Caleres Reports Second Quarter 2023 Results and Maintains Full Year 2023 Outlook

Business Wire
11 min read
0
In this article:

  • Delivers second quarter adjusted earnings per share ahead of expectations

  • Reiterates full year 2023 sales and adjusted earnings per share guidance

  • Drives inventory decline of 14.3 percent compared to second quarter 2022

  • Reduces revolving credit facility borrowings by $47.5 million from first quarter 2023 and by $104.5 million from second quarter 2022

  • Repurchases 763,000 shares for $17.4 million

ST. LOUIS, August 31, 2023--(BUSINESS WIRE)--Caleres (NYSE: CAL), the market-leading portfolio of consumer-driven footwear brands, today reported financial results for the second quarter of 2023, and reiterated its full year 2023 sales and adjusted earnings per share outlook.

"The Caleres team performed at a high level during the second quarter, delivering a strong consolidated operating margin and exceeding adjusted earnings per share expectations despite a choppy macro environment," said Jay Schmidt, president and chief executive officer. "Once again, we gained market share in our Lead Brands and Famous Footwear."

"During the quarter, we achieved:

  • sequential sales improvement from first quarter in the year-over-year change in the Brand Portfolio and Famous Footwear;

  • outperformance in the Brand Portfolio ecommerce business;

  • record second quarter gross margin in the Brand Portfolio; and

  • year-over-year sales growth in Kids at Famous Footwear and an improved year-over-year inventory position heading into the key back-to-school period.

Just as significantly, we strengthened our financial and long-term competitive position by controlling expenses and by putting free cash to work, reducing revolver borrowings by nearly $50 million. We also invested in high-return growth opportunities, including enhancing the omni-channel experience and marketing technologies and analytics, while at the same time returning approximately $20 million to shareholders through share buybacks and dividends."

Second Quarter 2023 Results

(13-weeks ended July 29, 2023, compared to 13-weeks ended July 30, 2022)

  • Net sales were $695.5 million, down 5.8 percent from the second quarter of 2022;

    • Famous Footwear segment net sales declined 5.1 percent, with comparable sales down 4.3 percent

    • Brand Portfolio segment net sales decreased 7.2 percent

    • Direct-to-consumer sales represented approximately 74 percent of total net sales

  • Gross profit was $314.2 million, while gross margin was 45.2 percent;

    • Famous Footwear segment gross margin of 46.2 percent

    • Brand Portfolio segment gross margin of 41.3 percent

  • SG&A as a percentage of net sales was 37.8 percent;

  • Net earnings of $33.9 million, or earnings per diluted share of $0.95, compared to net earnings of $51.2 million, or earnings per diluted share of $1.38 in the second quarter of 2022;

  • Adjusted net earnings of $35.2 million, or adjusted earnings per diluted share of $0.98, which excludes $0.03 related to charges associated with expense reduction initiatives during the second quarter;

  • Earnings before interest, taxes, depreciation, and amortization (EBITDA) of $63.6 million, or 9.1 percent of net sales;

  • Inventory was down 14.3 percent compared to second quarter of 2022, due to disciplined inventory management and improved supply chain flow; and

  • Borrowings under the asset-based revolving credit facility were $244.0 million at the end of the period.

Capital Allocation Update

In line with its capital allocation priorities, Caleres continued to reduce the borrowings under its asset-based revolving credit facility, paying down $47.5 million during the second quarter. With this reduction, the company is now at its leverage ratio target of 1.0x on a debt/EBITDA trailing twelve-month basis. In addition, Caleres opportunistically repurchased 763,000 shares for $17.4 million at an average price of $22.86 per share. As of July 29, 2023, approximately 5.6 million shares remained available under the company’s share repurchase program. Caleres also invested $10.3 million in capital expenditures and returned $2.5 million to shareholders through its quarterly dividend.

The Caleres board of directors recently approved its next quarterly dividend, which will be paid on September 29, 2023, to shareholders of record as of September 8, 2023.

Full Year 2023 Outlook

"Looking ahead, we are confident in our ability to achieve our full year financial outlook and are reaffirming our 2023 sales and earnings guidance," said Schmidt. "We also remain on course to deliver earnings in excess of the $4.00 per share baseline we established in 2022. This underscores yet again the structural changes to the organization’s normalized earnings profile that the team has executed in recent years. We are making progress on our clearly defined strategic initiatives. We continue to leverage the power of our brands, the strength of our diversified structure, and the rigor of our expense management initiatives to position the company for long-term growth and drive even greater value for our shareholders."

