1-2191 (Commission File Number) | 43-0197190 (IRS Employer Identification Number) |
8300 Maryland Avenue St. Louis, Missouri (Address of principal executive offices) | 63105 (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(c) | Exhibit | |
99.1 | Press Release issued November 24, 2015 | |
CALERES, INC. | ||
(Registrant) | ||
Date: November 24, 2015 | /s/ Michael I. Oberlander | |
Michael I. Oberlander | ||
Senior Vice President, General Counsel and Corporate Secretary |
Exhibit Number | Description | |
99.1 | Press Release dated November 24, 2015 |
Investor and Media Contact: | |
Peggy Reilly Tharp, Caleres | |
(314) 854-4134, ptharp@caleres.com |
US$M, except per share (unaudited) | 3Q’15 | 3Q’14 | 3Q Chg | YTD’15 | YTD’14 | YTD Chg |
Consolidated net sales | $728.6 | $729.3 | (0.1%) | $1,968.8 | $1,956.3 | 0.6% |
Famous Footwear | 456.2 | 449.1 | 1.6% | 1,212.1 | 1,219.9 | (0.6%) |
Brand Portfolio | 272.5 | 280.2 | (2.8%) | 756.7 | 736.4 | 2.7% |
Gross profit | 288.4 | 290.7 | (0.8%) | 799.8 | 792.7 | 0.9% |
Margin | 39.6% | 39.9% | -30 bps | 40.6% | 40.5% | +10 bps |
SG&A | 236.2 | 237.5 | (0.5%) | 681.5 | 679.5 | 0.3% |
% of net sales | 32.4% | 32.6% | -20 bps | 34.6% | 34.7% | -10 bps |
Operating earnings | 52.2 | 53.2 | (1.9%) | 118.3 | 113.2 | 4.5% |
Margin | 7.2% | 7.3% | -10 bps | 6.0% | 5.8% | +20 bps |
Net interest expense | 3.9 | 5.1 | (23.3%) | 12.2 | 15.3 | (20.6%) |
Earnings before income taxes | 46.3 | 48.1 | (3.7%) | 95.5 | 97.9 | (2.5%) |
Tax rate | 26.7% | 30.9% | -420 bps | 26.4% | 31.8% | -540 bps |
Net earnings | $34.0 | $33.1 | 2.6% | $70.1 | $66.6 | 5.2% |
Per diluted share | $0.78 | $0.75 | 4.0% | $1.59 | $1.52 | 4.6% |
Adjusted net earnings | $35.2 | $33.1 | 6.2% | $76.5 | $66.6 | 14.9% |
Per diluted share | $0.80 | $0.75 | 6.7% | $1.74 | $1.52 | 14.5% |
Guidance Metric | FY’15 |
Consolidated net sales | ~$2.61B |
Famous Footwear same-store-sales | Up low-single digits |
Famous Footwear reported sales | Flat, due to sale of Shoes.com |
Brand Portfolio sales | Up mid-single digits |
Gross margin | Up 15 to 20 bps |
SG&A | Less than or equal to 35.4% of sales |
Net interest expense | ~$16M |
Effective tax rate | 28% to 30% |
Adjusted earnings per diluted share | $1.95 to $2.00 |
Depreciation and amortization | ~$53M |
Capital expenditures | ~$75M |
SCHEDULE 1 | |||||||||||||||
CALERES, INC. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||
(Unaudited) | |||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | ||||||||||||||
(Thousands, except per share data) | October 31, 2015 | November 1, 2014 | October 31, 2015 | November 1, 2014 | |||||||||||
Net sales | $ | 728,639 | $ | 729,277 | $ | 1,968,756 | $ | 1,956,316 | |||||||
Cost of goods sold | 440,205 | 438,547 | 1,169,001 | 1,163,603 | |||||||||||
Gross profit | 288,434 | 290,730 | 799,755 | 792,713 | |||||||||||
Selling and administrative expenses | 236,211 | 237,517 | 681,462 | 679,472 | |||||||||||
Operating earnings | 52,223 | 53,213 | 118,293 | 113,241 | |||||||||||
Interest expense | (4,136 | ) | (5,207 | ) | (12,944 | ) | (15,637 | ) | |||||||
Loss on early extinguishment of debt | (1,961 | ) | — | (10,651 | ) | — | |||||||||
Interest income | 224 | 109 | 766 | 294 | |||||||||||
Earnings before income taxes | 46,350 | 48,115 | 95,464 | 97,898 | |||||||||||
Income tax provision | (12,358 | ) | (14,878 | ) | (25,218 | ) | (31,146 | ) | |||||||
Net earnings | 33,992 | 33,237 | 70,246 | 66,752 | |||||||||||
Net earnings attributable to noncontrolling interests | 9 | 124 | 177 | 146 | |||||||||||
