Caleres Reports Fourth Quarter and Full Year 2023 Results
-
Generates fourth quarter earnings per share of
$1.57 and adjusted earnings per share of$0.86 , up 32% year over year -
Achieves third consecutive year of adjusted earnings per share in excess of
$4.00 baseline - Delivers fourth quarter sales growth and record adjusted operating earnings in Brand Portfolio segment
-
Reduces revolver borrowings by
$40 million compared to third quarter 2023 and more than$125 million from fiscal 2022 - Expects fiscal 2024 net sales to be flat to up 2 percent compared to fiscal 2023
-
Expects fiscal 2024 earnings per share of
$4.30 to$4.60
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240318757386/en/
Caleres Brand Portfolio Lead Brands --
“The Caleres team delivered another strong operational performance in the fourth quarter, culminating in a third consecutive year of adjusted earnings per share in excess of our
Specifically, during the quarter, the Brand Portfolio capitalized on ongoing strength in its Lead Brands to power a 4.5-percent increase in year-over-year net sales and a 660-basis-point improvement in gross margin. The Brand Portfolio segment also delivered its best-ever annual adjusted operating earnings, which topped
“I am proud of the
Fourth Quarter 2023 Results
(14-weeks ended
-
Net sales were
$697.1 million , up 0.1 percent from the fourth quarter of 2022;- Famous Footwear segment net sales declined 1.5 percent, with comparable sales down 5.9 percent on a 13-week basis
- Brand Portfolio segment net sales increased 4.5 percent
- Direct-to-consumer sales represented approximately 74 percent of total net sales
-
Gross profit was
$305.7 million , while gross margin was 43.9 percent;- Famous Footwear segment gross margin of 42.9 percent
- Brand Portfolio segment gross margin of 42.6 percent
- SG&A as a percentage of net sales was 39.1 percent;
-
Net earnings of
$55.8 million , or earnings per diluted share of$1.57 , compared to net earnings of$40.8 million , or earnings per diluted share of$1.13 in the fourth quarter of fiscal 2022. Earnings per diluted share of$1.57 include:-
Deferred tax valuation allowance releases of
$0.76 per diluted share; and -
Expense reduction initiatives of (
$0.05 ) per diluted share.
-
Deferred tax valuation allowance releases of
-
Adjusted net earnings of
$30.8 million , or adjusted earnings per diluted share of$0.86 , compared to adjusted net earnings of$23.4 million , or adjusted earnings per diluted share of$0.65 in the fourth quarter of fiscal 2022.
Fiscal Year 2023 Results
(53-weeks ended
-
Net sales were
$2.82 billion , down 5.1 percent from fiscal 2022;- Famous Footwear segment net sales declined 5.6 percent, with comparable sales down 6.3 percent on a 52-week basis
- Brand Portfolio segment net sales declined 3.9 percent
- Direct-to-consumer sales represented approximately 72 percent of total net sales
-
Gross profit was
$1.26 billion , while gross margin was 44.8 percent;- Famous Footwear segment gross margin of 44.7 percent
- Brand Portfolio segment gross margin of 43.0 percent
- SG&A as a percentage of net sales was 37.7 percent;
-
Net earnings of
$171.4 million , or earnings per diluted share of$4.80 , compared to net earnings of$181.7 million , or earnings per diluted share of$4.92 in fiscal 2022. Earnings of$4.80 per diluted share include:-
Deferred tax valuation allowance releases of
$0.75 per diluted share; and -
Expense reduction initiatives of (
$0.13 ) per diluted share
-
Deferred tax valuation allowance releases of
-
Adjusted net earnings of
$149.3 million , or adjusted earnings per diluted share of$4.18 , compared to adjusted net earnings of$167.1 million , or adjusted earnings per diluted share of$4.52 in fiscal 2022; -
Earnings before interest, taxes, depreciation, and amortization (EBITDA) of
$253.5 million and adjusted EBITDA of$259.6 million , or 9.2 percent of sales; - Inventory was down 6.8 percent compared to fiscal year-end 2022, due to strategic inventory management – primarily in the Brand Portfolio segment; and
-
Borrowings under the asset-based revolving credit facility were
$182.0 million at the end of the period.
