EARNINGS PER SHARE

12 Months Ended

Feb. 01, 2025

EARNINGS PER SHARE

EARNINGS PER SHARE

3.   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:

($ thousands, except per share amounts)	2024		2023		2022
NUMERATOR
Net earnings	$	106,097	$	171,832	$	179,695
Net loss (earnings) attributable to noncontrolling interests		1,158		(441)		2,047
Net earnings attributable to Caleres, Inc.	$	107,255	$	171,391	$	181,742
Net earnings allocated to participating securities		(3,839)		(7,517)		(7,716)
Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities	$	103,416	$	163,874	$	174,026
DENOMINATOR
Denominator for basic earnings per common share attributable to Caleres, Inc. shareholders		33,397		34,142		34,930
Dilutive effect of share-based awards		116		10		475
Denominator for diluted earnings per common share attributable to Caleres, Inc. shareholders		33,513		34,152		35,405
Basic earnings per common share attributable to Caleres, Inc. shareholders	$	3.10	$	4.80	$	4.98
Diluted earnings per common share attributable to Caleres, Inc. shareholders	$	3.09	$	4.80	$	4.92

As further discussed in Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities, the Company has two publicly announced share repurchase programs.  The Company repurchased 1,938,324, 763,000 and 2,622,845 shares at a cost of $65.0 million, $17.4 million and $63.2 million during the years ended February 1, 2025, February 3, 2024 and January 28, 2023, respectively, under these programs.

Under the provisions of the Inflation Reduction Act of 2022 (“Inflation Reduction Act”), a 1% excise tax is imposed on repurchases of common stock beginning on January 1, 2023.  Excise taxes incurred on share repurchases are incremental costs to purchase the stock, and accordingly, are included in the total cost basis of the common stock acquired and reflected as a reduction of shareholders’ equity within retained earnings in the consolidated statements of shareholders’ equity.  Excise taxes of $0.5 million are due on the Company’s share repurchases during 2024.  An immaterial amount of excise taxes were due on share repurchases during 2023.