Caleres Reports Third Quarter 2021 Results, Raises Full Year Outlook

Rhea-AI Summary

Caleres reported record quarterly earnings for Q3 2021, achieving net sales of $784.2 million, a 21.1% increase from the previous year. The Famous Footwear segment surged 26.3%, while gross profit rose to $335.4 million with a gross margin of 42.8%. Net income reached $59.6 million, or $1.54 per share, compared to $14.4 million a year prior. The company raised its fiscal guidance for adjusted EPS to $3.80-$3.90. Caleres also made strides in improving its balance sheet, reducing debt, and enhancing cash flow with $74.8 million on hand.

Positive

• Record quarterly earnings with net income of $59.6 million.
• Net sales increased by 21.1% year-over-year.
• Famous Footwear segment increased sales by 26.3%.
• Improved gross margins, reaching 42.8%.
• Raised fiscal full-year 2021 adjusted EPS guidance to $3.80-$3.90.
• Reduced long-term debt and improved cash position to $74.8 million.

Negative

• Inventory levels rose 7.1% year-over-year, indicating potential supply chain issues.
• In-transit inventory was 3.1x higher than the previous year.

• Achieved all-time record quarterly earnings
• Generated record quarterly sales at Famous Footwear
• Sequential sales improvement in the Brand Portfolio
• Raises fiscal full-year 2021 adjusted earnings per share guidance to between $3.80 and $3.90

ST. LOUIS--(BUSINESS WIRE)-- Caleres (NYSE: CAL)(caleres.com), operator of a powerful portfolio of consumer-centric footwear brands, today reported financial results for the third quarter ended October 30, 2021. During the quarter, Caleres continued to capitalize on strong consumer demand trends, achieving sequential revenue growth, recording strong gross margins, and delivering the highest level of quarterly earnings in company history. In addition, the company made further progress toward its balance sheet initiatives, enhancing its cash position, reducing its debt levels and securing more advantageous terms on its asset-based credit facility.

“Caleres achieved another record performance in the quarter just ended, driven principally by continued, exceptional upward momentum in our Famous Footwear business,” said Diane Sullivan, Chairman and Chief Executive Officer. “As robust consumer demand dynamics continue to accelerate, we fully expect the ongoing recovery in the Brand Portfolio to be an increasingly strong complement to the ongoing success at Famous Footwear in the quarters ahead.”

Third Quarter 2021 Highlights

(13-weeks ended October 30, 2021 compared to 13-weeks ended October 31, 2020)

• Net sales were $784.2 million, up 21.1 percent from the third quarter of fiscal 2020
  • A 26.3 percent sales increase in the Famous Footwear segment;
  • A 12.3 percent sales increase in the Brand Portfolio segment;
  • Direct-to-consumer sales represented 73.5 percent of total net sales

• Gross profit was $335.4 million, while gross margin was 42.8 percent, or a 308-basis point improvement over third quarter 2020;
  • A 47.6 percent gross margin in the Famous Footwear segment;
  • A 32.9 percent gross margin in the Brand Portfolio segment;

• SG&A expense of $254.0 million, or 32.4 percent of total net sales, down from 36.6 percent of total net sales in the third quarter of fiscal 2020;
• Net income of $59.6 million, or earnings of $1.54 per diluted share, compared to net income of $14.4 million, or earnings of $0.38 per diluted share, in the third quarter of fiscal 2020. Earnings of $1.54 per share includes $0.05 for the below items:
  • Fair value adjustment of $0.04 associated with the mandatory purchase obligation for Blowfish Malibu; and
  • Loss on early extinguishment of debt of $0.01 related to the redemption of $100 million of senior notes and the amendment to the credit facility;

• Adjusted net income was approximately $61.5 million, or adjusted earnings of $1.59 per diluted share compared to adjusted net income of $18.2 million, or adjusted earnings of $0.48 per diluted share, in the third quarter of fiscal 2020;
• Generated $54.2 million in cash from operations and ended the third quarter with $74.8 million of cash on hand;
• Inventory levels were up 7.1 percent, year-over-year, with in-transit inventory 3.1x higher than the third quarter of 2020, reflecting the ongoing disruptions in the global supply chain;
• Ended the third quarter with $274.6 million of short-term debt; and
• Returned $2.7 million to shareholders during the quarter through its long-standing and uninterrupted quarterly dividend.