Fiscal 2023 Benefit from 53rd Week |
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|
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Consolidated net sales |
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||
Famous Footwear sales |
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||
Brand Portfolio sales |
|
Capital Allocation Update
In fiscal 2023,
Fiscal 2024 Outlook:
The company is introducing its financial outlook for fiscal 2024 and first quarter of 2024 and notes that its fiscal 2024 is a 52-week year and compares to a 53-week year in fiscal 2023.
In addition, for fiscal 2024, the company expects:
- Consolidated operating margin of 7.3 percent to 7.5 percent;
- Effective tax rate of about 24 percent; and
-
Capital expenditures of
$60 million to$70 million .
For first quarter 2024, the company expects:
- Consolidated net sales to be flat to up 1 percent; and
- Earnings per diluted share in line with fourth quarter 2023 on an adjusted basis.
Investor Conference Call
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
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 and supply chain disruptions (iii) rapidly changing consumer preferences and purchasing patterns and fashion trends; (iv) supplier concentration, customer concentration and increased consolidation in the retail industry; (v) intense competition within the footwear industry; (vi) foreign currency fluctuations; (vii) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from
SCHEDULE 1 | ||||||||||||||||
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(Unaudited) |
||||||||||||||
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|
Fourteen
|
|
Thirteen
|
|
Fifty-three Weeks Ended |
|
Fifty-two
|
||||||||
($ thousands, except per share data) |
|
|
|
|
|
|
|
|
||||||||
Net sales |
|
$ |
697,123 |
|
|
$ |
696,434 |
|
|
$ |
2,817,294 |
|
|
$ |
2,968,138 |
|
Cost of goods sold |
|
|
391,395 |
|
|
|
415,246 |
|
|
|
1,554,337 |
|
|
|
1,683,265 |
|
Gross profit |
|
|
305,728 |
|
|
|
281,188 |
|
|
|
1,262,957 |
|
|
|
1,284,873 |
|
Selling and administrative expenses |
|
|
272,830 |
|
|
|
255,323 |
|
|
|
1,062,399 |
|
|
|
1,067,636 |
|
Restructuring and other special charges, net |
|
|
2,151 |
|
|
|
— |
|
|
|
6,103 |
|
|
|
2,910 |
|
Operating earnings |
|
|
30,747 |
|
|
|
25,865 |
|
|
|
194,455 |
|
|
|
214,327 |
|
Interest expense, net |
|
|
(4,103 |
) |
|
|
(5,378 |
) |
|
|
(19,343 |
) |
|
|
(14,264 |
) |
Other income, net |
|
|
1,550 |
|
|
|
3,335 |
|
|
|
6,210 |
|
|
|
12,971 |
|
Earnings before income taxes |
|
|
28,194 |
|
|
|
23,822 |
|
|
|
181,322 |
|
|
|
213,034 |
|
Income tax benefit (provision) |
|
|
27,466 |
|
|
|
15,343 |
|
|
|
(9,490 |
) |
|
|
(33,339 |
) |
Net earnings |
|
|
55,660 |
|
|
|
39,165 |
|
|
|
171,832 |
|
|
|
179,695 |
|
Net (loss) earnings attributable to noncontrolling interests |
|
|
(148 |
) |
|
|
(1,643 |
) |
|
|
441 |
|
|
|
(2,047 |
) |
Net earnings attributable to |
|
$ |
55,808 |
|
