Caleres, Inc. · NYSE:CAL
Caleres — Investor Day (October 2023)
163 slides from Caleres's investor day presentation, Oct 5, 2023
Slide 1: Caleres Investor Day
CALERES INVESTOR DAY // October 5th, 2023 C7GERIES EST +1878 Famous Footwear | Sam Edelman | Allen Edmands | Naturalizer | Vionic | Dr Scholls | Franco Sarto | LifeStride | Veronica Beard | Vince | Blowfish | Ryka
Slide 2: Welcome
a WELCOME Logan Bonacorsi | Vice President of Investor Relations
Slide 3: Safe Harbor
SAFE HARBOR 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 that coul
Slide 4: Today's Agenda
TODAY’S AGENDA October 5th, 2023 | Convene | 75 Rockefeller Plaza, NYC | 9am - 12pm Keynote — Caleres: A Leading Force in Footwear Jay Schmidt Allen Edmonds - American Heritage Luxury for Men David Law & Ryan Stowe Naturalizer — Comfort. It’s Why We Exist Keith Duplain Vionic - Science That Sets You
Slide 5: Jay Schmidt
JAY SCHMIDT —
Slide 6: Buster Brown Shoes heritage
now Doe Gow, 3 \ STISHIRURAL We made almost a religion of fit... so that we could guarantee “footprint ft” in each and ev of Buster Brown Shoes, which are made on what we cal Foot Lasts.” — We created a principle of con- | struction called “Tread-Straight,” which tends to encourage the child to step
Slide 7: 2023 Forecast
2023 FORECAST °2.8B REVENUE 7.47 ean C AGE Fee S EST + 1878 >6” U.S. MARKET SHARE TV DIRECT TO CONSUMER
Slide 8: Over the last three years we have transformed performance
CAEERES Owe LAST UWRREE YEARS WE HAVE TRANSFORMED OUR COMPANY’S PERFORMANCE
Slide 9: Actions and Results
ACTIONS = ED FOUR BRAND 4 BEARD VINGe. VIA SPIGA DrScholls FAMOUS footwear~ Blowfis ¢ CARLOS DIANE VON Furstensers «= VIONIC CYRQ_ FrancoSarto ELEVATED°‘OUR BRANDS CLOSED 150 SPECIALTY STORES STRATEGIC INVENTOI APPROACH CLOSED OVER 100 FAMOUS FOOTWEAR STORES RESTRUCTURED TEAMS AND. FUNCTIONS & INVES
Slide 10: Strengthened Financial Foundation
STRENGTHENED FINANCIAL FOUNDATION $220MM $180MM INVESTED BUYBACK IN CAPEX AND INVEST- MENTS DIVIDEND ALIGNED INVENTORY WITH DEMAND REDUCED DEBT REDUCED SHARE COUNT Transformation 2019 to 2022 * Includes both web sales and dropship INVESTED IN DESIGN AND INNOVATION, DIGITAL, CONSUMER ANALYTICS, AND S
Slide 11: EPS Baseline
EPS BASELINE 4.00 MORE THAN DOUBLED THE ANNUAL EARNINGS PER SHARE BASELINE WITH STRUCTURAL GHANGES VSS7Z0I9
Slide 12: Leading Force in Footwear
LEADING FORCE IN FOOTWEAR COMPETITIVE ADVANTAGES "ae, i: 2g POWERFUL INNOVATIVE COMPELLING BRANDS PRODUCTS EXPERIENCES
Slide 13: Our Team Brands
OURS TEw GRRE LEAD BRANDS FAMOUS PORTFOLIO FOOTWEAR ii BRANDS Dr. Scholl's , Franco Sarto, LifeStride, Veronica wfish, & Ryka Sam Edelman, Allen Edmonds, Naturalizer, & Vionic 13
Slide 14: Key Messages
KEY MESSAGES ONE GAERERES FAMOUS CALERES BRAND PLATFORM & FOOTWEAR DEEIVERS PORTFOLIO CAPABILITIES ARE GROWS WITH STRONG ACCELERATES ASSETS 7O) GROWTH THE MILLENIAL ACCELERATE FINANCIAL FAMILY PERFORMANCE ?4, GROWTH 14
