Caleres Reports Fourth Quarter and Full Year 2017 Results

Published on Caleres Invest or Cent er (ht t p://invest or.caleres.com) on Mar 13 2018

Caleres Reports Fourth Quarter and Full Year 2017 Results Release Date: Tuesday, March 13, 2018 3:15 pm CDT

T erms: Dateline City: ST. LOUIS

Increases in sales, margins and earnings for both the quarter and the year ST. LOUIS--(BUSINESS WIRE)--Caleres (NYSE: CAL) (caleres.com), a diverse port folio of global foot wear brands which fit people’s lives, t oday report ed fourt h quart er and full year 2017 financial result s. “We capped off an out st anding year by delivering a consolidat ed fourt h quart er sales increase of nearly 10% and earnings improvement on bot h a report ed and adjust ed basis. Famous Foot wear and Brand Port folio bot h cont ribut ed t o t his growt h and delivered fourt h quart er sales increases of 7.0% and 13.8%, respect ively,” said Diane Sullivan, CEO, president and chairman of Caleres. “Our success in 2017 is reflect ive of t he foundat ional st rengt h of our diversified port folio of brands and is direct ly at t ribut able t o our abilit y t o move t o where t he consumer is going. We expect t o leverage our success in bot h of t hese areas in 2018 and t o deliver adjust ed earnings per share of bet ween $2.40 and $2.50.” Fo urth Quarter 2017 Results Versus 2016 Consolidat ed sales of $702.5 million were up 9.8%, including Allen Edmonds. Famous Foot wear t ot al sales of $393.1 million were up 7.0%, while same-st ore-sales were up 2.8% on a 13-week basis. Brand Port folio sales of $309.4 million were up 13.8% including cont ribut ion from Allen Edmonds, which was acquired on December 13, 2016. Gross profit was $293.4 million, while gross margin of 41.8% was up 97 basis point s. SG&A expense of $262.1 million was up 7.9%, including Allen Edmonds. Operat ing earnings were $30.3 million and operat ing margin was 4.3%, while adjust ed operat ing earnings were $31.3 million – up more t han 50% – and adjust ed operat ing margin of 4.5% was up 122 basis point s. Net earnings were $20.3 million, while dilut ed earnings per share were $0.47 and included a $0.02 charge for operat ions rest ruct uring and a $0.01 benefit relat ed t o t he Tax Cut s and Jobs Act . Adjust ed net earnings of $20.6 million were up 44.5%, while adjust ed dilut ed net earnings per share of $0.48 were up 45.5%. Full Year 2017 Results Versus 2016 Consolidat ed sales of $2,785.6 million were up 8.0%, including Allen Edmonds. Famous Foot wear t ot al sales of $1,637.6 million were up 3.0%, while same-st ore-sales were up 1.4% on a 52week basis. Brand Port folio sales of $1,148.0 million were up 16.0% including cont ribut ion from Allen Edmonds, which was acquired on December 13, 2016. Gross profit of $1,168.6 million – including $4.9 million of expect ed fair value invent ory adjust ment amort izat ion relat ed t o t he Allen Edmonds acquisit ion – was up 10.0%, while gross margin of 42.0% was up 78 basis point s. SG&A expense of $1,023.7 million was up 10.4%, including Allen Edmonds. Operat ing earnings were $140.0 million and operat ing margin was 5.0%, while adjust ed operat ing earnings were $149.9 million – up 9.3% – and adjust ed operat ing margin was 5.4%. Net earnings were $87.2 million, while dilut ed earnings per share were $2.02 and included $0.13 of charges relat ed t o t he acquisit ion, int egrat ion and reorganizat ion of men’s brands, a $0.02 charge for operat ions rest ruct uring, and a $0.01 benefit relat ed t o t he Tax Cut s and Jobs Act . Adjust ed net earnings of $93.1 million were up 7.5%, while adjust ed dilut ed earnings per share of $2.16 were up 8.0%. Balance Sheet and Cash Flo w Cash and equivalent s were $64.0 million and up $8.7 million year-over-year. There were no out st anding borrowings under t he revolving credit facilit y, as t he company paid down t he ent iret y of t he $110 million associat ed wit h t he December 2016 acquisit ion of Allen Edmonds. Invent ory of $569.4 million was down 2.8% year-over-year, including Allen Edmonds. Capit al expendit ures of $51.2 million were down 14.1% year-over-year.

