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 May 26, 2016 | |
CALERES, INC. | ||
(Registrant) | ||
Date: May 26, 2016 | /s/ Thomas C. Burke | |
Thomas C. Burke | ||
Vice President, Legal and Secretary |
Exhibit Number | Description | |
99.1 | Press Release dated May 26, 2016 |
Investor and Media Contact: | |
Peggy Reilly Tharp, Caleres | |
(314) 854-4134, ptharp@caleres.com |
• | Net sales of $584.7 million, down 2.9% driven by a planned reduction in Brand Portfolio sales |
• | Gross margin up 111 basis points to 42.4%, benefitting from the exit of some lower margin categories |
• | SG&A up less than $1 million, reflecting investments offset by reductions in corporate expense |
• | Diluted EPS of $0.41, including investments for long-term growth and a higher tax rate |
• | Cash and equivalents of $149.5 million and cash from operations of $65.2 million |
• | Inventory down 2.1%, on solid inventory management |
• | Same-store-sales up 1%, driven by strength in lifestyle athletic products |
• | Gross margin down 46 basis points to 46.3%, reflecting increased sales at Famous.com |
• | Inventory down 1.7% on an average store basis |
• | Opened 10 new stores and operated three more stores year-over-year |
• | Sales down 9.1%, reflecting a planned reduction in Healthy Living sales |
• | Gross margin up 279 basis points to 35.9%, benefitting from the exit of some lower margin categories |
• | Opened four Sam Edelman retail stores and invested in the development of the Diane von Furstenberg and George Brown brands |
• | Inventory down 4.1%, on solid inventory management |
Outlook for 2016 | |
Consolidated net sales | $2.60B to $2.63B |
Famous Footwear same-store-sales | Up low-single digits |
Brand Portfolio sales | Flat to down low-single digits |
Gross margin | Up 15 to 25 bps |
SG&A as a percent of revenue | Down 5 to 15 bps |
Effective tax rate | 30% to 32% |
Earnings per diluted share | $2.00 to $2.10 |
Capital expenditures | ~$70 million |
SCHEDULE 1 | |||||||
CALERES, INC. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||
(Unaudited) | |||||||
Thirteen Weeks Ended | |||||||
(Thousands, except per share data) | April 30, 2016 | May 2, 2015 | |||||
Net sales | $ | 584,733 | $ | 602,283 | |||
Cost of goods sold | 336,940 | 353,757 | |||||
Gross profit | 247,793 | 248,526 | |||||
Selling and administrative expenses | 219,050 | 218,190 | |||||
Operating earnings | 28,743 | 30,336 | |||||
Interest expense | (3,610 | ) | (4,463 | ) | |||
Interest income | 247 | 304 | |||||
Earnings before income taxes | 25,380 | 26,177 | |||||
Income tax provision | (7,502 | ) | (6,786 | ) | |||
Net earnings | 17,878 | 19,391 | |||||
Net earnings attributable to noncontrolling interests | 96 | 130 | |||||
Net earnings attributable to Caleres, Inc. | $ | 17,782 | $ | 19,261 | |||
Basic earnings per common share attributable to Caleres, Inc. shareholders | $ | 0.41 | $ | 0.44 | |||
Diluted earnings per common share attributable to Caleres, Inc. shareholders | $ | 0.41 | $ | 0.44 | |||
Basic number of shares | 42,433 | 42,313 | |||||
Diluted number of shares | 42,596 | 42,458 |
SCHEDULE 2 | ||||||||||||
CALERES, INC. | ||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(Unaudited) | ||||||||||||
April 30, 2016 | May 2, 2015 | January 30, 2016 | ||||||||||
(Thousands) | ||||||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 149,534 | $ | 66,330 | $ | 118,151 | ||||||
Receivables, net | 116,961 | 126,512 | 153,664 | |||||||||
Inventories, net | 487,876 | 498,513 | 546,745 | |||||||||
Prepaid expenses and other current assets | 39,809 | 41,003 | 56,505 | |||||||||
Total current assets | 794,180 | 732,358 | 875,065 | |||||||||
Property and equipment, net | 185,586 | 153,350 | 179,010 | |||||||||
Goodwill and intangible assets, net | 129,979 | 133,657 | 130,899 | |||||||||
Other assets | 116,347 | 141,969 | 118,349 | |||||||||
Total assets | $ | 1,226,092 | $ | 1,161,334 | $ | 1,303,323 | ||||||
LIABILITIES AND EQUITY | ||||||||||||
Trade accounts payable | $ | 189,154 | $ | 172,116 | $ | 237,802 | ||||||
Other accrued expenses | 125,405 | 137,732 | 152,497 | |||||||||