Slide 15: Brand Portfolio Accelerates Growth
BRAND PORTFOLIO ACCELERATES GROWTH We expect double-digit contribution margins in 2023 and beyond with 50% of our revenue to come from our Brand Portfolio by 2026 15
Slide 16: Lead Brands and Portfolio Brands
LEAD BRANDS PORTFOLIO BRANDS 55% OF REVENUE 45% OF REVENUE VERONICA BEARD $1.3B 2023 ERR NIE: VINCE. Plush WW” 2023F DrScholls OPERATING SHOWS MARGIN & 4 5 FrancoSarto U.S. MARKET SHARE* WOMENS FASHION FOOTWEAR . Be a, FYKO >7% “VIONTIC. = LifeStile
Slide 17: Lead Brands
CALERES LEAD BRANDS NAT ALLEN: 5) EDMONDS a a VIONIC
Slide 18: Lead Brands Growth Vectors
LEAD BRANDS CAG VEGTORS CUSTOMER CATEGORY CHANNEL GEOGRAPHY
Slide 19: Famous Footwear Grows with the Millennial Family
FAMOUS FOOTWEAR GROWS WITH THE MILLENNIAL FAMILY We will gain share with the Millennial family and kids to drive profitable growth and generate strong cash flow 19
Slide 20: Famous Footwear Market Position
FAMOUS FOOTWEAR MARKET POSITION SHOE CHAINS KIDS PENETRATION OMNICHANNEL MARKET SHARE KIDS IN ADULT 860 22% SIZES 410% CONVENIENT OVERALL STORES fe) 14% 28% IN KIDS DIGITAL 78% PENETRATION OF 2019 2023 TOP 10 BRANDS
Slide 21: Famous Footwear Growth Vectors
FAMOUS FOOTWEAR CROW AEE =e rORS FASHION ENGAGING PENETRATION INCLUDING OMNICHANNEL VERTICAL BRANDS EXPERIENCES KIDS AND FAMILY STRATEGY
Slide 22: One Caleres Platform & Capabilities
ONE CALERES PLATFORM & CAPABILITIES ARE AS Siig TO ACCELERATE GROWTH Caleres as a whole is greater than the sum of its parts. We have invested to build capabilities that will be an accelerant to growth 22
Slide 23: Our Team Brands
OURS TEw GRRE LEAD BRANDS FAMOUS a, ME FOOTWEAR = fg PrSchols 7 VIONIC fee VINCE. LifeSbide Fran 23
Slide 24: Our Structure
OUR STRUCTURE ACCEEER ee eaGiROWTH ONE CALERES CAPABILITIES SYNIERGIES TEAM & CULTURE
Slide 25: One Caleres Capabilities
ONE CALERES CAPABILITIES SOURCING DIGITAL & MARKETING & INTERNATIONAL Eee cee LOGISTICS ANALYTICS
Slide 26: One Caleres Synergies
ONE CABBRES , SYNE Baie CONSUMER VERTICAL FILE INTEGRATION INVESTMENT LEVERAGE CONSISTENT PERFORMANCE
Slide 27: One Caleres Vertical Integration
ONE CALERES VERTICAL INTEGRATION BRAND GAINS TO BRAND PORTFOLIO: PORTFOLIO GAINS TO FAMOUS FOOTWEAR: DISTRIBUTION (860 STORES + ONLINE) FASHION ELEVATION ACCESS TO NEW CONSUMERS TREND INJECTION AND SPEED INCREASED BRAND AWARENESS 2026 Goal: DIFFERENTIATION VS. COMPETITORS SCALE 10% of Famous sales P
Slide 28: One Caleres Team & Culture
ONE CALERES oie -& CULTURE COLLABORATION AMBITION TO EDIT T IN & KNOWLEDGE ACTION =‘ SHARING
Slide 29: Strong Financial Performance
3% = 5% REVENUE GROWTH CAGR 11% - 13% EPS GROWTH CACR LOW-TO-MID TEENS ANNUAL TSR TARGET STRONG FINANCIAL PERFORMANCE That generates long term value for shareholders 29
Slide 30: Key Messages
