Slide 1: Second Quarter 2020 earnings
Second Quarter 9.01.2020 2020 earnings
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 uncertainti
Slide 3: Caleres in brief – trailing 12-month view
Caleres in brief – trailing 12-month view Segment by Style Direct-to-Consumer Total Ecommerce Penetration TTM, as a percentage of total net sales Penetration TTM, as a percentage of total net sales TTM, as a percentage of total sales 100% 100 100% 96% 86% 73% ~70% 27% 18% 0% Famous Brand Total 0% 0
Slide 4: Sequential improvements in second quarter 2020
Sequential improvements in second quarter 2020 Sequential Financial Improvements in Q2 vs. Q1 Strategic Actions Driving Improvements Store Fleet Utilization Net Sales $397M $501M +26% • Phased and efficient reopening (majority open by mid-June) Q1 Q2 improvement • Contactless curbside pick-up at 60
Slide 5: Caleres Second Quarter 2020 highlights
Caleres Second Quarter 2020 highlights $501.4 $66.8 $88.5 million in cash million in sales million of debt repaid generated from operating activities +30% +80% growth in growth in $13.1 ~27% ecommerce direct* related sales ecommerce million returned to decline in inventory sales shareholders *Direct
Slide 6: Famous Footwear – 2Q’20
Famous Footwear – 2Q’20 • Net sales of $333.9 million, down 20.5 percent vs. 2Q19, up ~75 percent sequentially – Excluding stores that were permanently closed during the period, Famous Footwear sales would have been down 17.5%. – Traditional comparable sales were up 14.7% • Ongoing robust ecommerce
Slide 7: Brand Portfolio – 2Q’20
Brand Portfolio – 2Q’20 • Sales of $183.6 million, down ~49 percent year-over-year, reflecting store closures and fewer wholesale order as retailers continued to mange inventory post the retail shutdown • Aggressively cut inventory levels to position the business for fall – exiting the quarter down
Slide 8: Caleres Historical Cash Generation and Debt Repayment
Caleres Historical Cash Generation and Debt Repayment Historical Operating Cash Flow Historical Credit Facility Borrowings in millions of dollars in millions of dollars $200 $180 Proactive draw down $500 pre-retail store $160 $450 closure $140 Acquisition $88 million $400 of Vionic decline $120 $75
Slide 9: Outlook and Capital Allocation Plan
Outlook and Capital Allocation Plan Given the ongoing uncertainty and limited visibility, Caleres will not be providing fiscal year 2020 guidance. We will revisit this traditional practice as conditions stabilize. For third quarter 2020, Caleres currently expects: • Net sales are expected to improve
Slide 10: Compelling Value Proposition
Compelling Value Proposition We have the capabilities to meet consumers increasing preference to transact digitally having made critical investments in our digital and fulfillment capabilities platform; We are known for Iconic brands that consumers trust. Consumers now more than ever before are sear
Slide 11: Other financial metrics
Other financial metrics US$M except per share 2Q’20 2Q’19 YOY Chg Gross profit $182.6 $305.9 (40.3%) Margin 36.4% 40.7% (424 bps) SG&A $201.3 $267.5 (24.7%) Percent of sales 40.1% 35.6% 460 bps Op earnings ($24.1) $37.8 N/A Margin (4.8%) 5.0% (984 bps) Adj. op earnings ($18.7) $38.4 N/A Percent of S
Slide 12: Reconciliation of Non-GAAP net earnings
Reconciliation of Non-GAAP net earnings Second Quarter 2020 Pretax Net EPS Earnings Earnings Adjusted Results $(21,837) $(21,115) $(0.57) Special Charges: Covid-19 related expenses (1) (5,429) (4,709) (0.13) Fair value adjustment to Blowfish purchase obligation (6,589) (4,893) (0.13) GAAP Results $(