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Caleres Reports Fourth Quarter and Full Year 2020 Results

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·13 min read
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Famous Footwear delivers strong fourth quarter earnings

Paid down $50 million of debt during the quarter, ending fiscal 2020 below pre-COVID levels

Caleres (NYSE: CAL) (caleres.com), diverse portfolio of consumer-driven footwear brands, today reported financial results for the fourth quarter and fiscal year ended January 30, 2021.

"I am proud of the Caleres team and the tremendous progress we have made on a wide range of strategic objectives during an unprecedented year that saw the pervasive impact of the pandemic and protracted economic lockdown," said Diane Sullivan, Chairman and CEO. "Among the highlights, we:

  • Streamlined the organization and rightsized our expense base, resulting in $100 million in ongoing annualized expense savings;

  • Achieved a 40 percent increase in ecommerce sales via our rapidly growing owned websites;

  • Commenced the strategic closure of a portion of our brick-and-mortar portfolio to better align with the accelerated consumer shift toward digital;

  • Generated approximately $126 million in cash from operations;

  • Strengthened the balance sheet – restoring overall debt to below pre-pandemic levels by fiscal year-end and significantly reducing our working capital position;

  • Returned approximately $34 million to shareholders through our long-standing dividend and share repurchase program.

"We continued to execute at a very high level at Famous Footwear, which rebounded quickly following the extended store closures and capped off 2020 with a modest decline in fourth quarter sales and a significant increase in year-over-year earnings. For the Brand Portfolio, we have identified areas of opportunity that are expected to position this segment for improved performance including actions to ensure the optimal alignment of our product assortment and omnichannel capabilities to more closely reflect rapidly evolving consumer behaviors, preferences and priorities."

"While the pace of recovery is still uncertain, there are signs of stabilization in the marketplace," said, Sullivan. "We believe we are well-positioned to capitalize as the market rebounds and the world returns to a greater degree of normalcy. As we plan for future success, we will focus on maintaining our strong momentum at Famous Footwear; driving enhanced consumer alignment and improved performance in the Brand Portfolio; taking a careful and disciplined approach to cost control and capital spending; reducing debt levels still further; and returning excess cash to shareholders. In short, Caleres is a more agile and focused organization than it was at the start of 2020, with an even more vigorous commitment to connecting with our consumers and providing them with compelling and fresh product – across growing footwear categories — when, where and how they want to shop. We are confident that we can leverage our talented and dedicated workforce, strong operating platform, powerful portfolio and improved financial position to capitalize on the opportunities we see ahead in order to drive long-term value for our shareholders."

Key Financial Information:
Fourth Quarter 2020 Highlights
(13-weeks ended January 30, 2021 compared to 13-weeks ended February 1, 2020)

  • Net sales were $571.0 million, down 18.3 percent from the fourth quarter of fiscal 2019

    • Direct-to-consumer represented 75 percent of total net sales

    • A 6.2 percent sales decline in the Famous Footwear segment

    • A 32.4 percent sales decline in the Brand Portfolio segment

    • Total company owned ecommerce website sales increased approximately 25 percent, with ecommerce penetration rising to approximately 30 percent of net sales

  • Gross profit was $225.6 million, while gross margin was 39.5 percent

  • SG&A expense of $226.1 million, down $34.7 million compared to the fourth quarter of 2019

  • Net loss of $77.0 million, or loss of $2.11 per diluted share, compared to net earnings of $0.4 million, or earnings of $0.01 per diluted share in the fourth quarter of fiscal 2019. Loss of $2.11 per share includes $2.14 for the below items:

    • COVID-19 related impairments and other expenses of $1.03;

    • Intangible asset impairment charges of $0.49;

    • Brand Portfolio expense of $0.37 related to the Naturalizer brand retail exits;

    • Fair value adjustment of $0.18 associated with the mandatory purchase obligation for Blowfish Malibu; and

    • Vionic integration-related costs of $0.07.

  • Adjusted net income of $1.3 million, or $0.03 per diluted share compared to adjusted net income of $13.9 million, or $0.34 per diluted share in the fourth quarter of fiscal 2019

  • Generated $24.6 million in cash from operations and ended the fourth quarter with $88.3 million of cash on hand

  • Reduced credit facility borrowings by $50 million during the fourth quarter to end the year at $250 million, or $25 million below last year’s pre-virus levels

  • Reduced inventory levels by approximately 21 percent year-over-year, reflecting ongoing actions taken to align with consumer demand and the ongoing liquidation of Naturalizer store inventory

Fiscal 2020 Results Versus 2019
(52-weeks ended January 30, 2021 compared to 52-weeks ended February 1, 2020)

