Caleres, Inc. · NYSE:CAL
Caleres — Brown Shoe — Investor Day (June 2012)
98 slides from Caleres's investor day presentation, Jun 27, 2012
Slide 1: Brown Shoe Company Investor Day 2012
Brown Shoe Company Investor Day 2012 June 27, 2012 BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST
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 future performance of its brands. Such statements are subject to various risks and unc
Slide 3: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST
Slide 4: Our mission
Our Our mission mission BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST
Slide 5: Our vision
Our Our vision vision BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST
Slide 6: Our values
Our Our values values BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST
Slide 7: Consumer trends: Family
Consumer trends FAMILY In the midst of a new baby boom, we realize the CHANGIN changing priorities and expectations of the modern family and the way they shop. We need to redefine our approach, NG VALUES offer and experience (beyond marketing) in response to these changing values. The attitudes and
Slide 8: Consumer trends: Wellness and comfort
Consumer trends HEALTHY LIVING WELLNESS Wellness and Comfort extends beyond traditional fitness. It is a holistic belief system that crosses c osses through t oug S & COMFOR work, home, and social activities, and continues to grow in a variety of industries to engage those consumers who want RT lif
Slide 9: Consumer trends: Contemporary fashion
Consumer trends CONTEMPORARY FASHION F hi Fashion h has transitioned over the NEW PER last few years and become more accessible across price-points, RSPECTIVES resulting in new perspectives on modern style. This represents a shift to a more personal, individual and meaningful relationship with fashi
Slide 10: Three consumer platforms
Three consumer platforms CONTEMPORARY FASHION FAMILY HEALTHY LIVING BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 10
Slide 11: Strategic framework
Strategic framework Mission To inspire people to feel good and live better.... feet first! Strategies 1 2 3 4 Focus on Three Evolve and Align the Drive Investment Create Consumer, Consumer Platforms Portfolio with the Returns Product and Consumer Platforms Innovation Culture • Aligning people, • Man
Slide 12: Why we believe in this strategic framework
Why we believe in this strategic framework Our strategic plan begins with the consumer, participates in the macro-consumer trends and leverages our core brands that fit naturally with the consumer platforms Aligned with consumer growth opportunities Company assets align well with the three consumer
Slide 13: A strong base
A strong base Top Women’s Fashion Footwear Wholesalers(1) $900 12ME May 2010 12ME May 2011 12ME May 2012 $600 US$M $300 $0 Deckers Skechers Clarks Brown Shoe Nike Steve Madden Jimlar H.H. Brown Nine West Camuto Collective Company S Top Shoe Chain Retailers(2) 12ME May 2010 12ME May 2011 12ME May 201
Slide 14: Solid strategy for reaching long-term financial goals
Solid strategy for reaching long-term financial goals Eliminated underperforming and poorly aligned assets Better positioned for success in 2013 and beyond. y We continue to deliver against our portfolio realignment Becoming leaner, stronger efforts in 2012. and d more profitable fit bl Long term go
Slide 15: Today's agenda
Today’s agenda Time Topic Speaker Location Brown Shoe Company Diane Sullivan 10:00 a.m. ET Via Spiga showroom strategic overview • President and CEO Led by Rick Ausick Famous Footwear 10:30 a a.m. m ET • President Famous Famo s Via Spiga showroom overview Footwear 11:30 a.m. ET Break Healthy y Livin
Slide 16: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST
Slide 17: Famous Footwear
Famous Footwear Rick Ri kAAusick i k - President, P id t Famous F Footwear F t Will Smith - SVP, Retail Marketing Brad Adams - SVP, D2C BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST
Slide 18: Famous Footwear strengths
Famous Footwear strengths • Focused on trend-right athletic and casual styles for family • Strong national brands consumers know and want • Powerful national footprint • Edited assortment of known brands • Easy to shop experience • Price and product strategy that consumers recognize as a value BROWN
Slide 19: Famous Footwear: growth strategy
Famous Footwear : growth strategy • Edited brand assortment Inventory • Optimization of systems and logistics • National footprint Productivity • Portfolio optimization Real Estate Growth • Tighter financial criteria • New store openings • Rewards PLUS Consumer • Mobile differentiated Engagemen t •
Slide 20: Inventory: focused brand assortment
Inventory : focused brand assortment Athletic Women’s Men’s Kid’s BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 20
Slide 21: Inventory: optimization efforts
Inventory : optimization efforts Current State Upgraded planning and assortment system Invested in key high-margin, long-lifecycle inventory Add d ttrend-right Added d i ht andd core wide-width id idth inventory Aligned DCs to reduce costs, improved efficiency Instituted dropship Next Steps Enhance
