Caleres, Inc. · NYSE:CAL
Caleres — Investor Day (October 2019)
113 slides from Caleres's investor day presentation, Oct 2, 2019
Slide 1: Investor Day 10.02.19
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Slide 2: Ken Hannah
Ken Hannah SVP Chief Financial Officer !2
Slide 3: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This press release 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 uncertaintie
Slide 4: Diane Sullivan
Diane Sullivan Chairman, CEO, President !4
Slide 5: CAL 101: We Are Consumer Focused
CAL101 We Are Consumer Focused We Put the Consumer at the Center of Everything We Do !5
Slide 6: Caleres Has Been Driven by Footwear Consumer Insights From the Very Beginning
Caleres Has Been Driven by Footwear Consumer Insights From the Very Beginning 1860s 1860s 1940s 1980s 2000s 2010s Left and right Physiological Life stage People are People are Consumer need feet are shaped differences influences type of shopping for shopping for shoes for service, speed differently
Slide 7: CAL 101: We Are Diversified and Relevant
CAL101 We Are Diversified and Relevant We Have a Portfolio of Footwear Brands that are Authentic and Differentiated !7
Slide 8: CAL 101: We Are Footwear Experts
CAL101 Feel Fit We Are Footwear Experts We Have an Unmatched Commitment to Continued Innovation Quality Craftsmanship !8
Slide 9: CAL 101: We Are Service Leaders
CAL101 Wholesale / Retail Partners Caleres Distribution Centers We Are Service Leaders 100M Pairs of Footwear Delivered Any Way You Want to Shop Caleres eCommerce Owned Retail Platforms !9
Slide 10: CAL 101: A Unique Set of Advantages
CAL101 A Unique Set of Advantages We Are We Are We Are We Are Consumer Focused Diversified and Footwear Experts Service Leaders Relevant We Put the Consumer We Have a Portfolio of We Have an Unmatched 100M Pairs of Footwear at the Center of Everything Footwear Brands that are Commitment to Continued
Slide 11: And, The Company We Keep is Second to None
And, The Company We Keep is Second to None !11
Slide 12: Over Time, We Have Elevated Our Ambitions and Outcomes
Over Time, We Have Elevated Our Ambitions and Outcomes 2011-2015 2015-2019 Leaner, Stronger, and More Profitable Invest for Growth Focused on the Three Evolve the Portfolio Consumer Platforms Incubate and Add Brands Drive Earnings Growth Invest in Infrastructure Consumer Centric Culture to Compete !
Slide 13: Consumer Expectations and Behaviors Have Changed Dramatically
Proliferation “I want it now, conveniently, Mobile Technology and of Choice easily, seamlessly” Social Media Explosion Consumer Expectations and Behaviors Have Changed Dramatically Blurring of Athletic Sustainability and Social BrandsMatter Brands Matter and Fashion Responsibility !13
Slide 14: In Anticipation of Consumer Evolution, Caleres Has Also Changed
Portfolio Capabilities Teams Existing Brands Reimagined Speed to Market Brand Development and Diversified Sourcing Product Design Leadership New Brand Acquired New Brands Incubated Consumer Fulfillment Consumer Marketing New Partnerships eCommerce Insights and Analytics In Brands Exited BOPIS Antici
Slide 15: And, By Many Measures We Are Winning
Brands From Market Share 4 in Top 25 Increase From 4.6% t0 5.3% to 6 in Top 25 And, By Many Measures We Are Winning With The Consumer eCommerce 8 Consecutive From 7% to 21% BTS of Sales Comp Growth !15
Slide 16: Our Next Chapter will be Radically, Quietly Different
Our Next Chapter will be Radically, Quietly Different 2011-2015 2015-2019 2019 - 2022 Leaner, Stronger, and More Profitable Invest for Growth What’s Next? Focused on Three Consumer Platforms Evolve the Portfolio Drive Earnings growth Incubate and Add Brands Consumer Centric Culture Invest in Infrast