|
$ |
40,808 |
|
|
$ |
171,391 |
|
|
$ |
181,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per common share attributable to |
|
$ |
1.57 |
|
|
$ |
1.14 |
|
|
$ |
4.80 |
|
|
$ |
4.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings per common share attributable to |
|
$ |
1.57 |
|
|
$ |
1.13 |
|
|
$ |
4.80 |
|
|
$ |
4.92 |
|
SCHEDULE 2 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
||||
($ thousands) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
21,358 |
|
$ |
33,700 |
Receivables, net |
|
|
140,400 |
|
|
132,802 |
Inventories, net |
|
|
540,674 |
|
|
580,215 |
Property and equipment, held for sale |
|
|
16,777 |
|
|
16,777 |
Prepaid expenses and other current assets |
|
|
69,700 |
|
|
67,961 |
Total current assets |
|
|
788,909 |
|
|
831,455 |
|
|
|
|
|
|
|
Lease right-of-use assets |
|
|
528,029 |
|
|
518,196 |
Property and equipment, net |
|
|
167,583 |
|
|
160,883 |
|
|
|
203,310 |
|
|
215,392 |
Other assets |
|
|
116,915 |
|
|
110,546 |
Total assets |
|
$ |
1,804,746 |
|
$ |
1,836,472 |
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Borrowings under revolving credit agreement |
|
$ |
182,000 |
|
$ |
307,500 |
Trade accounts payable |
|
|
251,912 |
|
|
229,908 |
Lease obligations |
|
|
112,764 |
|
|
136,051 |
Other accrued expenses |
|
|
196,280 |
|
|
237,737 |
Total current liabilities |
|
|
742,956 |
|
|
911,196 |
|
|
|
|
|
|
|
Noncurrent lease obligations |
|
|
453,097 |
|
|
444,074 |
Other liabilities |
|
|
41,123 |
|
|
55,089 |
Total other liabilities |
|
|
494,220 |
|
|
499,163 |
|
|
|
|
|
|
|
|
|
|
560,631 |
|
|
420,683 |
Noncontrolling interests |
|
|
6,939 |
|
|
5,430 |
Total equity |
|
|
567,570 |
|
|
426,113 |
Total liabilities and equity |
|
$ |
1,804,746 |
|
$ |
1,836,472 |
SCHEDULE 3 | ||||||||
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||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(Unaudited) |
||||||
|
|
Fifty-three Weeks Ended |
|
Fifty-two
|
||||
($ thousands) |
|
|
|
|
||||
OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net cash provided by operating activities |
|
$ |
200,151 |
|
|
$ |
125,879 |
|
|
|
|
|
|
|
|
||
INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(44,584 |
) |
|
|
(55,913 |
) |
Capitalized software |
|
|
(5,034 |
) |
|
|
(8,124 |
) |
Net cash used for investing activities |
|
|
(49,618 |
) |
|
|
(64,037 |
) |
|
|
|
|
|
|
|
||
FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Borrowings under revolving credit agreement |
|
|
532,500 |
|
|
|
859,500 |
|
Repayments under revolving credit agreement |
|
|
(658,000 |
) |
|
|
(842,000 |
) |
Dividends paid |
|
|
(9,954 |
) |
|
|
(10,184 |
) |
Acquisition of treasury stock |
|
|
(17,445 |
) |
|
|
(63,225 |
) |
Issuance of common stock under share-based plans, net |
|
|
(11,094 |
) |
|
|
(5,387 |
) |
Contributions by noncontrolling interests |
|
|
1,000 |
|
|
|
3,142 |
|
Net cash used for financing activities |
|
|
(162,993 |
) |
|
|
