Business Wire | Nov 18, 2021 04:15PM EST

Caleres Reports Third Quarter 2021 Results, Raises Full Year Outlook

Nov. 18, 2021

ST. LOUIS--(BUSINESS WIRE)--Nov. 18, 2021--Caleres (NYSE: CAL)(caleres.com), operator of a powerful portfolio of consumer-centric footwear brands, today reported financial results for the third quarter ended October 30, 2021. During the quarter, Caleres continued to capitalize on strong consumer demand trends, achieving sequential revenue growth, recording strong gross margins, and delivering the highest level of quarterly earnings in company history. In addition, the company made further progress toward its balance sheet initiatives, enhancing its cash position, reducing its debt levels and securing more advantageous terms on its asset-based credit facility.

"Caleres achieved another record performance in the quarter just ended, driven principally by continued, exceptional upward momentum in our Famous Footwear business," said Diane Sullivan, Chairman and Chief Executive Officer. "As robust consumer demand dynamics continue to accelerate, we fully expect the ongoing recovery in the Brand Portfolio to be an increasingly strong complement to the ongoing success at Famous Footwear in the quarters ahead."

Third Quarter 2021 Highlights

(13-weeks ended October 30, 2021 compared to 13-weeks ended October 31, 2020)

* Net sales were $784.2 million, up 21.1 percent from the third quarter of fiscal 2020 A 26.3 percent sales increase in the Famous Footwear segment; A 12.3 percent sales increase in the Brand Portfolio segment; Direct-to-consumer sales represented 73.5 percent of total net sales

* Gross profit was $335.4 million, while gross margin was 42.8 percent, or a 308-basis point improvement over third quarter 2020; A 47.6 percent gross margin in the Famous Footwear segment; A 32.9 percent gross margin in the Brand Portfolio segment;

* SG&A expense of $254.0 million, or 32.4 percent of total net sales, down from 36.6 percent of total net sales in the third quarter of fiscal 2020; * Net income of $59.6 million, or earnings of $1.54 per diluted share, compared to net income of $14.4 million, or earnings of $0.38 per diluted share, in the third quarter of fiscal 2020. Earnings of $1.54 per share includes $0.05 for the below items: Fair value adjustment of $0.04 associated with the mandatory purchase obligation for Blowfish Malibu; and Loss on early extinguishment of debt of $0.01 related to the redemption of $100 million of senior notes and the amendment to the credit facility;

* Adjusted net income was approximately $61.5 million, or adjusted earnings of $1.59 per diluted share compared to adjusted net income of $18.2 million, or adjusted earnings of $0.48 per diluted share, in the third quarter of fiscal 2020; * Generated $54.2 million in cash from operations and ended the third quarter with $74.8 million of cash on hand; * Inventory levels were up 7.1 percent, year-over-year, with in-transit inventory 3.1x higher than the third quarter of 2020, reflecting the ongoing disruptions in the global supply chain; * Ended the third quarter with $274.6 million of short-term debt; and * Returned $2.7 million to shareholders during the quarter through its long-standing and uninterrupted quarterly dividend.

Capital Structure

As previously indicated, during the third quarter, Caleres renegotiated and renewed the terms of its asset-based credit facility. The terms of the new facility, which was restored to pre-COVID terms, includes a 5-year extension on the maturity date and features a reduction in the interest rate. This new agreement more accurately reflects the company's significantly improved capital structure, accelerated recovery in the footwear market and more positive business outlook. Caleres notified its bondholders that it plans to redeem the remaining $100 million of its senior notes in January of 2022 - shifting that higher-cost debt to the revolving credit facility and extinguishing all of the company's remaining long-term debt. These actions, coupled with the company's proactive debt reduction activities in recent quarters, will result in approximately a $12 million decline in annual interest expense - bolstering its financial foundation further and driving long-term value for its shareholders.

