Caleres Inc 10-Q for FY2022 Q1

Caleres Inc (CAL)

10-Q 2021-06-09 For: 2021-05-01

Added on April 09, 2026

About this 10-Q

Caleres Inc filed this 10-Q on June 9, 2021, covering the quarter ended May 1, 2021 (FY2022 Q1).

Headline figures

Quarter ended May 1, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $638.64M; up 60.8% from $397.18M a year earlier
Net income: $6.15M; compared with a net loss of $345.84M a year earlier
Diluted EPS: $0.16; compared with -$8.95 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →



☒	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended May 1, 2021

☐	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	43-0197190
(State or other jurisdiction	(IRS Employer Identification Number)
of incorporation or organization)

8300 Maryland Avenue	63105
St. Louis, Missouri	(Zip Code)
(Address of principal executive offices)

(314) 854-4000
(Registrant’s telephone number, including area code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock - par value of $0.01 per share	CAL	New York Stock Exchange


Large accelerated filer ☐	Accelerated filer ☑
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

INDEX

PART I		Page
Item 1	Financial Statements	3
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4	Controls and Procedures	36

PART II		37
Item 1	Legal Proceedings	37
Item 1A	Risk Factors	37
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3	Defaults Upon Senior Securities	38
Item 4	Mine Safety Disclosures	38
Item 5	Other Information	38
Item 6	Exhibits	39
	Signature	40



	(Unaudited)
($ thousands)	May 1, 2021		May 2, 2020		January 30, 2021
Assets
Current assets:
Cash and cash equivalents	$	98,244	$	187,717	$	88,295
Receivables, net		132,698		145,333		126,994
Inventories, net		445,299		585,307		487,955
Income taxes		35,850		46,870		33,925
Prepaid expenses and other current assets		45,027		44,563		45,387
Total current assets		757,118		1,009,790		782,556

Prepaid pension costs		91,397		52,960		88,833
Lease right-of-use assets		526,011		648,534		554,303
Property and equipment, net		165,118		200,800		172,437
Deferred income taxes		—		9,456		—
Goodwill and intangible assets, net		236,924		273,648		240,071
Other assets		26,255		28,497		28,850
Total assets	$	1,802,823	$	2,223,685	$	1,867,050

Liabilities and Equity
Current liabilities:
Borrowings under revolving credit agreement	$	200,000	$	438,500	$	250,000
Mandatory purchase obligation - Blowfish Malibu		45,523		—		39,134
Trade accounts payable		293,309		297,557		280,501
Income taxes		11,359		7,592		5,069
Lease obligations		133,327		160,138		153,060
Other accrued expenses		182,419		173,752		177,745
Total current liabilities		865,937		1,077,539		905,509

Other liabilities:
Noncurrent lease obligations		490,355		601,133		518,942
Long-term debt		198,966		198,506		198,851
Income taxes		2,464		7,786		5,038
Deferred income taxes		10,256		11,780		8,244
Other liabilities		28,189		41,818		26,612
Total other liabilities		730,230		861,023		757,687

Equity:
Common stock		383		393		380
Additional paid-in capital		159,381		154,930		160,446
Accumulated other comprehensive loss		(8,936)		(33,216)		(9,136)
Retained earnings		52,041		160,189		48,557
Total Caleres, Inc. shareholders’ equity		202,869		282,296		200,247
Noncontrolling interests		3,787		2,827		3,607
Total equity		206,656		285,123		203,854
Total liabilities and equity	$	1,802,823	$	2,223,685	$	1,867,050


	(Unaudited)
	Thirteen Weeks Ended
($ thousands, except per share amounts)	May 1, 2021		May 2, 2020
Net sales	$	638,636	$	397,184
Cost of goods sold		363,749		275,286
Gross profit		274,887		121,898
Selling and administrative expenses		243,535		225,194
Impairment of goodwill and intangible assets		—		262,719
Restructuring and other special charges, net		13,482		60,196
Operating earnings (loss)		17,870		(426,211)
Interest expense, net		(11,792)		(9,478)
Other income, net		3,828		3,585
Earnings (loss) before income taxes		9,906		(432,104)
Income tax (provision) benefit		(3,521)		85,932
Net earnings (loss)		6,385		(346,172)
Net earnings (loss) attributable to noncontrolling interests		238		(334)
Net earnings (loss) attributable to Caleres, Inc.	$	6,147	$	(345,838)

Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders	$	0.16	$	(8.95)

Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders	$	0.16	$	(8.95)


						Accumulated				Total
						Other				Caleres, Inc.		Non-
(Unaudited)	Common Stock			Additional		Comprehensive		Retained		Shareholders’		controlling
($ thousands, except number of shares and per share amounts)	Shares	Dollars		Paid-In Capital		(Loss) Income		Earnings		Equity		Interests		Total Equity
BALANCE JANUARY 30, 2021	37,966,204	$	380	$	160,446	$	(9,136)	$	48,557	$	200,247	$	3,607	$	203,854
Net earnings									6,147		6,147		238		6,385
Foreign currency translation adjustment							(166)				(166)		(58)		(224)
Pension and other postretirement benefits adjustments, net of tax of $97							366				366				366
Comprehensive income							200		6,147		6,347		180		6,527
Dividends ($0.07 per share)									(2,663)		(2,663)				(2,663)
Issuance of common stock under share-based plans, net	327,268		3		(3,504)						(3,501)				(3,501)
Share-based compensation expense					2,439						2,439				2,439
BALANCE MAY 1, 2021	38,293,472	$	383	$	159,381	$	(8,936)	$	52,041	$	202,869	$	3,787	$	206,656

BALANCE FEBRUARY 1, 2020	40,396,757	$	404	$	153,489	$	(31,843)	$	523,900	$	645,950	$	3,180	$	649,130
Net loss									(345,838)		(345,838)		(334)		(346,172)
Foreign currency translation adjustment							(1,531)				(1,531)		(19)		(1,550)
Unrealized gain on derivative financial instruments, net of tax of $31							92				92				92
Pension and other postretirement benefits adjustments, net of tax of $628							66				66				66
Comprehensive loss							(1,373)		(345,838)		(347,211)		(353)		(347,564)
Dividends ($0.07 per share)									(2,810)		(2,810)				(2,810)
Acquisition of treasury stock	(1,510,888)		(15)						(12,917)		(12,932)				(12,932)
Issuance of common stock under share-based plans, net	414,121		4		(910)						(906)				(906)
Cumulative-effect adjustment from adoption of ASC 326									(2,146)		(2,146)				(2,146)
Share-based compensation expense					2,351						2,351				2,351
BALANCE MAY 2, 2020	39,299,990	$	393	$	154,930	$	(33,216)	$	160,189	$	282,296	$	2,827	$	285,123


	Thirteen Weeks Ended May 2, 2020
					Eliminations and
($ thousands)	Famous Footwear		Brand Portfolio		Other		Total

Retail stores	$	137,117	$	11,822	$	—	$	148,939
Landed wholesale - e-commerce - drop ship ⁽¹⁾		—		19,231		—		19,231
E-commerce - Company websites ⁽¹⁾		54,178		32,989		—		87,167
Total direct-to-consumer sales	$	191,295	$	64,042	$	—	$	255,337
First-cost wholesale - e-commerce ⁽¹⁾		—		246		—		246
Landed wholesale - e-commerce ⁽¹⁾		—		26,242		—		26,242
Landed wholesale - other		—		112,568		(11,306)		101,262
First-cost wholesale		—		11,921		—		11,921
Licensing and royalty		—		2,186		—		2,186
Other ⁽²⁾		(43)		33		—		(10)
Net sales	$	191,252	$	217,238	$	(11,306)	$	397,184


	Thirteen Weeks Ended
($ thousands)	May 1, 2021		May 2, 2020
Balance, beginning of period	$	14,928	$	1,813
Adjustment upon adoption of ASU 2016-13		—		2,521
Provision/adjustment for expected credit losses ⁽¹⁾		(152)		8,704
Uncollectible accounts written off, net of recoveries		(3,404)		356
Balance, end of period	$	11,372	$	13,394