(58,154 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
118 |
|
|
|
(103 |
) |
(Decrease) increase in cash and cash equivalents |
|
|
(12,342 |
) |
|
|
3,585 |
|
Cash and cash equivalents at beginning of period |
|
|
33,700 |
|
|
|
30,115 |
|
Cash and cash equivalents at end of period |
|
$ |
21,358 |
|
|
$ |
33,700 |
|
SCHEDULE 4 | ||||||||||||||||||||||
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|||||
|
|
(Unaudited) |
||||||||||||||||||||
|
|
Fourteen Weeks Ended |
|
Thirteen Weeks Ended |
||||||||||||||||||
|
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|
|||||||
($ thousands, except per share data) |
|
Pre-Tax
|
|
Net Earnings
|
|
Diluted
|
|
Pre-Tax
|
|
Net Earnings
|
|
Diluted
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP earnings |
|
|
|
$ |
55,808 |
|
|
$ |
1.57 |
|
|
|
|
|
$ |
40,808 |
|
|
$ |
1.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Charges/other items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred tax valuation allowances adjustment |
|
$ |
— |
|
|
(26,654 |
) |
|
|
(0.76 |
) |
|
$ |
— |
|
|
(17,374 |
) |
|
|
(0.48 |
) |
Expense reduction initiatives |
|
|
2,151 |
|
|
1,597 |
|
|
|
0.05 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Total charges/other items |
|
$ |
2,151 |
|
$ |
(25,057 |
) |
|
$ |
(0.71 |
) |
|
$ |
— |
|
$ |
(17,374 |
) |
|
$ |
(0.48 |
) |
Adjusted earnings |
|
|
|
$ |
30,751 |
|
|
$ |
0.86 |
|
|
|
|
|
$ |
23,434 |
|
|
$ |
0.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
(Unaudited) |
||||||||||||||||||||
|
|
Fifty-three Weeks Ended |
|
Fifty-two Weeks Ended |
||||||||||||||||||
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||||||||||||||||||
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|
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|
|
|
|||||||
|
|
Pre-Tax |
|
Net Earnings |
|
|
|
Pre-Tax |
|
Net Earnings |
|
|
||||||||||
|
|
Impact of |
|
Attributable |
|
Diluted |
|
Impact of |
|
Attributable |
|
Diluted |
||||||||||
|
|
Charges/Other |
|
to |
|
Earnings |
|
Charges/Other |
|
to |
|
Earnings |
||||||||||
($ thousands, except per share data) |
|
Items |
|
Inc. |
|
Per Share |
|
Items |
|
Inc. |
|
Per Share |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP earnings |
|
|
|
$ |
171,391 |
|
|
$ |
4.80 |
|
|
|
|
|
$ |
181,742 |
|
|
$ |
4.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Charges/other items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred tax valuation allowance adjustment |
|
$ |
— |
|
|
(26,654 |
) |
|
|
(0.75 |
) |
|
$ |
— |
|
|
(17,374 |
) |
|
|
(0.47 |
) |
Expense reduction initiatives |
|
|
6,103 |
|
|
4,532 |
|
|
|
0.13 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Organizational changes |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
2,910 |
|
|
2,723 |
|
|
|
0.07 |
|
Total charges/other items |
|
$ |
6,103 |
|
$ |
(22,122 |
) |
|
$ |
(0.62 |
) |
|
$ |
2,910 |
|
$ |
(14,651 |
) |
|
$ |
(0.40 |
) |
Adjusted earnings |
|
|
|
$ |
149,269 |
|
|
$ |
4.18 |