  • Consolidated sales of $2,117.1 million were down 27.5 percent

    • Direct-to-consumer sales represented 73 percent of total net sales

    • A 20.4 percent sales decline in the Famous Footwear segment

    • A 35.8 percent sales decline in the Brand Portfolio segment

    • Total company owned ecommerce website sales increased approximately 40 percent, with ecommerce penetration rising to approximately 30 percent of net sales

  • Gross profit was $787.0 million, while gross margin was 37.2%

  • SG&A expense of $889.5 million represented 42.0% of sales

  • Net loss for the year was $439.1 million, resulting in a loss per diluted share of $11.80 including $10.40 for the below items:

    • Goodwill and intangible asset impairment charges of $6.35;

    • COVID-19 related impairments and other expenses of $3.10;

    • Fair value adjustment of $0.48 associated with the mandatory purchase obligation for Blowfish Malibu;

    • Brand Portfolio expense of $0.40 related to brand exits, primarily Naturalizer retail; and

    • Vionic integration-related costs of $0.07.

  • Adjusted net loss of $52.0 million, or adjusted loss of $1.40 per diluted share compared to adjusted net income of $86.4 million, or adjusted earnings of $2.10 per diluted share, in fiscal 2019

  • Generated $126.4 million in cash from operations

  • Returned $34.1 million to shareholders during the year through:

    • $10.8 million in dividend payouts; and

    • $23.3 million to repurchase 2.9 million shares, or seven percent of shares outstanding, at an average share price of $8.05.

2021 Outlook
Given the ongoing disruption related to the virus, supply chain dislocations and associated near-term uncertainty in the marketplace, Caleres is not providing fiscal year 2021 guidance at this time. The company will evaluate market conditions as the year progresses and will endeavor to reinstate its more traditional guidance practices in the future.

Investor Conference Call
Caleres will host an investor conference call at 5:00 p.m. Eastern time today, Tuesday, March 16. The webcast and 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 9787564. 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 9787564 through Monday, March 29.

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 outbreak 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) impairment charges resulting from a long-term decline in our stock price; (iv) rapidly changing fashion trends and consumer preferences and purchasing patterns; (v) intense competition within the footwear industry; (vi) 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; (vii) imposition of tariffs; (viii) the ability to accurately forecast sales and manage inventory levels; (ix) cybersecurity threats or other major disruption to the company’s information technology systems; (x) customer concentration and increased consolidation in the retail industry; (xi) transitional challenges with acquisitions; (xii) a disruption in the company’s distribution centers; (xiii) foreign currency fluctuations; (xiv) changes to tax laws, policies and treaties; (xv) the ability to recruit and retain senior management and other key associates; (xvi) compliance with applicable laws and standards with respect to labor, trade and product safety issues; (xvii) the ability to maintain relationships with current suppliers; (xviii) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights; and (xix) the ability to secure/exit leases on favorable terms. The company's reports to the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation, the information under the caption Risk Factors in Item 1A of the company’s Annual Report on Form 10-K for the year ended February 1, 2020, which information is incorporated by reference herein and updated by the company’s Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change.

SCHEDULE 1

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(Unaudited)

Thirteen Weeks Ended

Fifty-Two Weeks Ended

($ thousands, except per share data)

January 30, 2021

February 1, 2020

January 30, 2021

February 1, 2020

Net sales

$

570,959

$

698,948

$

2,117,070

$

2,921,562

Cost of goods sold

345,400

420,138

1,330,021

1,737,202

Gross profit

225,559

278,810

787,049

1,184,360

Selling and administrative expenses

226,063

260,788

889,489

1,065,760

Impairment of goodwill and intangible assets

23,805

286,524

Restructuring and other special charges, net

31,070

12,353

96,694

14,787

Operating (loss) earnings

(55,379

)

5,669

(485,658

)

103,813

Interest expense, net

(14,541

)

(7,835

)

(48,287

)

(33,123

)

Other income, net

4,117

1

16,834

7,903

(Loss) earnings before income taxes

(65,803

)

(2,165

)

(517,111

)

78,593

Income tax (provision) benefit

(11,276

)

2,174

78,117

(16,511

)

Net (loss) earnings

(77,079

)

9

(438,994

)

62,082

Net (loss) earnings attributable to noncontrolling interests

(103

)

(399

)

120

(737

)

Net (loss) earnings attributable to Caleres, Inc.