BRAND PORTFOLIO ACCELERATES GROWTH KEY MESSAGES FAMOUS FOOTWEAR GROWS WITH THE MILLENIAL FAMILY ONE GAERERES PLATFORM & CAPABILITIES ARE ASSETS © AC CEEERATE GROWTH CALERES DEEIVERS STRONG FINANCIAL PERFORMANCE 30
Slide 31: Allen Edmonds
Slide 32: An American Heritage Luxury Brand
AN AMERICAN HERITAGE LUXURY BRAND FOUNDED ON CRAFT AND QUALITY INCREATING CLASSICS
Slide 33: Foundation of Revered Icons
iFOUNDATION FZ ff OFREVERED ®t ICONS
Slide 34: Our Core Difference: Handcrafted
OUR CORE DIFFERENCE HANDCRAFTED INPORT PM
Slide 35: Our Core Difference
OUR CORE DIFFERENCE aVER YEARS 5 Nj Milks ses oe
Slide 36: Quality and Sustainability
= ao / f, QUALITY] y? THE ORIGINAL —2-SS SUSTAINABILITY »
Slide 37: Handcrafted in Port Washington, WI
HANDCRAFTED IN PORT WASHINGTON, WI INSPIRED BY TRADITION, DEFINED BY LUXURY AMERICAN MANUFACTURING = QUALITY PW MANUFACTURING INCREASES SPEED, EMPLOYS HIGHER STANDARDS, ENABLES CUSTOMIZATION AND RECRAFTING 60% OF OUR MANUFACTURING 1S DOMESTIC
Slide 38: Handcrafted in Port Washington, WI
HANDCRAFTED IN PORT WASHINGTON, WI REVERED FOR EXQUISITE CRAFTSMANSHIP PW STUDIO 3RINGS OUR HANDCRAFTED, AMERICAN-MADE POSITIONING 10 LIFE ;, FOR OUR STORE CUSTOMER IMMEDIATE INCREASE IN SALES AT STORES REMODELED TO THE PW STUDIO FORMAT PW STUDIO IS THE BLUEPRINT FOR FUTURE STORE GROWTH
Slide 39: Our Product Strategy
OUR PRODUCT STRATEGY ICONS FOR EVERYDAY BOLDER STORYTELLING AND INCREASED SHARE OF CLOSET PARK AVENUE OXFORD PARK AVENUE BOOT PARK AVENUE SNEAKER
Slide 40: Our Product Strategy
OUR PRODUCT STRATEGY BALANCING ASSORTMENT BY EXPANDING CASUAL . BOLDER STORYTI INCREASED SHAR TOFCOST
Slide 41: Collaboration
—_-.- © AEGENDSERIES => COLLABORATION INCREASED CULTURAL RELEVANCE ANDINCLUSIVITY am * ~~
Slide 42: Our Product Strategy
a — OUR PROUCSTRAEY Yi cusTowrRseRieS —— _RECRAFT SERVICES Fl ¥ eek INCREASED CULTURAL RELEVANCE ANDINCLUSIVITY
Slide 43: Allen Edmonds
Ship To: ll ALLEN E °
Slide 44: Footwear Category Adjacencies
, wa FOOTWEAR CATEGORY ADJACENCIES ie , ‘ LIFESTYLEEXPARSION a OE -——_NEXTEENERATION oF CONSUMERS 1 y ——{ a ss , tit TOP OF FUNNEL MARKETING BLUEPRINT FOR GROWTH CONSUMER AND PRODUCT EXPANSION
Slide 45: Select Wholesale Distribution
SELECT WHOLESALE DISTRIBUTION NEW STORES (20 OVER NEXT 4 YEARS) Ry | \y/ a8 N } 4 E-COMMERCE NN { \ Z a N ) \ 4 NEW MARKETS INCLUDING CANADA S \s
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Slide 49: Operating Margin Since Joining Caleres
OPERATING MARGIN SINCE JOINING CALERES
Slide 50: Real Estate Profile and Target Markets
REAL ESTATE PROFILE AND TARGET MARKETS E ALLEN EDMONDS STORES %& OPPORTUNITY MARKETS
Slide 51: Current State 2023 Evolution
ac Ape ——— CURRENT STATE -2023 / yy SORE. / FVOLUTION a -s
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Slide 53: Naturalizer: An Origin of Innovation
Saul c AN ORIGIN OF INNOVATION. a Fo WE PUT WOMEN FIRST FIRST. 7. in YW THE BEAUTIFUL FIT. SINCE 1927.