2017 Benefit fro m 53 rd Week Consolidat ed net sales

$23.4 million

Famous Foot wear sales

$19.7 million

Brand Port folio sales

$3.7 million

2018 Outlo o k Consolidat ed net sales

~$2.8B

Famous Foot wear same-st ore-sales

Up low-single digit s

Brand Port folio sales

Up low-single digit s

Gross margin SG&A as a percent of revenue

Up ~5 t o 10 bps Down ~5 t o 10 bps

Int erest expense

~$16M

Effect ive t ax rat e

25% t o 26%

Adjust ed earnings per dilut ed share

$2.40 t o $2.50

Investo r Co nference Call Caleres will host an invest or conference call at 4:30 p.m. ET t oday, Tuesday, March 13. The webcast and slides will be available at invest or.caleres.com/news/event s. A live conference call will be available at (877) 217-9089 for analyst s in Nort h America or (706) 679-1723 for int ernat ional analyst s by using t he conference ID 2086199. A replay will be available at invest or.caleres.com/news/event s/archive for a limit ed period. Invest ors may also access t he replay by dialing (855) 8592056 in Nort h America or (404) 537-3406 int ernat ionally and using t he conference ID 2086199 t hrough Tuesday, March 27. Definitio ns All references in t his press release, out side of t he condensed consolidat ed financial st at ement s t hat follow, unless ot herwise not ed, relat ed t o net earnings at t ribut able t o Caleres, Inc. and dilut ed earnings per common share at t ribut able t o Caleres, Inc. shareholders, are present ed as net earnings and earnings per dilut ed share, respect ively. No n-GAAP Financial Measures In t his press release, t he company’s financial result s are provided bot h in accordance wit h generally accept ed account ing principles (GAAP) and using cert ain non-GAAP financial measures. In part icular, t he company provides hist oric and est imat ed fut ure gross profit , operat ing earnings, net earnings and earnings per dilut ed share adjust ed t o exclude cert ain gains, charges and recoveries, which are non-GAAP financial measures. These result s are included as a complement t o result s provided in accordance wit h GAAP because management believes t hese non-GAAP financial measures help ident ify underlying t rends in t he company’s business and provide useful informat ion t o bot h management and invest ors by excluding cert ain it ems t hat may not be indicat ive of t he company’s core operat ing result s. These measures should not be considered a subst it ut e for or superior t o GAAP result s. Safe Harbo r Statement Under the Private Securities Litigatio n Refo rm Act o f 1995 This press release cont ains cert ain forward-looking st at ement s and expect at ions regarding t he company’s fut ure performance and t he performance of it s brands. Such st at ement s are subject t o various risks and uncert aint ies t hat could cause act ual result s t o differ mat erially. These risks include (i) changing consumer demands, which may be influenced by consumers' disposable income, which in t urn can be influenced by general economic condit ions and ot her fact ors; (ii) rapidly changing fashion t rends and consumer preferences and purchasing pat t erns; (iii) int ense compet it ion wit hin t he foot wear indust ry; (iv) polit ical and economic condit ions or ot her t hreat s t o t he cont inued and unint errupt ed flow of invent ory from China and ot her count ries, where t he Company relies heavily on t hird-part y manufact uring facilit ies for a significant amount of it s invent ory; (v) t he abilit y t o accurat ely forecast sales and manage invent ory levels; (vi) cybersecurit y t hreat s or ot her major disrupt ion t o t he Company’s informat ion t echnology syst ems; (vii) cust omer concent rat ion and increased consolidat ion in t he ret ail indust ry; (viii) t ransit ional challenges wit h acquisit ions; (ix) a disrupt ion in t he Company’s dist ribut ion cent ers; (x) changes t o t ax laws, policies and t reat ies; (xi) t he abilit y t o recruit and ret ain senior management and ot her key associat es; (xii) compliance wit h applicable laws and st andards wit h respect t o labor, t rade and product safet y issues; (xiii) foreign currency fluct uat ions; (xiv) t he abilit y t o secure/exit leases on favorable t erms; (xv) t he abilit y t o maint ain relat ionships wit h current suppliers; and (xvi) t he abilit y t o at t ract , ret ain, and maint ain good relat ionships wit h licensors and prot ect our int ellect ual propert y right s. The company's report s t o t he Securit ies and Exchange Commission cont ain det ailed informat ion relat ing t o such fact ors, including, wit hout limit at ion, t he informat ion under t he capt ion Risk Fact ors in It em 1A of t he company’s Annual Report on Form 10-K for t he year ended January 28, 2017, which informat ion is incorporat ed by reference herein and updat ed by t he company’s Quart erly Report s on Form 10-Q. The company does not undert ake any obligat ion or plan t o updat e t hese forward-looking st at ement s, even t hough it s sit uat ion may change. Abo ut Caleres Caleres is a diverse port folio of global foot wear brands. Our product s are available virt ually everywhere - in t he over 1,200 ret ail st ores we operat e, in hundreds of major depart ment and specialt y st ores, on our branded e-commerce sit es, and on many addit ional t hird-part y ret ail websit es. Famous Foot wear and Famous.com serve as our Family brands. Our Cont emporary Fashion brands include Sam Edelman, Allen Edmonds, Franco Sart o, Vince, Via Spiga, George Brown Bilt , Diane von Furst enberg, Fergie Foot wear and Carlos Sant ana. Nat uralizer, Dr. Scholl's Shoes, LifeSt ride, Bzees and Ryka represent our Healt hy Living brands. Combined, t hese brands help make Caleres a company wit h bot h a legacy and a mission. Our legacy is our more t han 130-years of craft smanship, our passion for fit and our business savvy, while our mission is t o cont inue t o inspire people t o feel good…feet first . Visit caleres.com t o learn more about us.

