Caleres, Inc. · NYSE:CAL
Caleres — Brown Shoe — The 26th Annual Consumer Conference 2006
22 slides from Caleres's conference presentation, Jun 6, 2006
Slide 1: Brown Shoe Company – 26th Annual Consumer Conference
Brown Shoe Company The 26th Annual Consumer Conference | June 6-7, 2006, New York, New York GUIDES FOR mjounm | Piperjaftray.
Slide 2: Forward-looking statements
This presentation by Brown Shoe Company, Inc. contains certain forward-looking statements and expectations regarding the Company’s future performance and the future performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ mat
Slide 3: Agenda – NYSE: BWS
Agenda – NYSE: BWS 1) Reshaping our platform 2) Brown Shoe today 3) 2005 accomplishments 4) Strategies for long-term growth – 2006 Guidance 3
Slide 4: Reshaped our Platform – 2001 - 2005
Reshaped our Platform – 2001 - 2005 Sales and Operating Operating Margin Market Share Growth for Earnings Improvement Improvement at Famous Women's Footwear in for BWS (millions $) Footwear U.S. Department Stores * 12.5% 7.0% Operating 2,000 80 Earnings 10.0% 6.0% 5.0% 1,500 60 7.5% 4.0% 12.3% 1,000
Slide 5: Brown Shoe Today -- $2.5 Billion in Sales Projected for 2006
Brown Shoe Today -- $2.5 Billion in Sales Projected for 2006 Unique wholesale-retail platform. Building our brands and retail concepts to gain market share while delivering style to the consumer. Mass 39% Wholesale Merchandisers 61% Retail $300 million § 80 million pairs § 1300 stores § 2000 retail
Slide 6: Overview of our Branded Wholesale Business
Overview of our Branded Wholesale Business: $600 $500 Our Rank among Wholesalers Women’s Fashion Footwear Sales in U.S. Department Stores* $400 Ranked by Parent Company ($ in millions) $300 After Acquisition $200 $100 $0 p oe n p Nike e n rou Sh nies dde Grou ns iborn Brow t G w mp n a a es Bro M CS
Slide 7: Our Portfolio of Brands and their Rank within Zone
Our Portfolio of Brands and their Rank within Zone Zone Zone Sales/Yr Bridge No. 8 $725MM* No. 11 Better No. 2 $850MM* No. 9 Moderate $500MM* No. 3 men; No. 11 No. 3 junior No. 15 women No. 1 Mass $3.3B** Private Label * Total Zone Sales from NPD Group Reported POS Dollar Volume. Market Share positi
Slide 8: Overview of our Retail Businesses
Overview of our Retail Businesses: 8 7 6 No. 1- Family Branded Our Rank Among Top Footwear Retailers % Share of Dollars 5 Share of Footwear Sales by Retailer* 4 3 2 1 0 No. 4- Women's Specialty W s ars et art t 's ss y ar ted e hl' l m iva r nn rd rg DS ke Lin Km r yle M Se ea tro Ko lla Ta ra Pe rn
Slide 9: 2005 Accomplishments
2005 Accomplishments 1) Sales growth of 18% to $2.3 billion; EPS $1.45 – up 31% on an adjusted basis to $2.22** 2) Retail § Famous Footwear progress continues – operating earnings up 11% § Restructured Naturalizer store base § Doubled e-commerce sales 3) Wholesale – operating earnings up 78% § Acqui
Slide 10: 2006 Priorities and Growth Drivers
2006 Priorities and Growth Drivers 1) Increased traction at Famous Footwear § Comp-store sales planned at 2%-3% 2) Potential of new Wholesale "sell-through" business model 3) Opportunities from better-grade brands 4) Specialty Retail improvement 5) Continued e-commerce growth 10
Slide 11: Q1-2006 Performance and Guidance
Q1-2006 Performance § Sales up 10% – driven by full-quarter of Bennett business § EPS of $0.35 – ahead of expectations First Half Guidance* § Sales up 8% to $1.155-$1.165 billion § EPS of $0.72-$0.78 – versus $0.28 LY (up 19% on an adjusted basis**) Full-Year Guidance* § Sales up 8% to $2.48 billion
Slide 12: Key Strategies for Long-Term Growth
Key Strategies for Long-Term Growth: 1) Create differentiation – for our stores, our brands, our footwear 2) Create consumer preference with compelling footwear design & styles 3) Lead in Speed-to-Market – to increase sell-throughs and reduce markdown risk 4) Build our portfolio of brands Balance Gr
Slide 13: Long-Term Goal – High single-digit revenue growth, 10-15% earnings growth
Long-Term Goal – Targeting high single-digit revenue growth and 10-15% compound earnings growth rate Longer term growth drivers: n Famous Footwear – creating differentiation with preference to provide the basis for significant door count expansion n Wholesale – achieving margin and market share oppo
Slide 14: Financial Highlights & Appendix
Financial Highlights & Appendix 14
Slide 15: Sales and EPS – 2001 to Estimated 2006
Sales and EPS – 2001 to Estimated 2006* Sales in Billions Earnings Per Share $2.48 Billion $2.5 $2.50 $2.25 – $2.30* $2.0 $2.00 $1.5 $1.50 FY 2005 includes $0.77 per share of charges from $1.0 $1.00 closing unproductive stores, acquiring Bennett and repatriating $0.5 $0.50 foreign earnings. $0.0 $0.