Slide 54: Women First
First ut Women first. Bt L 7K
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Slide 56: Comfort for All: The Confident Explorer
COMFORT FOR ALL // THE CONFIDENT EXPLORER OUR CORE CUSTOMER SMART | INDEPENDENT | MODERN MILLENNIAL MINDSET FASHION FIRST ORIENTATION ETHNICALLY & RACIALLY DIVERSE VALUES COMFORT, INCLUSIVITY, SOCIAL PROGRESS
Slide 57: Powered for Growth
POWERED FOR GROWTH ACTIONS: o Clarified consumer target o Refined brand vision and differentiators o Elevated and innovated product to align with consumer and vision ° Closed under-performing stores 0 Prioritized premium distribution in wholesale channel o Upgraded digital experience and consumer to
Slide 58: Our Product Philosophy
OUR PRODUCT PHILOSOPHY
Slide 59: Inclusivity Mission
rm MAN \ : ATURALIZE SIVITY MISSI INCLUSIVE SIZI RS | REPRESENTATION
Slide 60: The Power of Icons
THE POWER OF ICONS ae Maxwell Morrison
Slide 61: The Gen N Project: Innovation is in Our DNA
THE GEN N PROJECT // INNOVATION IS IN OUR DNA O Zz O
Slide 62: The Gen N Project: Collaboration Culture
THE GEN N PROJECT // COLLABORATION CULTURE IS IN OUR DNA UNIVERSAL STANDARD DEERICAUMUTYALA FOUNDER OF LIVE TENTED:
Slide 63: Data and Loyalty Drive D2C
DATA AND LOYALTY DRIVE D2C ONLINE BEHAVIOR DEMOGRAPHICS ENGAGEMENT NATURALIZER ENJOY THESE SPECIAL BENEFITS // The beauty of Naturalizer, fit exclusively for you. DEVICES F TRANSACTION
Slide 64: Enhanced Brand Awareness & Perception
ENHANCED BRAND AWARENESS & PERCEPTION VOGUE marie claire } L L } The 14 Best Slingback Heels of 2023 FASHION , ‘These Heels Provide the Best Arch Support Is Naturalizer the Sleeper : So You Can Walk All Day Shoe Brand of Summer? ~> — Gotot| daily Wardrobe Staples That Will Last Forever REFINERY29 Ca
Slide 65: Success Metrics
SUCCESS METRICS 531% +36% N i ae | J INCREASE SOS BPS PROMOTIONAL , GROSS PROFIT 4 IN AUR DAYS % 2022 VS 2019 2022 V§ 2019 2022 VS 2019 AA ao) PRODUCT STAR GiRC ANA (NPD. RATING WOMEN’S FASHION #12 Circana ranking through Q2 2023. Star Rating Q2 2023.
Slide 66: Growth Vectors
GROWTH VECTORS NNEL EXPANSI a Zz eS) DB z = a = a z e) ©) ia = < 1S) e@ LOYALTY PROGRAM e ICONS e DTC EXISTING MARKET ° CDP * INNOVATION - GENN © STRATEGIC WHOLESALE GROWTH © COLLABORATIONS & PROJECT PARTNER EXPANSION NEW MARKETS PARTNERSHIPS e INCLUSIVITY e NEW WHOLESALE DIRECT CANADIAN PARTNERS DI
Slide 67: Naturalizer: An Origin of Innovation
Saul c AN ORIGIN OF INNOVATION. a Fo WE PUT WOMEN FIRST FIRST. 7. in YW THE BEAUTIFUL FIT. SINCE 1927.
