NEW YORK--(BUSINESS WIRE)--Sam Edelman, the contemporary lifestyle brand behind some of the world’s most iconic footwear and a lead brand in the Caleres (NYSE: CAL) portfolio, is thrilled to launch a capsule collection designed in collaboration with students from the Savannah College of Art and Design (SCAD). In a partnership through the university's innovation design studio, SCADpro, talented SCAD students from top-ranked degree programs including sneaker design, accessory design, industrial design, fashio ...

ST. LOUIS--(BUSINESS WIRE)--Caleres (NYSE: CAL), a market-leading portfolio of consumer-driven footwear brands, today announced it plans to release its fourth quarter 2023 financial results before the market opens on Tuesday, March 19. Company executives will host a conference call at 10:00 a.m. Eastern time that day to discuss the quarterly results and provide a general business update. The dial-in number for North America is (877) 704-4453 or (201) 389-0920 for international participants, no passcode nece ...

ST. LOUIS--(BUSINESS WIRE)--Caleres (NYSE:CAL), a market-leading portfolio of consumer-driven footwear brands, today announced Andrew Leckie has joined Famous Footwear as senior vice president and general merchandise manager. In this role, he will oversee buying and merchandising for the adult athletic, kids and Canadian businesses. “Andrew is accomplished in developing and executing strategies, nurturing his extensive vendor relationships, elevating product assortment and leading a team,” said Mike Edwa ...

NEW YORK--(BUSINESS WIRE)--Sam Edelman, the contemporary lifestyle brand behind some of the world’s most iconic footwear and a lead brand in the Caleres (NYSE: CAL) portfolio, is excited to announce its partnership with four new licensees to expand all three of its brands - Sam Edelman, Circus NY by Sam Edelman and Sam & Libby – into new lifestyle categories. New licensing partners include HB Connections (handbags), Esquire Brands (kids’ shoes), Gina Group (hosiery), and My Step Global (slippers). These lic ...

