Market Overview

Caleres Announces First Quarter 2019 Earnings Call

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Caleres (NYSE:CAL) (caleres.com)
today announced it plans to release its first quarter 2019 financial
results after market close on Monday, June 3. Company executives will
host a financial analyst call at 4:30 p.m. ET that day, to discuss first
quarter results and to provide a general business update.

The dial-in number for financial analysts in North America is (877)
217-9089, or (706) 679-1723 for international analysts, and the
conference ID is 8758845. To participate, please dial in a few minutes
before the scheduled time. Employees, the media and the public are
invited to listen to the call at investor.caleres.com/news/events.

A replay of the call will be available through Saturday, June 8, by
dialing (855) 859-2056 in North America, or (404) 537-3406
internationally, and using the conference ID 8758845. A webcast replay
will also be archived for a limited period at investor.caleres.com/news/events/archive.

Caleres also announced it is changing its segment presentation to
reflect growth in intersegment activity, driven by recent acquisitions,
and to better align reporting with its independent business model. The
company will continue to present two reportable segments, Famous
Footwear and Brand Portfolio, however, beginning with the first quarter
of 2019, Caleres will present Brand Portfolio net sales inclusive of
both external and intersegment sales.

The elimination of intersegment sales and profit from Brand Portfolio to
Famous Footwear will be reflected within the Eliminations and Other
category. In conjunction with the change, 2017 and 2018 results have
been recast and the related quarterly historical segment results are
included in the schedules to this release.

About Caleres - Caleres is a diverse portfolio of global
footwear brands. Our products are available virtually everywhere - in
the over 1,200 retail stores we operate, in hundreds of major department
and specialty stores, on our branded e-commerce sites, and on many
additional third-party retail websites. Famous Footwear offers great
brands for the entire family with convenient, curated, affordable
collections. Sam Edelman keeps expressive women in step with the latest
trends in a playful, whimsical way. Naturalizer shoes are beautiful from
the inside out, with elegant simplicity and legendary fit re-imagined
for today's consumer. Allen Edmonds combines old world craft with new
world technology to create luxe footwear for the discerning man who
wants sophisticated, modern classics. Rounding out our family of brands
are Vionic, Dr. Scholl's Shoes, Vince, Franco Sarto, LifeStride, Via
Spiga, Blowfish Malibu, Bzees, Circus by Sam Edelman, Fergie and Ryka.
Combined, these brands make Caleres a company with both a legacy and a
mission. Our legacy is our more than 140 years of craftsmanship and our
passion for fit, while our mission is to continue to inspire people to
feel great… feet first. Visit caleres.com to
learn more about us.

 
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
         
SUMMARY FINANCIAL RESULTS
 
(Unaudited)
Famous Footwear   Brand Portfolio   Eliminations and Other   Consolidated

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

(Thousands)

May 5,
2018

 

April 29,
2017

 

May 5,
2018

 

April 29,
2017

 

May 5,
2018

 

April 29,
2017

 

May 5,
2018

 

April 29,
2017

Net sales $ 363,411   $ 366,494   $ 283,497 $ 279,715 $ (14,766 ) $ (14,700 ) $ 632,142 $ 631,509
Gross profit $ 165,201 $ 167,690 $ 108,861 $ 102,504 $ 859 $ 714 $ 274,921 $ 270,908
Adjusted gross profit $ 165,201 $ 167,690 $ 108,861 $ 105,533 $ 859 $ 714 $ 274,921 $ 273,937
Gross profit rate 45.5 % 45.8 % 38.4 % 36.7 % (5.8 )% (4.9 )% 43.5 % 42.9 %
Adjusted gross profit rate 45.5 % 45.8 % 38.4 % 37.7 % (5.8 )% (4.9 )% 43.5 % 43.4 %
Operating earnings (loss) $ 21,857 $ 20,279 $ 11,627 $ 12,600 $ (10,538 ) $ (9,590 ) $ 22,946 $ 23,289
Adjusted operating earnings (loss) $ 21,857 $ 20,279 $ 13,211 $ 16,475 $ (10,344 ) $ (9,328 ) $ 24,724 $ 27,426
Operating earnings (loss) % 6.0 % 5.5 % 4.1 % 4.5 % 71.4 % 65.2 % 3.6 % 3.7 %
Adjusted operating earnings % 6.0 % 5.5 % 4.7 % 5.9 % 70.1 % 63.5 % 3.9 % 4.3 %
Same-store sales % (on a 13-week basis) (1) (0.8 )% (0.6 )% (1.0 )% 2.3 %

