Business Wire | Aug 31, 2021 04:20PM EDT

Caleres Reports Second Quarter 2021 Results

Aug. 31, 2021

ST. LOUIS--(BUSINESS WIRE)--Aug. 31, 2021--Caleres (NYSE: CAL, caleres.com), operating a powerful portfolio of consumer-centric footwear brands, today reported financial results for the second quarter ended July 31, 2021. During the quarter, through its laser focus on the consumer's evolving preferences and ongoing efforts to drive growth across its omni-channel ecosystem, Caleres continued to capitalize on positive consumer demand trends and an accelerated recovery in the footwear marketplace, achieving sequential growth in both revenues and gross margin and delivering its most profitable quarter ever. The company made excellent progress toward its balance sheet goals, paying down $100 million of debt bringing its total amount of debt reduction to $340 million since early 2020, reducing its credit facility borrowings to $100 million at quarter end.

"The Caleres team continued to execute at a high level during the quarter, achieving another significant sequential increase in sales and delivering earnings well in excess of pre-pandemic levels," said Diane Sullivan, Chairman and Chief Executive Officer. "This exceptional performance was led by record-setting quarterly results at Famous Footwear, which in a single quarter delivered operating earnings that exceeded full year 2019. Driving these results, Famous Footwear achieved a more than eight-percent increase in revenue, a more than 100-percent increase in return on sales, and a 670-basis-point increase in gross margin to reach approximately 50 percent versus the same period of 2019. Complementing Famous Footwear's outstanding performance, our Brand Portfolio surpassed its operating earnings for the same period of 2019, led by strong and improving earnings results from key leadership and emerging brands, including Vionic, Sam Edelman, Allen Edmonds and Blowfish Malibu.

Second Quarter 2021 Highlights(13-weeks ended July 31, 2021 compared to 13-weeks ended August 1, 2020)

* Net sales were $675.5 million, up 34.7 percent from the second quarter of fiscal 2020 A 35.8 percent sales increase in the Famous Footwear segment; A 30.2 percent sales increase in the Brand Portfolio segment; Direct-to-consumer sales represented 79 percent of total net sales * Gross profit was $322.3 million, while gross margin was 47.7 percent, or an approximately 11 full percentage point improvement over second quarter 2020; A 50.1 percent gross margin in the Famous Footwear segment; A 39.7 percent gross margin in the Brand Portfolio segment; * SG&A expense of $259.5 million, or 38.4 percent of total net sales, down from 40.1 percent of total net sales in the second quarter of fiscal 2020; * Net income of $37.4 million, or earnings of $0.97 per diluted share, compared to net loss of $30.7 million, or a loss of $0.83 per diluted share, in the second quarter of fiscal 2020. Earnings of $0.97 per share includes $0.22 for the below items: Fair value adjustment of $0.14 associated with the mandatory purchase obligation for Blowfish Malibu; and Deferred tax valuation allowances of $0.08; * Adjusted net income was approximately $46.0 million, or adjusted earnings of $1.19 per diluted share compared to adjusted net loss of $21.1 million, or adjusted loss of $0.57 per diluted share, in the second quarter of fiscal 2020; * Generated $65.2 million in cash from operations and ended the second quarter with $54.7 million of cash on hand; * Inventory levels were down slightly, or approximately two percent, year-over-year, reflecting ongoing disruptions in the global supply chain; * Reduced credit facility borrowings by $100 million from the first quarter of 2021 to end the second quarter at $100 million under its credit facility; * Returned $2.7 million to shareholders during the quarter through its long-standing and uninterrupted quarterly dividend.

Capital Structure

The company has continued to take actions to drive long-term value for its shareholders, investing in the business and enhancing its capital structure. As indicated, Caleres reduced the borrowings under its asset-based revolving credit facility by $100 million. Subsequently, on August 16, 2021, the company proactively called $100 million, or half, of the aforementioned senior secured notes and shifted this higher-cost debt to the revolving credit facility, resulting in a nearly 50-percent reduction in the interest rate on this piece of debt. The company ended the year's fiscal first half with $200 million of short-term debt and $100 million of long-term debt, which compares to total indebtedness of roughly $640 million at the end of the first quarter of 2020. Further complementing this effort, Caleres is currently in the process of renegotiating and renewing the terms of its asset-based revolving credit facility to better reflect the company's dramatically improved capital structure and business outlook.

"During the period, we maintained our sharp focus on driving towards our long-term goal of zero net debt," said Ken Hannah, Senior Vice President and Chief Financial Officer. "During the course of the past five quarters, we have utilized our strong cash generation to lower our overall indebtedness - creating significant long-term value for equity holders in the process. As we progress through 2021, we will continue to prioritize debt reduction in our capital allocation strategy, while simultaneously lowering interest expense levels still further on the debt that remains."