SCHEDULE 1

CALERES, INC. CONDENSED CONSOLIDAT ED ST AT EMENT S OF EARNINGS

(Unaudit ed) Fourt een Weeks Ended

Thirt een Weeks Ended

Fift y-t hree Weeks Ended

Fift y-t wo Weeks Ended

(Thousands, except per share dat a)

February 3, 2018

January 28, 2017

February 3, 2018

January 28, 2017

Net sales

$ 702,465

$ 639,488

$2,785,584

$2,579,388

Cost of goods sold

409,070

378,616

1,616,935

1,517,397

Gross profit

293,395

260,872

1,168,649

1,061,991

Selling and administ rat ive expenses

262,113

242,936

1,023,703

927,602

942

23,404

4,915

23,404

Operat ing earnings (loss)

30,340

(5,468)

140,031

110,985

Int erest expense

(4,267)

(4,547)

(18,089)

(15,111)

Rest ruct uring and ot her special charges, net

172

Int erest income

473

26,245

Earnings (loss) before income t axes

(9,542)

Income t ax (provision) benefit

(5,944)

Net earnings (loss)

20,301 (15)

Net (loss) earnings at t ribut able t o noncont rolling int erest s

764

1,380

122,706

97,254

3,346

(35,475)

(31,168)

(6,196)

87,231

66,086

426

31

428

Net earnings (loss) at t ribut able t o Caleres, Inc.

$

20,316

$

(6,622)

$

87,200

$

65,658

Basic earnings (loss) per common share at t ribut able t o Caleres, Inc. shareholders

$

0.47

$

(0.16)

$

2.03

$

1.52

Dilut ed earnings (loss) per common share at t ribut able t o Caleres, Inc. shareholders

$

0.47

$

(0.16)

$

2.02

$

1.52

SCHEDULE 2

CALERES, INC. CONDENSED CONSOLIDAT ED BALANCE SHEET S

(Unaudit ed) February 3, 2018

January 28, 2017

$

$

(Thousands) ASSET S Cash and cash equivalent s

64,047

55,332

Receivables, net

152,613

153,121

Invent ories, net

569,379

585,764

60,750

49,528

Tot al current asset s

846,789

843,745

Propert y and equipment , net

212,799

219,196

Goodwill and int angible asset s, net

339,168

343,758

90,659

68,574

Prepaid expenses and ot her current asset s

Ot her asset s Tot al asset s

$

1,489,415

$

1,475,273

$

—

$

110,000

LIABILIT IES AND EQUIT Y Borrowings under revolving credit agreement Trade account s payable