Net earnings attributable to Caleres, Inc. | $ | 33,983 | $ | 33,113 | $ | 70,069 | $ | 66,606 | |||||||
Basic earnings per common share attributable to Caleres, Inc. shareholders | $ | 0.78 | $ | 0.76 | $ | 1.60 | $ | 1.53 | |||||||
Diluted earnings per common share attributable to Caleres, Inc. shareholders | $ | 0.78 | $ | 0.75 | $ | 1.59 | $ | 1.52 | |||||||
Basic number of shares | $ | 42,345 | $ | 42,144 | $ | 42,483 | $ | 42,035 | |||||||
Diluted number of shares | $ | 42,465 | $ | 42,328 | $ | 42,615 | $ | 42,245 |
SCHEDULE 2 | |||||||||||
CALERES, INC. | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(Unaudited) | |||||||||||
October 31, 2015 | November 1, 2014 | January 31, 2015 | |||||||||
(Thousands) | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 86,298 | $ | 39,080 | $ | 67,403 | |||||
Receivables, net | 148,192 | 138,217 | 136,646 | ||||||||
Inventories, net | 544,341 | 567,777 | 543,103 | ||||||||
Prepaid expenses and other current assets | 40,815 | 37,845 | 43,744 | ||||||||
Total current assets | 819,646 | 782,919 | 790,896 | ||||||||
Property and equipment, net | 163,442 | 151,289 | 149,743 | ||||||||
Goodwill and intangible assets, net | 131,818 | 135,774 | 134,587 | ||||||||
Other assets | 145,377 | 139,878 | 141,586 | ||||||||
Total assets | $ | 1,260,283 | $ | 1,209,860 | $ | 1,216,812 | |||||
LIABILITIES AND EQUITY | |||||||||||
Borrowings under revolving credit agreement | $ | — | $ | 14,000 | $ | — | |||||
Trade accounts payable | 200,251 | 203,062 | 215,921 | ||||||||
Other accrued expenses | 175,649 | 172,077 | 181,162 | ||||||||
Total current liabilities | 375,900 | 389,139 | 397,083 | ||||||||
Long-term debt | 200,000 | 199,150 | 199,197 | ||||||||
Deferred rent | 43,231 | 37,571 | 39,742 | ||||||||
Other liabilities | 39,297 | 42,983 | 39,168 | ||||||||
Total other liabilities | 282,528 | 279,704 | 278,107 | ||||||||
Total Caleres, Inc. shareholders’ equity | 601,003 | 540,254 | 540,910 | ||||||||
Noncontrolling interests | 852 | 763 | 712 | ||||||||
Total equity | 601,855 | 541,017 | 541,622 | ||||||||
Total liabilities and equity | $ | 1,260,283 | $ | 1,209,860 | $ | 1,216,812 |
SCHEDULE 3 | ||||||
CALERES, INC. | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(Unaudited) | ||||||
Thirty-nine Weeks Ended | ||||||
(Thousands) | October 31, 2015 | November 1, 2014 | ||||
OPERATING ACTIVITIES: | ||||||
Net cash provided by operating activities | $ | 84,050 | $ | 68,502 | ||
INVESTING ACTIVITIES: | ||||||
Capital expenditures | (52,766 | ) | (40,380 | ) | ||
Proceeds from disposal of property and equipment | 7,433 | — | ||||
Acquisition of trademarks | — | (65,065 | ) | |||
Investment in nonconsolidated affiliate | — | (7,000 | ) | |||
Net cash used for investing activities | (45,333 | ) | (112,445 | ) | ||
FINANCING ACTIVITIES: | ||||||
Borrowings under revolving credit agreement | 117,000 | 741,000 | ||||
Repayments under revolving credit agreement | (117,000 | ) | (734,000 | ) | ||
Proceeds from issuance of 2023 senior notes | 200,000 | — | ||||
Redemption of 2019 senior notes | (200,000 | ) | — | |||
Debt issuance costs | (3,650 | ) | — | |||
Dividends paid | (9,195 | ) | (9,173 | ) | ||
Acquisition of treasury stock | (4,921 | ) | — | |||
Issuance of common stock under share-based plans, net | (4,606 | ) | 237 | |||
Tax benefit related to share-based plans | 3,049 | 2,482 | ||||
Net cash (used for) provided by financing activities | (19,323 | ) | 546 | |||