$

(76,976

)

$

408

$

(439,114

)

$

62,819

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

$

(2.11

)

$

0.01

$

(11.80

)

$

1.53

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

$

(2.11

)

$

0.01

$

(11.80

)

$

1.53

SCHEDULE 2

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

($ thousands)

January 30, 2021

February 1, 2020

ASSETS

Cash and cash equivalents

$

88,295

$

45,218

Receivables, net

126,994

162,181

Inventories, net

487,955

618,406

Prepaid expenses and other current assets

79,312

56,494

Total current assets

782,556

882,299

Lease right-of-use assets

554,303

695,594

Property and equipment, net

172,437

224,846

Goodwill and intangible assets, net

240,071

539,579

Other assets

117,683

89,389

Total assets

$

1,867,050

$

2,431,707

LIABILITIES AND EQUITY

Borrowings under revolving credit agreement

$

250,000

$

275,000

Mandatory purchase obligation - Blowfish Malibu

39,134

Trade accounts payable

280,501

267,018

Lease obligations

153,060

127,869

Other accrued expenses

182,814

181,063

Total current liabilities

905,509

850,950

Noncurrent lease obligations

518,942

629,032

Long-term debt

198,851

198,391

Other liabilities

39,894

104,204

Total other liabilities

757,687

931,627

Total Caleres, Inc. shareholders’ equity

200,247

645,950

Noncontrolling interests

3,607

3,180

Total equity

203,854

649,130

Total liabilities and equity

$

1,867,050

$

2,431,707

SCHEDULE 3

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Fifty-Two Weeks Ended

($ thousands)

January 30, 2021

February 1, 2020

OPERATING ACTIVITIES:

Net cash provided by operating activities

$

126,353

$

170,786

INVESTING ACTIVITIES:

Purchases of property and equipment

(16,786

)

(44,533

)

Disposals of property and equipment

636

Capitalized software

(5,274

)

(5,619

)

Net cash used for investing activities

(22,060

)

(49,516

)

FINANCING ACTIVITIES:

Borrowings under revolving credit agreement

438,500

288,500

Repayments under revolving credit agreement

(463,500

)

(348,500

)

Dividends paid

(10,764

)

(11,422

)

Acquisition of treasury stock

(23,348

)

(33,424

)

Issuance of common stock under share-based plans, net

(1,135

)

(2,644

)

Contributions by noncontrolling interests, net

139

2,500

Other

(1,198

)

(1,342

)

Net cash used for financing activities

(61,306

)

(106,332

)

Effect of exchange rate changes on cash and cash equivalents

90

80

Increase in cash and cash equivalents

43,077

15,018

Cash and cash equivalents at beginning of period

45,218

30,200

Cash and cash equivalents at end of period

$

88,295

$

45,218

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

January 30, 2021

February 1, 2020

Net (Loss)

Net

Pre-Tax

Earnings

Diluted

Pre-Tax

Earnings

Impact of

Attributable

(Loss)

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 (loss) earnings

$

(76,976

)

$

(2.11

)

$

408

$

0.01

Charges/other items:

Intangible asset impairment charges

$

23,805

17,854

0.49

$

COVID-19-related expenses (1)

15,245

37,486

1.03

...

Brand Portfolio - business exits

14,774

13,680

0.37

1,615

1,198

0.03

Fair value adjustment to Blowfish purchase obligation

8,989

6,675

0.18

1,545

1,147

0.03

Vionic integration-related costs

3,436

2,552

0.07

Expense containment initiatives

15,033

11,189

0.27

Total charges/other items

$

66,249

$

78,247

$

2.14

$

18,193

$

13,534

$

0.33

Adjusted earnings

$

1,271

$

0.03

$

13,942

$

0.34

(Unaudited)

Fifty-Two Weeks Ended

January 30, 2021

February 1, 2020

Net (Loss)

Net

Pre-Tax

Earnings

Diluted

Pre-Tax

Earnings

Impact of

Attributable

(Loss)

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 (loss) earnings

$

(439,114

)

$

(11.80

)

$

62,819

$

1.53

Charges/other items:

Goodwill and intangible asset impairment charges

$

286,524

236,360

6.35

$

COVID-19-related expenses (2)

114,285

115,533

3.10

Fair value adjustment to Blowfish purchase obligation

23,935

17,773

0.48

5,428

4,031

0.10

Brand Portfolio - business exits

16,372

14,867

0.40

3,520

2,613

0.06

Vionic acquisition and integration-related costs

3,436

2,552

0.07

7,696

5,714

0.14

Expense containment initiatives

15,033

11,189

0.27

Total charges/other items

$

444,552

$

387,085

$

10.40

$

31,677

$

23,547

$

0.57

Adjusted (loss) earnings

$

(52,029

)

$

(1.40

)

$

86,366

$

2.10

____________________

(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.