272,962

Ot her accrued expenses

157,197

266,370 151,225

Tot al current liabilit ies

430,159

527,595

Long-t erm debt

197,472

197,003

Deferred rent

53,071

51,124

Ot her liabilit ies

89,751

85,065

Tot al ot her liabilit ies

340,294

333,192

Tot al Caleres, Inc. shareholders’ equit y

717,489

613,117

1,473

1,369

Noncont rolling int erest s

718,962

Tot al equit y Tot al liabilit ies and equit y

SCHEDULE 3

$

1,489,415

614,486 $

1,475,273

CALERES, INC. CONDENSED CONSOLIDAT ED ST AT EMENT S OF CASH FLOWS (Unaudit ed)

(Thousands)

Fift y-t hree Weeks Ended

Fift y-t wo Weeks Ended

February 3, 2018

January 28, 2017

$

$

OPERATING ACTIVITIES: Net cash provided by operat ing act ivit ies

191,375

183,622

INVESTING ACTIVITIES: Purchases of propert y and equipment

(44,720)

(50,523)

(6,458)

(9,039)

Capit alized soft ware

—

Acquisit ion cost , net of cash received

(259,932)

(51,178)

(319,494)

454,000

623,000

(564,000)

(513,000)

(12,027)

(12,104)

Acquisit ion of t reasury st ock

(5,993)

(23,139)

Issuance of common st ock under share-based plans, net

(3,816)

(4,188)

Net cash used for invest ing act ivit ies FINANCING ACTIVITIES: Borrowings under revolving credit agreement Repayment s under revolving credit agreement Dividends paid

—

Excess t ax benefit relat ed t o share-based plans

2,251

(131,836)

Net cash (used for) provided by financing act ivit ies

72,820

354

Effect of exchange rat e changes on cash and cash equivalent s Increase (decrease) in cash and cash equivalent s

233

8,715

(62,819)

55,332

Cash and cash equivalent s at beginning of period $

Cash and cash equivalent s at end of period

64,047

118,151 $

55,332

SCHEDULE 4

CALERES, INC. RECONCILIAT ION OF NET EARNINGS AND DILUT ED EARNINGS PER SHARE (GAAP BASIS) T O ADJUST ED NET EARNINGS AND ADJUST ED DILUT ED EARNINGS PER SHARE (NON-GAAP BASIS)

(Unaudit ed)

(Thousands, except per share dat a)

Fourt een Weeks Ended

Thirt een Weeks Ended

February 3, 2018

January 28, 2017

Pre-Tax Impact of Charges/Ot her It ems

GAAP earnings (loss)

Net Earnings (Loss) At t ribut able to Caleres, Inc.

Dilut ed Earnings (Loss) Per Share

$ 20,316

$ 0.47

Pre-Tax Impact of Charges/Ot her It ems

Net (Loss) Earnings At t ribut able to Caleres, Inc.

Dilut ed (Loss) Earnings Per Share

$

$ (0.16)

(6,622)

Charges/ot her it ems: Tax Cut s and Jobs Act

$

—

(294)

(0.01)

942

596

Acquisit ion, int egrat ion and reorganizat ion of men's brands

—

Brand Port folio - business exit s and rest ruct uring Impairment of not e and account receivable

Ret ail operat ions rest ruct uring

Tot al charges/ot her it ems Adjust ed earnings

$

—

—

—

0.02

—

—

—

—

—

13,975

12,685

0.29

—

—

—

4,200

3,315

0.08

—

—

—

8,000

4,888

0.12

302

$ 0.01

20,888

$ 0.49

$ 20,618

$ 0.48

$ 14,266

$ 0.33

942

$

$

$

26,175

$

(Unaudit ed) Fift y-t hree Weeks Ended

Fift y-t wo Weeks Ended

February 3, 2018 Pre-Tax Impact of Charges/Ot her It ems

(Thousands, except per share dat a) GAAP earnings

January 28, 2017

Net Earnings (Loss) At t ribut able to Caleres, Inc.

Dilut ed Earnings (Loss) Per Share

$ 87,200

$ 2.02

Pre-Tax Impact of Charges/Ot her It ems

Net Earnings At t ribut able to Caleres, Inc.