Fiscal Full Year 2021 Outlook

"Looking ahead, we remain cautious about the macro environment given the uncertainty surrounding new COVID-19 variants and ongoing challenges in the global supply chain," said Sullivan. "To that end, we are taking actions to minimize these disruptions and believe we are well-equipped to partially offset some of these cost headwinds. Even with these uncertainties, I remain highly confident in the team's ability to build upon our recent strong performance at Famous and improving results in the Brand Portfolio, leverage our diversified brand model and continue to execute on our long-term strategic priorities in the year's back half. We strongly believe in our prospects for delivering record annual adjusted earnings per share for fiscal year 2021 and are enthusiastic about our strategy for ongoing value creation and for the long-term opportunities that lie ahead for Caleres."

For the third quarter we expect adjusted earnings per share of between $1.10 and $1.25 and for fiscal full year 2021, Caleres expects adjusted earnings per share to be between $3.25 and $3.50.

Investor Conference Call

Caleres will host an investor conference call at 5:00 p.m. ET today, Tuesday, August 31. The webcast and associated slides will be available at investor.caleres.com/news/events. A live conference call will be available at (877) 217-9089 for analysts in North America or (706) 679-1723 for international analysts by using the conference ID 8448125. A replay will be available at investor.caleres.com/news/events/archive for a limited period. Investors may also access the replay by dialing (855) 859-2056 in North America or (404) 537-3406 internationally and using the conference ID 8448125 through Tuesday, September 14.

Definitions

All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings (loss) attributable to Caleres, Inc. and diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders, are presented as net earnings (loss) and earnings (loss) 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 (loss), net earnings (loss) and earnings (loss) 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) the coronavirus pandemic and its adverse impact on our business operations, store traffic and financial condition (ii) changing consumer demands, which may be influenced by consumers' disposable income, which in turn can be influenced by general economic conditions and other factors; (iii) rapidly changing consumer preferences and purchasing patterns and fashion trends; (iv) intense competition within the footwear industry; (v) customer concentration and increased consolidation in the retail industry; (vi) foreign currency fluctuations; (vii) impairment charges resulting from a long-term decline in our stock price; (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 maintain relationships with current suppliers; (xiv) the ability to secure/exit leases on favorable terms; (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.

About Caleres

Caleres is a diverse portfolio of global footwear brands. Our products are available virtually everywhere - in the more than 1,000 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 casual and athletic 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, Vince, Franco Sarto, Dr. Scholl's Shoes, LifeStride, Blowfish Malibu, Bzees, Circus by Sam Edelman 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.

SCHEDULE 1

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)



(Unaudited)

Thirteen Weeks Ended Twenty-Six Weeks Ended

($ thousands, except July 31, August 1, July 31, 2021 August 1,per share data) 2021 2020 2020

Net sales $ 675,531 $ 501,448 $ 1,314,167 $ 898,632

Cost of goods sold 353,238 318,828 716,987 594,114

Gross profit 322,293 182,620 597,180 304,518

Selling andadministrative 259,501 201,331 503,036 426,524 expenses

Impairment ofgoodwill and - - - 262,719 intangible assets

Restructuring andother special - 5,429 13,482 65,625 charges, net

Operating earnings 62,792 (24,140 ) 80,662 (450,350 )(loss)

Interest expense, (11,941 ) (13,387 ) (23,734 ) (22,866 )net

Other income, net 3,860 3,672 7,688 7,257

Earnings (loss) 54,711 (33,855 ) 64,616 (465,959 )before income taxes

Income tax (16,559 ) 3,186 (20,080 ) 89,118 (provision) benefit

Net earnings (loss) 38,152 (30,669 ) 44,536 (376,841 )

Net earnings (loss)attributable to 756 48 993 (286 )noncontrollinginterests

Net earnings (loss)attributable to $ 37,396 $ (30,717 ) $ 43,543 $ (376,555 )Caleres, Inc.



Basic earnings(loss) per commonshare attributable $ 0.98 $ (0.83 ) $ 1.14 $ (9.94 )to Caleres, Inc.shareholders



Diluted earnings(loss) per commonshare attributable $ 0.97 $ (0.83 ) $ 1.13 $ (9.94 )to Caleres, Inc.shareholders

SCHEDULE 2CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

($ thousands)