Capital Structure

As previously indicated, during the third quarter, Caleres renegotiated and renewed the terms of its asset-based credit facility. The terms of the new facility, which was restored to pre-COVID terms, includes a 5-year extension on the maturity date and features a reduction in the interest rate. This new agreement more accurately reflects the company’s significantly improved capital structure, accelerated recovery in the footwear market and more positive business outlook. Caleres notified its bondholders that it plans to redeem the remaining $100 million of its senior notes in January of 2022 – shifting that higher-cost debt to the revolving credit facility and extinguishing all of the company’s remaining long-term debt. These actions, coupled with the company’s proactive debt reduction activities in recent quarters, will result in approximately a $12 million decline in annual interest expense – bolstering its financial foundation further and driving long-term value for its shareholders.

Outlook

“As we progress through the remainder of the year and head into 2022, we expect supply chain challenges to persist,” said Sullivan. “However, our global Associates have taken quick action – leaning into our capabilities; optimizing our inventory position; and diversifying and leveraging our sourcing model to help offset the impacts caused by the ongoing disruptions. We believe we are well-positioned to navigate this dynamic market environment and we are confident in our ability to utilize our diversified brand model, achieve our short and long-term strategic objectives, and continue to create value for our shareholders.”

With the momentum continuing in its underlying business, the company now expects record adjusted earnings per share between $3.80 and $3.90 for fiscal year 2021.

Investor Conference Call

Caleres will host an investor conference call at 5:00 p.m. ET today, Thursday, November 18. The webcast and associated 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 4368498. 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 4368498 through Thursday, December 2.

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 pandemic 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) rapidly changing consumer preferences and purchasing patterns and fashion trends; (iv) intense competition within the footwear industry; (v) customer concentration and increased consolidation in the retail industry; (vi) foreign currency fluctuations; (vii) impairment charges resulting from a long-term decline in our stock price; (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 maintain relationships with current suppliers; (xiv) the ability to secure/exit leases on favorable terms; (xv) transitional challenges with acquisitions and divestitures; (xvi) changes to tax laws, policies and treaties; (xvii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xviii) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights.

About Caleres

Caleres is a diverse portfolio of global footwear brands. Our products are available virtually everywhere - in the nearly 1,000 retail stores we operate, in hundreds of major department and specialty stores, on our branded e-commerce sites, and on many additional third-party retail websites. Famous Footwear offers great casual and athletic brands for the entire family with convenient, curated, affordable collections. Sam Edelman keeps expressive women in step with the latest trends in a playful, whimsical way. Naturalizer shoes are beautiful from the inside out, with elegant simplicity and legendary fit re-imagined for today’s consumer. Allen Edmonds combines old world craft with new world technology to create luxe footwear for the discerning man who wants sophisticated, modern classics. Rounding out our family of brands are Vionic, Vince, Franco Sarto, Dr. Scholl’s Shoes, LifeStride, Blowfish Malibu, Bzees, Circus by Sam Edelman and Ryka. Combined, these brands make Caleres a company with both a legacy and a mission. Our legacy is our more than 140 years of craftsmanship and our passion for fit, while our mission is to continue to inspire people to feel great… feet first. Visit caleres.com to learn more about us.