Slide 17: 2019 Our Next Chapter 2022
2019 Our Next 2022 Chapter !17
Slide 18: What Unites Us
What Unites Us Our Our Our Our Our Our Passion Purpose Values Vision Advantage People We Are Experts in one To inspire people to Passion, A powerful portfolio Authentic and In everything we do, thing… Footwear, feel great… Accountability, of footwear brands differentiated brands we strive to be the
Slide 19: Powerful Brands with Deep Consumer Connections
Powerful Brands with Deep Consumer Connections Essential Balance Modern Heritage Self Expression Forward Movement Brands that are for active families who Brands that are for people who possess Brands that are for people who hold Brands that are for people who are prioritize ease, value and style whi
Slide 20: Our Next Chapter will be Radically, Quietly Different
Our Next Chapter will be Radically, Quietly Different 2011-2015 2015-2019 2019 - 2022 Leaner, Stronger, and More Profitable Invest for Growth Leverage Investments and Insights Focused on Three Consumer Platforms Evolve the Portfolio Broaden Reach of Portfolio Drive Earnings growth Incubate and Add B
Slide 21: Strategic Priority 1: Broaden Reach and Power of Brands and Products
1. Broaden Reach and Power of Brands and Products Cultivating Consumer- Focused Brands Our Strategic Priorities Continuously manage and evolve the portfolio to Will Guide Our improve relevance and performance Decision Making in Rebrand and evolve the Famous Footwear Our Next Phase go-to-market strat
Slide 22: Strategic Priority 2: Strengthen Connections with Consumers
2. Strengthen Connections with Consumers Obsessively Obsessively Meeting Meeting Consumer Consumer Desires Desires Our Strategic Priorities Fulfill !5! promise through product fit, feel, design, Will Guide Our and merchandising Decision Making in Evolve consumer experiences and communications to acc
Slide 23: Strategic Priority 3: Accelerate Innovation of Capabilities and Operations
3. Accelerate Innovation of Capabilities and Operations Enabling Speed, Agility and Efficiency of Scale Our Strategic Priorities Leverage speed-to-market capabilities to respond Will Guide Our more quickly to consumer demand Decision Making in Maximize consumer fulfillment capabilities as a differen
Slide 24: Our Next Chapter will be Radically, Quietly Different
Our Next Chapter will be Radically, Quietly Different 2011-2015 2015-2019 2019 - 2022 Leaner, Stronger, and More Profitable Invest for Growth Leverage Investments and Insights Focused on Three Consumer Platforms Evolve the Portfolio Broaden Reach of Portfolio Drive Earnings growth Incubate and Add B
Slide 25: 2019 Our Next Chapter 2022
2019 Our Next 2022 Chapter !25
Slide 26: Today's Agenda
Consumer Insights Stephen Henderson Famous Footwear Molly Adams Brand Portfolio Jay Schmidt Q &A Today’s Capabilities Discussion Agenda Dan Friedman, Willis Hill, Mark Schmitt Lunch & Brand Showrooms Brand Partners Sam Edelman, Veronica Beard, Vionic Financials Ken Hannah Q &A Wrap Up !26
Slide 27: Stephen Henderson
Stephen Henderson SVP Marketing & eCommerce, Brand Portfolio !27
Slide 28: Caleres Has Been Driven by Footwear Consumer Insights From the Very Beginning
Caleres Has Been Driven by Footwear Consumer Insights From the Very Beginning 1860s 1860s 1940s 1980s 2000s 2010s Left and right Physiological Life stage People are People are Consumer need feet are shaped differences influences type of shopping for shopping for shoes for service, speed differently
Slide 29: Caleres Will be Driven by Footwear Consumer Insights Far Into the Future
Caleres Will be Driven by Footwear Consumer Insights Far Into the Future 2020 s Being Consumer Obsessed starts by observing understanding Consumer demand for brands, styles and experiences building empathy for that are for every “me” and every changing need the people who buy and wear footwear. Cale