(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.

SCHEDULE 5

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

SUMMARY FINANCIAL RESULTS

(Unaudited)

Thirteen Weeks Ended

Famous Footwear

Brand Portfolio

Eliminations and Other

Consolidated

January 30,

February 1,

January 30,

February 1,

January 30,

February 1,

January 30,

February 1,

($ thousands)

2021

2020

2021

2020

2021

2020

2021

2020

Net sales

$

346,657

$

369,468

$

234,034

$

345,972

$

(9,732

)

$

(16,492

)

$

570,959

$

698,948

Gross profit

141,616

157,140

83,121

121,095

822

575

225,559

278,810

Adjusted gross profit

141,616

157,140

85,506

122,710

822

575

227,944

280,425

Gross profit rate

40.9

%

42.5

%

35.5

%

35.0

%

(8.4

)%

(3.5

)%

39.5

%

39.9

%

Adjusted gross profit rate

40.9

%

42.5

%

36.5

%

35.5

%

(8.4

)%

(3.5

)%

39.9

%

40.1

%

Operating earnings (loss)

14,830

6,860

(55,888

)

11,928

(14,321

)

(13,119

)

(55,379

)

5,669

Adjusted operating earnings (loss)

14,830

10,343

1,214

18,621

(14,163

)

(9,327

)

1,881

19,637

Operating earnings (loss) %

4.3

%

1.9

%

(23.9

)%

3.4

%

147.2

%

79.5

%

(9.7

)%

0.8

%

Adjusted operating earnings %

4.3

%

2.8

%

0.5

%

5.4

%

145.5

%

56.6

%

0.3

%

2.8

%

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

(1.8

)%

5.1

%

(28.3

)%

(0.6

)%

%

%

%

%

Number of stores

916

949

170

228

1,086

1,177

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

(Unaudited)

Thirteen Weeks Ended

Famous Footwear

Brand Portfolio

Eliminations and Other

Consolidated

January 30,

February 1,

January 30,

February 1,

January 30,

February 1,

January 30,

February 1,

($ thousands)

2021

2020

2021

2020

2021

2020

2021

2020

Gross profit

$

141,616

$

157,140

$

83,121

$

121,095

$

822

$

575

$

225,559

$

278,810

Charges/Other Items:

Brand Portfolio - business exits

2,385

1,615

2,385

1,615

Total charges/other items

2,385

1,615

2,385

1,615

Adjusted gross profit

$

141,616

$

157,140

$

85,506

$

122,710

$

822

$

575

$

227,944

$

280,425

Operating earnings (loss)

$

14,830

$

6,860

$

(55,888

)

$

11,928

$

(14,321

)

$

(13,119

)

$

(55,379

)

$

5,669

Charges/Other Items:

Intangible asset impairment charges

23,805

23,805

COVID-19-related expenses

15,245

15,245

Brand Portfolio - business exits

14,774

1,615

14,774

1,615

Vionic integration-related costs

3,278

158

3,436

Expense containment initiatives

3,483

5,078

3,792

12,353

Total charges/other items

3,483

57,102

6,693

158

3,792

57,260

13,968

Adjusted operating earnings (loss)

$

14,830

$

10,343

$

1,214

$

18,621

$

(14,163

)

$

(9,327

)

$

1,881

$

19,637

SCHEDULE 5

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

SUMMARY FINANCIAL RESULTS

(Unaudited)

Fifty-Two Weeks Ended

Famous Footwear

Brand Portfolio

Eliminations and Other

Consolidated

January 30,

February 1,

January 30,

February 1,

January 30,

February 1,

January 30,

February 1,

($ thousands)

2021

2020

2021

2020

2021

2020

2021

2020

Net sales

$

1,263,551

$

1,588,057

$

902,481

$

1,406,460

$

(48,962

)

$

(72,955

)

$

2,117,070

$

2,921,562

Gross profit

489,883

675,401

294,828

506,556

2,338

2,403

787,049

1,184,360

Adjusted gross profit

495,841

675,401

326,269

515,337

2,338

2,403

824,448

1,193,141

Gross profit rate

38.8

%

42.5

%

32.7

%

36.0

%

(4.8

)%

(3.3

)%

37.2

%

40.5

%

Adjusted gross profit rate

39.2

%

42.5

%

36.2

%

36.6

%

(4.8

)%

(3.3

)%

38.9

%

40.8

%

Operating (loss) earnings

(23,821

)

76,896

(408,444

)

58,153

(53,393

)

(31,236

)

(485,658

)

103,813

Adjusted (loss) operating earnings

(1,270

)