Dilut ed Earnings Per Share

$ 65,658

$ 1.52

—

—

—

Charges/ot her it ems: Tax Cut s and Jobs Act

$

Ret ail operat ions rest ruct uring Acquisit ion, int egrat ion and reorganizat ion of men's brands Brand Port folio - business exit s and rest ruct uring Impairment of not e and account receivable

—

(294)

(0.01)

942

596

0.02

—

—

—

8,912

5,569

0.13

13,975

12,685

0.29

—

—

—

4,200

3,315

0.08

—

Tot al charges/ot her it ems

$

9,854

Adjust ed earnings

—

—

5,871

$ 0.14

$ 93,071

$ 2.16

$

$

8,000 $

26,175

4,888

0.11

20,888

$ 0.48

$ 86,546

$ 2.00

$

SCHEDULE 5

CALERES, INC. SUMMARY FINANCIAL RESULT S BY SEGMENT

SUMMARY FINANCIAL RESULT S

(Unaudit ed) Famous Foot wear

Brand Port folio

Ot her

Consolidat ed

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)

February 3, 2018

January 28, 2017

February 3, 2018

January 28, 2017

February 3, 2018

January 28, 2017

February 3, 2018

January 28, 2017

Net sales

$393,085

$367,530

$309,380

$271,958

$

—

$

—

$702,465

$639,488

Gross profit

$175,362

$161,830

$118,033

$ 99,042

$

—

$

—

$293,395

$260,872

Adjust ed gross profit

$175,362

$161,830

$118,033

$101,813

$

—

$

—

$293,395

$263,643

Gross profit rat e

44.6%

44.0%

38.2%

36.4%

—%

—%

41.8%

40.8%

Adjust ed gross profit rat e

44.6%

44.0%

38.2%

37.4%

—%

—%

41.8%

41.2%

Operat ing earnings (loss)

$ 13,093

$

2,668

$ 26,700

$ 18,709

$ (9,453)

$(26,845)

$ 30,340

$ (5,468)

Adjust ed operat ing earnings (loss)

$ 13,657

$

2,668

$ 26,855

$ 25,370

$ (9,230)

$ (7,331)

$ 31,282

$ 20,707

Operat ing earnings %

3.3%

0.7%

8.6%

6.9%

—%

—%

4.3%

(0.9)%

Adjust ed operat ing earnings %

3.5%

0.7%

8.7%

9.3%

—%

—%

4.5%

3.2%

Same-st ore sales % (on a 13-week basis) (1)

2.8%

0.3%

5.9%

4.4%

—%

—%

—%

—%

236

234

—

—

Number of st ores

1,026

1,055

1,262

1,289

RECONCILIAT ION OF ADJUST ED RESULT S (NONGAAP)

(Unaudit ed) Famous Foot wear

Brand Port folio

Ot her

Consolidat ed

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)

February 3, 2018

January 28, 2017

February 3, 2018

January 28, 2017

February 3, 2018

January 28, 2017

February 3, 2018

January 28, 2017

Gross profit

$175,362

$161,830

$118,033

$ 99,042

$

—

$293,395

$260,872

—

1,201

—

—

—

1,201

1,570

—

—

—

1,570

—

—

—

2,771

—

$293,395

$263,643

$ 30,340

$ (5,468)

—

$

Charges/Ot her It ems: Acquisit ion, int egrat ion and reorganizat ion of men's brands

—

—

Brand Port folio business exit s and rest ruct uring

—

—

Tot al charges/ot her it ems

—

—

—

2,771

Adjust ed gross profit

$175,362

$161,830

$118,033

$101,813

$

Operat ing earnings (loss)

$ 13,093

$

2,668

$ 26,700

$ 18,709

$ (9,453)

—

$

$(26,845)

Charges/Ot her It ems: Ret ail operat ions rest ruct uring

564

—

155

—

223

—

942

—

Acquisit ion, int egrat ion and reorganizat ion of men's brands

—

—

—

1,743

—

12,232

—

13,975

Brand Port folio business exit s and rest ruct uring

—

—

—

4,200

—

—

—

4,200

Impairment of not e and account receivable

—

—

—

718

—

7,282

—

8,000

Tot al charges/ot her it ems

564

—

155

6,661

223

19,514

942

26,175

2,668

$ 26,855

$ 25,370

$ 31,282

$ 20,707

Adjust ed operat ing earnings (loss)

$ 13,657

$

$ (9,230)

$ (7,331)

(1) Excludes sales from Allen Edmonds

SCHEDULE 5

CALERES, INC. SUMMARY FINANCIAL RESULT S BY SEGMENT

SUMMARY FINANCIAL RESULT S

(Unaudit ed) Famous Foot wear

(Thousands)