Slide 30: Myriad Sources For Consumer Insight are Incorporated for Deep Analysis
Myriad Sources For Consumer Insight are Incorporated for Deep Analysis Commercial Fit Consumer Consumer Big Market Intelligence Brand Data Data Intelligence Perception Enrichment Analytics Consumer Voice of the Ratings and Behavioral Consumer Panel Consumer Reviews Analytics Experience Testing Feedb
Slide 31: Insights Hold Practical Application Across Product and Consumer Lifecycles
Insights Hold Practical Application Across Product and Consumer Lifecycles The Caleres Model for Brand Management Brand origin Line and Where to make How to message and Where and Retention and lifetime and purpose style detail and source where to advertise how to sell value development Based on unde
Slide 32: Consumer Insights Unlock Breakthroughs Based on the Rational and Emotional
Consumer Insights Unlock Breakthroughs Based on the Rational and Emotional Rational Emotional Practical Decision Making Consumer Love and Obsessions Can I afford it? How does it make me feel? Does it fit? Does it take me somewhere? Can I get it without hassle? Does it reflect who I want to be? Is it
Slide 33: Deeper Audience Analysis Is Required
To Strengthen Connections Between Brands and Consumers Deeper Audience Analysis Is Required There are 224 MM Contactable Adults in the USA Today Each is Composed of a Vast Series of Characteristics There Each are 200M+ is Composed of Contactable an Adults Infinite Series of Age Gender Marital status
Slide 34: Consumer segmentation by affluence, age and household structure
FAMILIES HIGHER INCOME Affluence OLDER Age Household Structure YOUNGER SINGLES LOWER INCOME !34
Slide 35: Consumer segmentation map with brands
HIGHER INCOME Sperry Dr. Scholl’s Dockers FAMILIES Birkenstock OLDER Naturalizer ✓ Have a “trendy” fashion style YOUNGER SINGLES X Prefer designer clothing Foot Locker Burlington Marshall’s LOWER INCOME 35
Slide 36: Consumer segmentation map
FAMILIES HIGHER INCOME OLDER YOUNGER SINGLES LOWER INCOME 36
Slide 37: 2020 Strategic Priorities: Broaden Reach and Power of Brands and Products
2020 Strategic Priorities Broaden Reach and Power of Brands and Products !37
Slide 38: We Built a Consumer Profile based on both Rational and Emotional Insights
What Are Her Motivators? Core Emotional Themes of the Brand What Is Her Financial Circumstance? Commercial Size of Prize We Built a Consumer Where and How Does She Shop? Profile based on both Engagement and Channel Priorities Rational and Emotional Insights What is Her Style Point of View? The Epice
Slide 39: New Design Philosophy, Consumer, Media Targeting
New Design Philosophy Consumer Over the last 24 months, Naturalizer’s audience Media Targeting composition has shifted as an outcome of centering around its new target archetype. Today We Will _____. !39
Slide 40: Naturalizer audience ranking by archetype
2014 HIGHER INCOME 1 Parker 271 2 Brooklyn 267 3 Jamie 226 FAMILIES 4 Jasper 220 OLDER 5 Lane 201 6 Arlo 201 7 Cameron 199 8 Ellery 199 9 Corey 193 10 Stevie 188 11 Sloane 188 12 Archer 177 13 Reese 175 14 Cassidy 163 YOUNGER 15 Indiana 163 SINGLES 16 Ashley 157 17 Mattie 152 18 Story 151 19 Kennedy
Slide 41: Naturalizer audience archetype rankings 2014-2019
2014 2015 2016 2017 2018 2019 1 Parker 271 1 Parker 262 1 Parker 259 1 Brooklyn 259 1 Parker 265 1 Parker 277 2 Brooklyn 267 2 Brooklyn 258 2 Brooklyn 254 2 Parker 257 2 Brooklyn 262 2 Brooklyn 271 3 Jamie 226 3 Jamie 219 3 Jamie 214 3 Jasper 214 3 Jasper 221 3 Jasper 234 4 Jasper 220 4 Ellery 219 4
Slide 42: 2020 Strategic Priorities: Strengthen Connections with Consumers