SCHEDULE 1

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

		(Unaudited)
		Thirteen Weeks Ended								Thirty-Nine Weeks Ended
($ thousands, except per share data)		October 30, 2021				October 31, 2020				October 30, 2021				October 31, 2020
Net sales		$	784,156			$	647,480			$	2,098,323			$	1,546,111
Cost of goods sold			448,805				390,508				1,165,792				984,621
Gross profit			335,351				256,972				932,531				561,490
Selling and administrative expenses			254,033				236,901				757,070				663,425
Impairment of goodwill and intangible assets			—				—				—				262,719
Restructuring and other special charges, net			—				—				13,482				65,625
Operating earnings (loss)			81,318				20,071				161,979				(430,279	)
Interest expense, net			(5,069	)			(10,881	)			(28,803	)			(33,747	)
Loss on early extinguishment of debt			(649	)			—				(649	)			—
Other income, net			3,844				5,461				11,533				12,718
Earnings (loss) before income taxes			79,444				14,651				144,060				(451,308	)
Income tax (provision) benefit			(19,759	)			275				(39,838	)			89,393
Net earnings (loss)			59,685				14,926				104,222				(361,915	)
Net earnings attributable to noncontrolling interests			63				509				1,057				223
Net earnings (loss) attributable to Caleres, Inc.		$	59,622			$	14,417			$	103,165			$	(362,138	)
Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders		$	1.56			$	0.38			$	2.70			$	(9.67	)
Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders		$	1.54			$	0.38			$	2.68			$	(9.67	)

SCHEDULE 2

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

		(Unaudited)
($ thousands)		October 30, 2021			October 31, 2020			January 30, 2021
ASSETS
Cash and cash equivalents		$	74,772		$	124,330		$	88,295
Receivables, net			161,892			141,059			126,994
Inventories, net			543,218			507,365			487,955
Prepaid expenses and other current assets			82,816			99,401			79,312
Total current assets			862,698			872,155			782,556
Lease right-of-use assets			500,308			601,574			554,303
Property and equipment, net			155,516			189,207			172,437
Goodwill and intangible assets, net			230,625			267,074			240,071
Other assets			125,411			97,050			117,683
Total assets		$	1,874,558		$	2,027,060		$	1,867,050
LIABILITIES AND EQUITY
Borrowings under revolving credit agreement		$	175,000		$	300,000		$	250,000
Mandatory purchase obligation - Blowfish Malibu			54,558			30,146			39,134
Current portion of long-term debt			99,598			—			—
Trade accounts payable			352,084			285,582			280,501
Lease obligations			128,151			156,200			153,060
Other accrued expenses			260,669			187,980			182,814
Total current liabilities			1,070,060			959,908			905,509
Noncurrent lease obligations			452,786			556,343			518,942
Long-term debt			—			198,736			198,851
Other liabilities			45,967			50,418			39,894
Total other liabilities			498,753			805,497			757,687
Total Caleres, Inc. shareholders’ equity			301,098			256,671			200,247
Noncontrolling interests			4,647			4,984			3,607
Total equity			305,745			261,655			203,854
Total liabilities and equity		$	1,874,558		$	2,027,060		$	1,867,050

SCHEDULE 3

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

		(Unaudited)
		Thirty-Nine Weeks Ended
($ thousands)		October 30, 2021				October 31, 2020
OPERATING ACTIVITIES:
Net cash provided by operating activities		$	189,728			$	101,766
INVESTING ACTIVITIES:
Purchases of property and equipment			(10,437	)			(12,016	)
Capitalized software			(4,122	)			(3,525	)
Net cash used for investing activities			(14,559	)			(15,541	)
FINANCING ACTIVITIES:
Borrowings under revolving credit agreement			363,000				340,500
Repayments under revolving credit agreement			(438,000	)			(315,500	)
Redemption of senior notes			(100,000	)			—
Dividends paid			(8,011	)			(8,148	)
Debt issuance costs			(1,190	)			—
Acquisition of treasury stock			—				(23,348	)
Issuance of common stock under share-based plans, net			(3,779	)			(1,078	)
Contributions by noncontrolling interests, net			—				1,500
Other			(676	)			(980	)
Net cash used for financing activities			(188,656	)			(7,054	)
Effect of exchange rate changes on cash and cash equivalents			(36	)			(59	)
(Decrease) increase in cash and cash equivalents			(13,523	)			79,112
Cash and cash equivalents at beginning of period			88,295				45,218
Cash and cash equivalents at end of period		$	74,772			$	124,330

