Caleres, Inc. · NYSE:CAL
Caleres — Brown Shoe — Investor Presentation (September 2011)
12 slides from Caleres's investor presentation, Sep 28, 2011
Slide 1: Investor Update, September 2011
FAMOUS @ footwear. MAKE TODAY FAMOUS' FRANCO SARTO ins NP INVESTOR UPDATE Diane Sullivan, BROWN President and CEO SHOE COMPANY September 2011
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 uncert
Slide 3: Brown Shoe Company at a Glance
BROWN SHOE COMPANY AT A GLANCE Net Sales Mix • FOOTWEAR LEADER US$M – $2.5B in 2010 net sales, up 11.7% YoY • Adjusted EPS of $0.97, up 143% YoY $1,400 – 130+ years of experience, product innovation 30% – > 1,300 Famous Footwear and Naturalizer $1,200 36% 27% 30% retail stores $1,000 – Design, sourc
Slide 4: Strategic Approach: Three Targeted Consumer Platforms
BROWN SHOE COMPANY STRATEGIC APPROACH Three Targeted Consumer Platforms • MISSION – To inspire people to feel good and live better... feet first! • VISION – A powerful portfolio of footwear-authentic retail and wholesale h l l b brands d ththatt b build ild d deep consumer connections and create sha
Slide 5: Corporate Update
CORPORATE UPDATE • 2Q’11 RESULTS – Net sales $628.1M, up 7.2% YoY • Adjusted EPS ($0.06) – $0.06 corporate-wide toning inventory write down – $0.07 of SAP stabilization costs • Famous Footwear down slightly – Toning declined by half – Running up nearly 30% – Sandals up 5.5%, picking up pace from 1Q
Slide 6: Completing Brand Review: Summary of AND 1 Deal
COMPLETING BRAND REVIEW SUMMARY OF AND 1 DEAL Targeted Consumer Platform • SALE OF AND 1 TO GALAXY INTERNATIONAL FOR $55M IN CASH – Expected to close within 45 days(1) – Use proceeds to pay down debt • AND 1 PART OF $145M ASG ACQUISITION(2) – ASG net sales of $232M(3) – EBITDA of ~$29M(3) • AND 1: G
Slide 7: Wholesale Brand Review
WHOLESALE BRAND REVIEW CONTINUING TO EVOLVE AND ACCELERATE KEY BRANDS • DIVERSIFYING BRANDED PORTFOLIO... CAPTURING HIGHER MARGINS... ENGAGING CONSUMERS CONSUMERS... – 2004: predominantly private label • FY’04 revenue of $615.9M – Contemporaryy Fashion ~3% • FY’10 revenue of $754.4M – Contemporary F
Slide 8: Famous Footwear: Back-to-School Update
FAMOUS FOOTWEAR BACK-TO-SCHOOL UPDATE • LATER START OF B-TO-S – Part of gradual long-term trend – Consumer shift in timing – Famous Footwear marketing coordinated around change • As planned, planned BOGO back • CONTINUE TO TRACK TO AUGUST RESULTS – Acceleration in early September • Up against great
Slide 9: Famous Footwear: 2Q'11 Real Estate Update
FAMOUS FOOTWEAR 2Q’11 REAL ESTATE UPDATE • 12 NEW STORES, CLOSED 8 STORES • TTM REVENUE PER SQ SQ. FT FT. OF $186 – Stores opened YTD’11 averaging $211 per sq. ft. • Performing at or better than plan • AGGRESSIVE MARGINAL STORE REVIEWS – Exiting unprofitable leases • DISCIPLINE AROUND REAL ESTATE PO
Slide 10: Strategy Summary
STRATEGY SUMMARY • ALIGN RESOURCES TO ACHIEVE STRATEGIC AND FINANCIAL GOALS – First step with sale of AND 1 – Completing portfolio review • Continuing to evaluate brands/businesses • TARGET THREE KEY CONSUMER PLATFORMS – Family – Contemporary Fashion – Healthy Living • FOCUS ON IMMEDIATE GOALS – Del
Slide 11: Expectations: Second Half and Full Year Guidance
EXPECTATIONS SECOND HALF AND FULL YEAR GUIDANCE 2H’11 2H’10 FY’11 FY’10 Consolidated net sales $1.42 to $1.45B $1.3B $2.68 to $2.71B $2.5B Adjusted diluted EPS $0.76 to $0.88 $0.56 $0.85 to $0.97 $0.97 10
Slide 12: Thank You
THANK YOU For more information on Brown Shoe Company, please contact Peggy Reilly Tharp, vice president of Investor Relations, at ptharp@brownshoe.com 11