Slide 1: First Quarter 2020 Earnings
First Quarter 2020 Earnings June 4, 2020
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: Liquidity Update and Capital Allocation
Liquidity Update and Capital Allocation • Ended the quarter with $187.7 million in cash – a level slightly above when stores closed in mid-March • Have approximately $440 million of borrowings under the revolving credit facility • Increased the available borrowing capacity of the revolving credit fa
Slide 4: COVID-19 Mitigation Efforts
COVID-19 Mitigation Efforts • Established leadership response team • Shuttered entire fleet of brick and mortar operations by March 19 • Implemented a virtual workplace and empowered Associates to work from home • Aligned workforce and related expenses • Managed inventory levels – continuously balan
Slide 5: Famous Footwear – 1Q'20
Famous Footwear – 1Q’20 • Same-store-sales up 12.6 percent • Improved ecommerce sales – Up ~70 percent for the first quarter – Increased triple digits during the period of stores closures – Outpacing expectations even as stores have reopened • Strong performance in top brands, kids and premium brand
Slide 6: Brand Portfolio – 1Q'20
Brand Portfolio – 1Q’20 • Sales of $217.2 million, down ~36 percent year-over-year, reflecting wholesale cancellations and branded store closures during the back half of the quarter • Aggressively managed inventory carefully and exited the quarter down ~18 percent year-over-year Current • To date, 3
Slide 7: Other financial metrics
Other financial metrics US$M except per share 1Q’20 1Q’19 YOY Chg Gross profit $121.9 $279.8 (56.4%) Margin 30.7% 41.3% (1,060 bps) Adj. gross profit $156.9 $287.0 (45.3%) Adjusted margin 39.5% 42.3% (284 bps) SG&A $225.2 $262.1 (-14.1%) Percent of sales 56.7% 38.7% 1,082 bps Op earnings ($426.2) $1
Slide 8: Reconciliation of Non-GAAP net earnings
Reconciliation of Non-GAAP net earnings First Quarter 2020 Pretax Net EPS Earnings Earnings Adjusted Results $(50,406) $(1.30) Special Charges: Goodwill and intangible asset impairment charges (262,719) (218, 506) (5.66) Covid-19 related expenses (1) (93,612) (73,388) (1.90) Fair value adjustment to
Slide 9: Guidance and Capital Allocation Plan
Guidance and Capital Allocation Plan Due to the ongoing business disruption and substantial uncertainty surrounding the impact of COVID-19, Caleres is not providing formal financial guidance for fiscal year 2020 Capital Allocation Plan: • Resume debt reduction initiatives • Maintain long-standing qu
Slide 10: Compelling Value Proposition
Compelling Value Proposition We have the capabilities to meet consumers increasing preference to transact digitally having made critical investments in our digital and fulfillment capabilities platform; We are known for Iconic brands that consumers trust. Consumers now more than ever before are sear