entity Information |
Nov. 22, 2022 |
|---|---|
| Document and Entity Information [Abstract] | |
| Document Type | 8-K |
| Document Period End Date | Nov. 22, 2022 |
| Entity File Number | 1-2191 |
| Entity Registrant Name | CALERES, INC. |
| Entity Incorporation, State or Country Code | NY |
| Entity Tax Identification Number | 43-0197190 |
| Entity Address, Address Line One | 8300 Maryland Avenue |
| Entity Address, City or Town | St. Louis |
| Entity Address, State or Province | MO |
| Entity Address, Postal Zip Code | 63105 |
| City Area Code | 314 |
| Local Phone Number | 854-4000 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Common Stock - par value of $0.01 per share |
| Trading Symbol | CAL |
| Security Exchange Name | NYSE |
| Entity Emerging Growth Company | false |
| Entity Central Index Key | 0000014707 |
| Amendment Flag | false |