|
[X]
|
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended
August 4, 2018
|
|
|
[ ]
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from _____________ to _____________
|
CALERES, INC.
(
Exact name of registrant as specified in its charter)
|
|
|
|
New York
(State or other jurisdiction
of incorporation or organization)
|
43-0197190
(IRS Employer Identification Number)
|
|
|
8300 Maryland Avenue
St. Louis, Missouri
(Address of principal executive offices)
|
63105
(Zip Code)
|
(314) 854-4000
(Registrant's telephone number, including area code)
|
|
|
|
Large accelerated filer
þ
|
Accelerated filer
¨
|
Non-accelerated filer
¨
|
Smaller reporting company
¨
|
|
Emerging growth company
¨
|
INDEX
|
|
PART I
|
|
Page
|
Item 1
|
||
Item 2
|
||
Item 3
|
||
Item 4
|
||
|
|
|
PART II
|
|
|
Item 1
|
||
Item 1A
|
||
Item 2
|
||
Item 3
|
||
Item 4
|
||
Item 5
|
||
Item 6
|
||
|
PART I
|
FINANCIAL INFORMATION
|
ITEM 1
|
FINANCIAL STATEMENTS
|
CALERES, INC.
|
|
|
|
|
|
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
||||||
|
(Unaudited)
|
|
|
|
|||||||
($ thousands)
|
August 4, 2018
|
|
|
July 29, 2017
|
|
|
February 3, 2018
|
|
|||
Assets
|
|
|
|
|
|
|
|||||
Current assets:
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
102,884
|
|
|
$
|
52,942
|
|
|
$
|
64,047
|
|
Receivables, net
|
153,421
|
|
|
143,616
|
|
|
152,613
|
|
|||
Inventories, net
|
715,705
|
|
|
722,005
|
|
|
569,379
|
|
|||
Prepaid expenses and other current assets
|
62,159
|
|
|
36,972
|
|
|
60,750
|
|
|||
Total current assets
|
1,034,169
|
|
|
955,535
|
|
|
846,789
|
|
|||
|
|
|
|
|
|
||||||
Other assets
|
89,701
|
|
|
69,589
|
|
|
90,659
|
|
|||
Goodwill
|
134,546
|
|
|
127,081
|
|
|
127,081
|
|
|||
Intangible assets, net
|
227,503
|
|
|
214,114
|
|
|
212,087
|
|
|||
Property and equipment
|
549,051
|
|
|
539,732
|
|
|
542,812
|
|
|||
Allowance for depreciation
|
(341,325
|
)
|
|
(321,894
|
)
|
|
(330,013
|
)
|
|||
Property and equipment, net
|
207,726
|
|
|
217,838
|
|
|
212,799
|
|
|||
Total assets
|
$
|
1,693,645
|
|
|
$
|
1,584,157
|
|
|
$
|
1,489,415
|
|
|
|
|
|
|
|
||||||
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|||
Current liabilities:
|
|
|
|
|
|
|
|
|
|||
Borrowings under revolving credit agreement
|
$
|
—
|
|
|
$
|
35,000
|
|
|
$
|
—
|
|
Trade accounts payable
|
400,391
|
|
|
402,812
|
|
|
272,962
|
|
|||
Other accrued expenses
|
195,987
|
|
|
170,499
|
|
|
157,197
|
|
|||
Total current liabilities
|
596,378
|
|
|
608,311
|
|
|
430,159
|
|
|||
|
|
|
|
|
|
||||||
Other liabilities:
|
|
|
|
|
|
|
|
|
|||
Long-term debt
|
197,702
|
|
|
197,233
|
|
|
197,472
|
|
|||
Deferred rent
|
52,396
|
|
|
52,227
|
|
|
53,071
|
|
|||
Other liabilities
|
109,975
|
|
|
85,212
|
|
|
89,751
|
|
|||
Total other liabilities
|
360,073
|
|
|
334,672
|
|
|
340,294
|
|
|||
|
|
|
|
|
|
||||||
Equity:
|
|
|
|
|
|
|
|
|
|||
Common stock
|
432
|
|
|
430
|
|
|
430
|
|
|||
Additional paid-in capital
|
140,146
|
|
|
124,851
|
|
|
136,460
|
|
|||
Accumulated other comprehensive loss
|
(16,769
|
)
|
|
(28,051
|
)
|
|
(15,170
|
)
|
|||
Retained earnings
|
612,044
|
|
|
542,499
|
|
|
595,769
|
|
|||
Total Caleres, Inc. shareholders’ equity
|
735,853
|
|
|
639,729
|
|
|
717,489
|
|
|||
Noncontrolling interests
|
1,341
|
|
|
1,445
|
|
|
1,473
|
|
|||
Total equity
|
737,194
|
|
|
641,174
|
|
|
718,962
|
|
|||
Total liabilities and equity
|
$
|
1,693,645
|
|
|
$
|
1,584,157
|
|
|
$
|
1,489,415
|
|
CALERES, INC.
|
|
|
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
|
|
|
||||||||||
|
|
|
|
|
||||||||
|
(Unaudited)
|
|||||||||||
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
||||||||||
($ thousands, except per share amounts)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
|
||||
Net sales
|
$
|
706,612
|
|
$
|
676,954
|
|
$
|
1,338,754
|
|
$
|
1,308,463
|
|
Cost of goods sold
|
413,511
|
|
389,493
|
|
770,731
|
|
750,094
|
|
||||
Gross profit
|
293,101
|
|
287,461
|
|
568,023
|
|
558,369
|
|
||||
Selling and administrative expenses
|
258,835
|
|
256,170
|
|
509,033
|
|
502,681
|
|
||||
Restructuring and other special charges, net
|
2,123
|
|
2,865
|
|
3,900
|
|
3,973
|
|
||||
Operating earnings
|
32,143
|
|
28,426
|
|
55,090
|
|
51,715
|
|
||||
Interest expense, net
|
(3,602
|
)
|
(4,375
|
)
|
(7,285
|
)
|
(9,184
|
)
|
||||
Other income, net
|
3,078
|
|
2,670
|
|
6,169
|
|
5,106
|
|
||||
Earnings before income taxes
|
31,619
|
|
26,721
|
|
53,974
|
|
47,637
|
|
||||
Income tax provision
|
(8,008
|
)
|
(9,047
|
)
|
(13,183
|
)
|
(15,079
|
)
|
||||
Net earnings
|
23,611
|
|
17,674
|
|
40,791
|
|
32,558
|
|
||||
Net (loss) earnings attributable to noncontrolling interests
|
(35
|
)
|
79
|
|
(67
|
)
|
61
|
|
||||
Net earnings attributable to Caleres, Inc.
|
$
|
23,646
|
|
$
|
17,595
|
|
$
|
40,858
|
|
$
|
32,497
|
|
|
|
|
|
|
|
|
||||||
Basic earnings per common share attributable to Caleres, Inc. shareholders
|
$
|
0.55
|
|
$
|
0.41
|
|
$
|
0.95
|
|
$
|
0.76
|
|
|
|
|
|
|
|
|
||||||
Diluted earnings per common share attributable to Caleres, Inc. shareholders
|
$
|
0.55
|
|
$
|
0.41
|
|
$
|
0.94
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
||||||
Dividends per common share
|
$
|
0.07
|
|
$
|
0.07
|
|
$
|
0.14
|
|
$
|
0.14
|
|
CALERES, INC.
|
|
|
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||||||
|
|
|
||||||||||
|
(Unaudited)
|
|||||||||||
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
||||||||||
($ thousands)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
|
||||
Net earnings
|
$
|
23,611
|
|
$
|
17,674
|
|
$
|
40,791
|
|
$
|
32,558
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation adjustment
|
(251
|
)
|
1,820
|
|
(1,059
|
)
|
1,280
|
|
||||
Pension and other postretirement benefits adjustments
|
468
|
|
309
|
|
902
|
|
727
|
|
||||
Derivative financial instruments
|
(921
|
)
|
(402
|
)
|
(1,442
|
)
|
376
|
|
||||
Other comprehensive (loss) income, net of tax
|
(704
|
)
|
1,727
|
|
(1,599
|
)
|
2,383
|
|
||||
Comprehensive income
|
22,907
|
|
19,401
|
|
39,192
|
|
34,941
|
|
||||
Comprehensive (loss) income attributable to noncontrolling interests
|
(92
|
)
|
99
|
|
(132
|
)
|
76
|
|
||||
Comprehensive income attributable to Caleres, Inc.
|
$
|
22,999
|
|
$
|
19,302
|
|
$
|
39,324
|
|
$
|
34,865
|
|
CALERES, INC.
|
|
|
||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
||||
|
(Unaudited)
|
|||||
|
Twenty-Six Weeks Ended
|
|||||
($ thousands)
|
August 4, 2018
|
|
July 29, 2017
|
|
||
Operating Activities
|
|
|
|
|||
Net earnings
|
$
|
40,791
|
|
$
|
32,558
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
||
Depreciation
|
21,911
|
|
22,874
|
|
||
Amortization of capitalized software
|
5,325
|
|
7,243
|
|
||
Amortization of intangible assets
|
2,284
|
|
2,046
|
|
||
Amortization of debt issuance costs and debt discount
|
954
|
|
864
|
|
||
Share-based compensation expense
|
8,054
|
|
5,804
|
|
||
Loss on disposal of property and equipment
|
852
|
|
471
|
|
||
Impairment charges for property and equipment
|
933
|
|
2,119
|
|
||
Deferred rent
|
(675
|
)
|
1,103
|
|
||
Provision for doubtful accounts
|
124
|
|
294
|
|
||
Changes in operating assets and liabilities, net of acquired amounts:
|
|
|
|
|
||
Receivables
|
3,619
|
|
9,211
|
|
||
Inventories
|
(140,907
|
)
|
(134,465
|
)
|
||
Prepaid expenses and other current and noncurrent assets
|
(4,814
|
)
|
8,158
|
|
||
Trade accounts payable
|
124,882
|
|
136,108
|
|
||
Accrued expenses and other liabilities
|
28,561
|
|
19,399
|
|
||
Other, net
|
(887
|
)
|
493
|
|
||
Net cash provided by operating activities
|
91,007
|
|
114,280
|
|
||
|
|
|
||||
Investing Activities
|
|
|
|
|
||
Purchases of property and equipment
|
(18,559
|
)
|
(24,251
|
)
|
||
Capitalized software
|
(2,951
|
)
|
(3,152
|
)
|
||
Acquisition cost, net of cash received
|
(16,793
|
)
|
—
|
|
||
Net cash used for investing activities
|
(38,303
|
)
|
(27,403
|
)
|
||
|
|
|
||||
Financing Activities
|
|
|
|
|
||