For full year 2023, the company is reiterating its diluted earnings per share guidance of $4.02 to $4.22, inclusive of the $4 million of restructuring charges associated with expense reduction actions, and adjusted diluted earnings per share of $4.10 to $4.30 and consolidated net sales to be down 3 percent to down 5 percent.

In addition, Caleres still expects:

  • Consolidated operating margin of 7.3 percent to 7.5 percent;

  • Interest expense of $17 million to $19 million;

  • Effective tax rate of about 25 percent; and

  • Weighted average shares outstanding of 34.3 million.

The company is revising its forecasted capital expenditures to $50 million to $60 million from $55 million to $65 million. Caleres is fully committed to its strategic initiatives and the change relates to additional visibility on the timing of certain projects.

For third quarter of 2023 the company expects:

  • Consolidated net sales to be down low-single digits;

  • Diluted earnings per share of $1.25 to $1.30; and

  • Adjusted diluted earnings per share of $1.30 to $1.35.

Investor Conference Call

Caleres will host a conference call at 10:00 a.m. ET today, Thursday, 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) 704-4453 for North America participants or (201) 389-0920 for international participants, no passcode necessary. A replay will be also available at investor.caleres.com/news/events/archive for a limited period. Investors may also access the replay by dialing (844) 512-2921 in North America or (412) 317-6671 internationally and using the conference pin 13740501.

Definitions

All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings attributable to Caleres, Inc. and diluted earnings per common share attributable to Caleres, Inc. shareholders, are presented as net earnings and earnings 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 earnings before interest, taxes, depreciation and amortization, and estimated and future operating earnings, net earnings and earnings 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) changing consumer demands, which may be influenced by general economic conditions and other factors; (ii) inflationary pressures (iii) supply chain disruptions (iv) rapidly changing consumer preferences and purchasing patterns and fashion trends; (v) customer concentration and increased consolidation in the retail industry; (vi) intense competition within the footwear industry; (vii) foreign currency fluctuations; (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 secure/exit leases on favorable terms; (xiv) the ability to maintain relationships with current suppliers; (xv) transitional challenges with acquisitions and divestitures; (xvi) changes to tax laws, policies and treaties; (xvii) our commitments and shareholder expectations related to environmental, social and governance considerations; (xviii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xix) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights. 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 January 28, 2023, 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

(Unaudited)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

($ thousands, except per share data)

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

Net sales

$

695,533

$

738,330

$

1,358,267

$

1,473,445

Cost of goods sold

381,360

401,515

741,412

809,636

Gross profit

314,173

336,815

616,855

663,809

Selling and administrative expenses

262,823

268,395

515,918

529,194

Restructuring and other special charges, net

1,647

—

1,647

—

Operating earnings

49,703

68,420

99,290

134,615

Interest expense, net

(5,128

)

(2,584

)

(10,751

)

(4,883

)

Other income, net

1,616

3,217

3,108

6,639

Earnings before income taxes

46,191

69,053

91,647

136,371

Income tax provision

(11,826

)

(17,500

)

(22,490

)

(34,833

)

Net earnings

34,365

51,553

69,157

101,538

Net earnings (loss) attributable to noncontrolling interests

422

375

487

(149

)

Net earnings attributable to Caleres, Inc.

$

33,943

$

51,178

$

68,670

$

101,687

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

$

0.95

$

1.40

$

1.91

$

2.74

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

$

0.95

$

1.38

$

1.91

$

2.70

SCHEDULE 2

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

($ thousands)

July 29, 2023

July 30, 2022

ASSETS

Cash and cash equivalents

$

47,098

$

45,955

Receivables, net

136,549

127,580

Inventories, net

660,690

770,652

Property and equipment, held for sale

16,777

16,777

Prepaid expenses and other current assets

53,709

57,827

Total current assets

914,823

1,018,791

Lease right-of-use assets

505,423

516,486

Property and equipment, net

157,717

137,007

Goodwill and intangible assets, net

209,314

221,447

Other assets

116,683

131,477

Total assets

$

1,903,960

$

2,025,208

LIABILITIES AND EQUITY

Borrowings under revolving credit agreement

$

244,000

$

348,500

Trade accounts payable

350,020

399,265

Lease obligations

133,743

131,601

Other accrued expenses

228,608

260,434

Total current liabilities

956,371

1,139,800

Noncurrent lease obligations

429,192

451,657

Other liabilities

46,816

48,874

Total other liabilities

476,008

500,531

Total Caleres, Inc. shareholders’ equity

464,992

379,133

Noncontrolling interests

6,589

5,744

Total equity

471,581

384,877

Total liabilities and equity

$

1,903,960

$

2,025,208

SCHEDULE 3

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Twenty-Six Weeks Ended

($ thousands)