|
|
|
|
|
$ |
167,091 |
|
|
$ |
4.52 |
|
SCHEDULE 5 |
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||||||||||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT |
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SUMMARY FINANCIAL RESULTS |
|
|
|
|
|
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|
|
|
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|
|
||||||||||||||||||||
|
|
(Unaudited) |
||||||||||||||||||||||||||||||
|
|
Famous Footwear |
|
Brand Portfolio |
|
Eliminations and Other |
Consolidated |
|||||||||||||||||||||||||
|
|
14 weeks ended |
13 weeks ended |
|
14 weeks ended |
13 weeks ended |
|
14 weeks ended |
13 weeks ended |
14 weeks ended |
|
13 weeks ended |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
($ thousands) |
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
2024 |
|
|
2023 |
|||||||||||||
Net sales |
|
$ |
396,227 |
|
$ |
402,265 |
|
$ |
323,689 |
|
$ |
309,729 |
|
$ |
(22,793 |
) |
$ |
(15,560 |
) |
$ |
697,123 |
|
$ |
696,434 |
|
|||||||
Gross profit |
|
|
170,129 |
|
|
170,562 |
|
|
137,868 |
|
|
111,465 |
|
|
(2,269 |
) |
|
(839 |
) |
|
305,728 |
|
|
281,188 |
|
|||||||
Gross margin |
|
|
42.9 |
% |
|
42.4 |
% |
|
42.6 |
% |
|
36.0 |
% |
|
10.0 |
% |
|
5.4 |
% |
|
43.9 |
% |
|
40.4 |
% |
|||||||
Operating earnings (loss) |
|
|
19,551 |
|
|
24,386 |
|
|
37,751 |
|
|
19,281 |
|
|
(26,555 |
) |
|
(17,802 |
) |
|
30,747 |
|
|
25,865 |
|
|||||||
Adjusted operating earnings (loss) |
|
|
19,551 |
|
|
24,386 |
|
|
38,634 |
|
|
19,281 |
|
|
(25,287 |
) |
|
(17,802 |
) |
|
32,898 |
|
|
25,865 |
|
|||||||
Operating margin |
|
|
4.9 |
% |
|
6.1 |
% |
|
11.7 |
% |
|
6.2 |
% |
|
n/m |
% |
|
n/m |
% |
|
4.4 |
% |
|
3.7 |
% |
|||||||
Adjusted operating earnings % |
|
|
4.9 |
% |
|
6.1 |
% |
|
11.9 |
% |
|
6.2 |
% |
|
n/m |
% |
|
n/m |
% |
|
4.7 |
% |
|
3.7 |
% |
|||||||
Comparable sales % (on a 13-week basis) |
|
|
(5.9 |
)% |
|
0.7 |
% |
|
(3.8 |
)% |
|
20.4 |
% |
|
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
|||||||
Number of stores |
|
|
860 |
|
|
873 |
|
|
98 |
|
|
92 |
|
|
— |
|
|
— |
|
|
958 |
|
|
965 |
|
|||||||
n/m – Not meaningful |
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
(Unaudited) |
||||||||||||||||||||||||
|
|
Famous Footwear |
|
Brand Portfolio |
|
Eliminations and Other |
|
Consolidated |
||||||||||||||||||
|
|
14 weeks ended |
|
13 weeks ended |
|
14 weeks ended |
|
13 weeks ended |
|
14 weeks ended |
|
13 weeks ended |
|
14 weeks ended |
|
13 weeks ended |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
($ thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
|
2023 |
|
|
2024 |
|
2023 |
||||||||
Operating earnings (loss) |
|
$ |
19,551 |
|
$ |
24,386 |
|
$ |
37,751 |
|
$ |
19,281 |
|
$ |
(26,555 |
) |
|
$ |
(17,802 |
) |
|
$ |
30,747 |
|
$ |
25,865 |
Charges/Other Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Expense reduction initiatives |
|
|
— |
|
|
— |
|
|
883 |
|
|
— |
|
|
1,268 |
|
|
|
— |
|