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
		October 30, 2021									October 31, 2020
		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					$	59,622		$	1.54					$	14,417		$	0.38
Charges/other items:
Fair value adjustment to Blowfish purchase obligation		$	1,918			1,424			0.04		$	5,124			3,805			0.10
Loss on early extinguishment of debt			649			482			0.01			—			—			—
Total charges/other items		$	2,567		$	1,906		$	0.05		$	5,124		$	3,805		$	0.10
Adjusted earnings					$	61,528		$	1.59					$	18,222		$	0.48

		(Unaudited)
		Thirty-Nine Weeks Ended
		October 30, 2021									October 31, 2020
					Net									Net (Loss)
		Pre-Tax			Earnings						Pre-Tax			Earnings
		Impact of			Attributable			Diluted			Impact of			Attributable				Diluted (Loss)
		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 (loss)					$	103,165		$	2.68					$	(362,138	)		$	(9.67	)
Charges/other items:
Fair value adjustment to Blowfish purchase obligation		$	15,423			11,454			0.30		$	14,946			11,098				0.30
Brand Portfolio - business exits			13,482			11,927			0.31			1,598			1,187				0.03
Deferred tax valuation allowances			—			3,294			0.08			—			—				—
Loss on early extinguishment of debt			649			482			0.01			—			—				—
Goodwill and intangible asset impairment charges			—			—			—			262,719			218,506				5.84
COVID-19-related expenses (1)			—			—			—			99,040			78,047				2.08
Total charges/other items		$	29,554		$	27,157		$	0.70		$	378,303		$	308,838			$	8.25
Adjusted earnings (loss)					$	130,322		$	3.38					$	(53,300	)		$	(1.42	)

________________________________________
(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, 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
		October 30,			October 31,			October 30,			October 31,			October 30,			October 31,			October 30,			October 31,
($ thousands)		2021			2020			2021			2020			2021			2020			2021			2020
Net sales		$	494,660		$	391,706		$	300,513		$	267,587		$	(11,017)		$	(11,813)		$	784,156		$	647,480
Gross profit			235,487			160,019			98,898			94,312			966			2,641			335,351			256,972
Adjusted gross profit			235,487			160,019			98,898			94,312			966			2,641			335,351			256,972
Gross profit rate			47.6	%		40.9	%		32.9	%		35.2	%		(8.8)	%		(22.4)	%		42.8	%		39.7	%
Adjusted gross profit rate			47.6	%		40.9	%		32.9	%		35.2	%		(8.8)	%		(22.4)	%		42.8	%		39.7	%
Operating earnings (loss)			87,375			27,845			11,383			7,304			(17,440)			(15,078)			81,318			20,071
Adjusted operating earnings (loss)			87,375			27,845			11,383			7,304			(17,440)			(15,078)			81,318			20,071
Operating earnings (loss) %			17.7	%		7.1	%		3.8	%		2.7	%		n/m			127.6			10.4	%		3.1	%
Adjusted operating earnings (loss) %			17.7	%		7.1	%		3.8	%		2.7	%		n/m			127.6			10.4	%		3.1	%
Same-store sales % (on a 13-week basis)			26.5	%		(9.1)	%		45.8	%		(41.0)	%		—	%		—	%		—	%		—	%
Number of stores			905			925			90			197			—			—			995			1,122
n/m – Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
	(Unaudited)
	Thirteen Weeks Ended
	Famous Footwear						Brand Portfolio						Eliminations and Other								Consolidated
	October 30,			October 31,			October 30,			October 31,			October 30,				October 31,				October 30,			October 31,
($ thousands)	2021			2020			2021			2020			2021				2020				2021			2020
Gross profit	$	235,487		$	160,019		$	98,898		$	94,312		$	966			$	2,641			$	335,351		$	256,972
Charges/Other Items:
COVID-19-related expenses		—			—			—			—			—				—				—			—
Total charges/other items		—			—			—			—			—				—				—			—
Adjusted gross profit	$	235,487		$	160,019		$	98,898		$	94,312		$	966			$	2,641			$	335,351		$	256,972
Operating earnings (loss)	$	87,375		$	27,845		$	11,383		$	7,304		$	(17,440	)		$	(15,078	)		$	81,318		$	20,071
Charges/Other Items:
COVID-19-related expenses		—			—			—			—			—				—				—			—
Total charges/other items		—			—			—			—			—				—				—			—
Adjusted operating earnings (loss)	$	87,375		$	27,845		$	11,383		$	7,304		$	(17,440	)		$	(15,078	)		$	81,318		$	20,071