July 29, 2023

July 30, 2022

OPERATING ACTIVITIES:

Net cash provided by operating activities

$

125,176

$

27,251

INVESTING ACTIVITIES:

Purchases of property and equipment

(15,044

)

(16,820

)

Capitalized software

(1,833

)

(3,906

)

Net cash used for investing activities

(16,877

)

(20,726

)

FINANCING ACTIVITIES:

Borrowings under revolving credit agreement

252,000

437,500

Repayments under revolving credit agreement

(315,500

)

(379,000

)

Dividends paid

(4,997

)

(5,200

)

Acquisition of treasury stock

(17,445

)

(41,672

)

Issuance of common stock under share-based plans, net

(10,010

)

(3,814

)

Contributions by noncontrolling interests

1,000

1,500

Net cash (used for) provided by financing activities

(94,952

)

9,314

Effect of exchange rate changes on cash and cash equivalents

51

1

Increase in cash and cash equivalents

13,398

15,840

Cash and cash equivalents at beginning of period

33,700

30,115

Cash and cash equivalents at end of period

$

47,098

$

45,955

SCHEDULE 4

CALERES, INC.

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

(Unaudited)

Thirteen Weeks Ended

July 29, 2023

July 30, 2022

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

$

33,943

$

0.95

$

51,178

$

1.38

Charges/other items:

Expense reduction initiatives

$

1,647

1,224

0.03

$

—

—

—

Total charges/other items

$

1,647

$

1,224

$

0.03

$

—

$

—

$

—

Adjusted earnings

$

35,167

$

0.98

$

51,178

$

1.38

(Unaudited)

Twenty-Six Weeks Ended

July 29, 2023

July 30, 2022

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

$

68,670

$

1.91

$

101,687

$

2.70

Charges/other items:

Expense reduction initiatives

$

1,647

1,224

0.04

$

—

—

—

Total charges/other items

$

1,647

$

1,224

$

0.04

$

—

$

—

$

—

Adjusted earnings

$

69,894

$

1.95

$

101,687

$

2.70

(Unaudited)

Trailing Twelve Months Ended

July 29, 2023

July 30, 2022

Pre-Tax

Net Earnings (Loss)

Pre-Tax

Net Earnings

Impact of

Attributable

Impact of

Attributable

Charges/Other

to Caleres,

Charges/Other

to Caleres,

($ thousands)

Items

Inc.

Items

Inc.

GAAP earnings

$

148,725

$

195,163

Charges/other items:

Organizational changes

$

2,910

2,723

$

—

—

Expense reduction initiatives

1,647

1,224

—

—

Deferred tax valuation allowance adjustments

—

(17,374

)

—

746

Fair value adjustment to Blowfish purchase obligation

—

—

1,918

1,424

Loss on early extinguishment of debt

—

—

1,011

750

Total charges/other items

$

4,557

$

(13,427

)

$

2,929

$

2,920

Adjusted earnings

$

135,298

$

198,083

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 29,

July 30,

July 29,

July 30,

July 29,

July 30,

July 29,

July 30,

($ thousands)

2023

2022

2023

2022

2023

2022

2023

2022

Net sales

$

414,238

$

436,375

$

300,873

$

324,060

$

(19,578

)

$

(22,105

)

$

695,533

$

738,330

Gross profit

191,479

213,605

124,124

124,142

(1,430

)

(932

)

314,173

336,815

Gross margin

46.2

%

48.9

%

41.3

%

38.3

%

7.3

%

4.2

%

45.2

%

45.6

%

Operating earnings (loss)

40,630

62,496

26,828

29,410

(17,755

)

(23,486

)

49,703

68,420

Adjusted operating earnings (loss)

40,830

62,496

27,709

29,410

(17,189

)

(23,486

)