2020 Strategic Priorities Strengthen Connections with Consumers !42
Slide 43: Consumer segmentation map
FAMILIES HIGHER INCOME OLDER YOUNGER SINGLES LOWER INCOME 43
Slide 44: Consumer segmentation map
FAMILIES HIGHER INCOME OLDER YOUNGER SINGLES LOWER INCOME 44
Slide 45: Our Active Family Audience is Large, Lucrative and Represents Exceptional Lifetime Value
Age 25-35 Married With Children and Single Parents High Discretionary Spend Prefers to Shop Specialty Stores, In Store and On-Line Our Active Family Thinks Shopping is a Great Way to Relax Audience is Mobile and Streaming Media Consumption and Large, Lucrative and Connects to Brands via Social Repre
Slide 46: How We Ensure the Caleres Portfolio of Brands Remains Relevant Across Consumer Segments
How We Ensure the Caleres Portfolio of Brands Remains Relevant Across Consumer Segments !46
Slide 47: Essential Balance brands
FAMILIES HIGHER INCOME OLDER Famous Footwear Dr. Scholl’s LifeStride Blowfish Malibu Active families who prioritize ease, value and style while living conscientious, balanced lifestyles YOUNGER SINGLES Essential Balance LOWER INCOME 47
Slide 48: Modern Heritage brands
HIGHER INCOME Naturalizer Allen Edmonds Via Spiga FAMILIES OLDER People who possess strong personal sensibilities and desire authenticity that remains ever-current Modern Heritage YOUNGER SINGLES LOWER INCOME 48
Slide 49: Self-Expression brands
HIGHER INCOME Sam Edelman FAMILIES OLDER Franco Sarto Fergie People who hold fashion-first orientations and chase excitement, escape, and discovery Self-Expression YOUNGER SINGLES LOWER INCOME 49
Slide 50: Forward Movement brands
FAMILIES HIGHER INCOME Vionic OLDER Bzees Ryka People who are motivated by healthy choices related to their total wellness and well-being Forward Movement YOUNGER SINGLES LOWER INCOME 50
Slide 51: Caleres Brands Over-Index with High-Value Consumer Segments
FAMILIES HIGHER INCOME OLDER Modern Heritage Self-Expression Forward Movement Caleres Brands Over-Index with High-Value Essential Balance Consumer Segments from Many Walks of Life. YOUNGER SINGLES LOWER INCOME 51
Slide 52: Powerful Brands with Deep Consumer Connections
Powerful Brands with Deep Consumer Connections Essential Balance Modern Heritage Self Expression Forward Movement Brands that are for active families who Brands that are for people who possess Brands that are for people who hold Brands that are for people who are prioritize ease, value and style whi
Slide 53: We Have a Unique Set of Advantages
We Have a Unique Set of Advantages: We Are Consumer Focused We Are Diversified and Relevant We Are Footwear Experts We Are Service Leaders !53
Slide 54: Molly Adams
Molly Adams Division President Famous Footwear !54
Slide 55: Famous 101
Famous 101 $1.6B Annual Revenue 11M Active Famously You Rewards Members 185M Store, App and Website Visits 973 Stores 85% off Mall 7 Years Positive Same Store Sales !55
Slide 56: Famous 101
Famous 101 Established brand that is trusted and loved Dedicated focus and understanding of our consumer Broad-based reach and appeal Strong consumer relationships – opportunity to attract new consumers and deepen connections with existing ones Fresh and compelling product assortment that resonates
Slide 57: Famous Footwear's Position within the Caleres Portfolio is Founded on Consumer Insight
Famous Footwear’s Position within the Caleres Portfolio is Founded on Consumer Insight Essential Balance Modern Heritage Self Expression Forward Movement Brands that are for active families who Brands that are for people who possess Brands that are for people who hold Brands that are for people who
Slide 58: Our Active Family Audience is Large, Lucrative and Represents Exceptional Lifetime Value