Outlook

"As we progress through the remainder of the year and head into 2022, we expect supply chain challenges to persist," said Sullivan. "However, our global Associates have taken quick action - leaning into our capabilities; optimizing our inventory position; and diversifying and leveraging our sourcing model to help offset the impacts caused by the ongoing disruptions. We believe we are well-positioned to navigate this dynamic market environment and we are confident in our ability to utilize our diversified brand model, achieve our short and long-term strategic objectives, and continue to create value for our shareholders."

With the momentum continuing in its underlying business, the company now expects record adjusted earnings per share between $3.80 and $3.90 for fiscal year 2021.

Investor Conference Call

Caleres will host an investor conference call at 5:00 p.m. ET today, Thursday, November 18. 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 4368498. 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 4368498 through Thursday, December 2.

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 nearly 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

Thirty-Nine Weeks Ended

($ thousands, except per share data)

October 30, 2021

October 31, 2020

October 30, 2021

October 31, 2020

Net sales

$

784,156

$

647,480

$

2,098,323

$

1,546,111

Cost of goods sold

448,805

390,508

1,165,792

984,621

Gross profit

335,351

256,972

932,531

561,490

Selling and administrative expenses

254,033

236,901

757,070

663,425

Impairment of goodwill and intangible assets

-

-

-

262,719

Restructuring and other special charges, net

-

-

13,482

65,625

Operating earnings (loss)

81,318

20,071

161,979

(430,279

)

Interest expense, net

(5,069

)

(10,881

)

(28,803

)

(33,747

)

Loss on early extinguishment of debt

(649

)

-

(649

)

-

Other income, net

3,844

5,461

11,533

12,718

Earnings (loss) before income taxes

79,444

14,651

144,060

(451,308

)

Income tax (provision) benefit

(19,759

)

275

(39,838

)

89,393

Net earnings (loss)

59,685

14,926

104,222

(361,915

)

Net earnings attributable to noncontrolling interests

63

509

1,057

223

Net earnings (loss) attributable to Caleres, Inc.

$

59,622

$

14,417

$

103,165

$

(362,138

)

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

$

1.56

$

0.38

$

2.70

$

(9.67

)

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

$

1.54

$

0.38

$

2.68

$

(9.67

)



(Unaudited)

Thirteen Weeks Ended Thirty-Nine Weeks Ended

($ thousands, October 30, October 31, October 30, October 31,except per share 2021 2020 2021 2020data)

Net sales $ 784,156 $ 647,480 $ 2,098,323 $ 1,546,111

Cost of goods sold 448,805 390,508 1,165,792 984,621

Gross profit 335,351 256,972 932,531 561,490

Selling andadministrative 254,033 236,901 757,070 663,425 expenses

Impairment ofgoodwill and - - - 262,719 intangible assets

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

Operating earnings 81,318 20,071 161,979 (430,279 )(loss)

Interest expense, (5,069 ) (10,881 ) (28,803 ) (33,747 )net

Loss on earlyextinguishment of (649 ) - (649 ) - debt

Other income, net 3,844 5,461 11,533 12,718

Earnings (loss) 79,444 14,651 144,060 (451,308 )before income taxes

Income tax (19,759 ) 275 (39,838 ) 89,393 (provision) benefit

Net earnings (loss) 59,685 14,926 104,222 (361,915 )

Net earningsattributable to 63 509 1,057 223 noncontrollinginterests

Net earnings (loss)attributable to $ 59,622 $ 14,417 $ 103,165 $ (362,138 )Caleres, Inc.



Basic earnings(loss) per commonshare attributable $ 1.56 $ 0.38 $ 2.70 $ (9.67 )to Caleres, Inc.shareholders



Diluted earnings(loss) per commonshare attributable $ 1.54 $ 0.38 $ 2.68 $ (9.67 )to Caleres, Inc.shareholders

SCHEDULE 2

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

SCHEDULE 2



CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

($ thousands)