July 31, 2021

August 1, 2020

January 30, 2021

ASSETS

Cash and cash equivalents

$

54,684

$

148,544

$

88,295

Receivables, net

110,522

110,249

126,994

Inventories, net

565,512

574,830

487,955

Prepaid expenses and other current assets

76,645

96,426

79,312

Total current assets

807,363

930,049

782,556

Lease right-of-use assets

508,597

624,881

554,303

Property and equipment, net

161,066

193,593

172,437

Goodwill and intangible assets, net

233,777

270,361

240,071

Other assets

122,095

93,510

117,683

Total assets

$

1,832,898

$

2,112,394

$

1,867,050

LIABILITIES AND EQUITY

Borrowings under revolving credit agreement

$

100,000

$

350,000

$

250,000

Current portion of long-term debt

99,540

-

-

Mandatory purchase obligation - Blowfish Malibu

52,639

-

39,134

Trade accounts payable

348,795

280,319

280,501

Lease obligations

126,820

171,247

153,060

Other accrued expenses

250,875

216,334

182,814

Total current liabilities

978,669

1,017,900

905,509

Noncurrent lease obligations

463,746

579,399

518,942

Long-term debt

99,540

198,621

198,851

Other liabilities

45,652

71,340

39,894

Total other liabilities

608,938

849,360

757,687

Total Caleres, Inc. shareholders' equity

240,697

242,240

200,247

Noncontrolling interests

4,594

2,894

3,607

Total equity

245,291

245,134

203,854

Total liabilities and equity

$

1,832,898

$

2,112,394

$

1,867,050

SCHEDULE 2CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS



(Unaudited)

($ thousands) July 31, August 1, January 30, 2021 2020 2021

ASSETS

Cash and cash equivalents $ 54,684 $ 148,544 $ 88,295

Receivables, net 110,522 110,249 126,994

Inventories, net 565,512 574,830 487,955

Prepaid expenses and other current 76,645 96,426 79,312assets

Total current assets 807,363 930,049 782,556



Lease right-of-use assets 508,597 624,881 554,303

Property and equipment, net 161,066 193,593 172,437

Goodwill and intangible assets, net 233,777 270,361 240,071

Other assets 122,095 93,510 117,683

Total assets $ 1,832,898 $ 2,112,394 $ 1,867,050



LIABILITIES AND EQUITY

Borrowings under revolving credit $ 100,000 $ 350,000 $ 250,000agreement

Current portion of long-term debt 99,540 - -

Mandatory purchase obligation - 52,639 - 39,134Blowfish Malibu

Trade accounts payable 348,795 280,319 280,501

Lease obligations 126,820 171,247 153,060

Other accrued expenses 250,875 216,334 182,814

Total current liabilities 978,669 1,017,900 905,509



Noncurrent lease obligations 463,746 579,399 518,942

Long-term debt 99,540 198,621 198,851

Other liabilities 45,652 71,340 39,894

Total other liabilities 608,938 849,360 757,687



Total Caleres, Inc. shareholders' 240,697 242,240 200,247equity

Noncontrolling interests 4,594 2,894 3,607

Total equity 245,291 245,134 203,854

Total liabilities and equity $ 1,832,898 $ 2,112,394 $ 1,867,050

SCHEDULE 3

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Twenty-Six Weeks Ended

($ thousands)

July 31, 2021

August 1, 2020

OPERATING ACTIVITIES:

Net cash provided by operating activities

$

135,547

$

67,520

INVESTING ACTIVITIES:

Purchases of property and equipment

(6,816

)

(6,394

)

Capitalized software

(2,581

)

(2,220

)

Net cash used for investing activities

(9,397

)

(8,614

)

FINANCING ACTIVITIES:

Borrowings under revolving credit agreement

164,500

250,500

Repayments under revolving credit agreement

(314,500

)

(175,500

)

Dividends paid

(5,336

)

(5,495

)

Acquisition of treasury stock

-

(23,348

)

Issuance of common stock under share-based plans, net

(3,752

)

(973

)

Other

(677

)

(649

)

Net cash (used for) provided by financing activities

(159,765

)

44,535

Effect of exchange rate changes on cash and cash equivalents

4

(115

)

(Decrease) increase in cash and cash equivalents

(33,611

)

103,326

Cash and cash equivalents at beginning of period

88,295

45,218

Cash and cash equivalents at end of period

$

54,684

$

148,544

SCHEDULE 3

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



(Unaudited)

Twenty-Six Weeks Ended

($ thousands) July 31, August 1, 2021 2020

OPERATING ACTIVITIES:

Net cash provided by operating activities $ 135,547 $ 67,520



INVESTING ACTIVITIES:

Purchases of property and equipment (6,816 ) (6,394 )

Capitalized software (2,581 ) (2,220 )

Net cash used for investing activities (9,397 ) (8,614 )



FINANCING ACTIVITIES:

Borrowings under revolving credit agreement 164,500 250,500

Repayments under revolving credit agreement (314,500 ) (175,500 )

Dividends paid (5,336 ) (5,495 )

Acquisition of treasury stock - (23,348 )

Issuance of common stock under share-based plans, (3,752 ) (973 )net

Other (677 ) (649 )

Net cash (used for) provided by financing (159,765 ) 44,535 activities

Effect of exchange rate changes on cash and cash 4 (115 )equivalents

(Decrease) increase in cash and cash equivalents (33,611 ) 103,326

Cash and cash equivalents at beginning of period 88,295 45,218

Cash and cash equivalents at end of period $ 54,684 $ 148,544

SCHEDULE 4

CALERES, INC.