Slide 22: Inventory: edited brand assortment across our stores
Inventory : edited brand assortment across our stores BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 22
Slide 23: Real estate: national store footprint
Real estate : national store footprint BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 23
Slide 24: Real estate: portfolio optimization
Real estate : portfolio optimization Sales per p Sq. q Ft. New stores $220 • Stringent financial criteria set 22% Growth – Sales, sales PSF, ROS, ROIC • Success factors $180 – Established centers – Mature trade areas US$ – Consumer profile data – New design elements $140 – Populate new outlet malls
Slide 25: Real estate: potential new store economics
Real estate : potential new store economics 2012 New Stores Metrics Store size 5,500 sq. ft. CAPEX (1) $115,000 Inventory $240,000 Total initial investment $355,000 2012 Unit Economics Year 1 Year 3 Change Sales $1,175K $1,325K $ ,3 5 13% 3% Sales per sq. ft. $214 $240 12% After tax ROIC 8% 20% 1,20
Slide 26: Real estate: planned 2012 to 2014 portfolio activity
Real estate : planned 2012 to 2014 portfolio activity Planned Store Openings Number of Stores Sales Sales per Sq. Ft. Operating Earnings 165 $230M $240 $13M Planned Store Closings Number of Stores Sales Sales per Sq. Ft. Operating (Loss) 190 $160M $120 ($7M) Potential Improvement $20M Note: store op
Slide 27: Consumer engagement: growing the business
Consumer engagement : growing the business 150 Traffic Conversion Improvement • 106.6M Famous Footwear 120 store visitors in 2011 Millions 90 – Nearly 25% converted 60 to consumers for total sales of $1.5B 30 2011 + 10 bps + 100 bps – 10 bps improvement in conversion rate would $1,800 add ~$6M in sa
Slide 28: Consumer engagement: growing Rewards base
Consumer engagement : growing Rewards base (1) Rewards Members • Total Rewards sales = $900M 9.0 – 60% of total sales – 55% of web sales 8.5 • Average g annual spend p – Single-channel = $100 – Omni-channel = $160 Miillions 8.0 • Average annual transactions – Single-channel = 2.0 7.5 – Omni-channel
Slide 29: Consumer engagement: omni-channel
Consumer engagement : omni-channel Current State Expected State • 138 million online impressions Naturally evolve Famous • Over 29 million visits Footwear consumer experience p • More than 9,000 skus • 1+ million in smartphone Intuitively and systematically purchases via Famous connect our stores, s
Slide 30: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 30
Slide 31: Consumer engagement: social and interactive
Consumer engagement : social and interactive Digital world opportunity BWS omni-channel opportunity • Lower cost • Inventory, assortment, fulfillment • Higher brand engagement • Consumer engagement • Driving store traffic • Empowered Associates • Paths to web shopping • Price clarity • Web branding
Slide 32: Brand differentiating marketing
Brand differentiating marketing BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 32
Slide 33: Vision
Vision BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 33
Slide 34: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 34
Slide 35: Value proposition
Value proposition BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 35
Slide 36: Famous value proposition
[ FAMous Aa VICTORY IS YOURS FAMOUSLY EASY ‘Shop for your whole family under one roo! Knowledgeable sales associates FULFILLMENT If you can't find it, we'll ship it LOCATIONS 1,100 stores, online or on-the-go 36
Slide 37: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 37
Slide 38: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 38
Slide 39: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 39
Slide 40: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 40
Slide 41: Pathway to Victory
Pathway to Victory • Diversify media mix • Integrate and elevate in-store imagery and product storytelling • Drive category leadership around family-shop • Enhance and extend digital, social and consumer engagement tactics BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 41
Slide 42: New campaign: highlights
New campaign : highlights • Showcases brands • Incredible shoe shots • Insight into mind of M Mom andd Dad D d • Consistent • Build each season BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 42
Slide 43: New campaign: examples
New campaign : examples • Nike • Sperry • Adidas • New Balance • DC • Nike BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 43
Slide 44: 2012 Back to School media highlights
2012 Back to School media highlights Continue to employ media we know works, while diversifying to extend reach and increase coverage to more stores Media we know works.... New media for BTS 2012 • National N ti l TV remains i core • National TV expanded to include of plan network early morning • Ne
Slide 45: New elevated contemporary imagery
New elevated contemporary imagery BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 45
Slide 46: How Victory comes to life
HOW VICTORY COMES 10 LIFE 2» Ase, \ r i} eo al \\ | | = p | & : : et HW UU « U . he FAMOUS 4@ footwear 46
Slide 47: Our Victory will come through...