	Famous		Brand		Eliminations
($ thousands)	Footwear		Portfolio		and Other		Total
Thirteen Weeks Ended May 1, 2021
Net sales	$	398,104	$	250,305	$	(9,773)	$	638,636
Intersegment sales ⁽¹⁾		—		9,773		—		9,773
Operating earnings (loss)		47,873		(2,821)		(27,182)		17,870
Segment assets		758,823		794,430		249,570		1,802,823

Thirteen Weeks Ended May 2, 2020
Net sales	$	191,252	$	217,238	$	(11,306)	$	397,184
Intersegment sales⁽¹⁾		—		11,306		—		11,306
Operating loss		(67,540)		(345,748)		(12,923)		(426,211)
Segment assets		897,046		995,760		330,879		2,223,685


($ thousands)	May 1, 2021
	Estimated Useful Lives			Accumulated		Accumulated
	(In Years)	Cost Basis ⁽¹⁾		Amortization		Impairment		Net Carrying Value
Trade names	2 - 40	$	299,488	$	104,459	$	10,200	$	184,829
Trade names	Indefinite		107,400		—		92,000		15,400
Customer relationships	15 - 16		44,200		8,456		4,005		31,739
		$	451,088	$	112,915	$	106,205	$	231,968

	May 2, 2020
	Estimated Useful Lives			Accumulated		Accumulated
	(In Years)	Cost Basis		Amortization		Impairment		Net Carrying Value
Trade names	15 - 40	$	288,788	$	94,294	$	—	$	194,494
Trade names	Indefinite		118,100		—		82,400		35,700
Customer relationships	15 - 16		44,200		5,702		—		38,498
		$	451,088	$	99,996	$	82,400	$	268,692

	January 30, 2021
	Estimated Useful Lives			Accumulated		Accumulated
	(In Years)	Cost Basis ⁽¹⁾		Amortization		Impairment		Net Carrying Value
Trade names	2 - 40	$	299,488	$	101,919	$	10,200	$	187,369
Trade names	Indefinite		107,400		—		92,000		15,400
Customer relationships	15 - 16		44,200		7,849		4,005		32,346
		$	451,088	$	109,768	$	106,205	$	235,115


			Pension and		Derivative
			Other		Financial		Accumulated
	Foreign		Postretirement		Instrument		Other
	Currency		Transactions		Transactions		Comprehensive
($ thousands)	Translation		(1)		(2)		(Loss) Income
Balance at January 30, 2021	$	(111)	$	(9,025)	$	—	$	(9,136)
Other comprehensive loss before reclassifications		(166)		—		—		(166)
Reclassifications:
Amounts reclassified from accumulated other comprehensive loss		—		463		—		463
Tax benefit		—		(97)		—		(97)
Net reclassifications		—		366		—		366
Other comprehensive (loss) income		(166)		366		—		200
Balance at May 1, 2021	$	(277)	$	(8,659)	$	—	$	(8,936)

Balance at February 1, 2020	$	(580)	$	(31,171)	$	(92)	$	(31,843)
Other comprehensive (loss) income before reclassifications		(1,531)		—		87		(1,444)
Reclassifications:
Amounts reclassified from accumulated other comprehensive loss		—		694		6		700
Tax benefit		—		(628)		(1)		(629)
Net reclassifications		—		66		5		71
Other comprehensive (loss) income		(1,531)		66		92		(1,373)
Balance at May 2, 2020	$	(2,111)	$	(31,105)	$	—	$	(33,216)


	Pension Benefits				Other Postretirement Benefits
	Thirteen Weeks Ended				Thirteen Weeks Ended
($ thousands)	May 1, 2021		May 2, 2020		May 1, 2021		May 2, 2020
Service cost	$	1,942	$	2,160	$	—	$	—
Interest cost		2,813		3,154		10		10
Expected return on assets		(7,114)		(7,443)		—		—
Amortization of:
Actuarial loss (gain)		615		1,083		(27)		(39)
Prior service income		(125)		(350)		—		—
Total net periodic benefit income	$	(1,869)	$	(1,396)	$	(17)	$	(29)