51,350

68,420

Operating margin

9.8

%

14.3

%

8.9

%

9.1

%

n/m

%

n/m

%

7.1

%

9.3

%

Adjusted operating earnings %

9.9

%

14.3

%

9.2

%

9.1

%

n/m

%

n/m

%

7.4

%

9.3

%

Comparable sales % (on a 13-week basis)

(4.3

)

%

(3.1

)

%

3.9

%

23.5

%

—

%

—

%

—

%

—

%

Number of stores

861

881

94

85

—

—

955

966

n/m – Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

(Unaudited)

Thirteen Weeks Ended

Famous Footwear

Brand Portfolio

Eliminations and Other

Consolidated

July 29,

July 30,

July 29,

July 30,

July 29,

July 30,

July 29,

July 30,

($ thousands)

2023

2022

2023

2022

2023

2022

2023

2022

Operating earnings (loss)

$

40,630

$

62,496

$

26,828

$

29,410

$

(17,755

)

$

(23,486

)

$

49,703

$

68,420

Charges/Other Items:

Expense reduction initiatives

200

—

881

—

566

—

1,647

—

Total charges/other items

200

—

881

—

566

—

1,647

—

Adjusted operating earnings (loss)

$

40,830

$

62,496

$

27,709

$

29,410

$

(17,189

)

$

(23,486

)

$

51,350

$

68,420

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 29,

July 30,

July 29,

July 30,

July 29,

July 30,

July 29,

July 30,

($ thousands)

2023

2022

2023

2022

2023

2022

2023

2022

Net sales

$

763,396

$

820,877

$

626,389

$

689,800

$

(31,518

)

$

(37,232

)

$

1,358,267

$

1,473,445

Gross profit

350,611

402,839

267,982

263,441

(1,738

)

(2,471

)

616,855

663,809

Gross profit rate

45.9

%

49.1

%

42.8

%

38.2

%

5.5

%

6.6

%

45.4

%

45.1

%

Operating earnings (loss)

57,686

112,184

69,497

70,760

(27,893

)

(48,329

)

99,290

134,615

Adjusted operating earnings (loss)

57,886

112,184

70,378

70,760

(27,327

)

(48,329

)

100,937

134,615

Operating earnings %

7.6

%

13.7

%

11.1

%

10.3

%

n/m

%

n/m

%

7.3

%

9.1

%

Adjusted operating earnings %

7.6

%

13.7

%

11.2

%

10.3

%

n/m

%

n/m

%

7.4

%

9.1

%

Comparable sales % (on a 26-week basis)

(6.3

)

%

(3.5

)

%

7.0

%

43.8

%

—

%

—

%

—

%

—

%

Number of stores

861

881

94

85

—

—

955

966

n/m – Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

(Unaudited)

Twenty-Six Weeks Ended

Famous Footwear

Brand Portfolio

Eliminations and Other

Consolidated

July 29,

July 30,

July 29,

July 30,

July 29,

July 30,

July 29,

July 30,

($ thousands)

2023

2022

2023

2022

2023

2022

2023

2022

Operating earnings (loss)

$

57,686

$

112,184

$

69,497

$

70,760

$

(27,893

)

$

(48,329

)

$

99,290

$

134,615

Charges/Other Items:

Expense reduction initiatives

200

—

881

—

566

—

1,647

—

Total charges/other items

200

—

881

—

566

—

1,647

—

Adjusted operating earnings (loss)

$

57,886

$

112,184

$

70,378

$

70,760

$

(27,327

)

$

(48,329

)

$

100,937

$

134,615

SCHEDULE 6

CALERES, INC.

BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION

(Unaudited)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

July 29,

July 30,

July 29,

July 30,

2023

2022

2023

2022

($ thousands, except per share data)

Net earnings attributable to Caleres, Inc.:

Net earnings

$

34,365

$

51,553

$

69,157

$

101,538

Net (earnings) loss attributable to noncontrolling interests

(422

)

(375

)

(487

)

149

Net earnings attributable to Caleres, Inc.

33,943

51,178

68,670

101,687

Net earnings allocated to participating securities

(1,513

)

(2,226

)

(2,990

)

(4,216

)

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

$

32,430

$

48,952

$

65,680

$

97,471

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

Basic common shares

34,280

35,031

34,343

35,620

Dilutive effect of share-based awards

—

467

—

467

Diluted common shares attributable to Caleres, Inc.