Financial Performance - Net sales for the thirteen weeks ended October 28, 2023, were $761.9 million, a decrease of 4.5% compared to $798.3 million for the same period in 2022[102]. - Gross profit for the same period was $340.4 million, slightly up from $339.9 million year-over-year, resulting in a gross margin of 44.7%[102]. - Operating earnings increased to $64.4 million, compared to $53.8 million in the prior year, reflecting a growth of 19.0%[102]. - Net earnings for the thirteen weeks ended October 28, 2023, were $47.0 million, up from $39.0 million in the same period last year, representing a 20.0% increase[102]. - Basic earnings per share attributable to Caleres, Inc. shareholders rose to $1.32, compared to $1.09 for the same period in 2022, marking a 21.1% increase[102]. - Total net sales for the thirty-nine weeks ended October 28, 2023, were $2,271,704,000, compared to $2,271,704,000 for the same period in 2022, showing no growth year-over-year[143]. - Earnings before income taxes for the thirty-nine weeks ended October 28, 2023, were $153,128 thousand, down from $189,212 thousand in the prior year, indicating a decrease of 19.1%[154]. Cash Flow and Liquidity - The company reported net cash provided by operating activities of $157.2 million, significantly higher than $46.3 million in the prior year[105]. - Cash and cash equivalents at the end of the period were $34.0 million, up from $32.8 million at the end of the previous year[105]. - The Company maintains a revolving credit facility for working capital needs, with borrowings under the credit agreement approximating $222.0 million as of October 28, 2023[175]. - The Company had $222.0 million in borrowings outstanding under its Credit Agreement, with an additional borrowing availability of $267.4 million[137]. Sales and Marketing - Total direct-to-consumer sales reached $1.5 billion, with retail stores contributing $1.1 billion and e-commerce sales totaling $308.7 million[116]. - Direct-to-consumer sales totaled $588.5 million, with e-commerce sales from company websites contributing $119.2 million, while wholesale e-commerce sales accounted for $59.0 million[142]. Inventory and Restructuring - The company experienced a decrease in inventories, with a net change of $23.8 million compared to a decrease of $53.0 million in the previous year[105]. - As of October 28, 2023, the company's net inventory balance was $9,974,000, an increase from $8,998,000 on October 29, 2022, reflecting a growth of approximately 10.8%[122]. - The Company incurred restructuring costs of $3.9 million during the thirty-nine weeks ended October 28, 2023, primarily related to organizational changes and integration efforts[152]. Shareholder Actions - The company repurchased 763,000 shares during the thirty-nine weeks ended October 28, 2023, compared to 2,622,845 shares repurchased in the same period of the previous year[124]. - The company had a total of 1,609,313 shares outstanding as of October 28, 2023, with a fair value of $21.62[188]. Tax and Interest - The consolidated effective tax rates were 23.5% for the thirteen weeks ended October 28, 2023, compared to 26.2% for the same period in 2022[198]. - Interest expense for the thirteen weeks ended October 28, 2023, was $(4,488) thousand, compared to $(4,003) thousand in the same period of 2022[154]. Assets and Liabilities - The company's goodwill and intangible assets as of October 28, 2023, had a carrying value of $210,436,000, reflecting a stable asset base[131]. - The carrying amount of goodwill as of October 28, 2023, was $415.7 million, net of accumulated impairment charges[155]. - The loyalty programs liability decreased to $13,770,000 as of October 28, 2023, down from $17,690,000 a year earlier, representing a decline of approximately 22.3%[123]. - The Company recorded no impairment charges for indefinite-lived intangible assets during the thirty-nine weeks ended October 28, 2023, indicating stable asset valuation[132]. Future Outlook - The company plans to continue expanding its e-commerce capabilities and enhancing its product offerings to drive future growth[110]. - The company expects to complete the sale of its nine-acre corporate headquarters campus within the next year, which has been classified as property and equipment held for sale[140]. - The company expects to spend approximately $0.6 million in 2023 and $12.2 million in total thereafter related to on-site remediation activities[201]. Other Financial Metrics - The service cost for the pension plan was $3,767,000 for the thirteen weeks ended October 28, 2023, compared to $5,358,000 for the same period in 2022[191]. - The company reported a net periodic benefit income of $(847,000) for the thirteen weeks ended October 28, 2023, compared to $(4,227,000) for the same period in 2022[191]. - The company experienced a foreign currency translation loss of $(1,313,000) for the period ending October 28, 2023[186]. - Long-lived asset impairment charges totaled $175,000 for the thirteen weeks ended October 28, 2023, and $589,000 for the thirty-nine weeks ended[197].

Financial Data and Key Metrics Changes - The company reported consolidated sales of $762 million, a decline of 4.6% year-over-year, slightly below expectations [31][63] - Adjusted earnings per share were $1.37, exceeding the high end of the guidance range and representing a nearly 20% increase over the same quarter last year [51] - Consolidated gross margin increased by 210 basis points to 44.7%, driven by record gross margin in the brand portfolio [52][63] - Operating earnings were $67 million, with an operating margin of 8.8% [43] Business Line Data and Key Metrics Changes - The brand portfolio achieved record third-quarter adjusted operating earnings of $39 million and a record operating margin of 12.2% [55] - Famous Footwear sales were $450 million, down 6.7%, with comparable sales down 6.9% due to softness in seasonal categories, particularly boots [63][40] - Brand portfolio sales were $321 million, down 0.8%, reflecting sequential improvement [63] Market Data and Key Metrics Changes - The company saw strong performance in its kids' business, which increased by 4% year-over-year, capturing 27% of the kids' market share in shoe chains [61][83] - The direct-to-consumer business, particularly e-commerce, was a bright spot, up nearly 5% year-over-year [36] Company Strategy and Development Direction - The company is focused on leveraging competitive advantages and core competencies to drive growth, particularly through its lead brands [30][62] - A commitment to sustainability was highlighted with the introduction of the One Planet Standard, emphasizing eco-friendly styles [33] - The company plans to continue enhancing its marketing ecosystem and expanding its global presence [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing softness in consumer demand and inflationary pressures impacting families, particularly in the Famous Footwear segment [40][41] - The company expects a return to growth in 2024, driven by strong brand performance and strategic initiatives [62][84] - Management remains confident in closing 2023 on a strong note, poised to execute long-term strategies [81] Other Important Information - The company reduced borrowings under its asset-based revolving credit facility by $22 million, representing a $143 million year-over-year decline [54] - Inventory management was highlighted as a key strength, with inventory down more than 14% year-over-year [32][4] Q&A Session Summary Question: How does the company plan to merchandise and promote Famous Footwear moving into 2024? - Management emphasized a careful balance of sales and profit management, avoiding a return to pre-pandemic promotional levels [47] Question: Can you provide insights on trends at Famous and the Brand Portfolio since the last Analyst Day? - Management noted that comp sales at Famous declined each month in Q3, but improvements were seen in early November [92] Question: What gives confidence in the growth of the Brand Portfolio in 2024? - Management highlighted sequential improvement in sales trends and the ability to capture market share as key drivers for growth [73][94] Question: How is Nike performing within Famous Footwear? - Management indicated that Nike's performance was similar to the overall performance of Famous, with strength in retro and court-inspired shoes [22]

