Caleres, Inc. · NYSE:CAL
Caleres — ICR 24th Annual Conference 2022
23 slides from Caleres's conference presentation, Jan 11, 2022
Slide 1: Caleres at the 24th Annual ICR Conference
CALERES x5 Diane Sullivan, Chairman and CEO 24 Annual ICR Conference January 11, 2022
Slide 2: Under the Private Securities Litigation Reform Act of 1995
Under the private securities litigation reform act of 1995 This presentation contains certain forward-looking statements and expectations regarding the company’s future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actu
Slide 3: We Are Customer Focused
We Are Customer Focused We Put the Consumer at the Center of Everything We Do 8) Bi We are CALERES x5 x We Are We Are We Are Diversified & Relevant Footwear Experts Fulfillment Leaders We Have a Portfolio of We Have Unmatched We Deliver Footwear Footwear Brands that are Commitment to Continued Any W
Slide 4: Caleres in brief
Caleres in brief Revenue in billions of dollars $279 $2.08 2019 2020 2021E Revenue from exited brands 2021 Notable Accomplishments: Gross Margin Rate Adjusted Earnings Total Debt Level of net sales inmillions of dollars “oe per share $636 2019 2020 2021E* $518 $4.00-$4.10 n% 37% $2.10 2019 2020 2021
Slide 5: Key Priorities
Key Priorities CALERES x5x Optimize the Entire Portfolio Capture Portfolio Growth Opportunities Unlock Full Potential of the Entire Enterprise Deliver on Capital Allocation Priorities
Slide 6: 1. Optimize the Portfolio
= as oe 1. Optimize the Portfolio Portfolio Prioritization // Leveraging Capabilities ee.
Slide 7: Lead, Grow, Maintain
LEAD GROW MAINTAIN • • • • • • • • • • • •
Slide 8: Our capabilities ensure we are prepared to capture consumer demand opportunities
Our capabilities ensure we are prepared to capture ongoing consumer demand opportunities Design and Innovation Trusted brands, diversified products and innovative craftmanship provide the ability to meet consumer needs and capture growth across trending footwear categories Fulfillment Capabilities F
Slide 9: 2. Capture Portfolio Growth Opportunities
= i wal = wa 2. Capture Portfolio Growth Opportunities Brand Portfolio Recovery // Famous Footwear Strength // Digital Acceleration
Slide 10: The Brand Portfolio is poised for a strong earnings performance in 2022
The Brand Portfolio is poised for a strong earnings performance in 2022 “average of Brand Portfolio earnings for 2016-2019 The Brand Portfolio is well positioned to exceed pre- pandemic earnings levels in 2022 Ongoing strong performances from Sam Edelman, Vionic and Blowfish and improving performanc
Slide 11: Famous Footwear 2022 Priorities
We are targeting another strong earnings year for Famous Footwear Famous Footwear 2022 Priorities Distort big brands Maintain inventory Continue full-price Continued growth of Elevate consumer and explore new and turn levels above selling FamousFootwear.com experience with new emerging brands histor
Slide 12: 3. Unlock Full Potential of the Enterprise
BRAND PORTFOLIO: Focus CROSS-PORTFOLIO
Slide 13: Edit to Grow // Partners that Propel // Vertical Integration and International
Edit to Grow |/ Partners that Propel // Vertical Integration and International {\
Slide 14: Edit to Grow
Consumer Impact. More in stock of what the consumer “loves”; leads to higher EDIT to GR satisfaction and loyalty Rationalize SKU count Brand Impact. Higher retail prices, fewer markdowns and continuous reinforcement of to increase efficiency brand promise and productivity while . ; . focusing on ico
Slide 15: Partners that Propel
fae amazon A NORDSTROM PARTNERS that BML atic FAMOUS PROPEL A cet “om hts . Zapposé *KINOACYS | VANS SKECHERS
Slide 16: Long-term initiatives to unlock value across the portfolio
Caleres is driving long-term initiatives to unlock value across the portfolio Vertical Integration International * Continuing efforts to increase the vertical integration * ATA between our Brand Portfolio and Famous Footwear ihe Gym Lillo gi lala tnetcaerr nels crates a tremendous growth opportunity
Slide 17: 4. Capital Allocation Priorities
Slide 18: Caleres has significantly reduced and strategically repositioned its debt profile
Caleres has significantly reduced and strategically repositioned its debt profile Caleres Debt Profile in millions of dollars $700 * Called all senior notes - effectively extinguishing its $600 long-term debt $500 $400 * Renegotiated more advantageous terms on its $300 credit facility $200 $100 | |
Slide 19: Over the long-term responsible companies are the most profitable companies
Over the long-term responsible companies are the most profitable companies Across our portfolio of brands, we feel passionately that how we do business is as important as how much business we do Published our inaugural environmental, social and governmental (ESG) report in April 2021 This first ESG
Slide 20: Why Invest Now?
Why Invest Now? We have clearly defined capital allocation strategy built around returning a significant percentage of free cash flow to shareholders We believe that the Brand Portfolio is well-positioned to exceed our pre-pandemic earnings levels in 2022 We are targeting another strong earnings yea
Slide 21: Caleres Value Proposition
Caleres Value Proposition We leverage our powerful portfolio of trusted brands to generate strong and durable margins - enterprise-wide We operate a large and successful direct-to-consumer business, anchored by Famous Footwear We generate significant amounts of free cash flow throughout the market c
Slide 22: Appendix
CALERES 4 x5x Appendix January 11, 2022
Slide 23: 2021 Outlook
2021 Outlook Fourth Quarter 2021 * Famous Footwear sales expected to be 10% above 4Qzxg9 levels, and another quarter of record earnings * Brand Portfolio sales are expected to be in line with the 3Qa1 FY21 expectations * Earnings per share of $3.29 to $3.39 or record adjusted earnings per share of b