Brand Port folio

Ot her

Consolidat ed

53 Weeks Ended

52 Weeks Ended

53 Weeks Ended

52 Weeks Ended

53 Weeks Ended

52 Weeks Ended

53 Weeks Ended

52 Weeks Ended

February 3, 2018

January 28, 2017

February 3, 2018

January 28, 2017

February 3, 2018

January 28, 2017

February 3, 2018

January 28, 2017

Net sales

$1,637,627

$1,590,065

$1,147,957

$989,323

$

—

$

—

$2,785,584

$ 2,579,388

Gross profit

$

724,434

$

702,604

$

444,215

$359,387

$

—

$

—

$1,168,649

$1,061,991

Adjust ed gross profit

$

724,434

$

702,604

$

449,154

$362,158

$

—

$

—

$1,173,588

$1,064,762

Gross profit rat e

44.2%

44.2%

38.7%

36.3%

—%

—%

42.0%

41.2%

Adjust ed gross profit rat e

44.2%

44.2%

39.1%

36.6%

—%

—%

42.1%

41.3%

Operat ing earnings (loss)

$

92,230

$

83,735

$

80,211

$ 76,248

$(32,410)

$(48,998)

$ 140,031

$ 110,985

Adjust ed operat ing earnings (loss)

$

92,794

$

83,735

$

86,787

$ 82,909

$(29,696)

$(29,484)

$ 149,885

$ 137,160

Operat ing earnings %

5.6%

5.3%

7.0%

7.7%

—%

—%

5.0%

4.3%

Adjust ed operat ing earnings %

5.7%

5.3%

7.6%

8.4%

—%

—%

5.4%

5.3%

Same-st ore sales % (on a 52-week basis) (1)

1.4%

0.6%

6.4%

(2.9)%

—%

—%

—%

—%

236

234

—

—

Number of st ores

1,026

1,055

1,262

1,289

53 Weeks Ended

52 Weeks Ended

RECONCILIAT ION OF ADJUST ED RESULT S (NON-GAAP)

(Unaudit ed) 53 Weeks Ended

52 Weeks Ended

53 Weeks Ended

Famous Foot wear

(Thousands) Gross profit

February 3, 2018 $

724,434

53 Weeks Ended

Brand Port folio

January 28, 2017 $

52 Weeks Ended

702,604

February 3, 2018 $

52 Weeks Ended

Ot her

Consolidat ed

January 28, 2017

February 3, 2018

January 28, 2017

444,215

$359,387

$

$

—

February 3, 2018

January 28, 2017

—

$1,168,649

$1,061,991

Charges/Ot her It ems: Acquisit ion, int egrat ion and reorganizat ion of men's brands

—

—

4,939

1,201

—

—

4,939

1,201

Brand Port folio business exit s and rest ruct uring

—

—

—

1,570

—

—

—

1,570

Tot al charges/ot her it ems

—

—

4,939

2,771

—

—

4,939

2,771

—

$1,173,588

$1,064,762

$ 140,031

$ 110,985

Adjust ed gross profit

$

724,434

$

702,604

$

449,154

$362,158

$

Operat ing earnings (loss)

$

92,230

$

83,735

$

80,211

$ 76,248

$(32,410)

—

$

$(48,998)

Charges/Ot her It ems: Ret ail operat ions rest ruct uring

564

—

155

—

223

—

942

—

Acquisit ion, int egrat ion and reorganizat ion of men's brands

—

—

6,421

1,743

2,491

12,232

8,912

13,975

Brand Port folio business exit s and rest ruct uring

—

—

—

4,200

—

—

—

4,200

Impairment of not e and account receivable

—

—

—

718

—

7,282

—

8,000

Tot al charges/ot her it ems

564

—

6,576

6,661

2,714

19,514

9,854

26,175

86,787

$ 82,909

$ 149,885

$ 137,160

Adjust ed operat ing earnings (loss)

$

92,794

$

83,735

$

$(29,696)

$(29,484)

(1) Excludes sales from Allen Edmonds

SCHEDULE 6

CALERES, INC. BASIC AND DILUT ED EARNINGS PER SHARE RECONCILIAT ION

(Unaudit ed)

(Thousands, except per share dat a)

Fourt een Weeks Ended

Thirt een Weeks Ended

February 3, 2018

January 28, 2017

Fift yt hree Weeks Ended February 3, 2018

Fift y-t wo Weeks Ended January 28, 2017

Net earnings at t ribut able t o Caleres, Inc.: Net earnings (loss)

$ 20,301

Net loss (earnings) at t ribut able t o noncont rolling int erest s Net earnings at t ribut able t o Caleres, Inc.