Our Victory will come through... • National brand impact – Known, wanted brands • Easy shopping experience – National footprint – Targeting family with product and convenience – Service model gives consumers what h t they th wantt • Better consumer engagement – Rewards – Social/digital shopping • Pr
Slide 48: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 48
Slide 49: Famous Footwear
Famous Footwear BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST
Slide 50: Healthy Living
Healthy Living John J h M Mazurk k - President P id t John Malpiedi - GM, Naturalizer Brands Deb Krivelow - GM, LifeStride Keith Duplain - GM, GM Dr Dr. Scholl Scholl’s s Shoes Tim Joyce - GM, Avia and Ryka Dave Vattes - Director, Footwear Innovation BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE
Slide 51: Healthy Living: creating a marketplace advantage
Healthy Living : creating a marketplace advantage Strategy Tactics • Product • F.I.T. – Established Footwear – Comfort plus additional Innovation Team to create, measurable benefit improve, test, commercialize • Community • Consumer driven – Connection to something – Immersed in lifestyle y to bigge
Slide 52: Naturalizer brand overview
• Brand : first American f footwear brand b d designed d i d exclusively for women – 85 year heritage of delivering innovative comfort, fit and style • Consumer : 8M women buy Naturalizer annually in U.S. – Busy B 24/7 life lif -- wants t shoes that feel as good at end of day as at beginning • Stren
Slide 53: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 53
Slide 54: LifeStride brand overview
• Brand : enabling women to move from work to weekend in their own unique style – For over 70 years • Consumer : women who want trend-right footwear – At an affordable price – For their on-the-go lifestyle – No. 2 women’s fashion footwear brand in shoe chains (1) • Strength : comfort, comfort follow
Slide 55: LifeStride SoftSystem: science behind technology
LifeStride SoftSystem : science behind technology Pressure mapping comparison Before After • Soft delivers an all day comfort f experience i – Lower pressure – Optimum flexibility – Provides cushioning – Increases foot contact and comfort perception – Conforms to custom footprint – Less L ffoott ffa
Slide 56: Dr. Scholl's brand overview
• Brand : Authentic A American i lif lifestyle l brand b d – 97% consumer awareness – 100 years of making feet feel good • Consumer : attracts broad range via multiple channels – Men and women who live active, healthy lives in relaxed style • Strength : footwear that incorporates comfort, innovation
Slide 57: Dr. Scholl's Shoes: product strategy
Dr. Scholl’s Shoes : product strategy BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 57
Slide 58: Avia brand overview
• Brand : founded in 1979 on a passion i to provide id footwear for serious athletes – As technology ec o ogy ad advanced, a ced, so did we -- developing innovative shoe designs that revolutionized athletic footwear • Consumer : active fitness minded adults -- health and wellness take precedence • S
Slide 59: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
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Slide 60: Ryka brand overview
• Brand : the women only sport company for f 25 years – Dedicated to innovative solutions for women’s athletic gear • Consumer : unique, loyal consumer who relies on Ryka for style, performance – Values involvement in women’s social causes • Strength : Ryka stands out in a cluttered athletic footwea
Slide 61: Ryka product features
Staggered flex channels Deep flex vents (2) Outsole grade EVA Structured overlays for support Higher side walls for medial control Outsole grade EVA (1) Low density foam Proprietary low density foam BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 61
Slide 62: Healthy Living
Healthy Living BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST
Slide 63: Contemporary Fashion
Contemporary Fashion Jay S J Schmidt h idt - President P id t Donna Siciliano - SVP and GM, Franco Sarto Jennifer Masella - VP and GM, Image Brands BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST
Slide 64: Contemporary Fashion: approach and mission
Contemporary Fashion : approach and mission Approach Mission • Constant flow of product • Drive business by... addresses modern, on- – Investing in talent trend customer who.... – Producing best-in-class footwear – Loves fashion – Unleashing superior value – Wants it more often across each brand – U
Slide 65: Vince footwear line