October 30, 2021

October 31, 2020

January 30, 2021

ASSETS

Cash and cash equivalents

$

74,772

$

124,330

$

88,295

Receivables, net

161,892

141,059

126,994

Inventories, net

543,218

507,365

487,955

Prepaid expenses and other current assets

82,816

99,401

79,312

Total current assets

862,698

872,155

782,556

Lease right-of-use assets

500,308

601,574

554,303

Property and equipment, net

155,516

189,207

172,437

Goodwill and intangible assets, net

230,625

267,074

240,071

Other assets

125,411

97,050

117,683

Total assets

$

1,874,558

$

2,027,060

$

1,867,050

LIABILITIES AND EQUITY

Borrowings under revolving credit agreement

$

175,000

$

300,000

$

250,000

Mandatory purchase obligation - Blowfish Malibu

54,558

30,146

39,134

Current portion of long-term debt

99,598

-

-

Trade accounts payable

352,084

285,582

280,501

Lease obligations

128,151

156,200

153,060

Other accrued expenses

260,669

187,980

182,814

Total current liabilities

1,070,060

959,908

905,509

Noncurrent lease obligations

452,786

556,343

518,942

Long-term debt

-

198,736

198,851

Other liabilities

45,967

50,418

39,894

Total other liabilities

498,753

805,497

757,687

Total Caleres, Inc. shareholders' equity

301,098

256,671

200,247

Noncontrolling interests

4,647

4,984

3,607

Total equity

305,745

261,655

203,854

Total liabilities and equity

$

1,874,558

$

2,027,060

$

1,867,050



(Unaudited)

($ thousands) October 30, October 31, January 30, 2021 2020 2021

ASSETS

Cash and cash equivalents $ 74,772 $ 124,330 $ 88,295

Receivables, net 161,892 141,059 126,994

Inventories, net 543,218 507,365 487,955

Prepaid expenses and other current 82,816 99,401 79,312assets

Total current assets 862,698 872,155 782,556



Lease right-of-use assets 500,308 601,574 554,303

Property and equipment, net 155,516 189,207 172,437

Goodwill and intangible assets, 230,625 267,074 240,071net

Other assets 125,411 97,050 117,683

Total assets $ 1,874,558 $ 2,027,060 $ 1,867,050



LIABILITIES AND EQUITY

Borrowings under revolving credit $ 175,000 $ 300,000 $ 250,000agreement

Mandatory purchase obligation - 54,558 30,146 39,134Blowfish Malibu

Current portion of long-term debt 99,598 - -

Trade accounts payable 352,084 285,582 280,501

Lease obligations 128,151 156,200 153,060

Other accrued expenses 260,669 187,980 182,814

Total current liabilities 1,070,060 959,908 905,509



Noncurrent lease obligations 452,786 556,343 518,942

Long-term debt - 198,736 198,851

Other liabilities 45,967 50,418 39,894

Total other liabilities 498,753 805,497 757,687



Total Caleres, Inc. shareholders' 301,098 256,671 200,247equity

Noncontrolling interests 4,647 4,984 3,607

Total equity 305,745 261,655 203,854

Total liabilities and equity $ 1,874,558 $ 2,027,060 $ 1,867,050

SCHEDULE 3

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

SCHEDULE 3

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Thirty-Nine Weeks Ended

($ thousands)

October 30, 2021

October 31, 2020

OPERATING ACTIVITIES:

Net cash provided by operating activities

$

189,728

$

101,766

INVESTING ACTIVITIES:

Purchases of property and equipment

(10,437

)

(12,016

)

Capitalized software

(4,122

)

(3,525

)

Net cash used for investing activities

(14,559

)

(15,541

)

FINANCING ACTIVITIES:

Borrowings under revolving credit agreement

363,000

340,500

Repayments under revolving credit agreement

(438,000

)

(315,500

)

Redemption of senior notes

(100,000

)

-

Dividends paid

(8,011

)

(8,148

)

Debt issuance costs

(1,190

)

-

Acquisition of treasury stock

-

(23,348

)

Issuance of common stock under share-based plans, net

(3,779

)

(1,078

)

Contributions by noncontrolling interests, net

-

1,500

Other

(676

)

(980

)

Net cash used for financing activities

(188,656

)

