Caleres, Inc. (NYSE:CAL) Q2 2020 Earnings Conference Call September 1, 2020 4:30 PM ET Company Participants Logan Bonacorsi - VP, IR Ken Hannah - SVP and CFO Diane Sullivan - CEO, President and Chairman Conference Call Participants Laura Champine - Loop Capital Rick Patel - Needham and Company Steve Marotta - CL King & Associates William Reuter - Bank of America Operator Good afternoon and welcome to the Caleres Second 2020 Earnings Conference Call. My name is Erika and I will be your conference coordinator ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended May 2, 2020 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____________ to _____________ Commission file number: 1-2191 CALERES, INC. (Exact name of registrant as specified in its charter) New York (State ...

CALERES CALERES ** First Quarter 2020 Earnings June 4, 2020 Safe harbor statement Under the private securities litigation reform act of 1995 • This presentation 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 recent coronavirus outbreak and its adverse impact on our business ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 1, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-----------------------------------------------------------------------------------------|----------------------------------------------------|------------- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended November 2, 2019 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____________ to _____________ Commission file number: 1-2191 CALERES, INC. (Exact name of registrant as specified in its charter) New York ( ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended August 3, 2019 [ ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____________ to _____________ Commission file number: 1-2191 CALERES, INC. (Exact name of registrant as specified in its charter) New York ...

PART I FINANCIAL INFORMATION [Item 1 Financial Statements](index=4&type=section&id=Item%201%20Financial%20Statements) Q1 2019 unaudited financials show increased assets and liabilities due to ASC 842 and acquisitions, with lower net earnings Condensed Consolidated Statements of Earnings (Unaudited) | ($ thousands, except per share amounts) | Thirteen Weeks Ended May 4, 2019 | Thirteen Weeks Ended May 5, 2018 | | :--- | :--- | :--- | | **Net sales** | $677,754 | $632,142 | | **Gross profit** | $279,836 | $274,921 | | **Operating earnings** | $16,869 | $22,946 | | **Net earnings attributable to Caleres, Inc.** | $9,083 | $17,212 | | **Diluted earnings per common share** | $0.22 | $0.40 | Condensed Consolidated Balance Sheets Highlights (Unaudited) | ($ thousands) | May 4, 2019 | May 5, 2018 | February 2, 2019 | | :--- | :--- | :--- | :--- | | **Total current assets** | $887,312 | $864,327 | $976,447 | | **Lease right-of-use assets** | $735,282 | — | — | | **Goodwill** | $244,407 | $127,081 | $242,531 | | **Intangible assets, net** | $304,101 | $212,819 | $307,366 | | **Total assets** | $2,493,070 | $1,502,066 | $1,838,568 | | **Borrowings under revolving credit agreement** | $318,000 | — | $335,000 | | **Total current liabilities** | $911,300 | $437,663 | $853,336 | | **Noncurrent lease obligations** | $662,750 | — | — | | **Total liabilities and equity** | $2,493,070 | $1,502,066 | $1,838,568 | - The company adopted the new lease accounting standard ASC 842 in Q1 2019, resulting in the recognition of operating lease right-of-use assets of **$729.2 million** and lease liabilities of **$791.7 million** as of February 3, 2019 A cumulative-effect adjustment to retained earnings of **$13.4 million** was also recorded[22](index=22&type=chunk) - The acquisition of Vionic in October 2018 for **$360.7 million** and a controlling interest in Blowfish Malibu in July 2018 significantly impacted the financials For Q1 2019, Vionic contributed **$53.1 million** and Blowfish contributed **$16.2 million** in consolidated net sales[30](index=30&type=chunk)[31](index=31&type=chunk)[35](index=35&type=chunk) [Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2019 sales increased from acquisitions, but operating earnings declined due to Famous Footwear issues and acquisition costs Q1 2019 vs Q1 2018 Consolidated Results Summary | ($ millions) | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | **Net sales** | $677.8 | $632.1 | | **Gross profit** | $279.8 | $274.9 | | **Gross Margin** | 41.3% | 43.5% | | **Operating earnings** | $16.9 | $22.9 | | **Operating Margin** | 2.5% | 3.6% | | **Net earnings** | $9.1 | $17.2 | - The acquisitions of Vionic and