Effect of exchange rate changes on cash and cash equivalents | (499 | ) | (69 | ) | ||
Increase (decrease) in cash and cash equivalents | 18,895 | (43,466 | ) | |||
Cash and cash equivalents at beginning of period | 67,403 | 82,546 | ||||
Cash and cash equivalents at end of period | $ | 86,298 | $ | 39,080 |
SCHEDULE 4 | ||||||||||||||||||
CALERES, INC. | ||||||||||||||||||
RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Thirteen Weeks Ended October 31, 2015 | Thirteen Weeks Ended November 1, 2014 | |||||||||||||||||
(Thousands, except per share data) | Pre-Tax Impact of Charges/Other Items | Net Earnings Attributable to Caleres, Inc. | Diluted Earnings Per Share | Pre-Tax Impact of Charges/Other Items | Net Earnings Attributable to Caleres, Inc. | Diluted Earnings Per Share | ||||||||||||
GAAP earnings | $ | 33,983 | $ | 0.78 | $ | 33,113 | $ | 0.75 | ||||||||||
Charges/Other Items | ||||||||||||||||||
Loss on early extinguishment of debt | $ | 1,961 | 1,191 | 0.02 | $ | — | — | — | ||||||||||
Total charges/other items | $ | 1,961 | $ | 1,191 | $ | 0.02 | $ | — | $ | — | $ | — | ||||||
Adjusted earnings | $ | 35,174 | $ | 0.80 | $ | 33,113 | $ | 0.75 | ||||||||||
(Unaudited) | ||||||||||||||||||
Thirty-nine Weeks Ended October 31, 2015 | Thirty-nine Weeks Ended November 1, 2014 | |||||||||||||||||
(Thousands, except per share data) | Pre-Tax Impact of Charges/Other Items | Net Earnings Attributable to Caleres, Inc. | Diluted Earnings Per Share | Pre-Tax Impact of Charges/Other Items | Net Earnings Attributable to Caleres, Inc. | Diluted Earnings Per Share | ||||||||||||
GAAP earnings | $ | 70,069 | $ | 1.59 | $ | 66,606 | $ | 1.52 | ||||||||||
Charges/Other Items | ||||||||||||||||||
Loss on early extinguishment of debt | $ | 10,651 | 6,472 | 0.15 | $ | — | — | — | ||||||||||
Total charges/other items | $ | 10,651 | 6,472 | 0.15 | $ | — | — | — | ||||||||||
Adjusted earnings | $ | 76,541 | $ | 1.74 | $ | 66,606 | $ | 1.52 |
SCHEDULE 5 | ||||||||||||||||||||||||
CALERES, INC. | ||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS | ||||||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||
Famous Footwear | Brand Portfolio | Other | Consolidated | |||||||||||||||||||||
(Thousands) | October 31, 2015 | November 1, 2014 | October 31, 2015 | November 1, 2014 | October 31, 2015 | November 1, 2014 | October 31, 2015 | November 1, 2014 | ||||||||||||||||
Net sales | $ | 456,177 | $ | 449,085 | $ | 272,462 | $ | 280,192 | $ | — | $ | — | $ | 728,639 | $ | 729,277 | ||||||||
Gross profit | $ | 194,877 | $ | 193,783 | $ | 93,557 | $ | 96,947 | $ | — | $ | — | $ | 288,434 | $ | 290,730 | ||||||||
Gross profit rate | 42.7 | % | 43.2 | % | 34.3 | % | 34.6 | % | — | % | — | % | 39.6 | % | 39.9 | % | ||||||||
Operating earnings (loss) | $ | 39,638 | $ | 37,405 | $ | 21,042 | $ | 27,642 | $ | (8,457 | ) | $ | (11,834 | ) | $ | 52,223 | $ | 53,213 | ||||||
Operating earnings % | 8.7 | % | 8.3 | % | 7.7 | % | 9.9 | % | — | % | — | % | 7.2 | % | 7.3 | % | ||||||||
Same-store sales % (on a 13-week basis) | 4.4 | % | (0.2 | )% | 2.5 | % | (6.9 | )% | — | % | — | % | — | % | — | % | ||||||||
Number of stores | 1,044 | 1,041 | 164 | 172 | — | — | 1,208 | 1,213 | ||||||||||||||||
. |
Thirty-nine Weeks Ended | ||||||||||||||||||||||||
Famous Footwear | Brand Portfolio | Other | Consolidated | |||||||||||||||||||||
(Thousands) | October 31, 2015 | November 1, 2014 | October 31, 2015 | November 1, 2014 | October 31, 2015 | November 1, 2014 | October 31, 2015 | November 1, 2014 | ||||||||||||||||