SCHEDULE 5

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

SUMMARY FINANCIAL RESULTS

		(Unaudited)
		Thirty-Nine Weeks Ended
		Famous Footwear						Brand Portfolio						Eliminations and Other						Consolidated
		October 30,			October 31,			October 30,			October 31,			October 30,			October 31,			October 30,			October 31,
($ thousands)		2021			2020			2021			2020			2021			2020			2021			2020
Net sales		$	1,346,413		$	916,893		$	789,832		$	668,447		$	(37,922)		$	(39,229)		$	2,098,323		$	1,546,111
Gross profit			642,715			348,267			287,791			211,707			2,025			1,516			932,531			561,490
Adjusted gross profit			642,715			354,225			287,791			240,763			2,025			1,516			932,531			596,504
Gross profit rate			47.7	%		38.0	%		36.4	%		31.7	%		(5.3)	%		(3.9)	%		44.4	%		36.3	%
Adjusted gross profit rate			47.7	%		38.6	%		36.4	%		36.0	%		(5.3)	%		(3.9)	%		44.4	%		38.6	%
Operating earnings (loss)			220,746			(38,651)			25,116			(352,556)			(83,883)			(39,072)			161,979			(430,279)
Adjusted operating earnings (loss)			220,746			(16,100)			38,598			(12,386)			(83,883)			(38,436)			175,461			(66,922)
Operating earnings (loss) %			16.4	%		(4.2)	%		3.2	%		(52.7)	%		n/m			99.6	%		7.7	%		(27.8)	%
Adjusted operating earnings (loss) %			16.4	%		(1.8)	%		4.9	%		(1.9)	%		n/m			98.0	%		8.4	%		(4.3)	%
Same-store sales % (on a 39-week basis)			11.5	%		3.0	%		24.3	%		(32.3)	%		—	%		—	%		—	%		—	%
Number of stores			905			925			90			197			—			—			995			1,122
n/m – Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
	(Unaudited)
	Thirty-Nine Weeks Ended
	Famous Footwear							Brand Portfolio							Eliminations and Other								Consolidated
	October 30,			October 31,				October 30,			October 31,				October 30,				October 31,				October 30,			October 31,
($ thousands)	2021			2020				2021			2020				2021				2020				2021			2020
Gross profit	$	642,715		$	348,267			$	287,791		$	211,707			$	2,025			$	1,516			$	932,531		$	561,490
Charges/Other Items:
COVID-19-related expenses		—			5,958				—			27,458				—				—				—			33,416
Brand Portfolio - business exits		—			—				—			1,598				—				—				—			1,598
Total charges/other items		—			5,958				—			29,056				—				—				—			35,014
Adjusted gross profit	$	642,715		$	354,225			$	287,791		$	240,763			$	2,025			$	1,516			$	932,531		$	596,504
Operating earnings (loss)	$	220,746		$	(38,651	)		$	25,116		$	(352,556	)		$	(83,883	)		$	(39,072	)		$	161,979		$	(430,279	)
Charges/Other Items:
Goodwill and intangible asset impairment charges		—			—				—			262,719				—				—				—			262,719
COVID-19-related expenses		—			22,551				—			75,853				—				636				—			99,040
Brand Portfolio - business exits		—			—				13,482			1,598				—				—				13,482			1,598
Total charges/other items		—			22,551				13,482			340,170				—				636				13,482			363,357
Adjusted operating earnings (loss)	$	220,746		$	(16,100	)		$	38,598		$	(12,386	)		$	(83,883	)		$	(38,436	)		$	175,461		$	(66,922	)

SCHEDULE 6

CALERES, INC.