|
|
2,151 |
|
|
— |
Total charges/other items |
|
|
— |
|
|
— |
|
|
883 |
|
|
— |
|
|
1,268 |
|
|
|
— |
|
|
|
2,151 |
|
|
— |
Adjusted operating earnings (loss) |
|
$ |
19,551 |
|
$ |
24,386 |
|
$ |
38,634 |
|
$ |
19,281 |
|
$ |
(25,287 |
) |
|
$ |
(17,802 |
) |
|
$ |
32,898 |
|
$ |
25,865 |
SCHEDULE 5 |
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT |
||||||||||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
(Unaudited) |
||||||||||||||||||||||||||||||
|
|
Famous Footwear |
Brand Portfolio |
Eliminations and Other |
Consolidated |
|||||||||||||||||||||||||||
|
|
53 weeks ended |
52 weeks ended |
53 weeks ended |
52 weeks ended |
53 weeks ended |
52 weeks ended |
53 weeks ended |
52 weeks ended |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
($ thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||
Net sales |
|
$ |
1,609,396 |
|
$ |
1,705,093 |
|
$ |
1,270,853 |
|
$ |
1,322,772 |
|
$ |
(62,955 |
) |
$ |
(59,727 |
) |
$ |
2,817,294 |
|
$ |
2,968,138 |
|
|||||||
Gross profit |
|
|
719,549 |
|
|
789,004 |
|
|
546,005 |
|
|
497,265 |
|
|
(2,597 |
) |
|
(1,396 |
) |
|
1,262,957 |
|
|
1,284,873 |
|
|||||||
Gross profit rate |
|
|
44.7 |
% |
|
46.3 |
% |
|
43.0 |
% |
|
37.6 |
% |
|
4.1 |
% |
|
2.3 |
% |
|
44.8 |
% |
|
43.3 |
% |
|||||||
Operating earnings (loss) |
|
|
123,838 |
|
|
195,837 |
|
|
145,459 |
|
|
112,345 |
|
|
(74,842 |
) |
|
(93,855 |
) |
|
194,455 |
|
|
214,327 |
|
|||||||
Adjusted operating earnings (loss) |
|
|
125,204 |
|
|
195,837 |
|
|
148,067 |
|
|
112,345 |
|
|
(72,713 |
) |
|
(90,945 |
) |
|
200,558 |
|
|
217,237 |
|
|||||||
Operating earnings % |
|
|
7.7 |
% |
|
11.5 |
% |
|
11.4 |
% |
|
8.5 |
% |
|
n/m% |
|
n/m% |
|
6.9 |
% |
|
7.2 |
% |
|||||||||
Adjusted operating earnings % |
|
|
7.8 |
% |
|
11.5 |
% |
|
11.7 |
% |
|
8.5 |
% |
|
n/m% |
|
n/m% |
|
7.1 |
% |
|
7.3 |
% |
|||||||||
Comparable sales % (on a 52-week basis) |
|
|
(6.3 |
)% |
|
(1.8 |
)% |
|
1.3 |
% |
|
31.4 |
% |
|
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
|||||||
Number of stores |
|
|
860 |
|
|
873 |
|
|
98 |
|
|
92 |
|
|
— |
|
|
— |
|
|
958 |
|
|
965 |
|
|||||||
n/m – Not meaningful |
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
||||||||||||||||||||||
|
|
Famous Footwear |
|
Brand Portfolio |
|
Eliminations and Other |
|
Consolidated |
||||||||||||||||
|
|
53 weeks ended |
|
52 weeks ended |
|
53 weeks ended |
|
52 weeks ended |
|
53 weeks ended |
|
52 weeks ended |
|
53 weeks ended |
|
52 weeks ended |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Operating earnings (loss) |
|
$ |
123,838 |
|
$ |
195,837 |
|
$ |
145,459 |
|
$ |
112,345 |
|
$ |
(74,842) |
|
$ |
(93,855) |
|
$ |
194,455 |
|
$ |
214,327 |
Charges/Other Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense reduction initiatives |
|
|
1,366 |
|
|
— |
|
|
2,608 |
|
|
— |
|
|
2,129 |
|
|
— |
|
|
6,103 |
|
|
— |
Organizational changes |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,910 |
|
|
— |