Borrowings under revolving credit agreement
|
—
|
|
400,000
|
|
||
Repayments under revolving credit agreement
|
—
|
|
(475,000
|
)
|
||
Dividends paid
|
(6,053
|
)
|
(6,030
|
)
|
||
Acquisition of treasury stock
|
(3,288
|
)
|
(5,993
|
)
|
||
Issuance of common stock under share-based plans, net
|
(4,365
|
)
|
(2,490
|
)
|
||
Net cash used for financing activities
|
(13,706
|
)
|
(89,513
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(161
|
)
|
246
|
|
||
Increase (decrease) in cash and cash equivalents
|
38,837
|
|
(2,390
|
)
|
||
Cash and cash equivalents at beginning of period
|
64,047
|
|
55,332
|
|
||
Cash and cash equivalents at end of period
|
$
|
102,884
|
|
$
|
52,942
|
|
Note 1
|
Basis of Presentation
|
Note 2
|
Impact of New Accounting Pronouncements
|
Note 3
|
Acquisitions
|
($ thousands)
|
|
July 6, 2018
|
|
|
ASSETS
|
|
|
||
Current assets:
|
|
|
||
Cash and cash equivalents
|
|
$
|
2,207
|
|
Receivables
|
|
4,612
|
|
|
Inventories
|
|
6,400
|
|
|
Prepaid expense and other current assets
|
|
317
|
|
|
Total current assets
|
|
13,536
|
|
|
Other assets
|
|
539
|
|
|
Goodwill
|
|
7,465
|
|
|
Intangible assets
|
|
15,800
|
|
|
Property and equipment
|
|
112
|
|
|
Total assets
|
|
$
|
37,452
|
|
|
|
|
||
LIABILITIES AND EQUITY
|
|
|
||
Current liabilities:
|
|
|
||
Trade accounts payable
|
|
$
|
2,915
|
|
Other accrued expenses
|
|
5,739
|
|
|
Total current liabilities
|
|
8,654
|
|
|
Deferred income taxes
|
|
581
|
|
|
Other liabilities
|
|
77
|
|
|
Total liabilities
|
|
9,312
|
|
|
Net assets
|
|
$
|
28,140
|
|
Note 4
|
Revenues
|
|
|
August 4, 2018
|
||||||||||
($ thousands)
|
|
As reported
|
|
Balances without adoption of Topic 606
|
|
Effect of change
Higher/(Lower)
|
||||||
|
|
|
|
|
|
|
||||||
Balance sheet
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Current assets:
|
|
|
|
|
|
|
||||||
Receivables, net
|
|
$
|
153,421
|
|
|
$
|
148,263
|
|
|
$
|
5,158
|
|
Inventories, net
|
|
715,705
|
|
|
719,930
|
|
|
(4,225
|
)
|
|||
Prepaid expenses and other current assets
|
|
62,159
|
|
|
55,953
|
|
|
6,206
|
|
|||
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
||||||
Current liabilities:
|
|
|
|
|
|
|
||||||
Other accrued expenses
|
|
195,987
|
|
|
183,979
|
|
|
12,008
|
|
|||
|
|
|
|
|
|
|
||||||
Equity
|
|
|
|
|
|
|
||||||
Retained earnings
|
|
612,044
|
|
|
616,913
|
|
|
(4,869
|
)
|
|
|
For the Thirteen Weeks Ended August 4, 2018
|
||||||||||
($ thousands)
|
|
As reported
|
|
Balances without the adoption of Topic 606
|
|
Effect of change
(Lower)/Higher
|
||||||
|
|
|
|
|
|
|
||||||
Statement of Earnings
|
|
|
|
|
|
|
||||||
Net sales
|
|
$
|
706,612
|
|
|
$
|
707,262
|
|
|
$
|
(650
|
)
|
Cost of goods sold
|
|
413,511
|
|
|
413,594
|
|
|
(83
|
)
|
|||
Gross profit
|
|
293,101
|
|
|
293,668
|
|
|
(567
|
)
|
|||
Selling and administrative expenses
|
|
258,835
|
|
|
259,462
|
|
|
(627
|
)
|
|||
Restructuring and other special charges, net
|
|
2,123
|
|
|
2,123
|
|
|
—
|
|
|||
Operating earnings
|
|
$
|
32,143
|
|
|
$
|
32,083
|
|
|
$
|
60
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
For the Twenty-Six Weeks Ended August 4, 2018
|
||||||||||
($ thousands)
|
|
As reported
|
|
Balances without the adoption of Topic 606
|
|
Effect of change
(Lower)/Higher
|
||||||
|
|
|
|
|
|
|
||||||
Statement of Earnings
|
|
|
|
|
|
|
||||||
Net sales
|
|
$
|
1,338,754
|
|
|
$
|
1,340,183
|
|
|
$
|
(1,429
|
)
|
Cost of goods sold
|
|
770,731
|
|
|
770,806
|
|
|
(75
|
)
|
|||
Gross profit
|
|
568,023
|
|
|
569,377
|
|
|
(1,354
|
)
|
|||
Selling and administrative expenses
|
|
509,033
|
|
|
510,250
|
|
|
(1,217
|
)
|
|||
Restructuring and other special charges, net
|
|
3,900
|
|
|
3,900
|
|
|
—
|
|
|||
Operating earnings
|
|
$
|
55,090
|
|
|
$
|
55,227
|
|
|
$
|
(137
|
)
|
|
|
For the Thirteen Weeks Ended August 4, 2018
|
||||||||||
($ thousands)
|
|
Famous Footwear
|
|
Brand Portfolio
|
|
Total
|
||||||
|
|
|
|
|
|
|
||||||
Retail stores
|
|
$
|
401,008
|
|
|
$
|
43,587
|
|
|
$
|
444,595
|
|
Landed wholesale
|
|
—
|
|
|
164,454
|
|
|
164,454
|
|
|||
First-cost wholesale
|
|
—
|
|
|
27,160
|
|
|
27,160
|
|
|||
E-commerce
|
|
28,332
|
|
|
37,273
|
|
|
65,605
|
|
|||
Licensing and royalty
|
|
—
|
|
|
4,582
|
|
|
4,582
|
|
|||
Other
(1)
|
|
132
|
|
|
84
|
|
|
216
|
|
|||
Net sales
|
|
$
|
429,472
|
|
|
$
|
277,140
|
|
|
$
|
706,612
|
|
|
|
|
|
|
|
|
||||||
|
|
For the Twenty-Six Weeks Ended August 4, 2018
|
||||||||||
($ thousands)
|
|
Famous Footwear
|
|
Brand Portfolio
|
|
Total
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Retail stores
|
|
$
|
739,264
|
|
|
$
|
86,371
|
|
|
$
|
825,635
|
|
Landed wholesale
|
|
—
|
|
|
332,264
|
|
|
332,264
|
|
|||
First-cost wholesale
|
|
—
|
|
|
40,565
|
|
|
40,565
|
|
|||
E-commerce
|
|
53,346
|
|
|
78,223
|
|
|
131,569
|
|
|||
Licensing and royalty
|
|
—
|
|
|
8,294
|
|
|
8,294
|
|
|||
Other
(1)
|
|
273
|
|
|
154
|
|
|
427
|
|
|||
Net sales
|
|
$
|
792,883
|
|
|
$
|
545,871
|
|
|
$
|
1,338,754
|
|
(1)
Includes breakage revenue from unredeemed gift cards
|
($ thousands)
|
August 4, 2018
|
|
|
February 3, 2018
|
|
||
Customer allowances and discounts
|
$
|
21,838
|
|
|
$
|
20,259
|
|
Rewards program liability
|
14,780
|
|
|
8,130
|
|
||
Returns reserve
|
10,774
|
|
|
8,332
|
|
||
Gift card liability
|
4,420
|
|
|
5,509
|
|
Note 5
|
Earnings Per Share
|
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
||||||||||
($ thousands, except per share amounts)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
|
||||
NUMERATOR
|
|
|
|
|
|
|
|
|
||||
Net earnings
|
$
|
23,611
|
|
$
|
17,674
|
|
$
|
40,791
|
|
$
|
32,558
|
|
Net loss (earnings) attributable to noncontrolling interests
|
35
|
|
(79
|
)
|
67
|
|
(61
|
)
|
||||
Net earnings allocated to participating securities
|
(673
|
)
|
(490
|
)
|
(1,148
|
)
|
(895
|
)
|
||||
Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities
|
$
|
22,973
|
|
$
|
17,105
|
|
$
|
39,710
|
|
$
|
31,602
|
|
|
|
|
|
|
||||||||
DENOMINATOR
|
|
|
|
|
|
|
|
|
||||
Denominator for basic earnings per common share attributable to Caleres, Inc. shareholders
|
41,964
|
|
41,783
|
|
41,937
|
|
41,807
|
|
||||
Dilutive effect of share-based awards
|
117
|
|
171
|
|
120
|
|
172
|
|
||||
Denominator for diluted earnings per common share attributable to Caleres, Inc. shareholders
|
42,081
|
|
41,954
|
|
42,057
|
|
41,979
|
|
||||
|
|
|
|
|
||||||||
Basic earnings per common share attributable to Caleres, Inc. shareholders
|
$
|
0.55
|
|
$
|
0.41
|
|
$
|
0.95
|
|
$
|
0.76
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share attributable to Caleres, Inc. shareholders
|
$
|
0.55
|
|
$
|
0.41
|
|
$
|
0.94
|
|
$
|
0.75
|
|
Note
6
|
Restructuring and Other Initiatives
|
Note 7
|
Business Segment Information
|
|
Famous Footwear
|
Brand Portfolio
|
|
|
||||||||
($ thousands)
|
Other
|
Total
|
||||||||||
Thirteen Weeks Ended August 4, 2018
|
||||||||||||
External sales
|
$
|
429,472
|
|
$
|
277,140
|
|
$
|
—
|
|
$
|
706,612
|
|
Intersegment sales
|
—
|
|
27,881
|
|
—
|
|
27,881
|
|
||||
Operating earnings (loss)
|
33,240
|
|
13,607
|
|
(14,704
|
)
|
32,143
|
|
||||
Segment assets
|
650,366
|
|
860,093
|
|
183,186
|
|
1,693,645
|
|
||||
|
|
|
|
|
||||||||
Thirteen Weeks Ended July 29, 2017
|
||||||||||||
External sales
|
$
|
404,930
|
|
$
|
272,024
|
|
$
|
—
|
|
$
|
676,954
|
|
Intersegment sales
|
—
|
|
29,850
|
|
—
|
|
29,850
|
|
||||
Operating earnings (loss)
|
25,112
|
|
15,916
|
|
(12,602
|
)
|
28,426
|
|
||||
Segment assets
|
636,399
|
|
839,674
|
|
108,084
|
|
1,584,157
|
|
||||
|
||||||||||||
Twenty-Six Weeks Ended August 4, 2018
|
||||||||||||
External sales
|
$
|
792,883
|
|
$
|
545,871
|
|
$
|
—
|
|
$
|
1,338,754
|
|
Intersegment sales
|
—
|
|
42,656
|
|
—
|
|
42,656
|
|
||||
Operating earnings (loss)
|
55,097
|
|
26,094
|
|
(26,101
|
)
|
55,090
|
|
||||
|
|
|
|
|
||||||||
Twenty-Six Weeks Ended July 29, 2017
|
||||||||||||
External sales
|
$
|
771,424
|