Total current liabilities | 314,559 | 309,848 | 390,299 | |||||||||
Long-term debt | 196,659 | 196,904 | 196,544 | |||||||||
Deferred rent | 46,728 | 41,441 | 46,506 | |||||||||
Other liabilities | 60,169 | 58,821 | 67,502 | |||||||||
Total other liabilities | 303,556 | 297,166 | 310,552 | |||||||||
Total Caleres, Inc. shareholders’ equity | 606,879 | 553,474 | 601,484 | |||||||||
Noncontrolling interests | 1,098 | 846 | 988 | |||||||||
Total equity | 607,977 | 554,320 | 602,472 | |||||||||
Total liabilities and equity | $ | 1,226,092 | $ | 1,161,334 | $ | 1,303,323 |
SCHEDULE 3 | ||||||||
CALERES, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Thirteen Weeks Ended | ||||||||
(Thousands) | April 30, 2016 | May 2, 2015 | ||||||
OPERATING ACTIVITIES: | ||||||||
Net cash provided by operating activities | $ | 65,160 | $ | 21,914 | ||||
INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (16,367 | ) | (12,905 | ) | ||||
Capitalized software | (1,820 | ) | (955 | ) | ||||
Net cash used for investing activities | (18,187 | ) | (13,860 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Borrowings under revolving credit agreement | 103,000 | 86,000 | ||||||
Repayments under revolving credit agreement | (103,000 | ) | (86,000 | ) | ||||
Dividends paid | (3,068 | ) | (3,073 | ) | ||||
Acquisition of treasury stock | (12,130 | ) | (4,921 | ) | ||||
Issuance of common stock under share-based plans, net | (4,149 | ) | (3,751 | ) | ||||
Tax benefit related to share-based plans | 3,163 | 2,401 | ||||||
Net cash used for financing activities | (16,184 | ) | (9,344 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 594 | 217 | ||||||
Increase (decrease) in cash and cash equivalents | 31,383 | (1,073 | ) | |||||
Cash and cash equivalents at beginning of period | 118,151 | 67,403 | ||||||
Cash and cash equivalents at end of period | $ | 149,534 | $ | 66,330 |
SCHEDULE 4 | ||||||||||||||||||||||||
CALERES, INC. | ||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS | ||||||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||
Famous Footwear | Brand Portfolio | Other | Consolidated | |||||||||||||||||||||
(Thousands) | April 30, 2016 | May 2, 2015 | April 30, 2016 | May 2, 2015 | April 30, 2016 | May 2, 2015 | April 30, 2016 | May 2, 2015 | ||||||||||||||||
Net Sales | $ | 364,596 | $ | 360,020 | $ | 220,137 | $ | 242,263 | $ | — | $ | — | $ | 584,733 | $ | 602,283 | ||||||||
Gross Profit | $ | 168,679 | $ | 168,214 | $ | 79,114 | $ | 80,312 | $ | — | $ | — | $ | 247,793 | $ | 248,526 | ||||||||
Gross Profit Rate | 46.3 | % | 46.7 | % | 35.9 | % | 33.2 | % | — | % | — | % | 42.4 | % | 41.3 | % | ||||||||
Operating Earnings (Loss) | $ | 25,753 | $ | 27,960 | $ | 9,623 | $ | 11,060 | $ | (6,633 | ) | $ | (8,684 | ) | $ | 28,743 | $ | 30,336 | ||||||
Operating Earnings % | 7.1 | % | 7.8 | % | 4.4 | % | 4.6 | % | — | % | — | % | 4.9 | % | 5.0 | % | ||||||||
Same-store Sales % (on a 13-week basis) | 1.0 | % | 1.8 | % | (1.7 | )% | (2.5 | )% | — | % | — | % | — | % | — | % | ||||||||
Number of Stores | 1,043 | 1,040 | 168 | 165 | — | — | 1,211 | 1,205 | ||||||||||||||||
SCHEDULE 5 | |||||||
CALERES, INC. | |||||||
BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION | |||||||
(Unaudited) | |||||||
Thirteen Weeks Ended | |||||||
(Thousands, except per share data) | April 30, 2016 | May 2, 2015 | |||||
Net earnings attributable to Caleres, Inc.: | |||||||
Net earnings | $ | 17,878 | $ | 19,391 | |||
Net earnings attributable to noncontrolling interests | (96 | ) | (130 | ) | |||
Net earnings allocated to participating securities | (486 | ) | (654 | ) | |||
Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities | $ | 17,296 | $ | 18,607 | |||
Basic and diluted common shares attributable to Caleres, Inc.: | |||||||
Basic common shares | 42,433 | 42,313 | |||||
Dilutive effect of share-based awards | 163 | 145 | |||||
Diluted common shares attributable to Caleres, Inc. | 42,596 | 42,458 | |||||
Basic earnings per common share attributable to Caleres, Inc. shareholders | $ | 0.41 | $ | 0.44 | |||
Diluted earnings per common share attributable to Caleres, Inc. shareholders | $ | 0.41 | $ | 0.44 |