Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Feb. 24, 2023 | Jul. 30, 2022 | |
Document And Entity Information | |||
Entity Central Index Key | 0000014707 | ||
Entity Registrant Name | CALERES INC | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --01-28 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 28, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 1-2191 | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 43-0197190 | ||
Entity Address, Address Line One | 8300 Maryland Avenue | ||
Entity Address, City or Town | St. Louis | ||
Entity Address, State or Province | MO | ||
Entity Address, Postal Zip Code | 63105 | ||
City Area Code | 314 | ||
Local Phone Number | 854-4000 | ||
Title of 12(b) Security | Common Stock — par value of $0.01 per share | ||
Trading Symbol | CAL | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 844.1 | ||
Entity Common Stock, Shares Outstanding | 35,631,002 | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | St. Louis, Missouri |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 33,700 | $ 30,115 |
Receivables, net of allowances of $30,820 in 2022 and $29,930 in 2021 | 132,802 | 122,236 |
Inventories, net of adjustment to last-in, first-out cost of $6,301 in 2022 and $1,255 in 2021 | 580,215 | 596,807 |
Income taxes | 17,527 | 33,073 |
Property and equipment, held for sale | 16,777 | 5,455 |
Prepaid expenses and other current assets | 50,434 | 48,790 |
Total current assets | 831,455 | 836,476 |
Prepaid pension costs | 83,396 | 99,139 |
Lease right-of-use assets | 518,196 | 503,430 |
Property and equipment, net | 160,883 | 150,238 |
Goodwill and intangible assets, net | 215,392 | 227,503 |
Other assets | 27,150 | 27,140 |
Total assets | 1,836,472 | 1,843,926 |
Current liabilities: | ||
Borrowings under revolving credit agreement | 307,500 | 290,000 |
Trade accounts payable | 229,908 | 331,470 |
Employee compensation and benefits | 87,041 | 88,034 |
Income taxes | 7,650 | 22,622 |
Lease obligations | 136,051 | 128,495 |
Other accrued expenses | 143,046 | 164,992 |
Total current liabilities | 911,196 | 1,025,613 |
Other liabilities: | ||
Noncurrent lease obligations | 444,074 | 452,909 |
Income taxes | 7,786 | 2,464 |
Deferred income taxes | 19,001 | 14,731 |
Other liabilities | 28,302 | 24,822 |
Total other liabilities | 499,163 | 494,926 |
Equity: | ||
Common stock, $0.01 par value, 35,715,752 and 37,635,145 shares outstanding in 2022 and 2021, respectively | 357 | 376 |
Additional paid-in capital | 180,747 | 168,830 |
Accumulated other comprehensive loss | (26,750) | (8,606) |
Retained earnings | 266,329 | 157,970 |
Total Caleres, Inc. shareholders' equity | 420,683 | 318,570 |
Noncontrolling interests | 5,430 | 4,817 |
Total equity | 426,113 | 323,387 |
Total liabilities and equity | $ 1,836,472 | $ 1,843,926 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Consolidated Balance Sheets | ||
Receivables, allowance | $ 30,820 | $ 29,930 |
Inventories, adjustment to last-in, first-out cost | $ 6,301 | $ 1,255 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, outstanding (in shares) | 35,715,752 | 37,635,145 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Consolidated Statements of Earnings (Loss) | |||
Net sales | $ 2,968,138 | $ 2,777,604 | $ 2,117,070 |
Cost of goods sold | 1,683,265 | 1,550,287 | 1,330,021 |
Gross profit | 1,284,873 | 1,227,317 | 787,049 |
Selling and administrative expenses | 1,067,636 | 1,008,028 | 889,489 |
Impairment of goodwill and intangible assets | 0 | 0 | 286,524 |
Restructuring and other special charges, net | 2,910 | 13,482 | 96,694 |
Operating earnings (loss) | 214,327 | 205,807 | (485,658) |
Interest expense, net | (14,264) | (30,930) | (48,287) |
Loss on early extinguishment of debt | 0 | (1,011) | 0 |
Other income, net | 12,971 | 15,378 | 16,834 |
Earnings (loss) before income taxes | 213,034 | 189,244 | (517,111) |
Income tax (provision) benefit | (33,339) | (51,081) | 78,117 |
Net earnings (loss) | 179,695 | 138,163 | (438,994) |
Net (loss) earnings attributable to noncontrolling interests | (2,047) | 1,144 | 120 |
Net earnings (loss) attributable to Caleres, Inc. | $ 181,742 | $ 137,019 | $ (439,114) |
Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders | $ 4.98 | $ 3.59 | $ (11.80) |
Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders | $ 4.92 | $ 3.56 | $ (11.80) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Consolidated Statements of Comprehensive Income (Loss) | |||