|
$
|
537,039
|
|
$
|
—
|
|
$
|
1,308,463
|
|
Intersegment sales
|
—
|
|
44,550
|
|
—
|
|
44,550
|
|
||||
Operating earnings (loss)
|
45,391
|
|
29,230
|
|
(22,906
|
)
|
51,715
|
|
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
||||||||||
($ thousands)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
|
||||
Operating earnings
|
$
|
32,143
|
|
$
|
28,426
|
|
$
|
55,090
|
|
$
|
51,715
|
|
Interest expense, net
|
(3,602
|
)
|
(4,375
|
)
|
(7,285
|
)
|
(9,184
|
)
|
||||
Other income, net
|
3,078
|
|
2,670
|
|
6,169
|
|
5,106
|
|
||||
Earnings before income taxes
|
$
|
31,619
|
|
$
|
26,721
|
|
$
|
53,974
|
|
$
|
47,637
|
|
Note
8
|
Inventories
|
($ thousands)
|
August 4, 2018
|
|
July 29, 2017
|
|
February 3, 2018
|
|
|||
Raw materials
|
$
|
17,697
|
|
$
|
18,951
|
|
$
|
17,531
|
|
Work-in-process
|
799
|
|
840
|
|
689
|
|
|||
Finished goods
|
697,209
|
|
702,214
|
|
551,159
|
|
|||
Inventories, net
|
$
|
715,705
|
|
$
|
722,005
|
|
$
|
569,379
|
|
Note
9
|
Goodwill and Intangible Assets
|
($ thousands)
|
August 4, 2018
|
|
July 29, 2017
|
|
February 3, 2018
|
|
|||
Intangible Assets
|
|
|
|
|
|
|
|||
Famous Footwear
|
$
|
2,800
|
|
$
|
2,800
|
|
$
|
2,800
|
|
Brand Portfolio
|
301,788
|
|
285,988
|
|
285,988
|
|
|||
Other
|
1,900
|
|
—
|
|
—
|
|
|||
Total intangible assets
|
306,488
|
|
288,788
|
|
288,788
|
|
|||
Accumulated amortization
|
(78,985
|
)
|
(74,674
|
)
|
(76,701
|
)
|
|||
Total intangible assets, net
|
227,503
|
|
214,114
|
|
212,087
|
|
|||
Goodwill
|
|
|
|
|
|
|
|||
Brand Portfolio
|
134,546
|
|
127,081
|
|
127,081
|
|
|||
Total goodwill
|
134,546
|
|
127,081
|
|
127,081
|
|
|||
Goodwill and intangible assets, net
|
$
|
362,049
|
|
$
|
341,195
|
|
$
|
339,168
|
|
($ thousands)
|
|
|
|
August 4, 2018
|
||||||||||
|
|
Estimated Useful Lives
|
|
Original Cost
|
|
|
Accumulated Amortization
|
|
|
Net Carrying Value
|
|
|||
Trademarks
|
|
15-40 years
|
|
$
|
175,188
|
|
|
$
|
78,197
|
|
|
$
|
96,991
|
|
Trademarks
|
|
Indefinite
|
|
118,100
|
|
|
—
|
|
|
118,100
|
|
|||
Customer relationships
|
|
15-20 years
|
|
11,300
|
|
|
618
|
|
|
10,682
|
|
|||
Software licenses
|
|
3 years
|
|
1,900
|
|
|
170
|
|
|
1,730
|
|
|||
|
|
|
|
$
|
306,488
|
|
|
$
|
78,985
|
|
|
$
|
227,503
|
|
|
|
|
|
July 29, 2017
|
||||||||||
|
|
Estimated Useful Lives
|
|
Original Cost
|
|
|
Accumulated Amortization
|
|
|
Net Carrying Value
|
|
|||
Trademarks
|
|
15-40 years
|
|
$
|
165,288
|
|
|
$
|
74,449
|
|
|
$
|
90,839
|
|
Trademarks
|
|
Indefinite
|
|
118,100
|
|
|
—
|
|
|
118,100
|
|
|||
Customer relationships
|
|
15 years
|
|
5,400
|
|
|
225
|
|
|
5,175
|
|
|||
|
|
|
|
$
|
288,788
|
|
|
$
|
74,674
|
|
|
$
|
214,114
|
|
|
|
|
|
February 3, 2018
|
||||||||||
|
|
Estimated Useful Lives
|
|
Original Cost
|
|
|
Accumulated Amortization
|
|
|
Net Carrying Value
|
|
|||
Trademarks
|
|
15-40 years
|
|
$
|
165,288
|
|
|
$
|
76,296
|
|
|
$
|
88,992
|
|
Trademarks
|
|
Indefinite
|
|
118,100
|
|
|
—
|
|
|
118,100
|
|
|||
Customer relationships
|
|
15 years
|
|
5,400
|
|
|
405
|
|
|
4,995
|
|
|||
|
|
|
|
$
|
288,788
|
|
|
$
|
76,701
|
|
|
$
|
212,087
|
|
Note
10
|
Shareholders’ Equity
|
($ thousands)
|
Caleres, Inc. Shareholders’ Equity
|
|
Noncontrolling Interests
|
|
Total Equity
|
|
|||
Equity at February 3, 2018
|
$
|
717,489
|
|
$
|
1,473
|
|
$
|
718,962
|
|
Net earnings (loss)
|
40,858
|
|
(67
|
)
|
40,791
|
|
|||
Other comprehensive loss
|
(1,599
|
)
|
(65
|
)
|
(1,664
|
)
|
|||
Dividends paid
|
(6,053
|
)
|
—
|
|
(6,053
|
)
|
|||
Acquisition of treasury stock
|
(3,288
|
)
|
—
|
|
(3,288
|
)
|
|||
Issuance of common stock under share-based plans, net
|
(4,365
|
)
|
—
|
|
(4,365
|
)
|
|||
Cumulative-effect adjustment from adoption of ASU 2016-16
|
(10,468
|
)
|
—
|
|
(10,468
|
)
|
|||
Cumulative-effect adjustment from adoption of ASU 2014-09 (Topic 606)
|
(4,775
|
)
|
—
|
|
(4,775
|
)
|
|||
Share-based compensation expense
|
8,054
|
|
—
|
|
8,054
|
|
|||
Equity at August 4, 2018
|
$
|
735,853
|
|
$
|
1,341
|
|
$
|
737,194
|
|
($ thousands)
|
Caleres, Inc. Shareholders’ Equity
|
|
Noncontrolling Interests
|
|
Total Equity
|
|
|||
Equity at January 28, 2017
|
$
|
613,117
|
|
$
|
1,369
|
|
$
|
614,486
|
|
Net earnings
|
32,497
|
|
61
|
|
32,558
|
|
|||
Other comprehensive income
|
2,383
|
|
15
|
|
2,398
|
|
|||
Dividends paid
|
(6,030
|
)
|
—
|
|
(6,030
|
)
|
|||
Acquisition of treasury stock
|
(5,993
|
)
|
—
|
|
(5,993
|
)
|
|||
Issuance of common stock under share-based plans, net
|
(2,490
|
)
|
—
|
|
(2,490
|
)
|
|||
Cumulative-effect adjustment from adoption of ASU 2016-09
|
441
|
|
—
|
|
441
|
|
|||
Share-based compensation expense
|
5,804
|
|
—
|
|
5,804
|
|
|||
Equity at July 29, 2017
|
$
|
639,729
|
|
$
|
1,445
|
|
$
|
641,174
|
|
($ thousands)
|
Foreign Currency Translation
|
|
Pension and Other Postretirement Transactions
(1)
|
|
Derivative Financial Instrument Transactions
(2)
|
|
Accumulated Other Comprehensive (Loss) Income
|
|
||||
Balance at May 5, 2018
|
$
|
427
|
|
$
|
(16,738
|
)
|
$
|
246
|
|
$
|
(16,065
|
)
|
Other comprehensive loss before reclassifications
|
(251
|
)
|
—
|
|
(825
|
)
|
(1,076
|
)
|
||||
Reclassifications:
|
|
|
|
|
|
|||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
630
|
|
(121
|
)
|
509
|
|
||||
Tax (benefit) provision
|
—
|
|
(162
|
)
|
25
|
|
(137
|
)
|
||||
Net reclassifications
|
—
|
|
468
|
|
(96
|
)
|
372
|
|
||||
Other comprehensive (loss) income
|
(251
|
)
|
468
|
|
(921
|
)
|
(704
|
)
|
||||
Balance at August 4, 2018
|
$
|
176
|
|
$
|
(16,270
|
)
|
$
|
(675
|
)
|
$
|
(16,769
|
)
|
|
|
|
|
|
||||||||
Balance at April 29, 2017
|
$
|
(348
|
)
|
$
|
(29,666
|
)
|
$
|
236
|
|
$
|
(29,778
|
)
|
Other comprehensive income (loss) before reclassifications
|
1,820
|
|
—
|
|
(295
|
)
|
1,525
|
|
||||
Reclassifications:
|
|
|
|
|
||||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
500
|
|
(164
|
)
|
336
|
|
||||
Tax (benefit) provision
|
—
|
|
(191
|
)
|
57
|
|
(134
|
)
|
||||
Net reclassifications
|
—
|
|
309
|
|
(107
|
)
|
202
|
|
||||
Other comprehensive income (loss)
|
1,820
|
|
309
|
|
(402
|
)
|
1,727
|
|
||||
Balance at July 29, 2017
|
$
|
1,472
|
|
$
|
(29,357
|
)
|
$
|
(166
|
)
|
$
|
(28,051
|
)
|
|
|
|
|
|
||||||||
Balance February 3, 2018
|
$
|
1,235
|
|
$
|
(17,172
|
)
|
$
|
767
|
|
$
|
(15,170
|
)
|
Other comprehensive loss before reclassifications
|
(1,059
|
)
|
—
|
|
(1,233
|
)
|
(2,292
|
)
|
||||
Reclassifications:
|
|
|
|
|
||||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
1,215
|
|
(266
|
)
|
949
|
|
||||
Tax (benefit) provision
|
—
|
|
(313
|
)
|
57
|
|
(256
|
)
|
||||
Net reclassifications
|
—
|
|
902
|
|
(209
|
)
|
693
|
|
||||
Other comprehensive (loss) income
|
(1,059
|
)
|
902
|
|
(1,442
|
)
|
(1,599
|
)
|
||||
Balance August 4, 2018
|
$
|
176
|
|
$
|
(16,270
|
)
|
$
|
(675
|
)
|
$
|
(16,769
|
)
|
|
|
|
|
|
||||||||
Balance January 28, 2017
|
$
|
192
|
|
$
|
(30,084
|
)
|
$
|
(542
|
)
|
$
|
(30,434
|
)
|
Other comprehensive income before reclassifications
|
1,280
|
|
—
|
|
458
|
|
1,738
|
|
||||
Reclassifications:
|
|
|
|
|
||||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
1,179
|
|
(117
|
)
|
1,062
|
|
||||
Tax (benefit) provision
|
—
|
|
(452
|
)
|
35
|
|
(417
|
)
|
||||
Net reclassifications
|
—
|
|
727
|
|
(82
|
)
|
645
|
|
||||
Other comprehensive income
|
1,280
|
|
727
|
|
376
|
|
2,383
|
|
||||
Balance July 29, 2017
|
$
|
1,472
|
|
$
|
(29,357
|
)
|
$
|
(166
|
)
|
$
|
(28,051
|
)
|
(1)
|
Amounts reclassified are included in other income, net. See Note 12 to the condensed consolidated financial statements for additional information related to pension and other postretirement benefits.
|
(2)
|
Amounts reclassified are included in net sales, costs of goods sold, selling and administrative expenses and interest expense, net. See Notes 13 and 14 to the condensed consolidated financial statements for additional information related to derivative financial instruments.