%

%

%

%

Number of stores   1,013     1,052     235     233             1,248     1,285  
             
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
(Unaudited)
Famous Footwear   Brand Portfolio   Eliminations and Other   Consolidated

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

(Thousands)

May 5,
2018

 

April 29,
2017

 

May 5,
2018

 

April 29,
2017

 

May 5,
2018

 

April 29,
2017

 

May 5,
2018

 

April 29,
2017

Gross profit $ 165,201 $ 167,690 $ 108,861 $ 102,504 $ 859 $ 714 $ 274,921 $ 270,908

Charges/Other Items:

Acquisition, integration and reorganization of men's brands             3,029                 3,029  
Total charges/other items             3,029                 3,029  
Adjusted gross profit $ 165,201     $ 167,690     $ 108,861     $ 105,533     $ 859     $ 714     $ 274,921     $ 273,937  
Operating earnings (loss) $ 21,857 $ 20,279 $ 11,627 $ 12,600 $ (10,538 ) $ (9,590 ) $ 22,946 $ 23,289

Charges/Other Items:

Acquisition, integration and reorganization of men's brands         1,584     3,875     194     262     1,778     4,137  
Total charges/other items         1,584     3,875     194     262     1,778     4,137  
Adjusted operating earnings (loss)   $ 21,857     $ 20,279     $ 13,211     $ 16,475     $ (10,344 )   $ (9,328 )   $ 24,724     $ 27,426  
(1) The thirteen-week period ended April 29, 2017 excludes sales
from Allen Edmonds.
 
 
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT        
           
SUMMARY FINANCIAL RESULTS
 
(Unaudited)
Famous Footwear   Brand Portfolio   Eliminations and Other   Consolidated

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

(Thousands)

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

Net sales $ 429,472   $ 404,930   $ 305,021 $ 301,874 $ (27,881 ) $ (29,850 ) $ 706,612 $ 676,954
Gross profit $ 187,114 $ 183,309 $ 108,288 $ 106,219 $ (2,301 ) $ (2,067 ) $ 293,101 $ 287,461
Adjusted gross profit $ 187,114 $ 183,309 $ 108,828 $ 108,129 $ (2,301 ) $ (2,067 ) $ 293,641 $ 289,371
Gross profit rate 43.6 % 45.3 % 35.5 % 35.2 % 8.3 % 6.9 % 41.5 % 42.5 %
Adjusted gross profit rate 43.6 % 45.3 % 35.6 % 35.8 % 8.3 % 6.9 % 41.6 % 42.7 %
Operating earnings (loss) $ 33,240 $ 25,112 $ 15,909 $ 17,983 $ (17,006 ) $ (14,669 ) $ 32,143 $ 28,426
Adjusted operating earnings (loss) $ 33,240 $ 25,112 $ 18,248 $ 20,529 $ (16,682 ) $ (12,440 ) $ 34,806 $ 33,201
Operating earnings (loss) % 7.7 % 6.2 % 5.2 % 6.0 % 61.0 % 49.1 % 4.5 % 4.2 %
Adjusted operating earnings % 7.7 % 6.2 % 6.0 % 6.8 % 59.8 % 41.7 % 4.9 % 4.9 %
Same-store sales % (on a 13-week basis) (1) 2.6 % 2.8 % (1.3 )% 15.8 %

%

%

%

%

Number of stores   1,008     1,055     233     238             1,241     1,293  
             
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
(Unaudited)
Famous Footwear   Brand Portfolio   Eliminations and Other   Consolidated

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

(Thousands)

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

 

August 4,
2018

 

July 29,
2017

Gross profit $ 187,114 $ 183,309 $ 108,288 $ 106,219 $ (2,301 ) $ (2,067 ) $ 293,101 $ 287,461

Charges/Other Items:

Blowfish Malibu acquisition-related costs 540 540
Acquisition, integration and reorganization of men's brands             1,910                 1,910  
Total charges/other items         540     1,910             540     1,910  
Adjusted gross profit $ 187,114     $ 183,309     $ 108,828     $ 108,129     $ (2,301 )   $ (2,067 )   $ 293,641     $ 289,371  
Operating earnings (loss) $ 33,240 $ 25,112 $ 15,909 $ 17,983 $ (17,006 ) $ (14,669 ) $ 32,143 $ 28,426

Charges/Other Items:

Blowfish Malibu acquisition-related costs 540 238 778
Acquisition, integration and reorganization of men's brands         1,799     2,546     86     2,229     1,885     4,775  
Total charges/other items         2,339     2,546     324     2,229     2,663     4,775  
Adjusted operating earnings (loss)   $ 33,240     $ 25,112     $ 18,248     $ 20,529     $ (16,682 )   $ (12,440 )   $ 34,806     $ 33,201  
(1) The thirteen-week period ended July 29, 2017 excludes sales from
Allen Edmonds.
 