34,280

35,498

34,343

36,087

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

$

0.95

$

1.40

$

1.91

$

2.74

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

$

0.95

$

1.38

$

1.91

$

2.70

SCHEDULE 7

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION

(Unaudited)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

July 29,

July 30,

July 29,

July 30,

2023

2022

2023

2022

($ thousands, except per share data)

Adjusted net earnings attributable to Caleres, Inc.:

Adjusted net earnings

$

35,589

$

51,553

$

70,381

$

101,538

Net (earnings) loss attributable to noncontrolling interests

(422

)

(375

)

(487

)

149

Adjusted net earnings attributable to Caleres, Inc.

35,167

51,178

69,894

101,687

Net earnings allocated to participating securities

(1,568

)

(2,226

)

(3,044

)

(4,216

)

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

$

33,599

$

48,952

$

66,850

$

97,471

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

Basic common shares

34,280

35,031

34,343

35,620

Dilutive effect of share-based awards

—

467

—

467

Diluted common shares attributable to Caleres, Inc.

34,280

35,498

34,343

36,087

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

$

0.98

$

1.40

$

1.95

$

2.74

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

$

0.98

$

1.38

$

1.95

$

2.70

SCHEDULE 8

CALERES, INC.

CALCULATION OF EBITDA AND DEBT/EBITDA LEVERAGE RATIO (NON-GAAP METRICS)

(Unaudited)

Thirteen Weeks Ended

($ thousands)

July 29, 2023

July 30, 2022

EBITDA:

Net earnings attributable to Caleres, Inc.

$

33,943

$

51,178

Income tax provision

11,826

17,500

Interest expense, net

5,128

2,584

Depreciation and amortization (1)

12,734

11,997

EBITDA

$

63,631

$

83,259

EBITDA margin

9.1

%

11.3

%

Adjusted EBITDA:

Adjusted net earnings attributable to Caleres, Inc. (2)

$

35,167

$

51,178

Income tax provision (3)

12,249

17,500

Interest expense, net

5,128

2,584

Depreciation and amortization (1)

12,734

11,997

Adjusted EBITDA

$

65,278

$

83,259

Adjusted EBITDA margin

9.4

%

11.3

%

(Unaudited)

Trailing Twelve Months Ended

($ thousands)

July 29, 2023

July 30, 2022

EBITDA:

Net earnings attributable to Caleres, Inc.

$

148,725

$

195,163

Income tax provision

20,996

65,834

Interest expense, net

20,132

12,079

Loss on early extinguishment of debt

—

1,011

Depreciation and amortization (1)

50,105

50,065

EBITDA

$

239,958

$

324,152

EBITDA margin

8.4

%

11.0

%

Adjusted EBITDA:

Adjusted net earnings attributable to Caleres, Inc. (2)

$

135,298

$

198,083

Income tax provision (3)

38,980

65,843

Interest expense, net (4)

20,132

10,161

Depreciation and amortization (1)

50,105

50,065

Adjusted EBITDA

$

244,515

$

324,152

Adjusted EBITDA margin

8.6

%

11.0

%

(Unaudited)

($ thousands)

July 29, 2023

July 30, 2022

Debt/EBITDA leverage ratio:

Borrowings under revolving credit agreement

$

244,000

$

348,500

EBITDA (trailing twelve months)

239,958

324,152

Debt/EBITDA

1.0

1.1

_____________________________

(1)

Includes depreciation and amortization of capitalized software and intangible assets.

(2)

Refer to Schedule 4 for the consolidated reconciliation of net earnings attributable to Caleres, Inc. to adjusted net earnings attributable to Caleres, Inc.

(3)

Excludes the income tax impacts of the adjustments on Schedule 4.

(4)

Excludes the fair value adjustment to the Blowfish purchase obligation, as reflected on Schedule 4.

SCHEDULE 9

CALERES, INC.

RECONCILIATION OF DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) – THIRD QUARTER AND FISCAL 2023 GUIDANCE

(Unaudited)

Third Quarter 2023 Guidance

Fiscal 2023 Guidance

Low

High

Low

High

GAAP diluted earnings per share

$

1.25

$

1.30

$

4.02

$

4.22

Charges/other items:

Expense reduction initiatives

0.05

0.05

0.08

0.08

Adjusted diluted earnings per share

$

1.30

$

1.35

$

4.10

$

4.30

View source version on businesswire.com: https://www.businesswire.com/news/home/20230831173569/en/

Contacts

Investor Contact:
Logan Bonacorsi
lbonacorsi@caleres.com

Advertisement

Recommended Stories