Net earnings (loss) | $ 179,695 | $ 138,163 | $ (438,994) |
Other comprehensive income (loss) ("OCI"), net of tax: | |||
Foreign currency translation adjustment | (907) | (611) | 637 |
Pension and other postretirement benefits adjustments | (17,719) | 1,207 | 22,146 |
Derivative financial instruments | 0 | 0 | 92 |
Other comprehensive (loss) income, net of tax | (18,626) | 596 | 22,875 |
Comprehensive income (loss) | 161,069 | 138,759 | (416,119) |
Comprehensive (loss) income attributable to noncontrolling interests | (2,529) | 1,210 | 288 |
Comprehensive income (loss) attributable to Caleres, Inc. | $ 163,598 | $ 137,549 | $ (416,407) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Operating Activities | |||
Net earnings (loss) | $ 179,695 | $ 138,163 | $ (438,994) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||
Depreciation | 32,449 | 34,069 | 41,644 |
Amortization of capitalized software | 4,451 | 5,693 | 5,911 |
Amortization of intangible assets | 12,111 | 12,568 | 12,984 |
Amortization of debt issuance costs and debt discount | 407 | 874 | 1,359 |
Share-based compensation expense | 17,311 | 12,297 | 8,097 |
Loss on disposal of property and equipment | 1,369 | 472 | 2,890 |
Impairment charges for property, equipment, and lease right-of-use assets | 1,803 | 4,135 | 56,343 |
Impairment of goodwill and intangible assets | 0 | 0 | 286,524 |
Adjustment to expected credit losses | (262) | (2,242) | 10,575 |
Deferred income taxes | 4,270 | 6,487 | (37,034) |
Fair value adjustments to Blowfish mandatory purchase obligation | 0 | 15,424 | 23,934 |
Blowfish mandatory purchase obligation | 0 | (45,562) | 0 |
Loss on early extinguishment of debt | 0 | 1,011 | 0 |
Changes in operating assets and liabilities: | |||
Receivables | (10,302) | 7,002 | 22,465 |
Inventories | 16,242 | (108,772) | 130,796 |
Prepaid expenses and other current and noncurrent assets | (1,971) | (11,843) | (12,400) |
Trade accounts payable | (101,450) | 50,936 | 13,373 |
Accrued expenses and other liabilities | (34,590) | 32,656 | 30,181 |
Income taxes, net | 5,896 | 15,831 | (32,600) |
Other, net | (1,550) | (758) | 305 |
Net cash provided by operating activities | 125,879 | 168,441 | 126,353 |
Investing Activities | |||
Purchases of property and equipment | (55,913) | (18,393) | (16,786) |
Capitalized software | (8,124) | (5,752) | (5,274) |
Net cash used for investing activities | (64,037) | (24,145) | (22,060) |
Financing Activities | |||
Borrowings under revolving credit agreement | 859,500 | 632,000 | 438,500 |
Repayments under revolving credit agreement | (842,000) | (592,000) | (463,500) |
Redemption of senior notes | 0 | (200,000) | 0 |
Dividends paid | (10,184) | (10,648) | (10,764) |
Acquisition of treasury stock | (63,225) | (16,965) | (23,348) |
Issuance of common stock under share-based plans, net | (5,387) | (3,910) | (1,135) |
Contributions by noncontrolling interests, net | 3,142 | 0 | 139 |
Blowfish Malibu mandatory purchase obligation | 0 | (8,996) | 0 |
Debt issuance costs | 0 | (1,190) | 0 |
Other | 0 | (676) | (1,198) |
Net cash used for financing activities | (58,154) | (202,385) | (61,306) |
Effect of exchange rate changes on cash and cash equivalents | (103) | (91) | 90 |
Increase (decrease) in cash and cash equivalents | 3,585 | (58,180) | 43,077 |
Cash and cash equivalents at beginning of period | 30,115 | 88,295 | 45,218 |
Cash and cash equivalents at end of period | $ 33,700 | $ 30,115 | $ 88,295 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders Equity - USD ($) $ in Thousands | Cumulative effect adjustment Retained Earnings | Cumulative effect adjustment Caleres, Inc. | Cumulative effect adjustment | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Caleres, Inc. | Non-controlling Interest | Total |
BALANCE at Feb. 01, 2020 | $ 404 | $ 153,489 | $ (31,843) | $ 523,900 | $ 645,950 | $ 3,180 | $ 649,130 | |||
BALANCE (in shares) at Feb. 01, 2020 | 40,396,757 | |||||||||
Net earnings (loss) | (439,114) | (439,114) | 120 | (438,994) | ||||||
Foreign currency translation adjustment | 469 | 469 | 168 | 637 | ||||||
Unrealized gain on derivative financial instruments, net of tax | 92 | 92 | 92 | |||||||
Pension and other postretirement benefits adjustments, net of tax | 22,146 | 22,146 | 22,146 | |||||||
