Slide 1: Third Quarter 2020 Earnings
Third Quarter CALERE Ss ? 11.19.2020 2020 Earnings
Slide 2: Safe harbor statement
Safe harbor statement 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 uncertainti
Slide 3: Caleres in brief – trailing 12-month view
Caleres in brief – trailing 12-month view 100% 28% Famous Brand Total 0% 0 Footwear Portfolio CAL 2019 2020 Casual/ / Sport-Inspired DTC sales included: Brick-and-mortar retail, owned websites and external drop ship sales 3
Slide 4: Caleres Third Quarter 2020 highlights
Caleres Third Quarter 2020 highlights ~$647 ~$34 $50 million in cash million in sales generated from million of debt repaid operating activities ~25% ~25% growth in owned* growth in digital $38 ~21% ecommerce penetration million decline decline in inventory in expenses *Direct ecommerce sales includ
Slide 5: Sequential improvements in third quarter 2020
Sequential improvements in third quarter 2020 $501M $647M +30% Q2 Q3 improvement $183M $257M +40% Q2 Q3 improvement ($0.57) $0.48 +$1.05 Q2 Q3 improvement 5
Slide 6: Famous Footwear – 2Q'20
Net sales of $391.7 million, down 12 percent vs.3Qug, up ~17% sequentially — Comparable store sales were down 9.1% — Ecommerce sales up 48% year- over-year — Ecommerce penetration rising to 17% Extended back to school drove sales improvement in September Kids penetration rising to 19% in the period
Slide 7: Brand Portfolio – 2Q'20
Brand Portfolio – 2Q’20 *Wellness and Comfort brands include: Vionic, Naturalizer, Dr. Scholl’s, Lifestride, Ryka, Bzees and Blowfish 7
Slide 8: Brand Portfolio – 2Q'20
Close 133 Naturalizer stores in U.S. and Canada Right-size back-office infrastructure and shift talent to amplify digital presence and reallocate capital 4Q20 pre-tax charges between $20 million and $25 million Annual pre-tax benefit of between $10 million and $12 million-or a two-year payback
Slide 9: Caleres Historical Cash Generation and Debt Repayment
Caleres Historical Cash Generation and Debt Repayment $200 $500 $150 $450 ~$140 $400 million $100 reduction $350 $50 $300 $250 $0 $200 2016 2017 2018 2019 1Q20 2Q20 3Q20 $150 Caleres continued to generate cash from operations consistent $100 with historical periods, despite challenging market condit
Slide 10: Other financial metrics
Other financial metrics US$M except per share 3Q’20 3Q’19 YOY Chg Gross profit $257.0 $319.8 (19.6%) Margin 39.7% 40.4% (67 bps) SG&A $236.9 $275.3 (14.0%) Percent of sales 36.6% 34.7% 184 bps Op earnings $20.1 $43.5 (53.8%) Margin 3.1% 5.5% (239 bps) Adj. op earnings $20.1 $44.4 (54.8%) Margin 3.1%
Slide 11: Compelling Value Proposition
Compelling Value Proposition 11
Slide 12: CALERES
CALERES *5B* 11.19.2020 —_ ‘ee he ~< s ene ge
Slide 13: Reconciliation of Non-GAAP net earnings
Reconciliation of Non-GAAP net earnings Third Quarter 2020 Pretax Net EPS Earnings Earnings Adjusted Results $19,775 $18,222 $0.48 Special Charges: Fair value adjustment to Blowfish purchase obligation (5,124) (3,805) (0.10) GAAP Results $14,651 $14,417 $0.38 13