Slide 68: Vionic: Science That Sets You in Motion
HAT SETS YOU IN MOTION a a) VE WELL-BEING FOR YOUR FEET IN NORTHERN CALIFORNIA.
Slide 69: Video Plays
VIDEO PLAYS
Slide 70: Original Prototype
ORIGINAL PROTOTYPE 001 INVENTION. INTENTION. OUR AHA MOMENT SYDNEY, AUSTRALIA 1991 SCIENCE IS WHAT LEADS US: WE BEGAN BY REVOLUTIONIZING MEDIAL ORTHOTICS. TODAY WE USE THAT SCIENCE TO ENGINEER A MORE DYNAMIC SHOE.
Slide 71: Marketplace Opportunity: The Well-Being Movement
MARKETPLACE OPPORTUNITY: THE WELL-BEING MOVEMENT VIONIC IS UNIQUELY POSITIONED TO TAP INTO THE GROWING CONSUMER CULTURE OF WELLNESS SEEKING, WHICH ‘@FFERS AN OUTSIZED OPPORTUNITY FOR GROWTH.
Slide 72: Alignment. Prevention. Performance.
ALIGNMENT. PREVENTION. PERFORMANCE.
Slide 73: Product Strategy: Powered by Vio Motion Technology
Slide 74: The Vitals Collection
Slide 75: Accelerating an Icon: The Uptown Franchise
AGCELERATING AN ICON: THE UPTOWN: FRANGHISE: THE ULTIMATE TRAVEL SHOE FEATURING OUR COLLAPSIBLE CONSTRUCTION & EXCLUSIVE 360 FLEX. TECHN@LOGY;
Slide 76: Case Study: Investing to Win
» CASE STUDY // 01 war ann a i || INVESTING TO WIN: ca as ot a ape DRIVING MARKETPLACE MOMENTUM
Slide 77: Perfectly Packable
VIONIC FREE SHIPPING ON ORD! VER $100 NEW & NOW PERFECTLY PACKABLE PERFECTLY PACKABLE SHOP TRAVEL SHOES
Slide 78: Tested by Heeluxe
TESTED BY HEELUXE™ USING EXCLUSIVE TECHNOLOGY TO ANALYZE PERFORMANCE AGAINST COMPETITIVE STYLES IN CONDITIONS THAT DUPLICATE REAL-WORLD WEAR. _ SUPERIOR DYNAMIC STABILITY SUPER|OR FOOT CONTACT & PRESSURE DISTRIBUTION.
Slide 79: Case Study: VRX Series Pipeline
CASE STUDY // 02 —— A PIPELINE RNY TECHNOLOGY. VIONIC'S ADVAN OVERY COLLECTION: THE VRX SERIES COMING SPRING '24
Slide 80: Successful Rebranding
&% SUCCESSFUL REBRANDING cs ENHANCED PRODUCT AESTHETIC » “AND-MODERNIZED MARKETING TONE IT TO WIN ICONS
Slide 81: Success Metrics
Slide 82: Growth Vectors
Slide 83: Customer testimonials
Slide 84: Sam Edelman
Slide 85: Our Purpose
Slide 86: Industry Titans
Slide 87: Success Metrics
Slide 88: The Icons
Slide 89: Icon product rankings
Slide 90: Future Growth
Slide 91: Athletic Expansion
Slide 92: Athletic Expansion: Sneaker Program
Slide 93: Consumer Loyalty
Slide 94: Offline Experiential Approach
Slide 95: Point of Sale
Slide 96: World of Sam
Slide 97: One Caleres: Sam & Libby
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Slide 99: 20 Years of Sam Edelman
Slide 100: 20th Anniversary
Slide 101: Famous Footwear
Slide 102: Video slide placeholder
Slide 103: The Best Shoe Store for the Millennial Family
Slide 104: Success Metrics
Slide 105: Meet Christina: Our Target Customer
Slide 106: We Know Her
Slide 107: Kids All Year Long
Slide 108: Famous for Brands
Slide 109: Convenience & Scale
Slide 110: Inspiring Shopping Experience
Slide 111: Engaging Shopping Experience: Online
Slide 112: Strategies for Sustained Growth
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