“The new Vince footwear line will stand out in the contemporary market for its easy, effortless wearability.” – Carla DeFreitas, design director • Footwear license based on successful sportswear line • Relaxed, luxury, casual footwear – Launched February 2012 – Sourced in Italy • Key top-tier accoun
Slide 66: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
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Slide 67: Footwear vision: youthful and eclectic
• Footwear vision : youthful and eclectic – Pairing unique materials with unexpected t d detailing d t ili • New brand identity for fall 2012 • Redefine wear to work category • Explode signature jeweled fashion footwear BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 67
Slide 68: Fall 2012 Campaign
Fall 2012 Campaign : Elle : Harper’s Bazaar : Vogue :W BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 68
Slide 69: Via Spiga brand elevation
“Via Spiga is a brand that has stoodd out to me. It’s I ’ very exciting to meet this challenge with a brand that aligns with my personal design philosophy.” – Edmundo Castillo, creative director • Continue brand elevation – Ensure strong fall 2012 launch -- retail events, social media, media PR and
Slide 70: Fall 2012 Campaign
Fall 2012 Campaign Elle : Harper’s Bazaar : Vogue : BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 70
Slide 71: Creative visionary and legend in footwear
• Creative visionary and l legend d in i footwear f industry i d • Shoes built straight from the hottest trends and runways around d the h worldld – At a price-point every woman can afford • Imaginative, trend-on, must-have shoes – Seen everywhere y from the hottest fashion magazines to the soles of
Slide 72: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 72
Slide 73: Founded in 1991: three-tiered strategy
• Founded in 1991 – Continues to deliver superbly crafted, modern fashion footwear • Three tiered strategy Three-tiered – Drive elevated fashion to better department store consumers via Artist’s Collection – Intensify core assortments, depth and strategies – Successes and learnings being translated
Slide 74: Fall 2012 Campaign
Fall 2012 Campaign : Vogue BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 74
Slide 75: Carlos Santana collection: The Sound of Style
“Music inspired my collection. The beauty of color, the beauty of symmetry, the beauty of passion… all of that together h reallyll makes k a beautiful shoe.” – Carlos Santana • Th Sound The S d off Style St l – Vibrant colors, textured materials and details – The woman who dresses to be noticed – St
Slide 76: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
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Slide 77: Fergie partnership
“As we enter the fifth year of this partnership, I couldn’t be happier. These lines reflect my style - feminine, f fun andd sexy...”” – Fergie, Grammy Award- winning artist • Two-tier Two tier strategy • New design director – Carlos Molina • Confident, C fid t chic hi ffootwear t with glam rock infl
Slide 78: BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD
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Slide 79: Contemporary Fashion: summary
Contemporary Fashion : summary • Investment in talent • Best-in-class product • Relevant brand portfolio • Superior value across each brand BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 79
Slide 80: Contemporary Fashion
Contemporary Fashion BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST
Slide 81: Financial Overview
Financial Overview R Russ H Hammer, CFO BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST
Slide 82: Why Brown Shoe Company
Why Brown Shoe Company 1. Strong portfolio of brands aligned with consumer trends 2. Executing against portfolio realignment efforts 3. Targeting long-term earnings growth 4. Well positioned balance sheet 5. Strong management team Not the same Brown Shoe Company... focused, dynamic and executing for
Slide 83: 1. Strong portfolio of brands
1. Strong portfolio of brands Aligned with long-term consumer trends Family Wholesale • Famous Footwear : • Contemporary Fashion a leading footwear chain – Fastest growing part of wholesale portfolio • Healthy Living – Diversified across mass, mid-tier, $2,000 $900 department store channels $1,000 $
Slide 84: 2. Executing against portfolio realignment
2. Executing against portfolio realignment Cash & Timing of Timing of Revenue SG&A EBIT Event Non-Cash Completion Benefit Reduction Savings Benefit Costs Infrastructure $17 $7 $7 Closed Sun Prairie distribution 1Q’12 2Q’12 center Closed China factory 4Q’11 2012 Closing g Sikeston distribution 2H’12
