Caleres, Inc. · NYSE:CAL
Caleres — 25th Annual ICR Conference 2023
22 slides from Caleres's conference presentation, Jan 9, 2023
Slide 1: 25th Annual ICR Conference
25th Annual ICR Conference January 9, 2023
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: What Unites Us
What Unites Us To inspire people to feel great...feet first. Passion Curiosity Creativity Caring Accountability A dynamic and growing portfolio of authentic footwear brands built on deep consumer insights, generating unwavering loyalty and trust. NAT FAMOUS + vince. ££ francoSarto = VIONIC 4) ape We
Slide 4: Caleres is uniquely positioned to win
Caleres is uniquely positioned to win Portfolio of diversified brands curated to generate value, serve distinct consumer segments and perform in any market environment On track to deliver another year of record annual earnings per share for fiscal year 2022 Brand portfolio delivering year-over-year
Slide 5: Powerful portfolio of diverse and relevant brands: Lead Brands
Powerful portfolio Powerful portfolioofofdiverse diverse and relevantbrands and relevant brands: L E AD B R AN D S • Product + advocacy brand = high value brand • Higher sales and earnings potential • Expansion opportunity in additional consumer segments (M/W/K), International, sub-brand and/or lice
Slide 6: Powerful portfolio of diverse and relevant brands: Portfolio Brands
Powerful portfolio of diverse and relevant brands P O R T F O L I O B R AN D S • Healthy wholesale business with sustainable growth • No significant investment required to maintain/grow share • Consumer not being served by lead brands • Clear market opportunity and/or alignment with trends • Leverag
Slide 7: Famous Footwear
Famous Footwear O N - T R E N D FA S H I O N F O O T W E A R F O R T H E M I L L E N N I A L FA M I LY B R AN D & M AR K E T I N G Family-focused communication Kids as differentiator 50/50 athletic/non-athletic B R AN D & M AR K E T I N G EXPERIENCE PRODUCT More on-trend fashion for “Her” Millennial
Slide 8: Famous Footwear
Famous Footwear 8
Slide 9: Caleres Capabilities
D E S I G N & I N N O VAT I O N E D I T TO W I N D I G I TAL Caleres Capabilities R E TAI L & W H O L E S AL E M AR K E T I N G SOURCING & LOGISTICS 9
Slide 10: The Strength of the Caleres Portfolio (1Q-3Q)
The Strength of the Caleres Portfolio (1Q-3Q) M AR K E T S H AR E O W N E D . C O M S AL E S AU R G AI N S 6% +52% +25% 2022 Brand Portfolio + Famous vs. 2019 Increase in average AUR Footwear Percentage of Total Footwear Market Sales Source: NPD N E W C U S TO M E R S D2C BUSINESS O W N E D . C O M
Slide 11: Caleres in Brief – Year-to-Date 3Q22
Caleres in Brief – Year-to-Date 3Q22 REVENUE GROSS M ARGIN ADJUSTED RETURN ON SALES in billions of dollars % of net sales EARNINGS PER SHARE % of net sales $2.3 $2.2 $3.86 $2.1 $3.38 44% 44% $1.75 41% 8.3% 7.7% 4.4% YTD-19 YTD-21 YTD-22 YTD-19 YTD-21 YTD-22 YTD-19 YTD-21 YTD-22 YTD-19 YTD-21 YTD-22
Slide 12: Reaffirmed Fiscal 2022 Outlook
Reaffirmed Fiscal 2022* Outlook Consolidated sales range of up four percent to six percent vs. fiscal 2021 Adjusted diluted earnings per share to be between $4.30 and $4.40 4Q22 ending inventory to be up mid-single-digit percent vs. 2021 Full year interest expense to be ~$14 million Full year capita
Slide 13: Caleres expects inventory to end fiscal year 2022 up mid-single digit percent
Caleres expects inventory to end fiscal year 2022 up mid-single digit percent vs. 2021 C AL E R E S FAM O U S F O O T W E AR B R AN D P O R T F O L I O + 20 % + 18 % + 23 % 3Q22 vs. 3Q21 3Q22 vs. 3Q21 3Q22 vs. 3Q21 Flat - 12 % + 14 % 3Q22 vs. 3Q19 3Q22 vs. 3Q19 3Q22 vs. 3Q19 13
Slide 14: Caleres constantly evaluates the most value-enhancing avenue for its free cash flow
Caleres constantly evaluates the most value-enhancing avenue for its free cash flow C AL E R E S S H AR E H O L D E R R E T U R N H I S TO RY in millions of dollars $71 C AL I S C O M M I T T E D T O A F L E X I B L E AP P R O AC H $80 T O C AP I TAL AL L O C AT I O N I N C L U D I N G : $56 $60 $45
Slide 15: Key Priorities 2023
Key Priorities 2023 • Sharpen focus on • Migrate Famous • Capitalize on Lead • Continue to deliver • Build best in Millennial family Footwear to Brand strength to exceptional sales class company, across Famous 50/50 expand/explore and earnings results, team, and Footwear via athletic/non- new growth
Slide 16: Appendix
@7LERES EST + 1878 Appendix
Slide 17: Caleres in Brief – Fiscal Third Quarter 2022
Caleres in Brief – Fiscal Third Quarter 2022 REVENUE GROSS M ARGI N ADJUSTED I N V E N TO RY in millions of dollars % of net sales EARNI NGS PER SHARE in millions of dollars $792 $784 $798 $645 $649 $543 $1.59 43% 43% 40% $1.15 $0.78 3Q19 3Q21 3Q22 3Q19 3Q21 3Q22 3Q19 3Q21 3Q22 3Q19 3Q21 3Q22 3Q22 r
Slide 18: Famous Footwear Q3 Results
Famous Footwear 3 Q 2 2 R E S U LT S Quarterly net sales of $482 million, representing a modest 2.6 percent decline over 3Q21 Comparable sales down 0.8 percent Third quarter gross margin of 44.7 percent, reflecting more normalized pricing and increased promotional activity vs. 3Q21 Third quarter ope
Slide 19: Brand Portfolio Q3 Results
Brand Portfolio 3 Q 2 2 R E S U LT S Quarterly net sales of $323 million, representing a 7.6 percent improvement over 3Q21 and reflecting robust demand for its fashion products Third quarter gross margin of 37.9 percent driven by higher wholesale prices and higher-margin sales Robust quarterly opera
Slide 20: Environmental, Social, Governance (ESG)
Environmental, Social, Governance (ESG) When inspiring people to feel great…feet first, how we do business is as important as how much business we do - an approach that arises from our five-star promise for delivering ESG excellence. ENVIRONMENT SOCIAL GOVERNANCE 100% Diverse Candidate Slate 6 out o
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation SCHEDULE 1 CALERES, INC. Appendix RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) (Unaudited) Thirteen Weeks Ended October 29, 2022 October 30, 2021 November 2
Slide 22: GAAP to Non-GAAP Reconciliation – Fiscal 2022 Outlook
GAAP to Non-GAAP Reconciliation SCHEDULE 2 Appendix CALERES, INC. RECONCILIATION OF DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) – FISCAL 2022 OUTLOOK (Unaudited) Fiscal 2022 Outlook Low High GAAP diluted earnings per share $ 4.23 $ 4.33 Charges/oth