RECONCILIATION OF NET EARNINGS (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS (LOSS) AND ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE (NON-GAAP BASIS)

(Unaudited)

Thirteen Weeks Ended

July 31, 2021

August 1, 2020

Net

Net (Loss)

Pre-Tax

Earnings

Pre-Tax

Earnings

Diluted

Impact of

Attributable

Diluted

Impact of

Attributable

(Loss)

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 (loss)

$

37,396

$

0.97

$

(30,717

)

$

(0.83

)

Charges/other items:

Fair value adjustment to Blowfish purchase obligation

$

7,115

5,284

0.14

$

6,589

4,893

0.13

Deferred tax valuation allowances

-

3,294

0.08

-

-

-

COVID-19-related expenses (1)

-

-

-

5,429

4,709

0.13

Total charges/other items

$

7,115

$

8,578

$

0.22

$

12,018

$

9,602

$

0.26

Adjusted earnings (loss)

$

45,974

$

1.19

$

(21,115

)

$

(0.57

)

(Unaudited)

Twenty-Six Weeks Ended

July 31, 2021

August 1, 2020

Net

Net (Loss)

Pre-Tax

Earnings

Pre-Tax

Earnings

Diluted

Impact of

Attributable

Diluted

Impact of

Attributable

(Loss)

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 (loss)

$

43,543

$

1.13

$

(376,555

)

$

(9.94

)

Charges/other items:

Fair value adjustment to Blowfish purchase obligation

$

13,505

10,030

0.26

$

9,822

7,294

0.19

Deferred tax valuation allowances

-

3,294

0.09

-

-

-

Brand Portfolio - business exits

13,482

11,927

0.31

1,598

1,187

0.03

Goodwill and intangible asset impairment charges

-

-

-

262,719

218,506

5.66

COVID-19-related expenses (2)

-

-

-

99,040

78,047

2.17

Total charges/other items

$

26,987

$

25,251

$

0.66

$

373,179

$

305,034

$

8.05

Adjusted earnings (loss)

$

68,794

$

1.79

$

(71,521

)

$

(1.89

)

SCHEDULE 4

CALERES, INC.

RECONCILIATION OF NET EARNINGS (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE(GAAP BASIS) TO ADJUSTED NET EARNINGS (LOSS) AND ADJUSTED DILUTED EARNINGS(LOSS) PER SHARE (NON-GAAP BASIS)



(Unaudited)

Thirteen Weeks Ended

July 31, 2021 August 1, 2020

Net Net (Loss)

Pre-Tax Earnings Pre-Tax Earnings Diluted

Impact Attributable Diluted Impact of Attributable (Loss) of

Charges/ to Caleres, Earnings Charges/ to Caleres, Earnings Other Other

($ thousands, Perexcept per share Items Inc. Share Items Inc. Per Sharedata)



GAAP earnings $ 37,396 $ 0.97 $ (30,717 ) $ (0.83 )(loss)



Charges/other items:

Fair valueadjustment toBlowfish $ 7,115 5,284 0.14 $ 6,589 4,893 0.13 purchaseobligation

Deferred taxvaluation - 3,294 0.08 - - - allowances

COVID-19-related - - - 5,429 4,709 0.13 expenses ^(1)

Total charges/ $ 7,115 $ 8,578 $ 0.22 $ 12,018 $ 9,602 $ 0.26 other items

Adjusted $ 45,974 $ 1.19 $ (21,115 ) $ (0.57 )earnings (loss)



(Unaudited)

Twenty-Six Weeks Ended

July 31, 2021 August 1, 2020

Net Net (Loss)

Pre-Tax Earnings Pre-Tax Earnings Diluted

Impact Attributable Diluted Impact of Attributable (Loss) of

Charges/ to Caleres, Earnings Charges/ to Caleres, Earnings Other Other

($ thousands, Perexcept per share Items Inc. Share Items Inc. Per Sharedata)



GAAP earnings $ 43,543 $ 1.13 $ (376,555 ) $ (9.94 )(loss)



Charges/other items:

Fair valueadjustment toBlowfish $ 13,505 10,030 0.26 $ 9,822 7,294 0.19 purchaseobligation

Deferred taxvaluation - 3,294 0.09 - - - allowances

Brand Portfolio 13,482 11,927 0.31 1,598 1,187 0.03 - business exits

Goodwill andintangible asset - - - 262,719 218,506 5.66 impairment charges

COVID-19-related - - - 99,040 78,047 2.17 expenses ^(2)

Total charges/ $ 26,987 $ 25,251 $ 0.66 $ 373,179 $ 305,034 $ 8.05 other items

Adjusted $ 68,794 $ 1.79 $ (71,521 ) $ (1.89 )earnings (loss)

________________________________________

(1)

Represents costs associated with the economic impact of the COVID-19 pandemic, primarily consisting of severance and the cost of supplies and deep cleaning of our facilities.