F a m o u s F o o t w e a r | S a m E d e l m a n | A l l e n E d m o n d s | N a t u r a l i z e r | V i o n i c | D r S c h o l l s | F r a n c o S a r t o | L i f e S t r i d e | V e r o n i c a B e a r d | V i n c e | B l o w f i s h | R y k ä 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 ...

Financial Performance - Net sales for the thirteen weeks ended July 29, 2023, were $695.5 million, a decrease of 5.8% compared to $738.3 million for the same period in 2022[8] - Gross profit for the thirteen weeks ended July 29, 2023, was $314.2 million, down from $336.8 million in the prior year, reflecting a gross margin of 45.1%[8] - Operating earnings decreased to $49.7 million for the thirteen weeks ended July 29, 2023, compared to $68.4 million in the same period last year, representing a decline of 27.4%[8] - Net earnings attributable to Caleres, Inc. for the thirteen weeks ended July 29, 2023, were $33.9 million, down from $51.2 million in the prior year, a decrease of 33.8%[8] - Basic earnings per share attributable to Caleres, Inc. shareholders were $0.95 for the thirteen weeks ended July 29, 2023, compared to $1.40 for the same period in 2022, a decline of 32.1%[8] - Comprehensive income for the thirteen weeks ended July 29, 2023, was $34.7 million, down from $52.2 million in the prior year[10] Cash Flow and Liquidity - Net cash provided by operating activities for the twenty-six weeks ended July 29, 2023, was $125.2 million, significantly higher than $27.3 million in the same period last year[14] - Cash and cash equivalents at the end of the period were $47.1 million, compared to $46.0 million at the end of the same period in 2022[14] Expenses and Charges - The company incurred restructuring and other special charges of $1.6 million during the thirteen weeks ended July 29, 2023[8] - Selling and administrative expenses for the thirteen weeks ended July 29, 2023, were $262.8 million, slightly down from $268.4 million in the prior year[8] - The Company incurred costs of approximately $1.7 million related to expense reduction initiatives during the second quarter of 2023, with additional costs expected to be around $2.3 million in the second half of 2023[64] Sales and Market Trends - The company noted that its business is seasonal, with higher sales typically occurring during back-to-school and holiday seasons, although recent years have shown more balanced quarterly distributions[19] - Comparable sales declined by 6.3% in the six months ended July 29, 2023, primarily due to reduced customer traffic in retail stores[89] - Total direct-to-consumer sales for the twenty-six weeks ended July 29, 2023, were $963,088 thousand, an increase from $1,014,009 thousand for the same period in 2022, indicating a decrease of 5.0%[34] Shareholder Returns - The company declared dividends of $0.07 per share, totaling $2,515 thousand for the quarter[16] - The company repurchased 763,000 shares under its share repurchase program during the thirteen weeks ended July 29, 2023[1] Assets and Liabilities - The total equity as of July 29, 2023, was $471,581 thousand, an increase from $384,877 thousand as of July 30, 2022, representing a growth of approximately 22.6%[16] - The company had $32.9 million in accounts payable subject to supply chain financing arrangements as of July 29, 2023, down from $39.9 million as of July 30, 2022[27] - The unfilled order position at the end of the period was $246.8 million, down from $360.4 million in the previous year[1] Accounting and Compliance - The company adopted new accounting standards related to supplier finance programs in fiscal year 2023, enhancing transparency in financial reporting[29] - The company was in compliance with all covenants and restrictions under the Credit Agreement as of July 29, 2023[155] Other Financial Metrics - Interest expense, net increased by $2.6 million, or 98.5%, to $5.1 million for Q2 2023, reflecting higher interest rates[78] - The effective tax rate for the six months ended July 29, 2023, was 24.5%, compared to 25.5% for the same period in 2022[86] - The company assessed long-lived assets with a carrying amount of $552.4 million for impairment indicators as of July 29, 2023[190]