|
Note 11
|
Share-Based Compensation
|
|
Thirteen Weeks Ended
|
|
|
Thirteen Weeks Ended
|
||||||||||
|
August 4, 2018
|
|
|
July 29, 2017
|
||||||||||
|
|
|
Weighted- Average Grant Date Fair Value
|
|
|
|
|
Weighted- Average Grant Date Fair Value
|
||||||
|
Total Number of Restricted Shares
|
|
|
|
Total Number of Restricted Shares
|
|
||||||||
|
|
|
|
|
||||||||||
May 5, 2018
|
1,244,332
|
|
|
$
|
28.80
|
|
|
April 29, 2017
|
1,217,334
|
|
|
$
|
27.96
|
|
Granted
|
39,142
|
|
|
34.33
|
|
|
Granted
|
4,492
|
|
|
27.83
|
|
||
Forfeited
|
(750
|
)
|
|
35.53
|
|
|
Forfeited
|
(17,500
|
)
|
|
28.56
|
|
||
Vested
|
(76,826
|
)
|
|
27.81
|
|
|
Vested
|
(10,000
|
)
|
|
18.80
|
|
||
August 4, 2018
|
1,205,898
|
|
|
$
|
29.04
|
|
|
July 29, 2017
|
1,194,326
|
|
|
$
|
28.03
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Twenty-Six Weeks Ended
|
|
|
Twenty-Six Weeks Ended
|
||||||||||
|
August 4, 2018
|
|
|
July 29, 2017
|
||||||||||
|
|
|
Weighted- Average Grant Date Fair Value
|
|
|
|
|
Weighted- Average Grant Date Fair Value
|
||||||
|
Total Number of Restricted Shares
|
|
|
|
Total Number of Restricted Shares
|
|
||||||||
|
|
|
|
|
||||||||||
February 3, 2018
|
1,174,801
|
|
|
$
|
27.92
|
|
|
January 28, 2017
|
1,128,049
|
|
|
$
|
25.85
|
|
Granted
|
333,833
|
|
|
32.07
|
|
|
Granted
|
356,312
|
|
|
26.91
|
|
||
Forfeited
|
(17,300
|
)
|
|
27.82
|
|
|
Forfeited
|
(30,000
|
)
|
|
27.75
|
|
||
Vested
|
(285,436
|
)
|
|
28.06
|
|
|
Vested
|
(260,035
|
)
|
|
17.07
|
|
||
August 4, 2018
|
1,205,898
|
|
|
$
|
29.04
|
|
|
July 29, 2017
|
1,194,326
|
|
|
$
|
28.03
|
|
|
Thirteen Weeks Ended
|
|
|
Thirteen Weeks Ended
|
||||||||||
|
August 4, 2018
|
|
|
July 29, 2017
|
||||||||||
|
|
|
Weighted- Average Grant Date Fair Value
|
|
|
|
|
Weighted- Average Grant Date Fair Value
|
||||||
|
Total Number of Stock Options
|
|
|
|
Total Number of Stock Options
|
|
||||||||
|
|
|
|
|
||||||||||
May 5, 2018
|
62,042
|
|
|
$
|
6.90
|
|
|
April 29, 2017
|
97,292
|
|
|
$
|
6.39
|
|
Granted
|
—
|
|
|
—
|
|
|
Granted
|
—
|
|
|
—
|
|
||
Exercised
|
(15,875
|
)
|
|
3.00
|
|
|
Exercised
|
(5,250
|
)
|
|
5.93
|
|
||
Forfeited
|
—
|
|
|
—
|
|
|
Forfeited
|
—
|
|
|
—
|
|
||
Expired
|
(1,500
|
)
|
|
5.95
|
|
|
Expired
|
—
|
|
|
—
|
|
||
August 4, 2018
|
44,667
|
|
|
$
|
8.32
|
|
|
July 29, 2017
|
92,042
|
|
|
$
|
6.42
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Twenty-Six Weeks Ended
|
|
|
Twenty-Six Weeks Ended
|
||||||||||
|
August 4, 2018
|
|
|
July 29, 2017
|
||||||||||
|
|
|
Weighted- Average Grant Date Fair Value
|
|
|
|
|
Weighted- Average Grant Date Fair Value
|
||||||
|
Total Number of Stock Options
|
|
|
|
Total Number of Stock Options
|
|
||||||||
|
|
|
|
|
||||||||||
February 3, 2018
|
81,042
|
|
|
$
|
6.28
|
|
|
January 28, 2017
|
150,540
|
|
|
$
|
9.36
|
|
Granted
|
—
|
|
|
—
|
|
|
Granted
|
—
|
|
|
—
|
|
||
Exercised
|
(32,375
|
)
|
|
3.52
|
|
|
Exercised
|
(11,250
|
)
|
|
5.74
|
|
||
Forfeited
|
—
|
|
|
—
|
|
|
Forfeited
|
—
|
|
|
—
|
|
||
Expired
|
(4,000
|
)
|
|
5.80
|
|
|
Expired
|
(47,248
|
)
|
|
15.94
|
|
||
August 4, 2018
|
44,667
|
|
|
$
|
8.32
|
|
|
July 29, 2017
|
92,042
|
|
|
$
|
6.42
|
|
Note
12
|
Retirement and Other Benefit Plans
|
|
Pension Benefits
|
Other Postretirement Benefits
|
||||||||||
|
Thirteen Weeks Ended
|
Thirteen Weeks Ended
|
||||||||||
($ thousands)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
|
||||
Service cost
|
$
|
2,097
|
|
$
|
2,383
|
|
$
|
—
|
|
$
|
—
|
|
Interest cost
|
3,550
|
|
3,727
|
|
14
|
|
16
|
|
||||
Expected return on assets
|
(7,272
|
)
|
(6,913
|
)
|
—
|
|
—
|
|
||||
Amortization of:
|
|
|
|
|
|
|
|
|
||||
Actuarial loss (gain)
|
1,048
|
|
996
|
|
(32
|
)
|
(35
|
)
|
||||
Prior service income
|
(386
|
)
|
(461
|
)
|
—
|
|
—
|
|
||||
Total net periodic benefit income
|
$
|
(963
|
)
|
$
|
(268
|
)
|
$
|
(18
|
)
|
$
|
(19
|
)
|
|
|
|
|
|
||||||||
|
|
|
|
|
||||||||
|
Pension Benefits
|
Other Postretirement Benefits
|
||||||||||
|
Twenty-Six Weeks Ended
|
Twenty-Six Weeks Ended
|
||||||||||
($ thousands)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
|
||||
Service cost
|
$
|
4,479
|
|
$
|
4,850
|
|
$
|
—
|
|
$
|
—
|
|
Interest cost
|
7,091
|
|
7,474
|
|
29
|
|
34
|
|
||||
Expected return on assets
|
(14,504
|
)
|
(13,793
|
)
|
—
|
|
—
|
|
||||
Amortization of:
|
|
|
|
|
||||||||
Actuarial loss (gain)
|
2,061
|
|
2,148
|
|
(62
|
)
|
(73
|
)
|
||||
Prior service income
|
(784
|
)
|
(896
|
)
|
—
|
|
—
|
|
||||
Total net periodic benefit income
|
$
|
(1,657
|
)
|
$
|
(217
|
)
|
$
|
(33
|
)
|
$
|
(39
|
)
|
Note 13
|
Risk Management and Derivatives
|
(U.S. $ equivalent in thousands)
|
August 4, 2018
|
|
July 29, 2017
|
|
February 3, 2018
|
|
|||
Financial Instruments
|
|
|
|
||||||
Euro
|
$
|
14,852
|
|
$
|
14,725
|
|
$
|
21,223
|
|
U.S. dollars (purchased by the Company’s Canadian division with Canadian dollars)
|
15,992
|
|
18,110
|
|
16,874
|
|
|||
Chinese yuan
|
12,394
|
|
11,887
|
|
12,058
|
|
|||
New Taiwanese dollars
|
526
|
|
567
|
|
596
|
|
|||
Other currencies
|
391
|
|
444
|
|
415
|
|
|||
Total financial instruments
|
$
|
44,155
|
|
$
|
45,733
|
|
$
|
51,166
|
|
|
Thirteen Weeks Ended
|
Thirteen Weeks Ended
|
||||||||||
($ thousands)
|
August 4, 2018
|
July 29, 2017
|
||||||||||
Foreign Exchange Forward Contracts:
Income Statement Classification (Losses) Gains - Realized
|
Loss Recognized in OCL on Derivatives
|
|
(Loss) Gain Reclassified from Accumulated OCL into Earnings
|
|
Loss Recognized in OCL on Derivatives
|
|
Gain Reclassified from Accumulated OCL into Earnings
|
|
||||
|
|
|
|
|
||||||||
Net sales
|
$
|
(17
|
)
|
$
|
(4
|
)
|
$
|
(8
|
)
|
$
|
6
|
|
Cost of goods sold
|
(283
|
)
|
28
|
|
(55
|
)
|
158
|
|
||||
Selling and administrative expenses
|
(730
|
)
|
97
|
|
(194
|
)
|
—
|
|
||||
Interest expense, net
|
—
|
|
—
|
|
(14
|
)
|
—
|
|
|
|
|
|
|
||||||||
|
Twenty-Six Weeks Ended
|
Twenty-Six Weeks Ended
|
||||||||||
($ thousands)
|
August 4, 2018
|
July 29, 2017
|
||||||||||
Foreign Exchange Forward Contracts:
Income Statement Classification (Losses) Gains - Realized
|
Loss Recognized in OCL on Derivatives
|
|
(Loss) Gain Reclassified from Accumulated OCL into Earnings
|
|
(Loss) Gain Recognized in OCL on Derivatives
|
|
Gain (Loss) Reclassified from Accumulated OCL into Earnings
|
|
||||
|
|
|
|
|
||||||||
Net sales
|
$
|
(42
|
)
|
$
|
(4
|
)
|
$
|
(40
|
)
|
$
|
24
|
|
Cost of goods sold
|
(684
|
)
|
(64
|
)
|
737
|
|
161
|
|
||||
Selling and administrative expenses
|
(802
|
)
|
334
|
|
117
|
|
(67
|
)
|
||||
Interest expense, net
|
—
|
|
—
|
|
(10
|
)
|
(1
|
)
|
Note 14
|
Fair Value Measurements
|
•
|
Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;
|
•
|
Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and
|
•
|
Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.
|
|
|
|
|
Fair Value Measurements
|
|||||||||
($ thousands)
|
Total
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||
Asset (Liability)
|
|
|
|
|
|
|
|
|
|
||||
August 4, 2018:
|
|
|
|
|
|
||||||||
Cash equivalents – money market funds
|
$
|
47,155
|
|
|
$
|
47,155
|
|
$
|
—
|
|
$
|
—
|
|
Non-qualified deferred compensation plan assets
|
7,208
|
|
|
7,208
|
|
—
|
|
—
|
|
||||
Non-qualified deferred compensation plan liabilities
|
(7,208
|
)
|
|
(7,208
|
)
|
—
|
|
—
|
|
||||
Deferred compensation plan liabilities for non-employee directors
|
(2,668
|
)
|
|
(2,668
|
)
|
—
|
|
—
|
|
||||
Restricted stock units for non-employee directors
|
(5,107
|
)
|
|
(5,107
|
)
|
—
|
|
—
|
|
||||
Derivative financial instruments, net
|
(1,075
|
)
|
|
—
|
|
(1,075
|
)
|
—
|
|
||||
Mandatory purchase obligation - Blowfish Malibu
|
(9,185
|
)
|
|
—
|
|
—
|
|
(9,185
|
)
|
||||
July 29, 2017:
|
|
|
|
|
|
||||||||
Cash equivalents – money market funds
|
$
|
16,163
|
|
|
$
|
16,163
|
|
$
|
—
|
|
$
|
—
|
|
Non-qualified deferred compensation plan assets
|
5,637
|
|
|
5,637
|
|
—
|
|
—
|
|
||||
Non-qualified deferred compensation plan liabilities
|
(5,637
|
)
|
|
(5,637
|
)
|
—
|
|
—
|
|
||||
Deferred compensation plan liabilities for non-employee directors
|
(2,154
|
)
|
|
(2,154
|
)
|
—
|
|
—
|
|
||||
Restricted stock units for non-employee directors
|
(9,088
|
)
|
|
(9,088
|
)
|
—
|
|
—
|
|
||||
Derivative financial instruments, net
|
(165
|
)
|
|
—
|
|
(165
|
)
|
—
|
|
||||
February 3, 2018:
|
|
|
|
|
|
||||||||