(2)

Represents costs associated with the economic impact of the COVID 19 pandemic, primarily consisting of impairment charges associated with property and equipment and lease right-of-use assets, inventory markdowns, expenses associated with factory order cancellations, provision for expected credit losses and severance.

________________________________________

Represents costs associated with the economic impact of the COVID-19(1) pandemic, primarily consisting of severance and the cost of supplies and deep cleaning of our facilities.

Represents costs associated with the economic impact of the COVID 19 pandemic, primarily consisting of impairment charges associated with(2) property and equipment and lease right-of-use assets, inventory markdowns, expenses associated with factory order cancellations, provision for expected credit losses and severance.

SCHEDULE 5

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

SUMMARY FINANCIAL RESULTS

(Unaudited)

Thirteen Weeks Ended

Famous Footwear

Brand Portfolio

Eliminations and Other

Consolidated

July 31,

August 1,

July 31,

August 1,

July 31,

August 1,

July 31,

August 1,

($ thousands)

2021

2020

2021

2020

2021

2020

2021

2020

Net sales

$

453,649

$

333,935

$

239,013

$

183,622

$

(17,131

)

$

(16,109

)

$

675,531

$

501,448

Gross profit

227,414

119,155

94,890

64,002

(11

)

(537

)

322,293

182,620

Adjusted gross profit

227,414

119,155

94,890

64,002

(11

)

(537

)

322,293

182,620

Gross profit rate

50.1

%

35.7

%

39.7

%

34.9

%

0.0

%

3.3

%

47.7

%

36.4

%

Adjusted gross profit rate

50.1

%

35.7

%

39.7

%

34.9

%

0.0

%

3.3

%

47.7

%

36.4

%

Operating earnings (loss)

85,498

1,045

16,554

(14,111

)

(39,260

)

(11,074

)

62,792

(24,140

)

Adjusted operating earnings (loss)

85,498

1,633

16,554

(9,551

)

(39,260

)

(10,793

)

62,792

(18,711

)

Operating earnings (loss) %

18.8

%

0.3

%

6.9

%

(7.7

)%

n/m

n/m

9.3

%

(4.8

)%

Adjusted operating earnings (loss) %

18.8

%

0.5

%

6.9

%

(5.2

)%

n/m

n/m

9.3

%

(3.7

)%

Same-store sales % (on a 13-week basis)

(1.1

)%

14.7

%

16.3

%

(24.7

)%

-

%

-

%

-

%

-

%

Number of stores

912

936

87

202

-

-

999

1,138

n/m - Not meaningful

SCHEDULE 5

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

SUMMARY FINANCIAL RESULTS



(Unaudited)

Thirteen Weeks Ended

Famous Footwear Brand Portfolio Eliminations Consolidated and Other

July 31, August 1, July 31, August July August July August 1, 1, 31, 1, 31,

($ 2021 2020 2021 2020 2021 2020 2021 2020 thousands)

Net sales $ 453,649 $ 333,935 $ 239,013 $ 183,622 $ (17,131 ) $ (16,109 ) $ 675,531 $ 501,448

Gross 227,414 119,155 94,890 64,002 (11 ) (537 ) 322,293 182,620 profit

Adjustedgross 227,414 119,155 94,890 64,002 (11 ) (537 ) 322,293 182,620 profit

Gross 50.1 % 35.7 % 39.7 % 34.9 % 0.0 % 3.3 % 47.7 % 36.4 %profit rate

Adjustedgross 50.1 % 35.7 % 39.7 % 34.9 % 0.0 % 3.3 % 47.7 % 36.4 %profit rate

Operatingearnings 85,498 1,045 16,554 (14,111 ) (39,260 ) (11,074 ) 62,792 (24,140 )(loss)

Adjustedoperating 85,498 1,633 16,554 (9,551 ) (39,260 ) (10,793 ) 62,792 (18,711 )earnings(loss)