Age 25-35 Married With Children and Single Parents High Discretionary Spend Prefers to Shop Specialty Store, Our Active Family In Store and On-Line Audience is Thinks Shopping is a Great Way to Relax Large, Lucrative and Represents Exceptional Mobile and Streaming Media Consumption and Connects to B
Slide 59: From a House of Brands to A Branded House
From a House of Brands to A Branded House [ We Must Act and Think More Like a Brand [ Feel A Little Famous !59
Slide 60: Our Vision: Creating a Consistent Brand Voice and Experience
Our Vision Creating a Consistent Brand Voice and Experience 1 2 3 Merchandising Marketing Consumer Experience The Best Brands, with the Best Styles, A Consistent Brand Voice and Feel A Seamless and Unique Famous Footwear at the Best Value which Across All Channels of Communication Consumer Experienc
Slide 61: Merchandising
1 Merchandising The Best Brands, with the Best Styles, at the Best Value which Meet the Active Family’s Desires Reduce SKUs while driving depth in key programs Elevate assortment to offer more premium styles at higher AURs Grow iconic brands and focus on adding new premium brands Incorporate store a
Slide 62: Merchandising
1 Merchandising The Best Brands, with the Best Styles, at the Best Value which Meet the Active Family’s Desires Reduce SKUs while driving depth in key programs Elevate assortment to offer more premium styles at higher AURs Grow iconic brands and focus on adding new premium brands Incorporate store a
Slide 63: Positioned for Growth: Active Families and Casual Lifestyle
Positioned for Growth Active Families and Casual Lifestyle Nearly 40% of Famous Footwear’s Sales Come from Our Core Brand Strength for Athletic and Casual Projected High-Growth Sport Leisure Categories Assortment of Athletic and Athletic Inspired Brands and Styles !63
Slide 64: Marketing
2 Marketing A Consistent Brand Voice and Feel Across All Channels of Communication Meaningful to our Target Consumer Strengthen the FF brand voice to reach more consumer and deepen the connection with existing consumers Direct media mix to broaden and amplify the voice of Famous Footwear by shifting
Slide 65: Famously You.
Famously You. New members “Superstar” members Retention Average spend Frequency of visits Members shopping multiple channels Percentage of total sales !65
Slide 66: Consumer Experience
3 Consumer Experience A Seamless and Unique Famous Footwear Consumer Experience Whether It Be In Store or On Line Drive FF.com as the primary sales growth vehicle for the FF brand Launch new E-commerce platform to offer new capabilities and enhanced customer experiences with the ability to quickly e
Slide 67: Looking Forward
Looking Forward Confident in our team and our business Committed to growing sales and profit Focused on consumer Strategies in place to deliver the Famous vision and improved financial results !67
Slide 68: Jay Schmidt
Jay Schmidt President, Brand Portfolio !68
Slide 69: Brand Portfolio
Brand Portfolio 101 $1.2B Revenue in 2018 50MM Pairs Shipped 15 Brands 12 Owned with 3 Partner Brands Wholesale, Owned Retail and eCommerce Distribution Mix !69
Slide 70: Our Brands are Creating Winning Outcomes with Consumers
Market Share 8.3% in Womens Fashion Our Brands Footwear Largest and Growing are Creating Winning Outcomes with Consumers Excellent Aggregate Net Promoter Score Market Share Source: NPD POS, Trailing 12 months ended August 2019 !70
Slide 71: Caleres Owns 6 out of the Top 25 Women's Fashion Footwear Brands in USA
#9 Sam Edelman #13 Naturalizer Caleres Owns 6 out of the Top 25 #16 Lifestride Women’s #18 Vionic Fashion Footwear #19 Franco Sarto Brands in USA #22 Dr. Scholl’s Source: NPD POS, Trailing 12 months ended August 2019 !71
Slide 72: Our Portfolio Growth Levers