               
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT        
 
SUMMARY FINANCIAL RESULTS
 
(Unaudited)
Famous Footwear   Brand Portfolio   Eliminations and Other   Consolidated

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

(Thousands)

November 3,
2018

 

October 28,
2017

 

November 3,
2018

 

October 28,
2017

 

November 3,
2018

 

October 28,
2017

 

November 3,
2018

 

October 28,
2017

Net sales $ 448,765 $ 473,118 $ 343,032 $ 316,756 $ (15,968 ) $ (15,218 ) $ 775,829 $ 774,656
Gross profit $ 182,487 $ 198,073 $ 126,558 $ 117,026 $ 1,565 $ 1,786 $ 310,610 $ 316,885
Adjusted gross profit $ 182,487 $ 198,073 $ 128,404 $ 117,026 $ 1,565 $ 1,786 $ 312,456 $ 316,885
Gross profit rate 40.7 % 41.9 % 36.9 % 37.0 % (9.8 )% (11.7 )% 40.0 % 40.9 %
Adjusted gross profit rate 40.7 % 41.9 % 37.4 % 36.9 % (9.8 )% (11.7 )% 40.3 % 40.9 %
Operating earnings (loss) $ 24,414 $ 33,747 $ 25,114 $ 22,495 $ (9,780 ) $ (5,864 ) $ 39,748 $ 50,378
Adjusted operating earnings (loss) $ 24,414 $ 33,747 $ 28,015 $ 22,495 $ (5,495 ) $ (5,864 ) $ 46,934 $ 50,378
Operating earnings (loss) % 5.4 % 7.1 % 7.3 % 7.1 % 61.2 % 38.5 % 5.1 % 6.5 %
Adjusted operating earnings % 5.4 % 7.1 % 8.2 % 7.1 % 34.4 % 38.5 % 6.0 % 6.5 %
Same-store sales % (on a 13-week basis) (1) 2.8 % 0.9 % 1.7 % 2.4 %

%

%

%

%

Number of stores   1,007     1,042     232     235             1,239     1,277  
             
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
(Unaudited)        
Famous Footwear   Brand Portfolio   Eliminations and Other   Consolidated

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

 

13 Weeks
Ended

(Thousands)

November 3,
2018

 

October 28,
2017

 

November 3,
2018

 

October 28,
2017

 

November 3,
2018

 

October 28,
2017

 

November 3,
2018

 

October 28,
2017

Gross profit $ 182,487 $ 198,073 $ 126,558 $ 117,026 $ 1,565 $ 1,786 $ 310,610 $ 316,885

Charges/Other Items:

Blowfish Malibu acquisition-related costs 932 932
Vionic acquisition-related costs         914                 914      
Total charges/other items         1,846                 1,846      
Adjusted gross profit $ 182,487     $ 198,073     $ 128,404     $ 117,026     $ 1,565     $ 1,786     $ 312,456     $ 316,885  
Operating earnings (loss) $ 24,414 $ 33,747 $ 25,114 $ 22,495 $ (9,780 ) $ (5,864 ) $ 39,748 $ 50,378

Charges/Other Items:

Blowfish Malibu acquisition and integration-related costs 932 68 1,000
Vionic acquisition-related costs 914 4,108 5,022
Acquisition, integration and reorganization of men's brands         1,055         109         1,164      
Total charges/other items         2,901         4,285         7,186      
Adjusted operating earnings (loss)   $ 24,414     $ 33,747     $ 28,015     $ 22,495     $ (5,495 )   $ (5,864 )   $ 46,934     $ 50,378  
(1) The thirteen-week period ended October 28, 2017
excludes sales from Allen Edmonds.
 