Cash equivalents – money market funds
|
$
|
53,106
|
|
|
$
|
53,106
|
|
$
|
—
|
|
$
|
—
|
|
Non-qualified deferred compensation plan assets
|
6,445
|
|
|
6,445
|
|
—
|
|
—
|
|
||||
Non-qualified deferred compensation plan liabilities
|
(6,445
|
)
|
|
(6,445
|
)
|
—
|
|
—
|
|
||||
Deferred compensation plan liabilities for non-employee directors
|
(2,289
|
)
|
|
(2,289
|
)
|
—
|
|
—
|
|
||||
Restricted stock units for non-employee directors
|
(4,343
|
)
|
|
(4,343
|
)
|
—
|
|
—
|
|
||||
Derivative financial instruments, net
|
998
|
|
|
—
|
|
998
|
|
—
|
|
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
||||||||||
($ thousands)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
|
||||
Impairment Charges
|
|
|
|
|
||||||||
Famous Footwear
|
$
|
150
|
|
$
|
150
|
|
$
|
300
|
|
$
|
300
|
|
Brand Portfolio
|
315
|
|
1,020
|
|
633
|
|
1,819
|
|
||||
Total impairment charges
|
$
|
465
|
|
$
|
1,170
|
|
$
|
933
|
|
$
|
2,119
|
|
|
August 4, 2018
|
|
July 29, 2017
|
|
February 3, 2018
|
||||||||||||||||||
|
Carrying
|
|
|
Fair
|
|
|
Carrying
|
|
|
Fair
|
|
|
Carrying
|
|
|
Fair
|
|
||||||
($ thousands)
|
Value
|
|
|
Value
|
|
|
Value
|
|
|
Value
|
|
|
Value
|
|
|
Value
|
|
||||||
Borrowings under revolving credit agreement
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35,000
|
|
|
$
|
35,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Long-term debt
|
197,702
|
|
|
205,000
|
|
|
197,233
|
|
|
209,500
|
|
|
197,472
|
|
|
210,000
|
|
||||||
Total debt
|
$
|
197,702
|
|
|
$
|
205,000
|
|
|
$
|
232,233
|
|
|
$
|
244,500
|
|
|
$
|
197,472
|
|
|
$
|
210,000
|
|
Note 15
|
Income Taxes
|
Note 16
|
Commitments and Contingencies
|
Note 17
|
Financial Information for the Company and its Subsidiaries
|
UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
|
|||||||||||||||
AUGUST 4, 2018
|
|||||||||||||||
|
|
|
Non-
|
|
|
|
|||||||||
($ thousands)
|
Parent
|
|
Guarantors
|
|
Guarantors
|
|
Eliminations
|
|
Total
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
14,182
|
|
$
|
30,730
|
|
$
|
57,972
|
|
$
|
—
|
|
$
|
102,884
|
|
Receivables, net
|
127,466
|
|
3,788
|
|
22,167
|
|
—
|
|
153,421
|
|
|||||
Inventories, net
|
164,595
|
|
518,024
|
|
33,086
|
|
—
|
|
715,705
|
|
|||||
Prepaid expenses and other current assets
|
38,183
|
|
29,274
|
|
7,240
|
|
(12,538
|
)
|
62,159
|
|
|||||
Intercompany receivable – current
|
170
|
|
94
|
|
17,656
|
|
(17,920
|
)
|
—
|
|
|||||
Total current assets
|
344,596
|
|
581,910
|
|
138,121
|
|
(30,458
|
)
|
1,034,169
|
|
|||||
Other assets
|
75,790
|
|
12,621
|
|
1,290
|
|
—
|
|
89,701
|
|
|||||
Goodwill and intangible assets, net
|
111,728
|
|
40,937
|
|
209,384
|
|
—
|
|
362,049
|
|
|||||
Property and equipment, net
|
35,682
|
|
160,223
|
|
11,821
|
|
—
|
|
207,726
|
|
|||||
Investment in subsidiaries
|
1,375,185
|
|
—
|
|
(24,159
|
)
|
(1,351,026
|
)
|
—
|
|
|||||
Intercompany receivable – noncurrent
|
797,184
|
|
527,462
|
|
720,698
|
|
(2,045,344
|
)
|
—
|
|
|||||
Total assets
|
$
|
2,740,165
|
|
$
|
1,323,153
|
|
$
|
1,057,155
|
|
$
|
(3,426,828
|
)
|
$
|
1,693,645
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|||||
Trade accounts payable
|
$
|
165,241
|
|
$
|
202,310
|
|
$
|
32,840
|
|
$
|
—
|
|
$
|
400,391
|
|
Other accrued expenses
|
83,094
|
|
100,567
|
|
24,864
|
|
(12,538
|
)
|
195,987
|
|
|||||
Intercompany payable – current
|
10,852
|
|
—
|
|
7,068
|
|
(17,920
|
)
|
—
|
|
|||||
Total current liabilities
|
259,187
|
|
302,877
|
|
64,772
|
|
(30,458
|
)
|
596,378
|
|
|||||
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt
|
197,702
|
|
—
|
|
—
|
|
—
|
|
197,702
|
|
|||||
Other liabilities
|
118,125
|
|
39,124
|
|
5,122
|
|
—
|
|
162,371
|
|
|||||
Intercompany payable – noncurrent
|
1,429,298
|
|
93,335
|
|
522,711
|
|
(2,045,344
|
)
|
—
|
|
|||||
Total other liabilities
|
1,745,125
|
|
132,459
|
|
527,833
|
|
(2,045,344
|
)
|
360,073
|
|
|||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|||||
Caleres, Inc. shareholders’ equity
|
735,853
|
|
887,817
|
|
463,209
|
|
(1,351,026
|
)
|
735,853
|
|
|||||
Noncontrolling interests
|
—
|
|
—
|
|
1,341
|
|
—
|
|
1,341
|
|
|||||
Total equity
|
735,853
|
|
887,817
|
|
464,550
|
|
(1,351,026
|
)
|
737,194
|
|
|||||
Total liabilities and equity
|
$
|
2,740,165
|
|
$
|
1,323,153
|
|
$
|
1,057,155
|
|
$
|
(3,426,828
|
)
|
$
|
1,693,645
|
|
UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
|
|||||||||||||||
FOR THE THIRTEEN WEEKS ENDED AUGUST 4, 2018
|
|||||||||||||||
|
|
|
Non-
|
|
|
|
|||||||||
($ thousands)
|
Parent
|
|
Guarantors
|
|
Guarantors
|
|
Eliminations
|
|
Total
|
|
|||||
Net sales
|
$
|
212,252
|
|
$
|
501,803
|
|
$
|
64,765
|
|
$
|
(72,208
|
)
|
$
|
706,612
|
|
Cost of goods sold
|
150,630
|
|
288,580
|
|
33,409
|
|
(59,108
|
)
|
413,511
|
|
|||||
Gross profit
|
61,622
|
|
213,223
|
|
31,356
|
|
(13,100
|
)
|
293,101
|
|
|||||
Selling and administrative expenses
|
73,587
|
|
185,510
|
|
12,838
|
|
(13,100
|
)
|
258,835
|
|
|||||
Restructuring and other special charges, net
|
324
|
|
1,799
|
|
—
|
|
—
|
|
2,123
|
|
|||||
Operating (loss) earnings
|
(12,289
|
)
|
25,914
|
|
18,518
|
|
—
|
|
32,143
|
|
|||||
Interest (expense) income
|
(3,805
|
)
|
(13
|
)
|
216
|
|
—
|
|
(3,602
|
)
|
|||||
Other income (expense)
|
3,084
|
|
—
|
|
(6
|
)
|
—
|
|
3,078
|
|
|||||
Intercompany interest income (expense)
|
2,873
|
|
(2,900
|
)
|
27
|
|
—
|
|
—
|
|
|||||
(Loss) earnings before income taxes
|
(10,137
|
)
|
23,001
|
|
18,755
|
|
—
|
|
31,619
|
|
|||||
Income tax benefit (provision)
|
1,900
|
|
(6,833
|
)
|
(3,075
|
)
|
—
|
|
(8,008
|
)
|
|||||
Equity in earnings (loss) of subsidiaries, net of tax
|
31,883
|
|
—
|
|
(116
|
)
|
(31,767
|
)
|
—
|
|
|||||
Net earnings
|
23,646
|
|
16,168
|
|
15,564
|
|
(31,767
|
)
|
23,611
|
|
|||||
Less: Net loss attributable to noncontrolling interests
|
—
|
|
—
|
|
(35
|
)
|
—
|
|
(35
|
)
|
|||||
Net earnings attributable to Caleres, Inc.
|
$
|
23,646
|
|
$
|
16,168
|
|
$
|
15,599
|
|
$
|
(31,767
|
)
|
$
|
23,646
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income
|
$
|
22,999
|
|
$
|
16,158
|
|
$
|
15,467
|
|
$
|
(31,717
|
)
|
$
|
22,907
|
|
Less: Comprehensive loss attributable to noncontrolling interests
|
—
|
|
—
|
|
(92
|
)
|
—
|
|
(92
|
)
|
|||||
Comprehensive income attributable to Caleres, Inc.
|
$
|
22,999
|
|
$
|
16,158
|
|
$
|
15,559
|
|
$
|
(31,717
|
)
|
$
|
22,999
|
|
|
|
|
|
|
|
||||||||||
UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
|
|||||||||||||||
FOR THE TWENTY-SIX WEEKS ENDED AUGUST 4, 2018
|
|||||||||||||||
|
|
|
Non-
|
|
|
|
|||||||||
($ thousands)
|
Parent
|
|
Guarantors
|
|
Guarantors
|
|
Eliminations
|
|
Total
|
|
|||||
Net sales
|
$
|
411,512
|
|
$
|
947,498
|
|
$
|
102,157
|
|
$
|
(122,413
|
)
|
$
|
1,338,754
|
|
Cost of goods sold
|
285,223
|
|
536,379
|
|
51,276
|
|
(102,147
|
)
|
770,731
|
|
|||||
Gross profit
|
126,289
|
|
411,119
|
|
50,881
|
|
(20,266
|
)
|
568,023
|
|
|||||
Selling and administrative expenses
|
139,930
|
|
363,396
|
|
25,973
|
|
(20,266
|
)
|
509,033
|
|
|||||
Restructuring and other special charges, net
|
848
|
|
3,052
|
|
—
|
|
—
|
|
3,900
|
|
|||||
Operating (loss) earnings
|
(14,489
|
)
|
44,671
|
|
24,908
|
|
—
|
|
55,090
|
|
|||||
Interest (expense) income
|
(7,624
|
)
|
(25
|
)
|
364
|
|
—
|
|
(7,285
|
)
|
|||||
Other income (expense)
|
6,204
|
|
—
|
|
(35
|
)
|
—
|
|
6,169
|
|
|||||
Intercompany interest income (expense)
|
5,641
|
|
(5,699
|
)
|
58
|
|
—
|
|
—
|
|
|||||
(Loss) earnings before income taxes
|
(10,268
|
)
|
38,947
|
|
25,295
|
|
—
|
|
53,974
|
|
|||||
Income tax benefit (provision)
|
947
|
|
(10,135
|
)
|
(3,995
|
)
|
—
|
|
(13,183
|
)
|
|||||
Equity in earnings (loss) of subsidiaries, net of tax
|
50,179
|
|
—
|
|
(594
|
)
|
(49,585
|
)
|
—
|
|
|||||
Net earnings
|
40,858
|
|
28,812
|
|
20,706
|
|
(49,585
|
)
|
40,791
|
|
|||||
Less: Net loss attributable to noncontrolling interests
|
—
|
|
—
|
|
(67
|
)
|
—
|
|
(67
|
)
|
|||||
Net earnings attributable to Caleres, Inc.
|
$
|
40,858
|
|
$
|
28,812
|
|
$
|
20,773
|
|
$
|
(49,585
|
)
|
$
|
40,858
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income
|
$
|
39,324
|
|
$
|
28,784
|
|
$
|
20,462
|
|
$
|
(49,378
|
)
|
$
|
39,192
|
|
Less: Comprehensive loss attributable to noncontrolling interests
|
—
|
|
—
|
|
(132
|
)
|
—
|
|
(132
|
)
|
|||||
Comprehensive income attributable to Caleres, Inc.