(7,054

)

Effect of exchange rate changes on cash and cash equivalents

(36

)

(59

)

(Decrease) increase in cash and cash equivalents

(13,523

)

79,112

Cash and cash equivalents at beginning of period

88,295

45,218

Cash and cash equivalents at end of period

$

74,772

$

124,330



(Unaudited)

Thirty-Nine Weeks Ended

($ thousands) October 30, October 31, 2021 2020

OPERATING ACTIVITIES:

Net cash provided by operating activities $ 189,728 $ 101,766



INVESTING ACTIVITIES:

Purchases of property and equipment (10,437 ) (12,016 )

Capitalized software (4,122 ) (3,525 )

Net cash used for investing activities (14,559 ) (15,541 )



FINANCING ACTIVITIES:

Borrowings under revolving credit agreement 363,000 340,500

Repayments under revolving credit agreement (438,000 ) (315,500 )

Redemption of senior notes (100,000 ) -

Dividends paid (8,011 ) (8,148 )

Debt issuance costs (1,190 ) -

Acquisition of treasury stock - (23,348 )

Issuance of common stock under share-based (3,779 ) (1,078 )plans, net

Contributions by noncontrolling interests, net - 1,500

Other (676 ) (980 )

Net cash used for financing activities (188,656 ) (7,054 )

Effect of exchange rate changes on cash and (36 ) (59 )cash equivalents

(Decrease) increase in cash and cash (13,523 ) 79,112 equivalents

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

Cash and cash equivalents at end of period $ 74,772 $ 124,330

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

October 30, 2021

October 31, 2020

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

GAAP earnings

$

59,622

$

1.54

$

14,417

$

0.38

Charges/other items:

Fair value adjustment to Blowfish purchase obligation

$

1,918

1,424

0.04

$

5,124

3,805

0.10

Loss on early extinguishment of debt

649

482

0.01

-

-

-

Total charges/other items

$

2,567

$

1,906

$

0.05

$

5,124

$

3,805

$

0.10

Adjusted earnings

$

61,528

$

1.59

$

18,222

$

0.48

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

October 30, 2021 October 31, 2020



Pre-Tax Net Earnings Pre-Tax Net Earnings

Impact Attributable Diluted Impact Attributable Diluted of of

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

($ thousands, Per Perexcept per Items Inc. Share Items Inc. Shareshare data)



GAAP earnings $ 59,622 $ 1.54 $ 14,417 $ 0.38



Charges/other items:

Fair valueadjustment toBlowfish $ 1,918 1,424 0.04 $ 5,124 3,805 0.10purchaseobligation

Loss on earlyextinguishment 649 482 0.01 - - -of debt

Total charges/ $ 2,567 $ 1,906 $ 0.05 $ 5,124 $ 3,805 $ 0.10other items

Adjusted $ 61,528 $ 1.59 $ 18,222 $ 0.48earnings

(Unaudited)

Thirty-Nine Weeks Ended

October 30, 2021

October 31, 2020

Net

Net (Loss)

Pre-Tax

Earnings

Pre-Tax

Earnings

Impact of

Attributable

Diluted

Impact of

Attributable

Diluted (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)

$

103,165

$

2.68

$

(362,138

)

$

(9.67

)

Charges/other items:

Fair value adjustment to Blowfish purchase obligation

$

15,423

11,454

0.30

$

14,946

11,098

0.30

Brand Portfolio - business exits

13,482

11,927

0.31

1,598

1,187

0.03

Deferred tax valuation allowances

-

3,294

0.08

-

-

-

Loss on early extinguishment of debt

649

482

0.01

-

-

-

Goodwill and intangible asset impairment charges

-

-

-

262,719

218,506

5.84

COVID-19-related expenses (1)

-

-

-

99,040

78,047

2.08

Total charges/other items

$

29,554

$

27,157

$

0.70

$

378,303

$

308,838

$

8.25

Adjusted earnings (loss)

$

130,322

$

3.38

$

(53,300

)

$

(1.42

)