Brand Partnerships Brand Creation Brand Evolution Our Portfolio Growth Product Innovation International Levers Sport and Sustainability eCommerce All Caleres Brands Three Year Net Sales Growth Expectation for Brand Portfolio is Low to Mid Single Digits !72
Slide 73: Brand Evolution: Naturalizer
Brand Evolution Naturalizer Created in 1927, Based on Fit, Comfort and Femininity By 2015, Naturalizer’s Brand Core Attributes Were: Practical Comfortable Mature !73
Slide 74: Brand Grew from #19 Market Share to #13
Brand Grew from #19 Market Share to #13 Consumer Research and Brand 2016: Identity Work Begins 2017: Brand Evolution Began in Spring with New Product, Brand and Packaging Millennials and Gen X More Product Categories and Speed Fastest Growing Segments 2018: Capabilities Accelerate Growth, Consumer P
Slide 75: Consumer Focused Evolution of Team
Consumer Focused Evolution of Team Respected the Existing Consumer Evolved, High-Performance Team While Targeting a Growth Audience Drove Every Facet… Assortment, Planning, Marketing, Respected What Was Important Media, eCommerce, Retail and True from the Brand’s Legacy Invigorated Culture of Change
Slide 76: Brand Evolution: Allen Edmonds
Brand Evolution Allen Edmonds Created in 1922, Based on Craftsmanship, Made in the USA By 2017, Allen Edmonds core attributes were: Heritage Classic Dress Goodyear Welts Amazing Core Consumer Loyalty 62% Repeat Purchase Rate Promotional !76
Slide 77: Go Forward Priorities
Go Forward Priorities: Reduce Promotional Posture Identified a High Value Existing Consumer Archetype Expand Product Offerings Curator of an Original, Most Improve Storytelling Around Valuable Consumer Product and Craft 15% of Audience Representing 30% of Sales: Rebuild Wholesale Partnerships Opport
Slide 78: Shift Classification Balance to Reflect Customer Needs
Emerging: Heritage: Reimagined Classic Dress Business Casual Today 65% Today 15% 2021 45% 2021 20% Big Idea… Shift Classification Balance to Reflect Customer Needs Best in Class… Re-Energize: And on the Right Path Forward Weekend Explore: Lux Casual Sneakers Today 15% Today 5% 2021 15% 2021 20% !78
Slide 79: Brand Partnership
Brand Partnership 2011: Begins with Original Brand Founders Targeting: A Designer Consumer Underserved by Casual Offerings Brand Attributes: Relaxed Luxury Casual West Coast Ease Luxe Materials Deep Rich Colors Monochromatic Detailing Seamless Pairing Back to Apparel !79
Slide 80: Global Dual Gender Brand Selling in Over 400 Doors
Global Dual Gender Brand Selling in Over 400 Doors Third Contract Term with Vince Corp Sport, Flats, Sandals and Boots ALL Scale Brand has Endured Many Changes Yet Our Adherence to Design Ethos and Brand Attributes Kept the Footwear on Target Biggest Compliment from Potential New Partners: “I couldn
Slide 81: !81
!81
Slide 82: Brand Partnership
Brand Partnership Sisters in Law who Married Brothers Love of Fashion Inspired their Brand Launch Epitome of Self Expression Brand Pillars: Confident, Discerning, Versatile, Feminine A Lover of Print, Color and Silhouettes that make Her Feel Like a Woman Always with Careful Attention to Quality and
Slide 83: Brand Creation
Brand Creation Created in 1962 Known for the Urban Cowboy Boot From the Caleres Vault Insights Drove Consumer Profile Consumer is a Free-Spirited, Independent Woman with Her Own Unique Style Revive Heritage Boho Western Flavor Craft Driven, Distinctly Casual !83
Slide 84: Innovation: Sport; Innovation: Sustainability
Innovation: Sport Innovation: Sustainability Fashion Sport is Here to Stay Sustainable Design is the Next Frontier Sport Quickly Grew to 20% of Portfolio Almost 60% of Millennial Are Aware of 620 BPS Growth Since 2015 and Concerned About the Impact of Footwear Production Can Have on the Capitalizes
