Slide 1: Fourth Quarter 2018 Earnings
Fourth Quarter 2018 Earnings March 21, 2019
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 uncertainties
Slide 3: Our Passion, Mission, Values
Our Passion We Are Experts in one thing... Footwear, and we are ferocious about fit. Our Mission To inspire people to feel good ... feet first. Our Values Passion, Accountability, Curiosity, Creativity, Caring Our Vision To create a powerful portfolio of footwear brands built on deep consumer insigh
Slide 4: Strategic accomplishments made in 2018
Strategic accomplishments made in 2018 • Continued market share gains at Brand Portfolio • Acquired new consumer brands • Drove speed-to-market strategy • Transitioned to in-house distribution center • Invested in digital 4
Slide 5: Decisive actions taken in 2018
Decisive actions taken in 2018 • Reduced level of promotional activity at Allen Edmonds • Strengthened brand equity for the long-term • Transitioned people, product and processes • Proactive branding and direct response TV effort • Action around cost structure and production capacity 5
Slide 6: Adjusted diluted EPS – 4Q’18
Adjusted diluted EPS – 4Q’18 4Q’18 adj. EPS of $0.46, excludes $0.08 of dilution related to Vionic interest and trademark amortization expense • Expenses of $2.31 excluded − Allen Edmonds: $2.03 for non-cash impairment of goodwill and intangible assets, and restructuring − Distribution center: $0.08
Slide 7: Adjusted diluted EPS – FY’18
Adjusted diluted EPS – FY’18 FY’18 adj. EPS of $2.31, excludes $0.10 of dilution related to Vionic interest and trademark amortization expense • Expenses of $2.43 excluded − Allen Edmonds: $2.03 non-cash impairment of goodwill and intangible assets, restructuring, and transition of consumer facing a
Slide 8: Other financial metrics
Other financial metrics US$M except per share 4Q’18 4Q’17 4Q Chg FY’18 FY’17 FY Chg Gross profit $277.7 $293.4 -5.3% $1,156.3 $1,168.6 -1.1% Margin 38.6% 41.8% -321 bps 40.8% 42.0% -116 bps Adj. gross profit $287.7 $293.4 -1.9% $1,168.7 $1,173.6 -0.4% Adjusted margin 39.9% 41.8% -182 bps 41.2% 42.1%
Slide 9: Extending winning results in 2019
Extending winning results in 2019 consu mer assort MORE ment TAKE GROW CONSUMER busin MORE EVEN FOCUS ess ACTION MORE indus try Intensifying consumer focus 9
Slide 10: Drive investments, be out first
Drive investments Be out first ECOMMERCE GROWTH BE FIRST ENGINE 10
Slide 11: Opened two new flagships
2) = os Y) 6D w rm = v S (o) rs oe D cS D QO. O 11
Slide 12: Sam Edelman momentum continues
Sam Edelman momentum continues 12
Slide 13: Building on Vionic brand energy
Building on Vionic brand energy 13
Slide 14: Elevating product assortment
Elevating product assortment 14
Slide 15: Launching Famously YOU Rewards
Launching Famously YOU Rewards 15
Slide 16: Targeting digital growth
Targeting digital growth FAMOUS @ footwear SANDAL TREND SHOP SANDAL TREND SHOP (7 (ESEST] WHITE SOLES MacBook Air 16
Slide 17: FY’19 guidance
FY’19 guidance Consolidated sales of $3.0B to $3.05B • Brand Portfolio sales up low- to mid-teens, including acquisitions • Famous Footwear same-store-sales up low- to mid-single digits Adjusted diluted EPS of $2.45 to $2.55 17
Slide 18: Our Passion, Mission, Values
Our Passion We Are Experts in one thing... Footwear, and we are ferocious about fit. Our Mission To inspire people to feel good ... feet first. Our Values Passion, Accountability, Curiosity, Creativity, Caring Our Vision To create a powerful portfolio of footwear brands built on deep consumer insigh
Slide 19: For more information about CAL, contact
For more information about CAL, contact ptharp@caleres.com