|
$
|
39,324
|
|
$
|
28,784
|
|
$
|
20,594
|
|
$
|
(49,378
|
)
|
$
|
39,324
|
|
UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
|||||||||||||||
FOR THE TWENTY-SIX WEEKS ENDED AUGUST 4, 2018
|
|||||||||||||||
|
|
|
Non-
|
|
|
|
|||||||||
($ thousands)
|
Parent
|
|
Guarantors
|
|
Guarantors
|
|
Eliminations
|
|
Total
|
|
|||||
Net cash provided by operating activities
|
$
|
11,317
|
|
$
|
53,920
|
|
$
|
25,770
|
|
$
|
—
|
|
$
|
91,007
|
|
|
|
|
|
|
|
||||||||||
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|||||
Purchases of property and equipment
|
(4,339
|
)
|
(13,044
|
)
|
(1,176
|
)
|
—
|
|
(18,559
|
)
|
|||||
Capitalized software
|
(2,665
|
)
|
(286
|
)
|
—
|
|
—
|
|
(2,951
|
)
|
|||||
Acquisition cost, net of cash received
|
9,141
|
|
—
|
|
(25,934
|
)
|
—
|
|
(16,793
|
)
|
|||||
Intercompany investing
|
141
|
|
(141
|
)
|
—
|
|
—
|
|
—
|
|
|||||
Net cash provided by (used for) investing activities
|
2,278
|
|
(13,471
|
)
|
(27,110
|
)
|
—
|
|
(38,303
|
)
|
|||||
|
|
|
|
|
|
||||||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|||||
Dividends paid
|
(6,053
|
)
|
—
|
|
—
|
|
—
|
|
(6,053
|
)
|
|||||
Acquisition of treasury stock
|
(3,288
|
)
|
—
|
|
—
|
|
—
|
|
(3,288
|
)
|
|||||
Issuance of common stock under share-based plans, net
|
(4,365
|
)
|
—
|
|
—
|
|
—
|
|
(4,365
|
)
|
|||||
Intercompany financing
|
(11,796
|
)
|
(9,719
|
)
|
21,515
|
|
—
|
|
—
|
|
|||||
Net cash (used for) provided by financing activities
|
(25,502
|
)
|
(9,719
|
)
|
21,515
|
|
—
|
|
(13,706
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
—
|
|
(161
|
)
|
—
|
|
(161
|
)
|
|||||
(Decrease) increase in cash and cash equivalents
|
(11,907
|
)
|
30,730
|
|
20,014
|
|
—
|
|
38,837
|
|
|||||
Cash and cash equivalents at beginning of period
|
26,089
|
|
—
|
|
37,958
|
|
—
|
|
64,047
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
14,182
|
|
$
|
30,730
|
|
$
|
57,972
|
|
$
|
—
|
|
$
|
102,884
|
|
UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
|
|||||||||||||||
JULY 29, 2017
|
|||||||||||||||
|
|
|
Non-
|
|
|
|
|||||||||
($ thousands)
|
Parent
|
|
Guarantors
|
|
Guarantors
|
|
Eliminations
|
|
Total
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
12,712
|
|
$
|
20,638
|
|
$
|
19,592
|
|
$
|
—
|
|
$
|
52,942
|
|
Receivables, net
|
117,672
|
|
5,670
|
|
20,274
|
|
—
|
|
143,616
|
|
|||||
Inventories, net
|
174,839
|
|
516,704
|
|
30,462
|
|
—
|
|
722,005
|
|
|||||
Prepaid expenses and other current assets
|
23,944
|
|
14,463
|
|
7,466
|
|
(8,901
|
)
|
36,972
|
|
|||||
Intercompany receivable – current
|
845
|
|
134
|
|
25,056
|
|
(26,035
|
)
|
—
|
|
|||||
Total current assets
|
330,012
|
|
557,609
|
|
102,850
|
|
(34,936
|
)
|
955,535
|
|
|||||
Other assets
|
51,273
|
|
17,432
|
|
884
|
|
—
|
|
69,589
|
|
|||||
Goodwill and intangible assets, net
|
112,221
|
|
40,937
|
|
188,037
|
|
—
|
|
341,195
|
|
|||||
Property and equipment, net
|
32,428
|
|
172,802
|
|
12,608
|
|
—
|
|
217,838
|
|
|||||
Investment in subsidiaries
|
1,263,829
|
|
—
|
|
(22,724
|
)
|
(1,241,105
|
)
|
—
|
|
|||||
Intercompany receivable – noncurrent
|
745,812
|
|
519,304
|
|
669,176
|
|
(1,934,292
|
)
|
—
|
|
|||||
Total assets
|
$
|
2,535,575
|
|
$
|
1,308,084
|
|
$
|
950,831
|
|
$
|
(3,210,333
|
)
|
$
|
1,584,157
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|||||
Borrowings under revolving credit agreement
|
$
|
35,000
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
35,000
|
|
Trade accounts payable
|
124,675
|
|
247,169
|
|
30,968
|
|
—
|
|
402,812
|
|
|||||
Other accrued expenses
|
72,364
|
|
87,425
|
|
19,611
|
|
(8,901
|
)
|
170,499
|
|
|||||
Intercompany payable – current
|
14,523
|
|
—
|
|
11,512
|
|
(26,035
|
)
|
—
|
|
|||||
Total current liabilities
|
246,562
|
|
334,594
|
|
62,091
|
|
(34,936
|
)
|
608,311
|
|
|||||
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt
|
197,233
|
|
—
|
|
—
|
|
—
|
|
197,233
|
|
|||||
Other liabilities
|
91,645
|
|
40,810
|
|
4,984
|
|
—
|
|
137,439
|
|
|||||
Intercompany payable – noncurrent
|
1,360,406
|
|
119,152
|
|
454,734
|
|
(1,934,292
|
)
|
—
|
|
|||||
Total other liabilities
|
1,649,284
|
|
159,962
|
|
459,718
|
|
(1,934,292
|
)
|
334,672
|
|
|||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|||||
Caleres, Inc. shareholders’ equity
|
639,729
|
|
813,528
|
|
427,577
|
|
(1,241,105
|
)
|
639,729
|
|
|||||
Noncontrolling interests
|
—
|
|
—
|
|
1,445
|
|
—
|
|
1,445
|
|
|||||
Total equity
|
639,729
|
|
813,528
|
|
429,022
|
|
(1,241,105
|
)
|
641,174
|
|
|||||
Total liabilities and equity
|
$
|
2,535,575
|
|
$
|
1,308,084
|
|
$
|
950,831
|
|
$
|
(3,210,333
|
)
|
$
|
1,584,157
|
|
UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
|
|||||||||||||||
FOR THE THIRTEEN WEEKS ENDED JULY 29, 2017
|
|||||||||||||||
|
|
|
Non-
|
|
|
|
|||||||||
($ thousands)
|
Parent
|
|
Guarantors
|
|
Guarantors
|
|
Eliminations
|
|
Total
|
|
|||||
Net sales
|
$
|
194,305
|
|
$
|
482,645
|
|
$
|
63,175
|
|
$
|
(63,171
|
)
|
$
|
676,954
|
|
Cost of goods sold
|
137,659
|
|
270,548
|
|
32,543
|
|
(51,257
|
)
|
389,493
|
|
|||||
Gross profit
|
56,646
|
|
212,097
|
|
30,632
|
|
(11,914
|
)
|
287,461
|
|
|||||
Selling and administrative expenses
|
63,042
|
|
190,444
|
|
14,598
|
|
(11,914
|
)
|
256,170
|
|
|||||
Restructuring and other special charges, net
|
2,661
|
|
37
|
|
167
|
|
—
|
|
2,865
|
|
|||||
Operating (loss) earnings
|
(9,057
|
)
|
21,616
|
|
15,867
|
|
—
|
|
28,426
|
|
|||||
Interest (expense) income
|
(4,549
|
)
|
(3
|
)
|
177
|
|
—
|
|
(4,375
|
)
|
|||||
Other income (expense)
|
2,679
|
|
—
|
|
(9
|
)
|
—
|
|
2,670
|
|
|||||
Intercompany interest income (expense)
|
2,021
|
|
(2,189
|
)
|
168
|
|
—
|
|
—
|
|
|||||
(Loss) earnings before income taxes
|
(8,906
|
)
|
19,424
|
|
16,203
|
|
—
|
|
26,721
|
|
|||||
Income tax benefit (provision)
|
2,926
|
|
(8,053
|
)
|
(3,920
|
)
|
—
|
|
(9,047
|
)
|
|||||
Equity in earnings of subsidiaries, net of tax
|
23,575
|
|
—
|
|
271
|
|
(23,846
|
)
|
—
|
|
|||||
Net earnings
|
17,595
|
|
11,371
|
|
12,554
|
|
(23,846
|
)
|
17,674
|
|
|||||
Less: Net earnings attributable to noncontrolling interests
|
—
|
|
—
|
|
79
|
|
—
|
|
79
|
|
|||||
Net earnings attributable to Caleres, Inc.
|
$
|
17,595
|
|
$
|
11,371
|
|
$
|
12,475
|
|
$
|
(23,846
|
)
|
$
|
17,595
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income
|
$
|
19,302
|
|
$
|
11,371
|
|
$
|
13,302
|
|
$
|
(24,574
|
)
|
$
|
19,401
|
|
Less: Comprehensive income attributable to noncontrolling interests
|
—
|
|
—
|
|
99
|
|
—
|
|
99
|
|
|||||
Comprehensive income attributable to Caleres, Inc.
|
$
|
19,302
|
|
$
|
11,371
|
|
$
|
13,203
|
|
$
|
(24,574
|
)
|
$
|
19,302
|
|
|
|
|
|
|
|
||||||||||
UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
|
|||||||||||||||
FOR THE TWENTY-SIX WEEKS ENDED JULY 29, 2017
|
|||||||||||||||
|
|
|
Non-
|
|
|
|
|||||||||
($ thousands)
|
Parent
|
|
Guarantors
|
|
Guarantors
|
|
Eliminations
|
|
Total
|
|
|||||
Net sales
|
$
|
388,745
|
|
$
|
910,184
|
|
$
|
101,220
|
|
$
|
(91,686
|
)
|
$
|
1,308,463
|
|
Cost of goods sold
|
270,510
|
|
502,334
|
|
51,073
|
|
(73,823
|
)
|
750,094
|
|
|||||
Gross profit
|
118,235
|
|
407,850
|
|
50,147
|
|
(17,863
|
)
|
558,369
|
|
|||||
Selling and administrative expenses
|
117,911
|
|
372,791
|
|
29,842
|
|
(17,863
|
)
|
502,681
|
|
|||||
Restructuring and other special charges, net
|
3,769
|
|
37
|
|
167
|
|
—
|
|
3,973
|
|
|||||
Operating (loss) earnings
|
(3,445
|
)
|
35,022
|
|
20,138
|
|
—
|
|
51,715
|
|
|||||
Interest (expense) income
|
(9,496
|
)
|
(12
|
)
|
324
|
|
—
|
|
(9,184
|
)
|
|||||
Other income (expense)
|
5,124
|
|
—
|
|
(18
|
)
|
—
|
|
5,106
|
|
|||||
Intercompany interest income (expense)
|
4,104
|
|
(4,513
|
)
|
409
|
|
—
|
|
—
|
|
|||||
(Loss) earnings before income taxes
|
(3,713
|
)
|
30,497
|
|
20,853
|
|
—
|
|
47,637
|
|
|||||
Income tax benefit (provision)
|
1,839
|
|
(11,928
|
)
|
(4,990
|
)
|
—
|
|
(15,079
|
)
|
|||||
Equity in earnings (loss) of subsidiaries, net of tax
|
34,371
|
|
—
|
|
(777
|
)
|
(33,594
|
)
|
—
|
|
|||||
Net earnings
|
32,497
|
|
18,569
|
|
15,086
|
|
(33,594
|
)
|
32,558
|
|
|||||
Less: Net earnings attributable to noncontrolling interests
|
—
|
|
—
|
|
61
|
|
—
|
|
61
|
|
|||||
Net earnings attributable to Caleres, Inc.
|
$
|
32,497
|
|
$
|
18,569
|
|
$
|
15,025
|
|
$
|
(33,594
|
)
|
$
|
32,497
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income
|
$
|
34,865
|
|
$
|
18,569
|
|
$
|
15,755
|
|
$
|
(34,248
|
)
|
$
|
34,941
|
|
Less: Comprehensive income attributable to noncontrolling interests
|
—
|
|
—
|
|
76
|
|
—
|
|
76
|
|
|||||
Comprehensive income attributable to Caleres, Inc.