Operating ) n )earnings 18.8 % 0.3 % 6.9 % (7.7 % / n/m 9.3 % (4.8 %(loss) % m

Adjusted noperating 18.8 % 0.5 % 6.9 % (5.2 ) / n/m 9.3 % (3.7 )earnings % m %(loss) %

Same-storesales % (on (1.1 ) 14.7 % 16.3 % (24.7 ) - % - % - % - %a 13-week % %basis)

Number of 912 936 87 202 - - 999 1,138 stores



n/m - Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

(Unaudited)

Thirteen Weeks Ended

Famous Footwear

Brand Portfolio

Eliminations and Other

Consolidated

July 31,

August 1,

July 31,

August 1,

July 31,

August 1,

July 31,

August 1,

($ thousands)

2021

2020

2021

2020

2021

2020

2021

2020

Gross profit

$

227,414

$

119,155

$

94,890

$

64,002

$

(11

)

$

(537

)

$

322,293

$

182,620

Charges/Other Items:

COVID-19-related expenses

-

-

-

-

-

-

-

-

Total charges/other items

-

-

-

-

-

-

-

-

Adjusted gross profit

$

227,414

$

119,155

$

94,890

$

64,002

$

(11

)

$

(537

)

$

322,293

$

182,620

Operating earnings (loss)

$

85,498

$

1,045

$

16,554

$

(14,111

)

$

(39,260

)

$

(11,074

)

$

62,792

$

(24,140

)

Charges/Other Items:

COVID-19-related expenses

-

588

-

4,560

-

281

-

5,429

Total charges/other items

-

588

-

4,560

-

281

-

5,429

Adjusted operating earnings (loss)

$

85,498

$

1,633

$

16,554

$

(9,551

)

$

(39,260

)

$

(10,793

)

$

62,792

$

(18,711

)

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)



(Unaudited)

Thirteen Weeks Ended

Famous Footwear Brand Portfolio Eliminations and Other Consolidated

July 31, August 1, July 31, August 1, July 31, August 1, July 31, August 1,

($ thousands) 2021 2020 2021 2020 2021 2020 2021 2020

Gross profit $ 227,414 $ 119,155 $ 94,890 $ 64,002 $ (11 ) $ (537 ) $ 322,293 $ 182,620

Charges/Other Items:

COVID-19-related expenses - - - - - - - -

Total charges/other items - - - - - - - -

Adjusted gross profit $ 227,414 $ 119,155 $ 94,890 $ 64,002 $ (11 ) $ (537 ) $ 322,293 $ 182,620

Operating earnings (loss) $ 85,498 $ 1,045 $ 16,554 $ (14,111 ) $ (39,260 ) $ (11,074 ) $ 62,792 $ (24,140 )

Charges/Other Items:

COVID-19-related expenses - 588 - 4,560 - 281 - 5,429

Total charges/other items - 588 - 4,560 - 281 - 5,429

Adjusted operating $ 85,498 $ 1,633 $ 16,554 $ (9,551 ) $ (39,260 ) $ (10,793 ) $ 62,792 $ (18,711 )earnings (loss)

SCHEDULE 5

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

SUMMARY FINANCIAL RESULTS

(Unaudited)

Twenty-Six Weeks Ended

Famous Footwear

Brand Portfolio

Eliminations and Other

Consolidated

July 31,

August 1,

July 31,

August 1,

July 31,

August 1,

July 31,

August 1,

($ thousands)

2021

2020

2021

2020

2021

2020

2021

2020

Net sales

$

851,754

$

525,187

$

489,318

$

400,860

$

(26,905

)

$

(27,415

)

$

1,314,167

$

898,632

Gross profit

407,229

188,248

188,892

117,395

1,059

(1,125

)

597,180

304,518

Adjusted gross profit

407,229

194,206

188,892

146,451

1,059

(1,125

)

597,180

339,532

Gross profit rate

47.8

%

35.8

%

38.6

%

29.3

%

(3.9

)%

4.1

%

45.4

%

33.9

%

Adjusted gross profit rate

47.8

%

37.0

%

38.6

%

36.5

%

(3.9

)%

4.1

%

45.4

%

37.8

%

Operating earnings (loss)

133,371

(66,495

)

13,733

(359,860

)

(66,442

)

(23,995

)

80,662

(450,350

)

Adjusted operating earnings (loss)

133,371

(43,944

)

27,215

(19,690

)

(66,442

)

(23,359

)

94,144

(86,993

)

Operating earnings (loss) %

15.7

%

(12.7

)%

2.8

%

(89.8

)%

n/m

n/m

6.1

%

(50.1

)%

Adjusted operating earnings (loss) %

15.7

%

(8.4

)%

5.6

%

(4.9

)%

n/m

n/m

7.2

%

(9.7

)%

Same-store sales % (on a 26-week basis)