|
|
2,910 |
Total charges/other items |
|
|
1,366 |
|
|
— |
|
|
2,608 |
|
|
— |
|
|
2,129 |
|
|
2,910 |
|
|
6,103 |
|
|
2,910 |
Adjusted operating earnings (loss) |
|
$ |
125,204 |
|
$ |
195,837 |
|
$ |
148,067 |
|
$ |
112,345 |
|
$ |
(72,713) |
|
$ |
(90,945) |
|
$ |
200,558 |
|
$ |
217,237 |
SCHEDULE 6 | ||||||||||||||||
|
||||||||||||||||
BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(Unaudited) |
||||||||||||||
|
|
Fourteen
|
|
Thirteen
|
|
Fifty-three
|
|
Fifty-two
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
($ thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings |
|
$ |
55,660 |
|
|
$ |
39,165 |
|
|
$ |
171,832 |
|
|
$ |
179,695 |
|
Net loss (earnings) attributable to noncontrolling interests |
|
|
148 |
|
|
|
1,643 |
|
|
|
(441 |
) |
|
|
2,047 |
|
Net earnings attributable to |
|
|
55,808 |
|
|
|
40,808 |
|
|
|
171,391 |
|
|
|
181,742 |
|
Net earnings allocated to participating securities |
|
|
(2,414 |
) |
|
|
(1,763 |
) |
|
|
(7,517 |
) |
|
|
(7,716 |
) |
Net earnings attributable to |
|
$ |
53,394 |
|
|
$ |
39,045 |
|
|
$ |
163,874 |
|
|
$ |
174,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted common shares attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic common shares |
|
|
33,965 |
|
|
|
34,102 |
|
|
|
34,142 |
|
|
|
34,930 |
|
Dilutive effect of share-based awards |
|
|
115 |
|
|
|
548 |
|
|
|
10 |
|
|
|
475 |
|
Diluted common shares attributable to |
|
|
34,080 |
|
|
|
34,650 |
|
|
|
34,152 |
|
|
|
35,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per common share attributable to |
|
$ |
1.57 |
|
|
$ |
1.14 |
|
|
$ |
4.80 |
|
|
$ |
4.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings per common share attributable to |
|
$ |
1.57 |
|
|
$ |
1.13 |
|
|
$ |
4.80 |
|
|
$ |
4.92 |
|
|
|
|
|
SCHEDULE 7 |
||||||||||||||||
|
||||||||||||||||
BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(Unaudited) |
||||||||||||||
|
|
Fourteen
|
|
Thirteen
|
|
Fifty-three
|
|
Fifty-two
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
($ thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted net earnings attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted net earnings |
|
$ |
30,603 |
|
|
$ |
21,791 |
|
|
$ |
149,710 |
|
|
$ |
165,044 |
|
Net loss (earnings) attributable to noncontrolling interests |
|
|
148 |
|
|
|
1,643 |
|
|
|
(441 |
) |
|
|
2,047 |
|
Adjusted net earnings attributable to |
|
|
30,751 |
|
|
|
23,434 |
|
|
|
149,269 |
|
|
|
167,091 |
|
Net earnings allocated to participating securities |
|
|
(1,324 |
) |
|
|
(1,012 |
) |
|
|
(6,537 |
) |
|
|
(7,092 |
) |
Adjusted net earnings attributable to |
|
$ |
29,427 |
|
|
$ |
22,422 |
|
|
$ |
142,732 |
|
|
$ |
159,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted common shares attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic common shares |
|
|
33,965 |
|
|
|
34,102 |
|
|
|
34,142 |
|
|
|
34,930 |
|
Dilutive effect of share-based awards |
|
|
115 |
|
|
|
548 |
