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

Rhea-AI Summary

Caleres reports Q2 2023 financial results, beats earnings expectations

Positive

• Delivers second quarter adjusted earnings per share ahead of expectations
• 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

Negative

• Net sales were down 5.8 percent from Q2 2022
• Famous Footwear segment net sales declined 5.1 percent with comparable sales down 4.3 percent

• 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--(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/

Investor Contact:

Logan Bonacorsi

lbonacorsi@caleres.com

Source: Caleres