(Unaudited)

Thirty-Nine Weeks Ended

October 30, 2021 October 31, 2020

Net Net (Loss)

Pre-Tax Earnings Pre-Tax Earnings

Impact Attributable Diluted Impact of Attributable Diluted of (Loss)

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

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



GAAP earnings $ 103,165 $ 2.68 $ (362,138 ) $ (9.67 )(loss)



Charges/other items:

Fair valueadjustment toBlowfish $ 15,423 11,454 0.30 $ 14,946 11,098 0.30 purchaseobligation

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

Deferred taxvaluation - 3,294 0.08 - - - allowances

Loss on earlyextinguishment 649 482 0.01 - - - of debt

Goodwill andintangible asset - - - 262,719 218,506 5.84 impairmentcharges

COVID-19-related - - - 99,040 78,047 2.08 expenses ^(1)

Total charges/ $ 29,554 $ 27,157 $ 0.70 $ 378,303 $ 308,838 $ 8.25 other items

Adjusted $ 130,322 $ 3.38 $ (53,300 ) $ (1.42 )earnings (loss)

________________________________________

(1)

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 pandemic, primarily consisting of impairment charges associated with(1) 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

SCHEDULE 5



CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT



SUMMARY FINANCIAL RESULTS

(Unaudited)

Thirteen Weeks Ended

Famous Footwear

Brand Portfolio

Eliminations and Other

Consolidated

October 30,

October 31,

October 30,

October 31,

October 30,

October 31,

October 30,

October 31,

($ thousands)

2021

2020

2021

2020

2021

2020

2021

2020

Net sales

$

494,660

$

391,706

$

300,513

$

267,587

$

(11,017)

$

(11,813)

$

784,156

$

647,480

Gross profit

235,487

160,019

98,898

94,312

966

2,641

335,351

256,972

Adjusted gross profit

235,487

160,019

98,898

94,312

966

2,641

335,351

256,972

Gross profit rate

47.6

%

40.9

%

32.9

%

35.2

%

(8.8)

%

(22.4)

%

42.8

%

39.7

%

Adjusted gross profit rate

47.6

%

40.9

%

32.9

%

35.2

%

(8.8)

%

(22.4)

%

42.8

%

39.7

%

Operating earnings (loss)

87,375

27,845

11,383

7,304

(17,440)

(15,078)

81,318

20,071

Adjusted operating earnings (loss)

87,375

27,845

11,383

7,304

(17,440)

(15,078)

81,318

20,071

Operating earnings (loss) %

17.7

%

7.1

%

3.8

%

2.7

%

n/m

127.6

10.4

%

3.1

%

Adjusted operating earnings (loss) %

17.7

%

7.1

%

3.8

%

2.7

%

n/m

127.6

10.4

%

3.1

%

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

26.5

%

(9.1)

%

45.8

%

(41.0)

%

-

%

-

%

-

%

-

%

Number of stores

905

925

90

197

-

-

995

1,122

n/m - Not meaningful



(Unaudited)

Thirteen Weeks Ended

Famous Footwear Brand Portfolio Eliminations and Other Consolidated

October October October October October October October October 30, 31, 30, 31, 30, 31, 30, 31,

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

Net sales $ 494,660 $ 391,706 $ 300,513 $ 267,587 $ (11,017) $ (11,813) $ 784,156 $ 647,480

Gross 235,487 160,019 98,898 94,312 966 2,641 335,351 256,972 profit

Adjustedgross 235,487 160,019 98,898 94,312 966 2,641 335,351 256,972 profit

Grossprofit 47.6 % 40.9 % 32.9 % 35.2 % (8.8) % (22.4) % 42.8 % 39.7 %rate

Adjustedgross 47.6 % 40.9 % 32.9 % 35.2 % (8.8) % (22.4) % 42.8 % 39.7 %profitrate

Operatingearnings 87,375 27,845 11,383 7,304 (17,440) (15,078) 81,318 20,071 (loss)