Slide 16: Debt to Capital Ratio
Debt to Capital Ratio (Millions of dollars, except for Debt to Capital Ratio) Debt to Capital Ratio 2005 2004 2003 2002 2001 Total Debt Obligations* $ 200 $ 142 $ 120 $ 152 $ 216 Total Shareholders' Equity 434 391 350 292 253 Total Capital $ 634 $ 533 $ 470 $ 444 $ 469 Debt to Capital Ratio** 31.5%
Slide 17: Distinct Wholesale Portfolio
Distinct Wholesale Portfolio Projected for 2006 17
Slide 18: Famous Footwear -- Sales by category
Famous Footwear -- Sales by category Based on 12 months ended January 2006 Accessories 4% 4% 5% 5% Athletic 9% 9% Kid’s 29% 29% 17% 17% Women’s Men’s Athletic 15% 15% Athletic 21% 21% 18
Slide 19: Reconciliation of Net Earnings to Adjusted Net Earnings 2003–2006
Appendix: Schedule 1 Reconciliation of Net Earnings to Adjusted Net Earnings 2003 – 2006 Estimated* 2006 Estimated Range Low - High 2005 2004 2003 ($ in millions, except EPS data) Net Net Net Net Earnings EPS Earnings EPS Earnings EPS Earnings EPS GAAP Results $ 65 - 67 $ 2.25-2.30 $ 41.0 $ 1.45 $ 4
Slide 20: Reconciliation of EPS Guidance to Adjusted EPS Guidance
Appendix: Schedule 2 Reconciliation of EPS Guidance (GAAP Basis) to EPS Guidance Adjusted to Exclude Charges (Non-GAAP)* st st nd 1 Quarter 1 Quarter Estimated 2 Quarter nd 2006 2005 2 Quarter 2006 2005 Diluted EPS Diluted EPS Diluted Diluted Diluted EPS EPS (low) EPS (high) GAAP Earnings $0.35 $0.1
Slide 21: Reconciliation of Operating Earnings to Adjusted Operating Earnings
Appendix: Schedule 3 Reconciliation of Operating Earnings to Adjusted Operating Earnings (in millions) 2005 2004 2003 2002 2001 Operating Earnings $ 88.6 $ 63.8 $ 72.9 $ 71.7 $ 11.1 Special Charges and Recoveries Naturalizer Restructuring 14.7 - - (0.5) 16.8 Famous Footwear Inventory Write-Down - -
Slide 22: Reconciliation of Net Earnings to EBITDA and Adjusted EBITDA
Appendix: Schedule 4 Reconciliation of Net Earnings to EBITDA* and Adjusted EBITDA ($ in millions) 2005 2004 2003 Net Earnings $ 41.0 $ 43.3 $ 46.2 Interest Expense, net 17.5 7.5 9.3 Income Tax Provision 30.1 13.0 17.3 Depreciation and Amortization 40.3 31.9 30.7 EBITDA* $ 128.9 $ 95.7 $ 103.5 Speci
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