|
$
|
34,865
|
|
$
|
18,569
|
|
$
|
15,679
|
|
$
|
(34,248
|
)
|
$
|
34,865
|
|
UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
|||||||||||||||
FOR THE TWENTY-SIX WEEKS ENDED JULY 29, 2017
|
|||||||||||||||
|
|
|
Non-
|
|
|
|
|||||||||
($ thousands)
|
Parent
|
|
Guarantors
|
|
Guarantors
|
|
Eliminations
|
|
Total
|
|
|||||
Net cash (used for) provided by operating activities
|
$
|
(15,328
|
)
|
$
|
95,828
|
|
$
|
33,780
|
|
$
|
—
|
|
$
|
114,280
|
|
|
|
|
|
|
|
||||||||||
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|||||
Purchases of property and equipment
|
(3,722
|
)
|
(17,762
|
)
|
(2,767
|
)
|
—
|
|
(24,251
|
)
|
|||||
Capitalized software
|
(2,686
|
)
|
(466
|
)
|
—
|
|
—
|
|
(3,152
|
)
|
|||||
Intercompany investing
|
(19,894
|
)
|
197,599
|
|
(177,705
|
)
|
—
|
|
—
|
|
|||||
Net cash (used for) provided by investing activities
|
(26,302
|
)
|
179,371
|
|
(180,472
|
)
|
—
|
|
(27,403
|
)
|
|||||
|
|
|
|
|
|
||||||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|||||
Borrowings under revolving credit agreement
|
400,000
|
|
—
|
|
—
|
|
—
|
|
400,000
|
|
|||||
Repayments under revolving credit agreement
|
(475,000
|
)
|
—
|
|
—
|
|
—
|
|
(475,000
|
)
|
|||||
Dividends paid
|
(6,030
|
)
|
—
|
|
—
|
|
—
|
|
(6,030
|
)
|
|||||
Acquisition of treasury stock
|
(5,993
|
)
|
—
|
|
—
|
|
—
|
|
(5,993
|
)
|
|||||
Issuance of common stock under share-based plans, net
|
(2,490
|
)
|
—
|
|
—
|
|
—
|
|
(2,490
|
)
|
|||||
Intercompany financing
|
119,856
|
|
(263,590
|
)
|
143,734
|
|
—
|
|
—
|
|
|||||
Net cash provided by (used for) financing activities
|
30,343
|
|
(263,590
|
)
|
143,734
|
|
—
|
|
(89,513
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
—
|
|
246
|
|
—
|
|
246
|
|
|||||
(Decrease) increase in cash and cash equivalents
|
(11,287
|
)
|
11,609
|
|
(2,712
|
)
|
—
|
|
(2,390
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
23,999
|
|
9,029
|
|
22,304
|
|
—
|
|
55,332
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
12,712
|
|
$
|
20,638
|
|
$
|
19,592
|
|
$
|
—
|
|
$
|
52,942
|
|
CONDENSED CONSOLIDATING BALANCE SHEET
|
|||||||||||||||
FEBRUARY 3, 2018
|
|||||||||||||||
|
|
|
Non-
|
|
|
|
|||||||||
($ thousands)
|
Parent
|
|
Guarantors
|
|
Guarantors
|
|
Eliminations
|
|
Total
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
26,089
|
|
$
|
—
|
|
$
|
37,958
|
|
$
|
—
|
|
$
|
64,047
|
|
Receivables, net
|
124,957
|
|
3,663
|
|
23,993
|
|
—
|
|
152,613
|
|
|||||
Inventories, net
|
146,068
|
|
394,438
|
|
28,873
|
|
—
|
|
569,379
|
|
|||||
Prepaid expenses and other current assets
|
26,284
|
|
30,456
|
|
8,394
|
|
(4,384
|
)
|
60,750
|
|
|||||
Intercompany receivable – current
|
521
|
|
74
|
|
9,250
|
|
(9,845
|
)
|
—
|
|
|||||
Total current assets
|
323,919
|
|
428,631
|
|
108,468
|
|
(14,229
|
)
|
846,789
|
|
|||||
Other assets
|
76,317
|
|
13,610
|
|
732
|
|
—
|
|
90,659
|
|
|||||
Goodwill and intangible assets, net
|
111,108
|
|
40,937
|
|
187,123
|
|
—
|
|
339,168
|
|
|||||
Property and equipment, net
|
35,474
|
|
165,227
|
|
12,098
|
|
—
|
|
212,799
|
|
|||||
Investment in subsidiaries
|
1,329,428
|
|
—
|
|
(23,565
|
)
|
(1,305,863
|
)
|
—
|
|
|||||
Intercompany receivable – noncurrent
|
774,588
|
|
520,362
|
|
704,810
|
|
(1,999,760
|
)
|
—
|
|
|||||
Total assets
|
$
|
2,650,834
|
|
$
|
1,168,767
|
|
$
|
989,666
|
|
$
|
(3,319,852
|
)
|
$
|
1,489,415
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|||||
Trade accounts payable
|
$
|
136,797
|
|
$
|
102,420
|
|
$
|
33,745
|
|
$
|
—
|
|
$
|
272,962
|
|
Other accrued expenses
|
65,817
|
|
74,006
|
|
21,758
|
|
(4,384
|
)
|
157,197
|
|
|||||
Intercompany payable – current
|
5,524
|
|
—
|
|
4,321
|
|
(9,845
|
)
|
—
|
|
|||||
Total current liabilities
|
208,138
|
|
176,426
|
|
59,824
|
|
(14,229
|
)
|
430,159
|
|
|||||
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt
|
197,472
|
|
—
|
|
—
|
|
—
|
|
197,472
|
|
|||||
Other liabilities
|
101,784
|
|
35,574
|
|
5,464
|
|
—
|
|
142,822
|
|
|||||
Intercompany payable – noncurrent
|
1,425,951
|
|
98,610
|
|
475,199
|
|
(1,999,760
|
)
|
—
|
|
|||||
Total other liabilities
|
1,725,207
|
|
134,184
|
|
480,663
|
|
(1,999,760
|
)
|
340,294
|
|
|||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|||||
Caleres, Inc. shareholders’ equity
|
717,489
|
|
858,157
|
|
447,706
|
|
(1,305,863
|
)
|
717,489
|
|
|||||
Noncontrolling interests
|
—
|
|
—
|
|
1,473
|
|
—
|
|
1,473
|
|
|||||
Total equity
|
717,489
|
|
858,157
|
|
449,179
|
|
(1,305,863
|
)
|
718,962
|
|
|||||
Total liabilities and equity
|
$
|
2,650,834
|
|
$
|
1,168,767
|
|
$
|
989,666
|
|
$
|
(3,319,852
|
)
|
$
|
1,489,415
|
|
ITEM 2
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
OVERVIEW
|
•
|
Consolidated net sales increased
$29.6 million
in the
second quarter of 2018
with solid contribution from both of our segments. Our Famous Footwear segment reported a
$24.6 million
, or
6.1%
increase in sales and a
2.6%
increase in same-store sales. Our Brand Portfolio segment reported a
$5.1 million
, or
1.9%
, increase in net sales.
|
•
|
Consolidated operating earnings increased
$3.7 million
, or
13.1%
, to
$32.1 million
in the
second quarter of 2018
, compared to
$28.4 million
in the
second quarter of 2017
.
|
•
|
Consolidated net earnings attributable to Caleres, Inc. were
$23.6 million
, or
$0.55
per diluted share, in the
second quarter of 2018
, compared to
$17.6 million
, or
$0.41
per diluted share, in the
second quarter of 2017
.
|
•
|
Acquisition, integration and reorganization of men's brands – We incurred costs of $1.9 million ($1.4 million on an after-tax basis, or $0.03 per diluted share) during the second quarter of 2018 and $2.9 million ($1.9 million on an after-tax basis, or $0.04 per diluted share) during the second quarter of 2017 related to the integration and reorganization of our men's brands, which are presented as restructuring and other special charges, net. Refer to Note 6 to the condensed consolidated financial statements for additional information related to these costs.
|
•
|
Acquisition costs – During the second quarter of 2018, we acquired a controlling interest in Blowfish Malibu, which gives us additional exposure to the growing sneaker and casual lifestyle segment of the market. In connection with the acquisition, we incurred related acquisition costs of $0.2 million ($0.2 million on an after-tax basis) during the second quarter of 2018. We also incurred incremental cost of goods sold of $0.5 million ($0.4 million on an after-tax basis, or $0.01 per diluted share) related to the amortization of the inventory adjustment required for purchase accounting during the second quarter of 2018. We incurred incremental cost of goods sold in the second quarter of 2017 totaling $1.9 million ($1.2 million on an after-tax basis, or $0.03 per diluted share) related to the Allen Edmonds acquisition.
|
•
|
We adopted ASU 2017-07,
Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost
, during the first quarter of 2018 on a retrospective basis and reclassified $2.7 million of non-service cost components of net periodic benefit income for the
second quarter of 2017
to other income, net in the condensed consolidated statements of earnings. For the second quarter of 2018, $3.1 million of non-service cost components is reflected in other income, net. Refer to Note 2 and Note 12 to the condensed consolidated financial statements for additional information related to the adoption of this ASU.
|
•
|
In December 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law, making significant changes to the U.S. Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective January 1, 2018, the transition of U.S. international taxation from a worldwide tax system to a quasi-territorial tax system and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. The components of the Act resulted in significant adjustments to both our income tax provision and the income tax balances. Refer to Note 15 to the condensed consolidated financial statements for further discussion.
|
CONSOLIDATED RESULTS
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||||||||||||||
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||||||||||||||
|
|
|
% of
Net Sales |
|
|
|
|
% of
Net Sales |
|
|
|
|
% of
Net Sales |
|
|
|
|
% of
Net Sales |
|
||||||||
($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net sales
|
$
|
706.6
|
|
|
100.0
|
%
|
|
$
|
677.0
|
|
|
100.0
|
%
|
|
$
|
1,338.8
|
|
|
100.0
|
%
|
|
$
|
1,308.5
|
|
|
100.0
|
%
|
Cost of goods sold
|
413.5
|
|
|
58.5
|
%
|
|
389.5
|
|
|
57.5
|
%
|
|
770.8
|
|
|
57.6
|
%
|
|
750.1
|
|
|
57.3
|
%
|
||||
Gross profit
|
293.1
|
|
|
41.5
|
%
|
|
287.5
|
|
|
42.5
|
%
|
|
568.0
|
|
|
42.4
|
%
|
|
558.4
|
|
|
42.7
|
%
|
||||
Selling and administrative expenses
|
258.9
|
|
|
36.7
|
%
|
|
256.2
|
|
|
37.9
|
%
|
|
509.0
|
|
|
38.0
|
%
|
|
502.7
|
|
|
38.4
|
%
|
||||
Restructuring and other special charges, net
|
2.1
|
|
|
0.3
|
%
|
|
2.9
|
|
|
0.4
|
%
|
|
3.9
|
|
|
0.3
|
%
|
|
4.0
|
|
|
0.3
|
%
|
||||
Operating earnings
|
32.1
|
|
|
4.5
|
%
|
|
28.4
|
|
|
4.2
|
%
|
|
55.1
|
|
|
4.1
|
%
|
|
51.7
|
|
|
4.0
|
%
|
||||
Interest expense, net
|
(3.6
|
)
|
|
(0.5
|
)%
|
|
(4.4
|
)
|
|
(0.6
|
)%
|
|
(7.3
|
)
|
|
(0.5
|
)%
|
|
(9.2
|
)
|
|
(0.7
|
)%
|
||||
Other income, net
|
3.1
|
|
|
0.5
|
%
|
|
2.7
|
|
|
0.4
|
%
|
|
6.2
|
|
|
0.4
|
%
|
|
5.1
|
|
|
0.4
|
%
|
||||
Earnings before income taxes
|
31.6
|
|
|
4.5
|
%
|
|
26.7
|
|
|
3.9
|
%
|
|
54.0
|
|
|
4.0
|
%
|
|
47.6
|
|
|
3.6
|
%
|
||||
Income tax provision
|
(8.0
|
)
|
|
(1.2
|
)%
|
|
(9.0
|
)
|
|
(1.3
|
)%
|
|
(13.2
|
)
|
|
(1.0
|
)%
|
|
(15.0
|
)
|
|
(1.1
|
)%
|
||||
Net earnings
|
23.6
|
|
|
3.3
|
%
|
|
17.7
|
|
|
2.6
|
%
|
|
40.8
|
|
|
3.0
|
%
|
|
32.6
|
|
|
2.5
|
%
|
||||
Net (loss) earnings attributable to noncontrolling interests
|
(0.0)
|
|
(0.0
|
%)
|
|
0.1
|
|
|
0.0
|
%
|
|
(0.1
|
)
|
|
(0.0
|
%)
|
|
0.1
|
|
|
0.0
|
%
|
|||||
Net earnings attributable to Caleres, Inc.
|
$
|
23.6
|
|
|
3.3
|
%
|
|
$
|
17.6
|
|
|
2.6
|
%
|
|
$
|
40.9
|
|
|
3.0
|
%
|
|
$
|
32.5
|
|
|
2.5
|
%
|
FAMOUS FOOTWEAR
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||||||||||
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||||||||||
|
|
% of
Net Sales |
|
|
|
% of
Net Sales |
|
|
|
% of
Net Sales |
|
|
|
% of
Net Sales |
|
||||||||
($ millions, except sales per square foot)
|
|
|
|
|
|
|
|
||||||||||||||||
Operating Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales
|
$
|
429.5
|
|
100.0
|
%
|
|
$
|
404.9
|
|
100.0
|
%
|
|
$
|
792.9
|
|
100.0
|
%
|
|
$
|
771.4
|
|
100.0
|
%
|
Cost of goods sold
|
242.4
|
|
56.4
|
%
|
|
221.6
|
|
54.7
|
%
|
|
440.6
|
|
55.6
|
%
|
|
420.4
|
|
54.5
|
%
|
||||
Gross profit
|
187.1
|
|
43.6
|
%
|
|
183.3
|
|
45.3
|
%
|
|
352.3
|
|
44.4
|
%
|
|
351.0
|
|
45.5
|
%
|
||||
Selling and administrative expenses
|
153.9
|
|
35.9
|
%
|
|
158.2
|
|
39.1
|
%
|
|
297.2
|
|
37.5
|
%
|
|
305.6
|
|
39.6
|
%
|
||||
Operating earnings
|
$
|
33.2
|
|
7.7
|
%
|
|
$
|
25.1
|
|
6.2
|
%
|
|
$
|
55.1
|
|
6.9
|
%
|
|
$
|
45.4
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Same-store sales % change
|
2.6
|
%
|
|
|
|
2.8
|
%
|
|
|
|
1.0
|
%
|
|
|
|
1.1
|
%
|
|
|
||||
Same-store sales $ change
|
$
|
10.7
|
|
|
|
|
$
|
10.4
|
|
|
|
|
$
|
7.9
|
|
|
|
|
$
|
8.3
|
|
|
|
Sales change from new and closed stores, net
|
$
|
13.8
|
|
|
|
$
|
4.5
|
|
|
|
$
|
13.2
|
|
|
|
$
|
8.6
|
|
|
||||
Impact of changes in Canadian exchange rate on sales
|
$
|
0.1
|
|
|
|
$
|
(0.1
|
)
|
|
|
$
|
0.4
|
|
|
|
$
|
(0.2
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales per square foot, excluding e-commerce (thirteen and twenty-six weeks ended)
|
$
|
60
|
|
|
|
$
|
55
|
|
|
|
$
|
110
|
|
|
|
$
|
105
|
|
|
||||
Sales per square foot, excluding e-commerce (trailing twelve months)
|
$
|
227
|
|
|
|
|
$
|
216
|
|
|
|
|
$
|
227
|
|
|
|
|
$
|
216
|
|
|
|
Square footage (thousand sq. ft.)