Slide 85: eCommerce and International
eCommerce International eCommerce Will Exceed 30% International Will Become a of Brand Portfolio Sales in Stronger Capability Over the 2019, up 400 BPS over 2018 Next 3 Years Catalyst for Growth: Growth Initiatives: Faster Reads and Product Adoption China Joint Venture Critical Investments Made, All
Slide 86: Our Portfolio Growth Levers
Brand Partnerships Brand Creation Brand Evolution Our Portfolio Growth Product Innovation International Levers Sport and Sustainability eCommerce All Caleres Brands Three Year Net Sales Growth Expectation for Brand Portfolio is Low to Mid Single Digits !86
Slide 87: Questions Answers
Questions Answers !87
Slide 88: Accelerate Innovation of Capabilities and Operations
Accelerate Innovation of Capabilities and Operations Dan Friedman Willis Hill Mark Schmitt Division President SVP SVP Global Supply Chain Chief Information Chief Logistics Officer Officer !88
Slide 89: Showroom Tours Lunch
Lunch Showroom Tours !89
Slide 90: Investor Day 10.02.19
6h & CALERES | Investor Day 10.02.19 Tere:
Slide 91: Brand Partners
Brand Partners Veronica S. Beard Sam Edelman Veronica M. Beard Chris Gallagher !91
Slide 92: Ken Hannah
Ken Hannah Chief Financial Officer 92
Slide 93: Track Record of Consistent, Profitable and Sustainable Growth
Net Sales* ~$3.0B $2.6B $2.3B +3.5% CAGR ‘11-’19 Track Record of 2011 2015 2019E Consistent, Profitable and Adjusted EPS Sustainable Growth $2.35 to $2.45 $2.00 $0.70 +16.7% CAGR ‘11-’19 2011 2015 2019E *Excludes exited and discontinued businesses 93
Slide 94: Strategic Progress
Strategic Progress 2011-2015 2015-2019 Leaner, Stronger, and More Profitable Invest for Growth Focused on Three Consumer Platforms Evolve the Portfolio Drive Earnings growth Incubate and Add Brands Consumer Centric Culture Invest in Infrastructure to Compete +3% Sales* CAGR +4% Sales* CAGR +30% Adj.
Slide 95: Strategic Progress
Strategic Progress 2011-2015 2015-2019 2019 - 2022 Leaner, Stronger, and More Profitable Invest for Growth Leverage Investments and Insights Focused on Three Consumer Platforms Evolve the Portfolio Broaden Reach of Portfolio Drive Earnings growth Incubate and Add Brands Strengthen Consumer Connectio
Slide 96: Leverage Investments and Insights
Net Sales* Net Sales Low Single- Digit CAGR ~$3.0B $2.6B $2.3B Leverage Investments and Insights 2011 2015 2019E 2022 Broaden Reach of Portfolio Strengthen Consumer Connections Adjusted EPS Double-digit Accelerate Innovation and Capabilities CAGR $2.35 to $2.45 $2.00 $0.70 2011 2015 2019E 2022 *Excl
Slide 97: Positioned to Win in Any Environment
Positioned to Win in Any Environment Winning Strategies Winning Business Model 1. Broaden Reach and Power of Brands and Products Cultivating Consumer- Focused Brands Diversified Portfolio Delivers Consistency Enhanced Efficiency to Drive Profitability Strengthen Connections 2. with Consumers Obsessi
Slide 98: 2022 Financial Targets
2022 Financial Targets Net Sales Low Single Digit Growth Adjusted Earnings Per Share Double Digit Growth Return on Invested Capital Greater than 15% 98
Slide 99: Driving Solid Growth Across the Top Line
Driving Solid Growth Across the Top Line Revenue Performance Leverage Investments • Industry Growth: US footwear market expected to growth at less Leverage Investments than 2% CAGR over next 3 years; Global footwear market expected and Insights to grow at 3% • Direct-to-Consumer: Invest for Growth −
Slide 100: Drivers of Sales Growth
Drivers of Sales Growth Industry Expectations Direct to Consumer US footwear sales growth expected to be (<2% CAGR) •Digital Capabilities: eCommerce related sales growing at 30+% CAGR •Consumer Insights: Tools and data drive decision-making throughout the product and brand lifecycle and will strengt