Slide 85: 2. Strategy driving results: strong 1Q'12
2. Strategy driving results : strong 1Q’12 • Executing tough but necessary portfolio realignment work – Eliminating related indirect costs • Topline sales growth and good expense management – Good weather, weather earlier Easter holiday and easier quarterly comp – Seeing positive results from portfo
Slide 86: 3. Targeting long-term earnings growth
3. Targeting long-term earnings growth Continued execution of successful real estate strategy $220 Famous Footwear sales per square foot growth of 22% $180 S$ US $140 $100 2008 2009 2010 2011 2012P 2013P 2014P BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 86
Slide 87: 3. Targeting long-term earnings growth: omni-channel
3. Targeting long-term earnings growth • Growing omni-channel to respond to consumer demand – Optimizing shoes.com operating model – Continuing to grow Famous Footwear omni-channel – Maximizing Naturalizer by expanding omni-channel strategy Total E-commerce Famous.com Naturalizer Sales $200 sales gr
Slide 88: 3. Targeting long-term earnings growth: wholesale
3. Targeting long-term earnings growth • Exiting brands as part of portfolio realignment – Adapting to industry changes • Aligning portfolio against long-term consumer trends – Contemporary Fashion sharpening focus on key brands – Healthy Living combining comfort with style • Leads to targeted high-
Slide 89: 3. Targeting long-term earnings growth: SG&A
3. Targeting long-term earnings growth Reducing SG&A and infrastructure costs 40% 38% SG&A as a Percent of Sales 36% 34% 32% 30% 2008 2009 2010 2011 2012P 2013P 2014P BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST 89
Slide 90: 4. Improving balance sheet strength
4. Improving balance sheet strength • Improved capital structure and liquidity • Expanded revolver from $350M to $530M • Employing strong operational cash flows and efficient use of working capital to pay down outstanding borrowings • Improving debt to capital ratio (1) (1) Debt to Capital Working C
Slide 91: Results: steady progress toward long-term goals
Results : steady progress toward long-term goals • Realistic sales growth assumptions with focus on improving profitability • Continued reduction of direct and indirect costs through portfolio realignment efforts • Long-term growth targets of 15% adjusted ROIC and adjusted operating margin of 8% Adj
Slide 92: Maintaining 2012 guidance
Maintaining 2012 guidance Metric FY’12 Consolidated net sales $2.57 to $2.59 billion Famous Footwear same-store sales Flat to up low single-digits Down low single-digits, Wholesale Operations net sales reflecting brand exits Gross profit margin Up 20 to 40 basis points SG&A $920 to $925 million Non-
Slide 93: Why Brown Shoe Company
Why Brown Shoe Company 1. Strong portfolio of brands aligned with consumer trends 2. Executing against portfolio realignment efforts 3. Targeting long-term earnings growth 4. Well ll positioned d balance b l sheet h 5. Strong management team Not the same Brown Shoe Company... focused, dynamic and ex
Slide 94: Additional Materials
Additional Materials BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST
Slide 95: Brown Shoe Company participants
Brown Shoe Company participants Diane Sullivan Russ Hammer President and CEO SVP and CFO With BWS since 2004 With BWS since 2012 Over 25 years industry experience Over 30 years finance experience Rick Ausick Sam Edelman President, Famous Footwear President, Sam Edelman Shoe With BWS since 2002 With
Slide 96: Brown Shoe Company participants
Brown Shoe Company participants Brad Adams Keith Duplain SVP, D2C and shoes.com SVP and GM, Dr. Scholl’s Shoes With BWS since 1982 With BWS since 2005 Over 30 years industry experience Over 17 years industry experience Tim Joyce John Malpiedi SVP and GM, Brown California SVP and GM, Naturalizer Bran
Slide 97: Brown Shoe Company structure
Brown Shoe Company structure President and CEO Global General Talent and Famous Healthy Contemp. Supply Finance Counsel, Strategy Footwear Living Fashion Chain Corp. Secy. Sourcing Talent Treasury Audit Strategic Supply Chain Finance Legal Planning Information Risk International Systems Management I
Slide 98: For more information
For more information Peggy ggy Reilly y Tharpp VP, Investor Relations 314.854.4134 ptharp@brownshoe.com BROWN SHOE COMPANY: INSPIRE PEOPLE FEEL GOOD LIVE BETTER FEET FIRST