|
6,675
|
|
|
|
|
6,967
|
|
|
|
|
6,675
|
|
|
|
|
6,967
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stores opened
|
4
|
|
|
|
|
12
|
|
|
|
|
6
|
|
|
|
|
21
|
|
|
|
||||
Stores closed
|
9
|
|
|
|
|
9
|
|
|
|
|
24
|
|
|
|
|
21
|
|
|
|
||||
Ending stores
|
1,008
|
|
|
|
|
1,055
|
|
|
|
|
1,008
|
|
|
|
|
1,055
|
|
|
|
BRAND PORTFOLIO
|
|
|
|
|
|
|
|||||||||||||||||
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||||||||||
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||||||||||
|
|
% of
Net Sales
|
|
|
|
% of
Net Sales
|
|
|
|
% of
Net Sales
|
|
|
|
|
% of
Net Sales
|
|
|||||||
($ millions, except sales per square foot)
|
|
|
|
|
|
|
|
||||||||||||||||
Operating Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales
|
$
|
277.1
|
|
100.0
|
%
|
|
$
|
272.0
|
|
100.0
|
%
|
|
$
|
545.9
|
|
100.0
|
%
|
|
$
|
537.0
|
|
100.0
|
%
|
Cost of goods sold
|
171.1
|
|
61.8
|
%
|
|
167.8
|
|
61.7
|
%
|
|
330.2
|
|
60.5
|
%
|
|
329.6
|
|
61.4
|
%
|
||||
Gross profit
|
106.0
|
|
38.2
|
%
|
|
104.2
|
|
38.3
|
%
|
|
215.7
|
|
39.5
|
%
|
|
207.4
|
|
38.6
|
%
|
||||
Selling and administrative expenses
|
90.6
|
|
32.7
|
%
|
|
87.6
|
|
32.2
|
%
|
|
186.2
|
|
34.1
|
%
|
|
176.7
|
|
32.9
|
%
|
||||
Restructuring and other special charges, net
|
1.8
|
|
0.6
|
%
|
|
0.7
|
|
0.2
|
%
|
|
3.4
|
|
0.6
|
%
|
|
1.5
|
|
0.3
|
%
|
||||
Operating earnings
|
$
|
13.6
|
|
4.9
|
%
|
|
$
|
15.9
|
|
5.9
|
%
|
|
$
|
26.1
|
|
4.8
|
%
|
|
$
|
29.2
|
|
5.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Wholesale/retail sales mix (%)
|
76%/24%
|
|
|
|
|
75%/25%
|
|
|
|
|
74%/26%
|
|
|
|
|
74%/26%
|
|
|
|||||
Change in wholesale net sales ($)
|
$
|
6.0
|
|
|
|
$
|
2.7
|
|
|
|
$
|
6.0
|
|
|
|
$
|
8.2
|
|
|
||||
Unfilled order position at end of period
|
$
|
263.3
|
|
|
|
$
|
275.0
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same-store sales % change
(1)
|
(1.3
|
)%
|
|
|
15.8
|
%
|
|
|
(1.2
|
)%
|
|
|
9.2
|
%
|
|
||||||||
Same-store sales $ change
(1)
|
$
|
(0.6
|
)
|
|
|
$
|
4.4
|
|
|
|
$
|
(1.1
|
)
|
|
|
$
|
5.0
|
|
|
||||
Sales change from new and closed stores, net
|
$
|
(0.5
|
)
|
|
|
$
|
30.9
|
|
|
|
$
|
3.4
|
|
|
|
$
|
68.0
|
|
|
||||
Sales change from acquired Allen Edmonds retail stores
(2)
|
N/A
|
|
|
$
|
1.4
|
|
|
|
N/A
|
|
|
|
$
|
3.1
|
|
|
|||||||
Impact of changes in Canadian exchange rate on retail sales
|
$
|
0.2
|
|
|
|
$
|
(0.2
|
)
|
|
|
$
|
0.6
|
|
|
|
$
|
(0.3
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales per square foot, excluding e-commerce (thirteen and twenty-six weeks ended)
|
$
|
109
|
|
|
|
$
|
108
|
|
|
|
$
|
213
|
|
|
|
$
|
209
|
|
|
||||
Sales per square foot, excluding e-commerce (trailing twelve months)
(1)
|
$
|
437
|
|
|
|
$
|
341
|
|
|
|
$
|
437
|
|
|
|
$
|
341
|
|
|
||||
Square footage (thousands sq. ft.)
|
402
|
|
|
|
409
|
|
|
|
402
|
|
|
|
409
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stores opened
|
—
|
|
|
|
5
|
|
|
|
4
|
|
|
|
8
|
|
|
||||||||
Stores closed
|
2
|
|
|
|
—
|
|
|
|
7
|
|
|
|
4
|
|
|
||||||||
Ending stores
|
233
|
|
|
|
238
|
|
|
|
233
|
|
|
|
238
|
|
|
(1)
|
Because these metrics require inclusion in our results for 13 continuous months, the calculations for the 2017 periods presented exclude our Allen Edmonds business, which was acquired in December 2016.
|
(2)
|
This metric represents net sales from our 69 acquired Allen Edmonds retail stores for the
thirteen
and
twenty-six weeks ended July 29, 2017
.
|
OTHER
|
LIQUIDITY AND CAPITAL RESOURCES
|
($ millions)
|
August 4, 2018
|
|
July 29, 2017
|
|
February 3, 2018
|
|
|||
Borrowings under revolving credit agreement
|
$
|
—
|
|
$
|
35.0
|
|
$
|
—
|
|
Long-term debt
|
197.7
|
|
197.2
|
|
197.5
|
|
|||
Total debt
|
$
|
197.7
|
|
$
|
232.2
|
|
$
|
197.5
|
|
|
Twenty-Six Weeks Ended
|
|
|
||||||
($ millions)
|
August 4, 2018
|
|
July 29, 2017
|
|
Change
|
|
|||
Net cash provided by operating activities
|
$
|
91.0
|
|
$
|
114.3
|
|
$
|
(23.3
|
)
|
Net cash used for investing activities
|
(38.3
|
)
|
(27.4
|
)
|
(10.9
|
)
|
|||
Net cash used for financing activities
|
(13.7
|
)
|
(89.5
|
)
|
75.8
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(0.2
|
)
|
0.2
|
|
(0.4
|
)
|
|||
Increase in cash and cash equivalents
|
$
|
38.8
|
|
$
|
(2.4
|
)
|
$
|
41.2
|
|
•
|
An increase in prepaid assets in the
six months ended August 4, 2018
compared to a decrease in the comparable period in
2017
, driven in part by the timing of our rent payments on our retail stores due to the impact of the calendar shift resulting from having a 53rd week in fiscal 2017; and
|
•
|
A smaller increase in trade accounts payable in the
six months ended August 4, 2018
, compared to the
six months ended July 29, 2017
.
|
|
August 4, 2018
|
|
July 29, 2017
|
|
February 3, 2018
|
|
|||
Working capital
($ millions
)
(1)
|
$
|
437.8
|
|
$
|
347.2
|
|
$
|
416.6
|
|
Current ratio
(2)
|
1.73:1
|
|
1.57:1
|
|
1.97:1
|
|
|||
Debt-to-capital ratio
(3)
|
21.1
|
%
|
26.6
|
%
|
21.5
|
%
|
(1)
|
Working capital has been computed as total current assets less total current liabilities.
|
(2)
|
The current ratio has been computed by dividing total current assets by total current liabilities.
|
(3)
|
The debt-to-capital ratio has been computed by dividing total debt by total capitalization. Total debt is defined as long-term debt and borrowings under the Credit Agreement. Total capitalization is defined as total debt and total equity.
|
CONTRACTUAL OBLIGATIONS
|
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
|
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
|
FORWARD-LOOKING STATEMENTS
|
ITEM 3
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4
|
CONTROLS AND PROCEDURES
|
PART II
|
OTHER INFORMATION
|
ITEM 1
|
LEGAL PROCEEDINGS
|
ITEM 1A
|
RISK FACTORS
|
ITEM 2
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
|
|
|
|
Total Number Purchased as Part of Publicly Announced Program
(2)
|
|
Maximum Number of Shares that May Yet be Purchased Under the Program
(2)
|
|||||
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid per Share
(1)
|
|
||||||||
|
|
|
||||||||||
Fiscal Period
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|||||
May 6, 2018 - June 2, 2018
|
455
|
|
|
$
|
35.74
|
|
|
—
|
|
|
1,123,500
|
|
|
|
|
|
|
|
|
|
|||||
June 3, 2018 - July 7, 2018
|
32,892
|
|
|
35.24
|
|
|
—
|
|
|
1,123,500
|
|
|
|
|
|
|
|
|
|
|
|||||
July 8, 2018 - August 4, 2018
|
3,519
|
|
|
34.88
|
|
|
—
|
|
|
1,123,500
|
|
|
|
|
|
|
|
|
|
|
|||||
Total
|
36,866
|
|
|
$
|
35.21
|
|
|
—
|
|
|
1,123,500
|
|
(1)
|
Includes shares purchased as part of our publicly announced stock repurchase program and shares that were tendered by employees related to certain share-based awards. The employee shares were tendered in satisfaction of the exercise price of stock options and/or to satisfy tax withholding amounts for non-qualified stock options, restricted stock and stock performance awards.
|
(2)
|
On August 25, 2011, the Board of Directors approved a stock repurchase program authorizing the repurchase of up to 2,500,000 shares of our outstanding common stock. We can use the repurchase program to repurchase shares on the open market or in private transactions from time to time, depending on market conditions. The repurchase program does not have an expiration date. Under this plan, 100,000 and 225,000 shares were repurchased during the twenty-six weeks ended
August 4, 2018
and July 29, 2017, respectively. The Company did not repurchase any shares during the thirteen weeks ended August 4, 2018 or July 29, 2018. As of
August 4, 2018
, there were 1,123,500 shares authorized to be repurchased under the program. Our repurchases of common stock are limited under our debt agreements.
|
ITEM 3
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4
|
MINE SAFETY DISCLOSURES
|
ITEM 5
|
OTHER INFORMATION
|
ITEM 6
|
EXHIBITS
|
Exhibit
No.
|
|
|
3.1
|
|
|
3.2
|
|
|
10.1
|
†
|
|
31.1
|
†
|
|
31.2
|
†
|
|
32.1
|
†
|
|
101.INS
|
†
|
XBRL Instance Document
|
101.SCH
101.CAL
101.LAB
101.PRE
101.DEF
|
†
†
†
†
†
|
XBRL Taxonomy Extension Schema Document
XBRL Taxonomy Extension Calculation Linkbase Document
XBRL Taxonomy Extension Label Linkbase Document
XBRL Taxonomy Presentation Linkbase Document
XBRL Taxonomy Definition Linkbase Document
|
SIGNATURE
|
|
|
CALERES, INC.
|
|
|
|
Date: September 12, 2018
|
|
/s/ Kenneth H. Hannah
|
|
|
Kenneth H. Hannah
Senior Vice President and Chief Financial Officer
on behalf of the Registrant and as the
Principal Financial Officer and Principal Accounting Officer
|
Section 1.
|
Definitions
|
CALERES, INC.
|
|
EMPLOYEE
|
||
By:
|
/s/ Douglas W. Koch
|
|
/s/ John W. Schmidt
|
|
Name:
|
Douglas W. Koch
|
|
John W. Schmidt
|
|
Title:
|
Senior Vice President and Chief Human Resources Officer
|
|
|
|
Date:
|
June 15, 2018
|
|
Date:
|
June 14, 2018
|
CERTIFICATIONS
|
|
1.
|
I have reviewed this report on Form 10-Q of Caleres, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Diane M. Sullivan
|
Diane M. Sullivan
|
Chief Executive Officer, President and Chairman of the Board of Directors
|
Caleres, Inc.
|
September 12, 2018
|
CERTIFICATIONS
|
|
1.
|
I have reviewed this report on Form 10-Q of Caleres, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Kenneth H. Hannah
|
Kenneth H. Hannah
|
Senior Vice President and Chief Financial Officer
|
Caleres, Inc.
|
September 12, 2018
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
|
|
/s/ Diane M. Sullivan
|
Diane M. Sullivan
|
Chief Executive Officer, President and Chairman of the Board of Directors
|
Caleres, Inc.
|
September 12, 2018
|
|
/s/ Kenneth H. Hannah
|
Kenneth H. Hannah
|
Senior Vice President and Chief Financial Officer
|
Caleres, Inc.
|
September 12, 2018
|