 
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT        
           
SUMMARY FINANCIAL RESULTS
  (Unaudited)
Famous Footwear   Brand Portfolio   Eliminations and Other   Consolidated

13 Weeks
Ended

 

14 Weeks
Ended

 

13 Weeks
Ended

 

14 Weeks
Ended

 

13 Weeks
Ended

 

14 Weeks
Ended

 

13 Weeks
Ended

 

14 Weeks
Ended

(Thousands)

February 2,
2019

 

February 3,
2018

 

February 2,
2019

 

February 3,
2018

 

February 2,
2019

 

February 3,
2018

 

February 2,
2019

 

February 3,
2018

Net sales $ 365,160   $ 393,085   $ 382,001 $ 334,736 $ (26,898 ) $ (25,356 ) $ 720,263 $ 702,465
Gross profit $ 156,028 $ 175,362 $ 123,212 $ 118,415 $ (1,528 ) $ (382 ) $ 277,712 $ 293,395
Adjusted gross profit $ 156,028 $ 175,362 $ 133,197 $ 118,415 $ (1,528 ) $ (382 ) $ 287,697 $ 293,395
Gross profit rate 42.7 % 44.6 % 32.3 % 35.4 % 5.7 % 1.5 % 38.6 % 41.8 %
Adjusted gross profit rate 42.7 % 44.6 % 34.9 % 35.4 % 5.7 % 1.5 % 39.9 % 41.8 %
Operating earnings (loss) $ 5,757 $ 13,093 $ (93,450 ) $ 27,082 $ (6,744 ) $ (14,584 ) $ (94,437 ) $ 25,591
Adjusted operating earnings (loss) $ 6,149 $ 13,657 $ 20,678 $ 27,237 $ (6,341 ) $ (14,361 ) $ 20,486 $ 26,533
Operating earnings (loss) % 1.6 % 3.3 % (24.5 )% 8.1 % 25.1 % 57.5 % (13.1 )% 3.6 %
Adjusted operating earnings % 1.7 % 3.5 % 5.4 % 8.1 % 23.6 % 56.6 % 2.8 % 3.8 %
Same-store sales % (on a 13-week basis) (1) 1.1 % 2.8 % 0.2 % 5.9 %

%

%

%

%

Number of stores   992     1,026     229     236             1,221     1,262  
 
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
(Unaudited)
Famous Footwear   Brand Portfolio   Eliminations and Other   Consolidated

13 Weeks
Ended

 

14 Weeks
Ended

 

13 Weeks
Ended

 

14 Weeks
Ended

 

13 Weeks
Ended

 

14 Weeks
Ended

 

13 Weeks
Ended

 

14 Weeks
Ended

(Thousands)

February 2,
2019

 

February 3,
2018

 

February 2,
2019

 

February 3,
2018

 

February 2,
2019

 

February 3,
2018

 

February 2,
2019

 

February 3,
2018

Gross profit $ 156,028 $ 175,362 $ 123,212 $ 118,415 $ (1,528 ) $ (382 ) $ 277,712 $ 293,395

Charges/Other Items:

Blowfish Malibu acquisition and integration-related costs 244 244
Vionic acquisition and integration-related costs 7,973 7,973
Brand Portfolio - business exits         1,768                 1,768      
Total charges/other items         9,985                 9,985      
Adjusted gross profit $ 156,028     $ 175,362     $ 133,197     $ 118,415     $ (1,528 )   $ (382 )   $ 287,697     $ 293,395  
Operating earnings (loss) $ 5,757 $ 13,093 $ (93,450 ) $ 27,082 $ (6,744 ) $ (14,584 ) $ (94,437 ) $ 25,591

Charges/Other Items:

Impairment of goodwill and intangible assets 98,044 98,044
Integration and reorganization of men's brands 984 30 1,014
Logistics transition 4,488 4,488
Blowfish Malibu acquisition and integration-related costs 244 244
Vionic acquisition and integration-related costs 7,973 373 8,346
Brand Portfolio - business exits 2,395 2,395
Retail operations restructuring 392     564         155         223     392     942  
Total charges/other items 392     564     114,128     155     403     223     114,923     942  
Adjusted operating earnings (loss)   $ 6,149     $ 13,657     $ 20,678     $ 27,237     $ (6,341 )   $ (14,361 )   $ 20,486     $ 26,533  
(1) The fourteen-week period ended February 3, 2018
excludes sales from Allen Edmonds.
 