Adjustedoperating 87,375 27,845 11,383 7,304 (17,440) (15,078) 81,318 20,071 earnings(loss)

Operatingearnings 17.7 % 7.1 % 3.8 % 2.7 % n/m 127.6 10.4 % 3.1 %(loss) %

Adjustedoperating 17.7 % 7.1 % 3.8 % 2.7 % n/m 127.6 10.4 % 3.1 %earnings(loss) %

Same-storesales %(on a 26.5 % (9.1) % 45.8 % (41.0) % - % - % - % - %13-weekbasis)

Number of 905 925 90 197 - - 995 1,122 stores

n/m - Notmeaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

(Unaudited)

Thirteen Weeks Ended

Famous Footwear

Brand Portfolio

Eliminations and Other

Consolidated

October 30,

October 31,

October 30,

October 31,

October 30,

October 31,

October 30,

October 31,

($ thousands)

2021

2020

2021

2020

2021

2020

2021

2020

Gross profit

$

235,487

$

160,019

$

98,898

$

94,312

$

966

$

2,641

$

335,351

$

256,972

Charges/Other Items:

COVID-19-related expenses

-

-

-

-

-

-

-

-

Total charges/other items

-

-

-

-

-

-

-

-

Adjusted gross profit

$

235,487

$

160,019

$

98,898

$

94,312

$

966

$

2,641

$

335,351

$

256,972

Operating earnings (loss)

$

87,375

$

27,845

$

11,383

$

7,304

$

(17,440

)

$

(15,078

)

$

81,318

$

20,071

Charges/Other Items:

COVID-19-related expenses

-

-

-

-

-

-

-

-

Total charges/other items

-

-

-

-

-

-

-

-

Adjusted operating earnings (loss)

$

87,375

$

27,845

$

11,383

$

7,304

$

(17,440

)

$

(15,078

)

$

81,318

$

20,071

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

(Unaudited)

Thirteen Weeks Ended

Famous Footwear Brand Portfolio Eliminations and Other Consolidated

October October October October October 30, October 31, October October 30, 31, 30, 31, 30, 31,

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

Gross profit $ 235,487 $ 160,019 $ 98,898 $ 94,312 $ 966 $ 2,641 $ 335,351 $ 256,972

Charges/Other Items:

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

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

Adjusted gross profit $ 235,487 $ 160,019 $ 98,898 $ 94,312 $ 966 $ 2,641 $ 335,351 $ 256,972

Operating earnings $ 87,375 $ 27,845 $ 11,383 $ 7,304 $ (17,440 ) $ (15,078 ) $ 81,318 $ 20,071(loss)

Charges/Other Items:

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

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

Adjusted operating $ 87,375 $ 27,845 $ 11,383 $ 7,304 $ (17,440 ) $ (15,078 ) $ 81,318 $ 20,071earnings (loss)

SCHEDULE 5

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

SUMMARY FINANCIAL RESULTS

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 30,

October 31,

October 30,

October 31,

October 30,

October 31,

October 30,

October 31,

($ thousands)

2021

2020

2021

2020

2021

2020

2021

2020

Net sales

$

1,346,413

$

916,893

$

789,832

$

668,447

$

(37,922)

$

(39,229)

$

2,098,323

$

1,546,111

Gross profit

642,715

348,267

287,791

211,707

2,025

1,516

932,531

561,490

Adjusted gross profit

642,715

354,225

287,791

240,763

2,025

1,516

932,531

596,504

Gross profit rate

47.7

%

38.0

%

36.4

%

31.7

%

(5.3)

%

(3.9)

%

44.4

%

36.3

%

Adjusted gross profit rate

47.7

%

38.6

%

36.4

%

36.0

%

(5.3)

%

(3.9)

%

44.4

%

38.6

%

Operating earnings (loss)

220,746

(38,651)

25,116

(352,556)

(83,883)

(39,072)

161,979

(430,279)

Adjusted operating earnings (loss)

220,746

(16,100)

38,598

(12,386)

(83,883)

(38,436)

175,461

(66,922)