0.5

%

13.9

%

10.2

%

(24.7

)%

-

%

-

%

-

%

-

%

Number of stores

912

936

87

202

-

-

999

1,138

n/m - Not meaningful

SCHEDULE 5



CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT



SUMMARY FINANCIAL RESULTS





(Unaudited)

Twenty-Six Weeks Ended

Famous Footwear Brand Portfolio Eliminations and Consolidated Other

July 31, August 1, July 31, August 1, July 31, August 1, July 31, August 1,

($ 2021 2020 2021 2020 2021 2020 2021 2020 thousands)

Net sales $ 851,754 $ 525,187 $ 489,318 $ 400,860 $ (26,905 ) $ (27,415 ) $ 1,314,167 $ 898,632

Gross 407,229 188,248 188,892 117,395 1,059 (1,125 ) 597,180 304,518 profit

Adjustedgross 407,229 194,206 188,892 146,451 1,059 (1,125 ) 597,180 339,532 profit

Gross )profit 47.8 % 35.8 % 38.6 % 29.3 % (3.9 % 4.1 % 45.4 % 33.9 %rate

Adjustedgross 47.8 % 37.0 % 38.6 % 36.5 % (3.9 ) 4.1 % 45.4 % 37.8 %profit %rate

Operatingearnings 133,371 (66,495 ) 13,733 (359,860 ) (66,442 ) (23,995 ) 80,662 (450,350 )(loss)

Adjustedoperating 133,371 (43,944 ) 27,215 (19,690 ) (66,442 ) (23,359 ) 94,144 (86,993 )earnings(loss)

Operating ) ) )earnings 15.7 % (12.7 % 2.8 % (89.8 % n/m n/m 6.1 % (50.1 %(loss) %

Adjustedoperating 15.7 % (8.4 ) 5.6 % (4.9 ) n/m n/m 7.2 % (9.7 )earnings % % %(loss) %

Same-storesales % )(on a 0.5 % 13.9 % 10.2 % (24.7 % - % - % - % - %26-weekbasis)

Number of 912 936 87 202 - - 999 1,138 stores



n/m - Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

(Unaudited)

Twenty-Six Weeks Ended

Famous Footwear

Brand Portfolio

Eliminations and Other

Consolidated

July 31,

August 1,

July 31,

August 1,

July 31,

August 1,

July 31,

August 1,

($ thousands)

2021

2020

2021

2020

2021

2020

2021

2020

Gross profit

$

407,229

$

188,248

$

188,892

$

117,395

$

1,059

$

(1,125

)

$

597,180

$

304,518

Charges/Other Items:

COVID-19-related expenses

-

5,958

-

27,458

-

-

-

33,416

Brand Portfolio - business exits

-

-

-

1,598

-

-

-

1,598

Total charges/other items

-

5,958

-

29,056

-

-

-

35,014

Adjusted gross profit

$

407,229

$

194,206

$

188,892

$

146,451

$

1,059

$

(1,125

)

$

597,180

$

339,532

Operating earnings (loss)

$

133,371

$

(66,495

)

$

13,733

$

(359,860

)

$

(66,442

)

$

(23,995

)

$

80,662

$

(450,350

)

Charges/Other Items:

Goodwill and intangible asset impairment charges

-

-

-

262,719

-

-

-

262,719

COVID-19-related expenses

-

22,551

-

75,853

-

636

-

99,040

Brand Portfolio - business exits

-

-

13,482

1,598

-

-

13,482

1,598

Total charges/other items

-

22,551

13,482

340,170

-

636

13,482

363,357

Adjusted operating earnings (loss)

$

133,371

$

(43,944

)

$

27,215

$

(19,690

)

$

(66,442

)

$

(23,359

)

$

94,144

$

(86,993

)

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)



(Unaudited)

Twenty-Six Weeks Ended

Famous Footwear Brand Portfolio Eliminations Consolidated and Other

July 31, August 1, July 31, August July August July 31, August 1, 1, 31, 1,

($ thousands) 2021 2020 2021 2020 2021 2020 2021 2020

Gross profit $ 407,229 $ 188,248 $ 188,892 $ 117,395 $ 1,059 $ (1,125 ) $ 597,180 $ 304,518

Charges/Other Items:

COVID-19-related expenses - 5,958 - 27,458 - - - 33,416

Brand Portfolio - business - - - 1,598 - - - 1,598 exits

Total charges/other items - 5,958 - 29,056 - - - 35,014

Adjusted gross profit $ 407,229 $ 194,206 $ 188,892 $ 146,451 $ 1,059 $ (1,125 ) $ 597,180 $ 339,532

Operating earnings (loss) $ 133,371 $ (66,495 ) $ 13,733 $ (359,860 ) $ (66,442 ) $ (23,995 ) $ 80,662 $ (450,350 )

Charges/Other Items:

Goodwill and intangible asset - - - 262,719 - - - 262,719 impairment charges

COVID-19-related expenses - 22,551 - 75,853 - 636 - 99,040

Brand Portfolio - business - - 13,482 1,598 - - 13,482 1,598 exits

Total charges/other items - 22,551 13,482 340,170 - 636 13,482 363,357

Adjusted operating earnings $ 133,371 $ (43,944 ) $ 27,215 $ (19,690 ) $ (66,442 ) $ (23,359 ) $ 94,144 $ (86,993 ) (loss)

SCHEDULE 6

CALERES, INC.