Net sales | $ | 1,212,069 | $ | 1,219,880 | $ | 756,687 | $ | 736,436 | $ | — | $ | — | $ | 1,968,756 | $ | 1,956,316 | ||||||||
Gross profit | $ | 542,601 | $ | 540,119 | $ | 257,154 | $ | 252,594 | $ | — | $ | — | $ | 799,755 | $ | 792,713 | ||||||||
Gross profit rate | 44.8 | % | 44.3 | % | 34.0 | % | 34.3 | % | — | % | — | % | 40.6 | % | 40.5 | % | ||||||||
Operating earnings (loss) | $ | 95,269 | $ | 89,659 | $ | 48,107 | $ | 56,342 | $ | (25,083 | ) | $ | (32,760 | ) | $ | 118,293 | $ | 113,241 | ||||||
Operating earnings % | 7.9 | % | 7.3 | % | 6.4 | % | 7.7 | % | — | % | — | % | 6.0 | % | 5.8 | % | ||||||||
Same-store sales % (on a 39-week basis) | 2.6 | % | 0.8 | % | (1.7 | )% | (3.5 | )% | — | % | — | % | — | % | — | % | ||||||||
Number of stores | 1,044 | 1,041 | 164 | 172 | — | — | 1,208 | 1,213 |
SCHEDULE 6 | ||||||||||||
CALERES, INC. | ||||||||||||
BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION | ||||||||||||
(Unaudited) | ||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||
(Thousands, except per share data) | October 31, 2015 | November 1, 2014 | October 31, 2015 | November 1, 2014 | ||||||||
Net earnings attributable to Caleres, Inc.: | ||||||||||||
Net earnings | $ | 33,992 | $ | 33,237 | $ | 70,246 | $ | 66,752 | ||||
Net earnings attributable to noncontrolling interests | (9 | ) | (124 | ) | (177 | ) | (146 | ) | ||||
Net earnings allocated to participating securities | (1,063 | ) | (1,208 | ) | (2,272 | ) | (2,486 | ) | ||||
Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities | $ | 32,920 | $ | 31,905 | $ | 67,797 | $ | 64,120 | ||||
Basic and diluted common shares attributable to Caleres, Inc.: | ||||||||||||
Basic common shares | 42,345 | 42,144 | 42,483 | 42,035 | ||||||||
Dilutive effect of share-based awards | 120 | 184 | 132 | 210 | ||||||||
Diluted common shares attributable to Caleres, Inc. | 42,465 | 42,328 | 42,615 | 42,245 | ||||||||
Basic earnings per common share attributable to Caleres, Inc. shareholders | $ | 0.78 | $ | 0.76 | $ | 1.60 | $ | 1.53 | ||||
Diluted earnings per common share attributable to Caleres, Inc. shareholders | $ | 0.78 | $ | 0.75 | $ | 1.59 | $ | 1.52 |
SCHEDULE 7 | ||||||||||||
CALERES, INC. | ||||||||||||
BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION | ||||||||||||
(Unaudited) | ||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||
(Thousands, except per share data) | October 31, 2015 | November 1, 2014 | October 31, 2015 | November 1, 2014 | ||||||||
Adjusted net earnings attributable to Caleres, Inc.: | ||||||||||||
Adjusted net earnings | $ | 35,183 | $ | 33,237 | $ | 76,718 | $ | 66,752 | ||||
Net earnings attributable to noncontrolling interests | (9 | ) | (124 | ) | (177 | ) | (146 | ) | ||||
Net earnings allocated to participating securities | (1,100 | ) | (1,208 | ) | (2,482 | ) | (2,486 | ) | ||||
Adjusted net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities | $ | 34,074 | $ | 31,905 | $ | 74,059 | $ | 64,120 | ||||
Basic and diluted common shares attributable to Caleres, Inc.: | ||||||||||||
Basic common shares | 42,345 | 42,144 | 42,483 | 42,035 | ||||||||
Dilutive effect of share-based awards | 120 | 184 | 132 | 210 | ||||||||
Diluted common shares attributable to Caleres, Inc. | 42,465 | 42,328 | 42,615 | 42,245 | ||||||||
Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders | $ | 0.80 | $ | 0.76 | $ | 1.74 | $ | 1.53 | ||||
Diluted adjusted earnings per common share attributable to Caleres, Inc. shareholders | $ | 0.80 | $ | 0.75 | $ | 1.74 | $ | 1.52 |