Slide 101: Driving Strong Earnings Growth
Driving Strong Earnings Growth Adjusted Earnings Per Share Performance Leverage Investments • Productivity: EBITDA margin improvements driven by efficiencies Leverage Investments across the portfolio: and Insights − Supply Chain: Efficiencies in sourcing, distribution, and product development Invest
Slide 102: Continuous Culture of Productivity
Continuous Culture of Productivity Efficiencies and Cost Savings Fuel Investment and Drive Earnings Growth Supply Chain Purchasing Product Margins Automation reduces cost per pair Leveraging scale to portfolio business to Inventory management ensures processing at distribution centers reduce operati
Slide 103: Driving Strong Returns on Investments
Driving Strong Returns on Investments Adjusted Return on Leverage Investments Investment Capital Performance • Strategic Investments: Leverage Investments − Consumer insight tools and Insights − Distribution centers − Brands Invest for Growth − Direct to Consumer − Technology 16.8% Maintain Maintain
Slide 104: Driving Strong Returns on Investments
Driving Strong Returns on Investments Consumer Insight Tools Brands Direct to Consumer Consumer engagement ensures product Diversification delivers Leverage stores and eCommerce to alignment with consumer expectations consistent, sustainable and create comprehensive and profitable growth consistent
Slide 105: Driving Strong Returns on Investments
Driving Strong Returns on Investments Supply Chain Distribution Centers Technology Speed to market improvements through State-of-the-Art automation Platform investments enhance consumer scale and the extensive CAL supply chain delivers speed to exceed customer experience and protect consumer data ex
Slide 106: Driving Strong Returns on Investments
Driving Strong Returns on Investments Capital Spend Reduction Balanced Approach to Our investments have resulted in annual capital spend Capital Allocation well above our base level required Capital Expenditure Historical Spend Average Capital Allocation Priorities Incremental Investments in growth
Slide 107: Positioned to Win in Any Environment
Positioned to Win in Any Environment Winning Strategies Winning Business Model 1. Broaden Reach and Power of Brands and Products Cultivating Consumer- Focused Brands Diversified Portfolio Delivers Consistency Enhanced Efficiency to Drive Profitability Strengthen Connections 2. with Consumers Obsessi
Slide 108: Questions Answers
Questions Answers !108
Slide 109: 2019 Our Next Chapter 2022
2019 Our Next 2022 Chapter !109
Slide 110: Investor Day 10.02.19
CALERES | Investor Day 10.02.19 pipe fs
Slide 111: Non-GAAP Financial Measures
Non-GAAP Financial Measures In this presentation, the Company’s financial results are provided both in accordance with generally accepted accounting principles (GAAP) and using certain non-GAAP financial measures. In particular, the Company provides historic and estimated net earnings, earnings per
Slide 112: Calculation of Return on Average Invested Capital and Adjusted ROIC
CALCULATION OF RETURN ON AVERAGE INVESTED CAPITAL AND ADJUSTED RETURN ON AVERAGE INVESTED CAPITAL (NON-GAAP METRICS) 2015 2019 (Estimated) Low High (Millions) Return on Average Invested Capital Net earnings (trailing twelve months) $ 81.5 $ 90.0 $ 94.0 Average invested capital (1) 524.2 700.0 700.0
Slide 113: Reconciliation of Net Earnings and Diluted EPS to Adjusted (Non-GAAP)
RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) 2011 2015 2019 Guidance Net Earnings Net (Loss) Diluted Earnings Net Earnings Attributable Earnings Attributable Diluted Attributable to Calere