$

15

(426)

20,316

(6,622)

(545)

Net earnings allocat ed t o part icipat ing securit ies Net earnings (loss) at t ribut able t o Caleres, Inc. aft er allocat ion of earnings t o part icipat ing securit ies

(6,196)

$ 19,771

$87,231 (31)

(6,622)

65,658

(2,384) $84,816

66,086 (428)

87,200

— $

$

(1,750) $

63,908

Basic and dilut ed common shares at t ribut able t o Caleres, Inc.: Basic common shares Dilut ive effect of share-based awards Dilut ed common shares at t ribut able t o Caleres, Inc.

41,799

41,827

41,801

42,026

198

177

179

155

41,997

42,004

41,980

42,181

Basic earnings (loss) per common share at t ribut able t o Caleres, Inc. shareholders

$

0.47

$

(0.16)

$

2.03

$

1.52

Dilut ed earnings (loss) per common share at t ribut able t o Caleres, Inc. shareholders

$

0.47

$

(0.16)

$

2.02

$

1.52

SCHEDULE 7

CALERES, INC. BASIC AND DILUT ED ADJUST ED EARNINGS PER SHARE RECONCILIAT ION

(Unaudit ed)

(Thousands, except per share dat a)

Fourt een Weeks Ended

Thirt een Weeks Ended

Fift yt hree Weeks Ended

February 3, 2018

January 28, 2017

February 3, 2018

Fift y-t wo Weeks Ended January 28, 2017

Adjust ed net earnings at t ribut able t o Caleres, Inc.: Adjust ed net earnings

$

Net loss (earnings) at t ribut able t o noncont rolling int erest s

$

15

Adjust ed net earnings at t ribut able t o Caleres, Inc.

14,266

(553) $

20,065

14,692 (426)

20,618

Net earnings allocat ed t o part icipat ing securit ies Adjust ed net earnings at t ribut able t o Caleres, Inc. aft er allocat ion of earnings t o part icipat ing securit ies

20,603

(376) $

$93,102

$

(31)

86,974 (428)

93,071

86,546

(2,546)

(2,308)

13,890

$90,525

$

84,238

41,799

41,827

41,801

42,026

198

177

179

155

Basic and dilut ed common shares at t ribut able t o Caleres, Inc.: Basic common shares

Dilut ive effect of share-based awards Dilut ed common shares at t ribut able t o Caleres, Inc.

198

177

179

155

41,997

42,004

41,980

42,181

Basic adjust ed earnings per common share at t ribut able t o Caleres, Inc. shareholders

$

0.48

$

0.33

$

2.17

$

2.00

Dilut ed adjust ed earnings per common share at t ribut able t o Caleres, Inc. shareholders

$

0.48

$

0.33

$

2.16

$

2.00

SCHEDULE 8

CALERES, INC. RECONCILIAT ION OF INCOME T AX PROVISION AND EFFECT IVE T AX RAT E (GAAP BASIS) T O ADJUST ED INCOME T AX PROVISION AND ADJUST ED EFFECT IVE T AX RAT E (NON-GAAP BASIS)

(Unaudit ed) Fift y-t hree Weeks Ended February 3, 2018

(Thousands)

Earnings Before Income Taxes

Income Tax Provision

GAAP basis

$

$

122,706

(35,475)

Effect ive Tax Rat e

28.9%

Charges/ot her it ems: Tax Cut s and Jobs Act

—

Ret ail operat ions rest ruct uring Acquisit ion, int egrat ion and reorganizat ion of men's brands

(294)

942

(346)

8,912

(3,343)

Tot al charges/ot her it ems

$

9,854

$

(3,983)

Adjust ed basis

$

132,560

$

(39,458)

Language: English

Contact: Caleres Peggy Reilly Tharp, 314-854-4134 pt [email protected]

T icker Slug: Ticker: CAL Exchange: NYSE Source URL: http://investor.caleres.com/press-release/caleres-reports-fourth-quarter-and-full-year-2017-results

29.8%