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION

(Unaudited)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

July 31,

August 1,

July 31,

August 1,

2021

2020

2021

2020

($ thousands, except per share data)

Net earnings (loss) attributable to Caleres, Inc.:

Net earnings (loss)

$

38,152

$

(30,669

)

$

44,536

$

(376,841

)

Net (earnings) loss attributable to noncontrolling interests

(756

)

(48

)

(993

)

286

Net earnings (loss) attributable to Caleres, Inc.

37,396

(30,717

)

43,543

(376,555

)

Net earnings allocated to participating securities

(1,360

)

-

(1,575

)

-

Net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities

$

36,036

$

(30,717

)

$

41,968

$

(376,555

)

Basic and diluted common shares attributable to Caleres, Inc.:

Basic common shares

36,880

37,113

36,794

37,881

Dilutive effect of share-based awards

267

-

212

-

Diluted common shares attributable to Caleres, Inc.

37,147

37,113

37,006

37,881

Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders

$

0.98

$

(0.83

)

$

1.14

$

(9.94

)

Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders

$

0.97

$

(0.83

)

$

1.13

$

(9.94

)

SCHEDULE 6

CALERES, INC.

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION



(Unaudited)

Thirteen Weeks Ended Twenty-Six Weeks Ended

July 31, August 1, July 31, August 1,

2021 2020 2021 2020

($ thousands, except per share data)

Net earnings (loss)attributable to Caleres, Inc.:

Net earnings (loss) $ 38,152 $ (30,669 ) $ 44,536 $ (376,841 )

Net (earnings) lossattributable to (756 ) (48 ) (993 ) 286 noncontrolling interests

Net earnings (loss)attributable to Caleres, 37,396 (30,717 ) 43,543 (376,555 )Inc.

Net earnings allocatedto participating (1,360 ) - (1,575 ) - securities

Net earnings (loss)attributable to Caleres,Inc. after allocation of $ 36,036 $ (30,717 ) $ 41,968 $ (376,555 )earnings toparticipating securities



Basic and diluted commonshares attributable to Caleres, Inc.:

Basic common shares 36,880 37,113 36,794 37,881

Dilutive effect of 267 - 212 - share-based awards

Diluted common sharesattributable to Caleres, 37,147 37,113 37,006 37,881 Inc.



Basic earnings (loss)per common share $ 0.98 $ (0.83 ) $ 1.14 $ (9.94 )attributable to Caleres,Inc. shareholders



Diluted earnings (loss)per common share $ 0.97 $ (0.83 ) $ 1.13 $ (9.94 )attributable to Caleres,Inc. shareholders

SCHEDULE 7

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION

(Unaudited)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

July 31,

August 1,

July 31,

August 1,

2021

2020

2021

2020

($ thousands, except per share data)

Adjusted net earnings (loss) attributable to Caleres, Inc.:

Adjusted net earnings (loss)

$

46,730

$

(21,067

)

$

69,787

$

(71,807

)

Net (earnings) loss attributable to noncontrolling interests

(756

)

(48

)

(993

)

286

Adjusted net earnings (loss) attributable to Caleres, Inc.

45,974

(21,115

)

68,794

(71,521

)

Net earnings allocated to participating securities

(1,673

)

-

(2,504

)

-

Adjusted net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities

$

44,301

$

(21,115

)

$

66,290

$

(71,521

)

Basic and diluted common shares attributable to Caleres, Inc.:

Basic common shares

36,880

37,113

36,794

37,881

Dilutive effect of share-based awards

267

-

212

-

Diluted common shares attributable to Caleres, Inc.

37,147

37,113

37,006

37,881

Basic adjusted earnings (loss) per common share attributable to Caleres, Inc. shareholders

$

1.20

$

(0.57

)

$

1.80

$

(1.89

)

Diluted adjusted earnings (loss) per common share attributable to Caleres, Inc. shareholders

$

1.19

$

(0.57

)

$

1.79

$

(1.89

)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210831005895/en/

CONTACT: Investor Contact: Logan Bonacorsi lbonacorsi@caleres.com