Caleres Capabilities 11 GAAP to Non-GAAP Reconciliation 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) GAAP to Non-GAAP Reconciliation CALERES, INC. SUMMARY FINANCIAL RESULTS BY SEGMENT RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) (Unaudited) ($ thousands) July 29, 2023 July 30, 2022 Debt/EBITDA leverage ratio: Borrowings under revolving credit agreement $ 244,000 $ 348,500 EBI ...

Financial Data and Key Metrics Changes - Consolidated sales decreased by 5.8% year-over-year, totaling $696 million, with Famous Footwear sales down 5.1% and comparable sales down 4.3% [95][108] - Consolidated gross margin decreased by 45 basis points to 45.2%, with Brand Portfolio gross margin increasing by 295 basis points to a record 41.3% [19][120] - Diluted earnings per share were $0.98, exceeding the high end of guidance, with EBITDA at $65 million or 9.4% of sales [20][82] - SG&A expenses were $263 million, representing 37.8% of sales, which was $5.6 million lower than the previous year [46] Business Line Data and Key Metrics Changes - Brand Portfolio sales were $301 million, down 7.2% due to seasonal weakness in sandals and cautious buying behavior in the wholesale channel [143] - Famous Footwear generated nearly $41 million in adjusted operating earnings on net sales down 5%, maintaining a gross margin rate of 46% [91][120] - Direct channels saw brick-and-mortar sales up 5% and e-commerce sales up 13%, driven by increased traffic and conversion [11] Market Data and Key Metrics Changes - The kids' footwear segment increased by 5% year-over-year, significantly outperforming the overall business [115] - The company noted a shift in consumer preferences towards casual flats and sneakers, impacting seasonal categories like sandals [84][143] Company Strategy and Development Direction - The company is focused on profitability over promotions, prioritizing inventory management and strategic investments in lead brands [4][108] - The goal is to enhance the consumer experience through new prototype stores and to leverage competitive advantages in the market [17][120] - The company aims to achieve a higher percentage of revenue from lead brands in 2023, with various growth opportunities identified [111] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving annual sales and earnings guidance, citing strong brand performance and clear strategies [44] - The company anticipates easier year-over-year comparisons in the second half of 2023, which should support improved sales trends [40] - Management highlighted the importance of maintaining a healthy inventory-to-sales relationship to adapt to market dynamics [74] Other Important Information - The company reduced borrowings by $48 million during the quarter, achieving a leverage ratio target of 1 times debt to EBITDA [21][107] - Capital expenditures are expected to be between $50 million and $60 million, reflecting adjustments in project timing [49] Q&A Session Summary Question: Can you comment on the performance of the Brand Portfolio? - Management noted that lead brands are taking market share, with a focus on newness driving consumer interest [31][51] Question: How is the company managing inventory levels? - The company is managing inventory to a new normal, focusing on driving newness while maintaining controlled levels [165] Question: What are the expectations for the back-to-school season? - Management indicated that while they do not anticipate matching last year's record performance, they believe Famous is well-positioned to maintain leadership in shoe chains [117][138]