Operating earnings (loss) %

16.4

%

(4.2)

%

3.2

%

(52.7)

%

n/m

99.6

%

7.7

%

(27.8)

%

Adjusted operating earnings (loss) %

16.4

%

(1.8)

%

4.9

%

(1.9)

%

n/m

98.0

%

8.4

%

(4.3)

%

Same-store sales % (on a 39-week basis)

11.5

%

3.0

%

24.3

%

(32.3)

%

-

%

-

%

-

%

-

%

Number of stores

905

925

90

197

-

-

995

1,122

n/m - Not meaningful

(Unaudited)

Thirty-Nine Weeks Ended

Famous Footwear Brand Portfolio Eliminations and Other Consolidated

October 30, October October October 31, October October October 30, October 31, 31, 30, 30, 31,

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

Net sales $ 1,346,413 $ 916,893 $ 789,832 $ 668,447 $ (37,922) $ (39,229) $ 2,098,323 $ 1,546,111

Gross 642,715 348,267 287,791 211,707 2,025 1,516 932,531 561,490 profit

Adjustedgross 642,715 354,225 287,791 240,763 2,025 1,516 932,531 596,504 profit

Grossprofit 47.7 % 38.0 % 36.4 % 31.7 % (5.3) % (3.9) % 44.4 % 36.3 %rate

Adjustedgross 47.7 % 38.6 % 36.4 % 36.0 % (5.3) % (3.9) % 44.4 % 38.6 %profitrate

Operatingearnings 220,746 (38,651) 25,116 (352,556) (83,883) (39,072) 161,979 (430,279) (loss)

Adjustedoperating 220,746 (16,100) 38,598 (12,386) (83,883) (38,436) 175,461 (66,922) earnings(loss)

Operatingearnings 16.4 % (4.2) % 3.2 % (52.7) % n/m 99.6 % 7.7 % (27.8) %(loss) %

Adjustedoperating 16.4 % (1.8) % 4.9 % (1.9) % n/m 98.0 % 8.4 % (4.3) %earnings(loss) %

Same-storesales %(on a 11.5 % 3.0 % 24.3 % (32.3) % - % - % - % - %39-weekbasis)

Number of 905 925 90 197 - - 995 1,122 stores

n/m - Notmeaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

(Unaudited)

Thirty-Nine Weeks Ended

Famous Footwear

Brand Portfolio

Eliminations and Other

Consolidated

October 30,

October 31,

October 30,

October 31,

October 30,

October 31,

October 30,

October 31,

($ thousands)

2021

2020

2021

2020

2021

2020

2021

2020

Gross profit

$

642,715

$

348,267

$

287,791

$

211,707

$

2,025

$

1,516

$

932,531

$

561,490

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

$

642,715

$

354,225

$

287,791

$

240,763

$

2,025

$

1,516

$

932,531

$

596,504

Operating earnings (loss)

$

220,746

$

(38,651

)

$

25,116

$

(352,556

)

$

(83,883

)

$

(39,072

)

$

161,979

$

(430,279

)

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)

$

220,746

$

(16,100

)

$

38,598

$

(12,386

)

$

(83,883

)

$

(38,436

)

$

175,461

$

(66,922

)

RECONCILIATIONOF ADJUSTED RESULTS(NON-GAAP)

(Unaudited)

Thirty-Nine Weeks Ended

Famous Footwear Brand Portfolio Eliminations and Other Consolidated

October October 31, October October 31, October 30, October 31, October October 31, 30, 30, 30,

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

Gross profit $ 642,715 $ 348,267 $ 287,791 $ 211,707 $ 2,025 $ 1,516 $ 932,531 $ 561,490

Charges/Other Items:

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

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

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

Adjusted gross $ 642,715 $ 354,225 $ 287,791 $ 240,763 $ 2,025 $ 1,516 $ 932,531 $ 596,504 profit

Operating $ 220,746 $ (38,651 ) $ 25,116 $ (352,556 ) $ (83,883 ) $ (39,072 ) $ 161,979 $ (430,279 )earnings (loss)

Charges/Other Items:

Goodwill andintangible asset - - - 262,719 - - - 262,719 impairmentcharges

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

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

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

Adjustedoperating $ 220,746 $ (16,100 ) $ 38,598 $ (12,386 ) $ (83,883 ) $ (38,436 ) $ 175,461 $ (66,922 )earnings (loss)

SCHEDULE 6

CALERES, INC.

