Earnings Per Share

6 Months Ended

Jul. 29, 2023

Earnings Per Share

Earnings Per Share

Note 4    Earnings Per Share

The Company uses the two-class method to compute basic and diluted earnings per common share attributable to Caleres, Inc. shareholders.  In periods of net loss, no effect is given to the Company’s participating securities since they do not contractually participate in the losses of

the Company.  The following table sets forth the computation of basic and diluted earnings per common share attributable to Caleres, Inc. shareholders for the periods ended July 29, 2023 and July 30, 2022:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
($ thousands, except per share amounts)	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
NUMERATOR
Net earnings	$	34,365	$	51,553	$	69,157	$	101,538
Net (earnings) loss attributable to noncontrolling interests		(422)		(375)		(487)		149
Net earnings attributable to Caleres, Inc.	$	33,943	$	51,178	$	68,670	$	101,687
Net earnings allocated to participating securities		(1,513)		(2,226)		(2,990)		(4,216)
Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities	$	32,430	$	48,952	$	65,680	$	97,471
DENOMINATOR
Denominator for basic earnings per common share attributable to Caleres, Inc. shareholders		34,280		35,031		34,343		35,620
Dilutive effect of share-based awards		—		467		—		467
Denominator for diluted earnings per common share attributable to Caleres, Inc. shareholders		34,280		35,498		34,343		36,087
Basic earnings per common share attributable to Caleres, Inc. shareholders	$	0.95	$	1.40	$	1.91	$	2.74
Diluted earnings per common share attributable to Caleres, Inc. shareholders	$	0.95	$	1.38	$	1.91	$	2.70

There were no outstanding options to purchase shares of common stock for the twenty-six weeks ended July 29, 2023.  Options to purchase 16,667 shares of common stock for both the thirteen and twenty-six weeks ended July 30, 2022 were not included in the denominator for diluted earnings per common share attributable to Caleres, Inc. shareholders because the effect would be anti-dilutive.  

As further discussed in Item 2, Unregistered Sales of Equity Securities and Use of Proceeds, the Company has two publicly announced share repurchase programs, the 2019 program and the 2022 program, which permit repurchases up to 5.0 million and 7.0 million shares, respectively.  During the thirteen and twenty-six weeks ended July 29, 2023, the Company repurchased 763,000 shares under the 2022 program.  During the thirteen and twenty-six weeks ended July 30, 2022, the Company repurchased 1,083,496 and 1,784,820 shares, respectively, under the 2019 and 2022 share repurchase programs.  No excise taxes were due on the Company’s share repurchases during the twenty-six weeks ended July 29, 2023 under the provisions of the Inflation Reduction Act of 2022.