|
|
|
10 |
|
|
|
475 |
|
Diluted common shares attributable to |
|
|
34,080 |
|
|
|
34,650 |
|
|
|
34,152 |
|
|
|
35,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic adjusted earnings per common share attributable to |
|
$ |
0.87 |
|
|
$ |
0.66 |
|
|
$ |
4.18 |
|
|
$ |
4.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted adjusted earnings per common share attributable to |
|
$ |
0.86 |
|
|
$ |
0.65 |
|
|
$ |
4.18 |
|
|
$ |
4.52 |
|
SCHEDULE 8 | ||||||||
|
||||||||
CALCULATION OF EBITDA AND DEBT/EBITDA LEVERAGE RATIO (NON-GAAP METRICS) |
||||||||
|
|
|
|
|
|
|
||
|
|
(Unaudited) |
||||||
|
|
Fourteen Weeks Ended |
|
Thirteen Weeks Ended |
||||
($ thousands) |
|
|
|
|
||||
EBITDA: |
|
|
|
|
|
|
||
Net earnings attributable to |
|
$ |
55,808 |
|
|
$ |
40,808 |
|
Income tax benefit |
|
|
(27,466 |
) |
|
|
(15,343 |
) |
Interest expense, net |
|
|
4,103 |
|
|
|
5,378 |
|
Depreciation and amortization (1) |
|
|
14,875 |
|
|
|
12,317 |
|
EBITDA |
|
$ |
47,320 |
|
|
$ |
43,160 |
|
|
|
|
|
|
|
|
||
EBITDA margin |
|
|
6.8 |
% |
|
|
6.2 |
% |
|
|
|
|
|
|
|
||
Adjusted EBITDA: |
|
|
|
|
|
|
||
Adjusted net earnings attributable to |
|
$ |
30,751 |
|
|
$ |
23,434 |
|
Income tax (benefit) provision (3) |
|
|
(258 |
) |
|
|
2,031 |
|
Interest expense, net |
|
|
4,103 |
|
|
|
5,378 |
|
Depreciation and amortization (1) |
|
|
14,875 |
|
|
|
12,317 |
|
Adjusted EBITDA |
|
$ |
49,471 |
|
|
$ |
43,160 |
|
|
|
|
|
|
|
|
||
Adjusted EBITDA margin |
|
|
7.1 |
% |
|
|
6.2 |
% |
|
|
|
|
|
|
|
||
|
|
(Unaudited) |
||||||
|
|
Trailing Twelve Months Ended |
||||||
($ thousands) |
|
|
|
|
||||
EBITDA: |
|
|
|
|
|
|
||
Net earnings attributable to |
|
$ |
171,391 |
|
|
$ |
181,742 |
|
Income tax provision |
|
|
9,490 |
|
|
|
33,339 |
|
Interest expense, net |
|
|
19,343 |
|
|
|
14,264 |
|
Depreciation and amortization (1) |
|
|
53,280 |
|
|
|
49,011 |
|
EBITDA |
|
$ |
253,504 |
|
|
$ |
278,356 |
|
|
|
|
|
|
|
|
||
EBITDA margin |
|
|
9.0 |
% |
|
|
9.4 |
% |
|
|
|
|
|
|
|
||
Adjusted EBITDA: |
|
|
|
|
|
|
||
Adjusted net earnings attributable to |
|
$ |
149,269 |
|
|
$ |
167,091 |
|
Income tax provision (3) |
|
|
37,715 |
|
|
|
50,900 |
|
Interest expense, net |
|
|
19,343 |
|
|
|
14,264 |
|
Depreciation and amortization (1) |
|
|
53,280 |
|
|
|
49,011 |
|
Adjusted EBITDA |
|
$ |
259,607 |
|
|
$ |
281,266 |
|
|
|
|
|
|
|
|
||
Adjusted EBITDA margin |
|
|
9.2 |
% |
|
|
9.5 |
% |
|
|
|
|
|
|
|
||
|
|
(Unaudited) |
||||||
($ thousands) |
|
|
|
|
||||
Debt/EBITDA leverage ratio: |
|
|
|
|
|
|
||
Borrowings under revolving credit agreement (4) |
|
$ |
182,000 |
|
|
$ |
307,500 |
|
EBITDA (trailing twelve months) |
|
|
253,504 |
|
|
|
278,356 |
|
Debt/EBITDA |
|
|
0.7 |
|
|
|
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 |
(3) |
Excludes the income tax impacts of the adjustments on Schedule 4. |
(4) |
Total availability under the revolving credit agreement was |
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