 
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
 
SUMMARY FINANCIAL RESULTS
(Unaudited)
Famous Footwear   Brand Portfolio   Eliminations and Other   Consolidated

52 Weeks
Ended

 

53 Weeks
Ended

 

52 Weeks
Ended

 

53 Weeks
Ended

 

52 Weeks
Ended

 

53 Weeks
Ended

 

52 Weeks
Ended

 

53 Weeks
Ended

(Thousands)

February 2,
2019

 

February 3,
2018

 

February 2,
2019

 

February 3,
2018

 

February 2,
2019

 

February 3,
2018

 

February 2,
2019

 

February 3,
2018

Net sales $ 1,606,808 $ 1,637,627 $ 1,313,551 $ 1,233,081 $ (85,513 ) $ (85,124 ) $ 2,834,846   $ 2,785,584
Gross profit $ 690,830 $ 724,434 $ 466,919 $ 444,164 $ (1,405 ) $ 51 $ 1,156,344 $ 1,168,649
Adjusted gross profit $ 690,830 $ 724,434 $ 479,291 $ 449,103 $ (1,405 ) $ 51 $ 1,168,716 $ 1,173,588
Gross profit rate 43.0 % 44.2 % 35.5 % 36.0 % 1.6 % % 40.8 % 42.0 %
Adjusted gross profit rate 43.0 % 44.2 % 36.5 % 36.4 % 1.6 % % 41.2 % 42.1 %
Operating earnings (loss) $ 85,268 $ 92,230 $ (40,799 ) $ 80,160 $ (44,068 ) $ (44,707 ) $ 401 $ 127,683
Adjusted operating earnings (loss) $ 85,660 $ 92,794 $ 80,152 $ 86,736 $ (38,861 ) $ (41,993 ) $ 126,951 $ 137,537
Operating earnings (loss) % 5.3 % 5.6 % (3.1 )% 6.5 % 51.5 % 52.5 % 0.0 % 4.6 %
Adjusted operating earnings % 5.3 % 5.7 % 6.1 % 7.0 % 45.4 % 49.3 % 4.5 % 4.9 %
Same-store sales % (on a 52-week basis) (1) 1.5 % 1.4 % (0.1 )% 6.4 %

%

%

%

%
Number of stores   992     1,026     229     236             1,221       1,262  
(1) The fifty-three week period ended February 3, 2018 excludes
sales from Allen Edmonds.
 
SCHEDULE 5
               
CALERES, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
             
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
(Unaudited)
Famous Footwear   Brand Portfolio   Other   Consolidated

52 Weeks
Ended

 

53 Weeks
Ended

 

52 Weeks
Ended

 

53 Weeks
Ended

 

52 Weeks
Ended

 

53 Weeks
Ended

 

52 Weeks
Ended

 

53 Weeks
Ended

(Thousands)

February 2,
2019

 

February 3,
2018

 

February 2,
2019

 

February 3,
2018

 

February 2,
2019

 

February 3,
2018

 

February 2,
2019

 

February 3,
2018

Gross profit $ 690,830 $ 724,434 $ 466,919 $ 444,164 $ (1,405 ) $ 51 $ 1,156,344 $ 1,168,649

Charges/Other Items:

Integration and reorganization of men's brands 4,939 4,939
Blowfish Malibu acquisition and integration-related costs 1,717 1,717
Vionic acquisition and integration-related costs 8,886 8,886
Brand Portfolio - business exits         1,769                 1,769    
Total charges/other items         12,372     4,939             12,372     4,939
Adjusted gross profit $ 690,830     $ 724,434     $ 479,291     $ 449,103     $ (1,405 )   $ 51     $ 1,168,716     $ 1,173,588
Operating earnings (loss) $ 85,268 $ 92,230 $ (40,799 ) $ 80,160 $ (44,068 ) $ (44,707 ) $ 401 $ 127,683

Charges/Other Items:

Impairment of goodwill and intangible assets 98,044 98,044
Integration and reorganization of men's brands 5,421 6,421 420 2,491 5,841 8,912
Logistics transition 4,488 4,488
Blowfish Malibu acquisition and integration-related costs 1,717 305 2,022
Vionic acquisition and integration-related costs 8,886 4,482 13,368
Brand Portfolio - business exits 2,395 2,395
Retail operations restructuring 392     564         155         223     392     942
Total charges/other items 392     564     120,951     6,576     5,207     2,714     126,550     9,854
Adjusted operating earnings (loss) 85,660     92,794     80,152     86,736     (38,861 )   (41,993 )   126,951     137,537

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