80,379

(11,172

)

72,640

(52,599

)

(25,637

)

(65,041

)

127,382

Operating (loss) earnings%

(1.9

)%

4.8

%

(45.3

)%

4.1

%

109.1

%

42.8

%

(22.9

)%

3.6

%

Adjusted (loss) operating earnings%

(0.1

)%

5.1

%

(1.2

)%

5.2

%

107.4

%

35.1

%

(3.1

)%

4.4

%

Same-store sales % (on a 52-week basis)

1.6

%

2.0

%

(31.0

)%

(5.8

)%

%

%

%

%

Number of stores

916

949

170

228

1,086

1,177

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

(Unaudited)

Fifty-Two Weeks Ended

Famous Footwear

Brand Portfolio

Eliminations and Other

Consolidated

January 30,

February 1,

January 30,

February 1,

January 30,

February 1,

January 30,

February 1,

($ thousands)

2021

2020

2021

2020

2021

2020

2021

2020

Gross profit

$

489,883

$

675,401

$

294,828

$

506,556

$

2,338

$

2,403

$

787,049

$

1,184,360

Charges/Other Items:

COVID-19-related expenses

5,958

27,458

33,416

Brand Portfolio - business exits

3,983

2,969

3,983

2,969

Vionic acquisition and integration-related costs

5,812

5,812

Total charges/other items

5,958

31,441

8,781

37,399

8,781

Adjusted gross profit

$

495,841

$

675,401

$

326,269

$

515,337

$

2,338

$

2,403

$

824,448

$

1,193,141

Operating (loss) earnings

$

(23,821

)

$

76,896

$

(408,444

)

$

58,153

$

(53,393

)

$

(31,236

)

$

(485,658

)

$

103,813

Charges/Other Items:

Goodwill and intangible asset impairment charges

286,524

286,524

COVID-19-related expenses

22,551

91,098

636

114,285

Brand Portfolio - business exits

16,372

3,520

16,372

3,520

Vionic acquisition and integration-related costs

3,278

5,889

158

1,807

3,436

7,696

Expense containment initiatives

3,483

5,078

3,792

12,353

Total charges/other items

22,551

3,483

397,272

14,487

794

5,599

420,617

23,569

Adjusted operating (loss) earnings

$

(1,270

)

$

80,379

$

(11,172

)

$

72,640

$

(52,599

)

$

(25,637

)

$

(65,041

)

$

127,382

SCHEDULE 6

CALERES, INC.

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION

(Unaudited)

Thirteen Weeks Ended

Fifty-Two Weeks Ended

January 30,

February 1,

January 30,

February 1,

2021

2020

2021

2020

($ thousands, except per share data)

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

Net (loss) earnings

$

(77,079

)

$

9

$

(438,994

)

$

62,082

Net loss (earnings) attributable to noncontrolling interests

103

399

(120

)

737

Net (loss) earnings attributable to Caleres, Inc.

(76,976

)

408

(439,114

)

62,819

Net earnings allocated to participating securities

(45

)

(1,988

)

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

$

(76,976

)

$

363

$

(439,114

)

$

60,831

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

Basic common shares

36,564

39,235

37,220

39,796

Dilutive effect of share-based awards

55

57

Diluted common shares attributable to Caleres, Inc.

36,564

39,290

37,220

39,853

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

$

(2.11

)

$

0.01

$

(11.80

)

$

1.53

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

$

(2.11

)

$

0.01

$

(11.80

)

$

1.53

SCHEDULE 7

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION

(Unaudited)

Thirteen Weeks Ended

Fifty-Two Weeks Ended

January 30,

February 1,

January 30,

February 1,

2021

2020

2021

2020

($ thousands, except per share data)

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

Adjusted net earnings (loss)

$

1,168

$

13,543

$

(51,909

)

$

85,629

Net loss (earnings) attributable to noncontrolling interests

103

399

(120

)

737

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

1,271

13,942

(52,029

)

86,366

Net earnings allocated to participating securities

(55

)

(404

)

(2,766

)

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

$

1,216

$

13,538

$

(52,029

)

$

83,600

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

Basic common shares

36,564

39,235

37,220

39,796

Dilutive effect of share-based awards

162

55

57

Diluted common shares attributable to Caleres, Inc.

36,726

39,290

37,220

39,853

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

$

0.03

$

0.35

$

(1.40

)

$

2.10

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

$

0.03

$

0.34

$

(1.40

)

$

2.10

View source version on businesswire.com: https://www.businesswire.com/news/home/20210316005983/en/

Contacts

Logan Bonacorsi
lbonacorsi@caleres.com
314.854.4134