Slide 1: Second Quarter 2024
SECOND QUARTER 2024 September 12, 2024 1
Slide 2: Safe Harbor
SAFE HARBOR UNDER THE P R IVATE S E C UR ITIE S LITIG ATIO N R E F O R M AC T O F 1 9 9 5 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 unce
Slide 3: Brand logos
LifeStride CAE S VINCe. VERONICA BEARD wa be (YUKO. . eo ‘ VY a Plaukgh > “a 4 | MALIBU he Ay, y) 7] Fr 4
Slide 4: Caleres is uniquely positioned to drive long-term shareholder value
C A L E R E S I S U N I Q U E LY P O S I T I O N E D TO D R I V E LO N G -T E R M S H A R E H O L D E R VA LU E T H R E E -Y E A R P L A N T A R G E T S * Merchant driven organization with powerful 3 -5 % % brand assets Exceptional capabilities in sourcing & logistics, digital, marketing and analyti
Slide 5: Caleres in Brief - 2Q24
CALERES IN BRIEF–2Q24 SALES O P E R AT I N G M A R G I N EARNINGS INVENTORY PER SHARE* in Millions of $ in Millions of $ % of Net Sales $771 $738 $696 $683 $676 $661 $661 $566 $1.38 $0.97 9.3% 9.3% $0.95 7.1% $0.85 6.2% 2Q21 2Q22 2Q23 2Q24 2Q21 2Q22 2Q23 2Q24 2Q21 2Q22 2Q23 2Q24 2Q21 2Q22 2Q23 2Q24
Slide 6: Second Quarter Snapshot
S E C O N D Q U A R T E R 2 0 2 4 S N A P S H OT SALES GROSS MARGIN EPS $0.85 $683M Down 1.8% vs. 2Q23 45.5% Up 30 basis points YoY Vs. GAAP EPS of $0.95 and adjusted EPS of $0.98 in 2Q23 DEBT REDUCTION DIRECT TO CONSUMER EBITDA $98M 75% $57.2M Decline in borrowings under the revolving Sales penetra
Slide 7: Brand Portfolio 2Q24
BRAND PORTFOLIO 2Q 24 SALES GROSS MARGIN $285.5M 42.7 % Down 5.1% due to systems Up 140 basis points vs. implementation issues and weak 2Q 23 demand for sandals O P E R AT I N G E A R N I N G S O P E R AT I N G M A R G I N $23.6M 8.3 % Down $3.2M due to sales shortfall Down 60 basis points vs. 2Q 23
Slide 8: Famous Footwear 2Q24
FA M O U S F O OT W E A R 2 Q 2 4 SALES GROSS MARGIN $420.3M 45.0% Up 1.5% vs. 2Q23 due to calendar Down 120 bps vs. s h i f t r e l a t e d t o 5 3 rd w e e k i n 2 0 2 3 2Q 23 KIDS O P E R AT I N G M A R G I N MARKET SHARE 8.2 % 29 % Down 180 bps In Shoes Chains Channel according to Circana Data*
Slide 9: Fiscal 2024 Outlook
FISCAL 2024 OUTLOOK Prior 2024 Annual Revised 2024 Annual Third Quarter Metric Guidance Guidance Guidance Sales Change Flat to up 2% Down low-single digits Flat to down 2% Operating Margin 7.3% - 7.5% 7.0% - 7.1% GAAP EPS $4.30 - $4.60 $3.94 - $4.09 $1.24 - $1.34 Adjusted EPS $4.30 - $4.60 $4.00 - $
Slide 10: Debt Reduction
DEBT REDUCTION CALERES HAS $600 S I G N I F I C A N T LY REDUCED ITS $500 OVERALL DEBT OVER THE LAST $400 SEVERAL YEARS $300 Debt reduction remains a priority $147 $200 0.6x Three-year plan targets: <$100 0.5x $100 < $100 m in total debt < 0.5x debt/EBITDA ratio $0 2019 2020 2021 2022 2023 Q22024 20
Slide 11: Capital Allocation Priorities
C A P I TA L A L LO C AT I O N P R I O R I T I E S Make targeted investments in brands and INVEST FOR ORGANIC GROWTH capabilities with the greatest opportunity for profitable growth CALERES PAY D I V I D E N D Continue to fund our long-standing dividend Priority Level C O N S T A N T LY E VA LU AT E
Slide 12: Key Priorities for 2024
KEY PRIORITIES For 2024 DIRECT ENHANCED CONSUMER SPEED AND ENGAGEMENT AGILITY FA M OUS INVESTING FOOTWEAR I N T E R N AT I O N A L TO POWER CUSTOMER GROWTH GROWTH EXPERIENCE 12
Slide 13: Appendix
APPENDIX 13
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATON CALERES, INC. RECONCILIATION OF DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED EARNINGS PER SHARE (NON-GAAP BASIS) (Unaudited) Diluted Earnings Per Share Thirteen Weeks Ended July 31, 2021 July 30, 2022 July 29, 2023 August 3, 2024 GAAP earnings per share $ 0.97 $
Slide 15: GAAP to Non-GAAP Reconciliation - Segment Results
GAAP TO NON-GAAP RECONCILIATON CALERES, INC. SUMMARY FINANCIAL RESULTS BY SEGMENT SUMMARY FINANCIAL RESULTS CALERES HAS (Unaudited) MADE Famous Footwear Thirteen Weeks Ended Brand Portfolio Eliminations and Other Consolidated August 3, July 29, August 3, July 29, August 3, July 29, August 3, July 29
Slide 16: GAAP to Non-GAAP Reconciliation - EBITDA
GAAP TO NON-GAAP RECONCILIATON CALERES, INC. CALCULATION OF EBITDA AND DEBT/EBITDA LEVERAGE RATIO (NON-GAAP METRICS) CALERES HAS (Unaudited) Thirteen Weeks Ended MADE ($ thousands) August 3, 2024 July 29, 2023 S I G N I F I C A N T EBITDA: Net earnings attributable to Caleres, Inc. $ 29,958 $ 33,943
Slide 17: GAAP to Non-GAAP Reconciliation - Guidance
GAAP TO NON-GAAP RECONCILIATON C A L E R E SCALERES, H A S INC. RECONCILIATION OF DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED DILUTED MADE EARNINGS PER SHARE (NON-GAAP BASIS) – GUIDANCE SIGNIFICANT PROGRESS ON (Unaudited) REDUCING ITS Third Quarter 2024 Fiscal 2024 Low High Low High OVERALL
Slide 18: Thank You
T H A N K YO U 18