Blowfish Malibu were the primary drivers of sales growth, contributing **$53.1 million** and **$16.2 million** in consolidated net sales, respectively, in Q1 2019[147](index=147&type=chunk) - The Famous Footwear segment experienced a **3.1%** decline in sales, driven by a **1.0%** drop in same-store sales and a smaller store base, reflecting a difficult retail environment[158](index=158&type=chunk)[174](index=174&type=chunk) - The Brand Portfolio segment's net sales grew **20.3%**, primarily due to the Vionic and Blowfish acquisitions This was partially offset by lower sales from the Allen Edmonds and Dr Scholl's brands[181](index=181&type=chunk) - Total debt increased to **$516.0 million** from **$197.6 million** year-over-year, mainly due to borrowings under the revolving credit facility to fund the Vionic acquisition[189](index=189&type=chunk) - Working capital shifted to a deficit of **$24.0 million**, a decrease of **$450.7 million** from the prior year, primarily due to the adoption of ASC 842 which added **$136.0 million** of current operating lease obligations to liabilities[199](index=199&type=chunk)[201](index=201&type=chunk) [Item 3 Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk disclosures have occurred since the last Annual Report on Form 10-K - **No material changes** have occurred in market risk disclosures since the last Annual Report on Form 10-K[210](index=210&type=chunk) [Item 4 Controls and Procedures](index=46&type=section&id=Item%204%20Controls%20and%20Procedures) Disclosure controls were effective as of May 4, 2019, with ongoing review of newly acquired business controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of May 4, 2019[212](index=212&type=chunk) - The company is in the process of reviewing the internal controls of the recently acquired Blowfish Malibu and Vionic businesses[214](index=214&type=chunk) PART II OTHER INFORMATION [Item 1 Legal Proceedings](index=47&type=section&id=Item%201%20Legal%20Proceedings) Ordinary course legal proceedings are not expected to materially impact the company's financial position or operations - Management believes that pending legal proceedings from the ordinary course of business will **not have a material adverse effect** on the company's financials[215](index=215&type=chunk) [Item 1A Risk Factors](index=47&type=section&id=Item%201A%20Risk%20Factors) A new risk factor highlights potential adverse impacts on gross margins from proposed tariffs on China-sourced footwear - A new risk factor was disclosed regarding proposed tariffs of up to **25%** on U.S imports from China, including footwear[218](index=218&type=chunk) - Approximately **60%** of the company's footwear is sourced from China, making it significantly exposed to this tariff risk, which could increase costs and harm gross margins[218](index=218&type=chunk) [Item 2 Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased under the program in Q1 2019, but shares were acquired for tax obligations - **No shares were repurchased** under the publicly announced program during Q1 2019[219](index=219&type=chunk)[221](index=221&type=chunk) - The company acquired **93,871 shares** from employees to satisfy tax withholding obligations for share-based awards[219](index=219&type=chunk) - As of May 4, 2019, **2,257,851 shares** were still authorized for repurchase Subsequent to the quarter-end, the company repurchased **780,060 shares** for **$15.1 million**[221](index=221&type=chunk) [Item 3 Defaults Upon Senior Securities](index=48&type=section&id=Item%203%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - **None**[222](index=222&type=chunk) [Item 4 Mine Safety Disclosures](index=48&type=section&id=Item%204%20Mine%20Safety%20Disclosures) This item is not applicable - **Not applicable**[222](index=222&type=chunk) [Item 5 Other Information](index=48&type=section&id=Item%205%20Other%20Information) No other information was reported for this item - **None**[222](index=222&type=chunk) [Item 6 Exhibits](index=49&type=section&id=Item%206%20Exhibits) This section lists exhibits filed with the Form 10-Q, including certifications and XBRL data - Lists exhibits filed with the report, including Sarbanes-Oxley certifications and XBRL data[223](index=223&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) CALERES, INC. (Exact name of registrant as specified in its charter) 1 þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 2, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ______________ Commission file number 1-2191 New York 43-0197190 (State or ot ...