	Fair Value Measurements
($ thousands)	Total		Level 1		Level 2		Level 3
Asset (Liability)
May 1, 2021:
Cash equivalents – money market funds	$	57,000	$	57,000	$	—	$	—
Non-qualified deferred compensation plan assets		8,169		8,169		—		—
Non-qualified deferred compensation plan liabilities		(8,169)		(8,169)		—		—
Deferred compensation plan liabilities for non-employee directors		(1,185)		(1,185)		—		—
Restricted stock units for non-employee directors		(2,571)		(2,571)		—		—
Mandatory purchase obligation - Blowfish Malibu		(45,523)		—		—		(45,523)
May 2, 2020:
Cash equivalents – money market funds	$	146,009	$	146,009	$	—	$	—
Non-qualified deferred compensation plan assets		7,435		7,435		—		—
Non-qualified deferred compensation plan liabilities		(7,435)		(7,435)		—		—
Deferred compensation plan liabilities for non-employee directors		(818)		(818)		—		—
Restricted stock units for non-employee directors		(1,093)		(1,093)		—		—
Mandatory purchase obligation - Blowfish Malibu		(18,433)		—		—		(18,433)
January 30, 2021:
Cash equivalents – money market funds	$	45,000	$	45,000	$	—	$	—
Non-qualified deferred compensation plan assets		7,918		7,918		—		—
Non-qualified deferred compensation plan liabilities		(7,918)		(7,918)		—		—
Deferred compensation plan liabilities for non-employee directors		(989)		(989)		—		—
Restricted stock units for non-employee directors		(1,661)		(1,661)		—		—
Mandatory purchase obligation - Blowfish Malibu		(39,134)		—		—		(39,134)


($ thousands)	May 1, 2021		May 2, 2020		January 30, 2021
Customer allowances and discounts	$	19,260	$	24,768	$	17,043
Loyalty programs liability		16,177		17,326		13,986
Returns reserve		14,469		15,427		11,040
Gift card liability		5,423		5,528		6,091


($ millions)	May 1, 2021		May 2, 2020		January 30, 2021
Borrowings under revolving credit agreement	$	200.0	$	438.5	$	250.0
Long-term debt		199.0		198.5		198.9
Total debt ⁽¹⁾	$	399.0	$	637.0	$	448.9


	Thirteen Weeks
	Ended
($ millions)	May 1, 2021
Net sales ⁽¹⁾	$	584.8
Gross profit		254.7
Operating earnings		13.9
Net earnings		10.5
Net earnings attributable to Caleres, Inc.		10.5


				Total Number	Maximum Number
				Purchased as Part	of Shares that May
	Total Number of			of Publicly	Yet be Purchased
	Shares	Average Price Paid		Announced	Under the
Fiscal Period	Purchased⁽¹⁾		per Share ⁽¹⁾	Program ⁽²⁾	Program ⁽²⁾
January 31, 2021 - February 27, 2021	—	$	—	—	2,651,489

February 28, 2021 - April 3, 2021	188,738		18.54	—	2,651,489

April 4, 2021 - May 1, 2021	—		—	—	2,651,489

Total	188,738	$	18.54	—	2,651,489


Exhibit No.
3.1		Restated Certificate of Incorporation of Caleres, Inc. (the “Company”) incorporated herein by reference to Exhibit 3.1 to the Company’s Form 8-K filed May 29, 2020.
3.2		Bylaws of the Company as amended through May 28, 2020, incorporated herein by reference to Exhibit 3.2 to the Company’s Form 8-K filed May 29, 2020.
22		List of Guarantor Subsidiaries, incorporated herein by reference to Exhibit 22 to the Company’s Form 10-Q for the quarter ended October 31, 2020, and filed December 9, 2020.
31.1	†	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	†	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	†	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	†	iXBRL Instance Document
101.SCH	†	iXBRL Taxonomy Extension Schema Document
101.CAL	†	iXBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	†	iXBRL Taxonomy Extension Label Linkbase Document
101.PRE	†	iXBRL Taxonomy Presentation Linkbase Document
101.DEF	†	iXBRL Taxonomy Definition Linkbase Document
104	†	Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101.

		CALERES, INC.

Date: June 9, 2021		/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