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION

SCHEDULE 6



CALERES, INC.

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION

(Unaudited)

Thirteen Weeks Ended

Thirty-Nine Weeks Ended

October 30,

October 31,

October 30,

October 31,

2021

2020

2021

2020

($ thousands, except per share data)

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

Net earnings (loss)

$

59,685

$

14,926

$

104,222

$

(361,915

)

Net earnings attributable to noncontrolling interests

(63

)

(509

)

(1,057

)

(223

)

Net earnings (loss) attributable to Caleres, Inc.

59,622

14,417

103,165

(362,138

)

Net earnings allocated to participating securities

(2,140

)

(512

)

(3,737

)

-

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

$

57,482

$

13,905

$

99,428

$

(362,138

)

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

Basic common shares

36,889

36,554

36,825

37,439

Dilutive effect of share-based awards

457

176

294

-

Diluted common shares attributable to Caleres, Inc.

37,346

36,730

37,119

37,439

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

$

1.56

$

0.38

$

2.70

$

(9.67

)

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

$

1.54

$

0.38

$

2.68

$

(9.67

)



(Unaudited)

Thirteen Weeks Ended Thirty-Nine Weeks Ended

October October October 30, October 31, 30, 31,

2021 2020 2021 2020

($ thousands, except per share data)

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

Net earnings (loss) $ 59,685 $ 14,926 $ 104,222 $ (361,915 )

Net earningsattributable to (63 ) (509 ) (1,057 ) (223 )noncontrolling interests

Net earnings (loss)attributable to Caleres, 59,622 14,417 103,165 (362,138 )Inc.

Net earnings allocatedto participating (2,140 ) (512 ) (3,737 ) - securities

Net earnings (loss)attributable to Caleres,Inc. after allocation of $ 57,482 $ 13,905 $ 99,428 $ (362,138 )earnings toparticipating securities



Basic and diluted commonshares attributable to Caleres, Inc.:

Basic common shares 36,889 36,554 36,825 37,439

Dilutive effect of 457 176 294 - share-based awards

Diluted common sharesattributable to Caleres, 37,346 36,730 37,119 37,439 Inc.



Basic earnings (loss)per common share $ 1.56 $ 0.38 $ 2.70 $ (9.67 )attributable to Caleres,Inc. shareholders



Diluted earnings (loss)per common share $ 1.54 $ 0.38 $ 2.68 $ (9.67 )attributable to Caleres,Inc. shareholders

SCHEDULE 7

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION

SCHEDULE 7



CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION

(Unaudited)

Thirteen Weeks Ended

Thirty-Nine Weeks Ended

October 30,

October 31,

October 30,

October 31,

2021

2020

2021

2020

($ thousands, except per share data)

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

Adjusted net earnings (loss)

$

61,591

$

18,731

$

131,379

$

(53,077

)

Net earnings attributable to noncontrolling interests

(63

)

(509

)

(1,057

)

(223

)

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

61,528

18,222

130,322

(53,300

)

Net earnings allocated to participating securities

(2,208

)

(647

)

(4,729

)

-

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

$

59,320

$

17,575

$

125,593

$

(53,300

)

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

Basic common shares

36,889

36,554

36,825

37,439

Dilutive effect of share-based awards

457

176

294

-

Diluted common shares attributable to Caleres, Inc.

37,346

36,730

37,119

37,439

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

$

1.61

$

0.48

$

3.41

$

(1.42

)

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

$

1.59

$

0.48

$

3.38

$

(1.42

)

View source version on businesswire.com: https://www.businesswire.com/news/home/20211118006072/en/

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