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION

		(Unaudited)
		Thirteen Weeks Ended								Thirty-Nine Weeks Ended
		October 30,				October 31,				October 30,				October 31,
		2021				2020				2021				2020
($ thousands, except per share data)
Net earnings (loss) attributable to Caleres, Inc.:
Net earnings (loss)		$	59,685			$	14,926			$	104,222			$	(361,915	)
Net earnings attributable to noncontrolling interests			(63	)			(509	)			(1,057	)			(223	)
Net earnings (loss) attributable to Caleres, Inc.			59,622				14,417				103,165				(362,138	)
Net earnings allocated to participating securities			(2,140	)			(512	)			(3,737	)			—
Net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities		$	57,482			$	13,905			$	99,428			$	(362,138	)
Basic and diluted common shares attributable to Caleres, Inc.:
Basic common shares			36,889				36,554				36,825				37,439
Dilutive effect of share-based awards			457				176				294				—
Diluted common shares attributable to Caleres, Inc.			37,346				36,730				37,119				37,439
Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders		$	1.56			$	0.38			$	2.70			$	(9.67	)
Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders		$	1.54			$	0.38			$	2.68			$	(9.67	)

SCHEDULE 7

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION

		(Unaudited)
		Thirteen Weeks Ended								Thirty-Nine Weeks Ended
		October 30,				October 31,				October 30,				October 31,
		2021				2020				2021				2020
($ thousands, except per share data)
Adjusted net earnings (loss) attributable to Caleres, Inc.:
Adjusted net earnings (loss)		$	61,591			$	18,731			$	131,379			$	(53,077	)
Net earnings attributable to noncontrolling interests			(63	)			(509	)			(1,057	)			(223	)
Adjusted net earnings (loss) attributable to Caleres, Inc.			61,528				18,222				130,322				(53,300	)
Net earnings allocated to participating securities			(2,208	)			(647	)			(4,729	)			—
Adjusted net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities		$	59,320			$	17,575			$	125,593			$	(53,300	)
Basic and diluted common shares attributable to Caleres, Inc.:
Basic common shares			36,889				36,554				36,825				37,439
Dilutive effect of share-based awards			457				176				294				—
Diluted common shares attributable to Caleres, Inc.			37,346				36,730				37,119				37,439
Basic adjusted earnings (loss) per common share attributable to Caleres, Inc. shareholders		$	1.61			$	0.48			$	3.41			$	(1.42	)
Diluted adjusted earnings (loss) per common share attributable to Caleres, Inc. shareholders		$	1.59			$	0.48			$	3.38			$	(1.42	)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211118006072/en/

Investor Contact:

Logan Bonacorsi

lbonacorsi@caleres.com

Source: Caleres

FAQ

What were Caleres' net sales for Q3 2021?

Caleres reported net sales of $784.2 million for Q3 2021.

How much did Caleres increase its earnings guidance for fiscal 2021?

Caleres raised its fiscal 2021 adjusted earnings per share guidance to between $3.80 and $3.90.

What was the gross margin reported by Caleres in Q3 2021?

Caleres reported a gross margin of 42.8% in Q3 2021.

What were the sales increases in Caleres' Famous Footwear segment?

Famous Footwear segment sales increased by 26.3% in Q3 2021.

What is the current cash position of Caleres?

Caleres ended Q3 2021 with a cash position of $74.8 million.