Comprehensive income (loss) | 22,707 | (439,114) | (416,407) | 288 | (416,119) | |||||
Contributions by noncontrolling interests, net | 139 | 139 | ||||||||
Dividends | (10,764) | (10,764) | (10,764) | |||||||
Acquisition of treasury stock | $ (29) | (23,319) | (23,348) | (23,348) | ||||||
Acquisition of treasury stock (in shares) | (2,902,122) | |||||||||
Issuance of common stock under share-based plans, net | $ 5 | (1,140) | (1,135) | (1,135) | ||||||
Issuance of common stock under share-based plans, net (in shares) | 471,569 | |||||||||
Share-based compensation expense | 8,097 | 8,097 | 8,097 | |||||||
BALANCE (Accounting Standards Update 2016-13 (ASC 326)) at Jan. 30, 2021 | $ (2,146) | $ (2,146) | $ (2,146) | |||||||
BALANCE at Jan. 30, 2021 | $ 380 | 160,446 | (9,136) | 48,557 | 200,247 | 3,607 | 203,854 | |||
BALANCE (in shares) at Jan. 30, 2021 | 37,966,204 | |||||||||
Net earnings (loss) | 137,019 | 137,019 | 1,144 | 138,163 | ||||||
Foreign currency translation adjustment | (677) | (677) | 66 | (611) | ||||||
Unrealized gain on derivative financial instruments, net of tax | 0 | |||||||||
Pension and other postretirement benefits adjustments, net of tax | 1,207 | 1,207 | 1,207 | |||||||
Comprehensive income (loss) | 530 | 137,019 | 137,549 | 1,210 | 138,759 | |||||
Dividends | (10,648) | (10,648) | (10,648) | |||||||
Acquisition of treasury stock | $ (7) | (16,958) | (16,965) | (16,965) | ||||||
Acquisition of treasury stock (in shares) | (661,265) | |||||||||
Issuance of common stock under share-based plans, net | $ 3 | (3,913) | (3,910) | (3,910) | ||||||
Issuance of common stock under share-based plans, net (in shares) | 330,206 | |||||||||
Share-based compensation expense | 12,297 | 12,297 | 12,297 | |||||||
BALANCE at Jan. 29, 2022 | $ 376 | 168,830 | (8,606) | 157,970 | 318,570 | 4,817 | 323,387 | |||
BALANCE (in shares) at Jan. 29, 2022 | 37,635,145 | |||||||||
Net earnings (loss) | 181,742 | 181,742 | (2,047) | 179,695 | ||||||
Foreign currency translation adjustment | (425) | (425) | (482) | (907) | ||||||
Unrealized gain on derivative financial instruments, net of tax | 0 | |||||||||
Pension and other postretirement benefits adjustments, net of tax | (17,719) | (17,719) | (17,719) | |||||||
Comprehensive income (loss) | (18,144) | 181,742 | 163,598 | (2,529) | 161,069 | |||||
Contributions by noncontrolling interests, net | 3,142 | 3,142 | ||||||||
Dividends | (10,184) | (10,184) | (10,184) | |||||||
Acquisition of treasury stock | $ (26) | (63,199) | (63,225) | (63,225) | ||||||
Acquisition of treasury stock (in shares) | (2,622,845) | |||||||||
Issuance of common stock under share-based plans, net | $ 7 | (5,394) | (5,387) | (5,387) | ||||||
Issuance of common stock under share-based plans, net (in shares) | 703,452 | |||||||||
Share-based compensation expense | 17,311 | 17,311 | 17,311 | |||||||
BALANCE at Jan. 28, 2023 | $ 357 | $ 180,747 | $ (26,750) | $ 266,329 | $ 420,683 | $ 5,430 | $ 426,113 | |||
BALANCE (in shares) at Jan. 28, 2023 | 35,715,752 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Consolidated Statements of Shareholders Equity | |||
Pension and other postretirement benefits adjustments, tax | $ 6,145 | $ (444) | $ (7,671) |
Dividends, per share (in dollars per share) | $ 0.28 | $ 0.28 | $ 0.28 |
Unrealized gain (loss) on derivative financial instruments, tax | $ 31 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jan. 28, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Caleres, Inc., originally founded as Brown Shoe Company in 1878 and incorporated in 1913, is a global footwear company. The Company’s shares are traded under the “CAL” symbol on the New York Stock Exchange. The Company provides a broad offering of branded, licensed and private-label athletic, casual and dress footwear products to women, men and children. The footwear is sold at a variety of price points through multiple distribution channels both domestically and internationally. The Company currently operates 965 retail shoe stores in the United States, Canada, China and Guam under the Famous Footwear, Sam Edelman, Naturalizer and Allen Edmonds names. In addition, through its Brand Portfolio segment, the Company designs, sources, manufactures and markets footwear to retail stores domestically and internationally, including online retailers, national chains, department stores, mass merchandisers and independent retailers. Refer to Note 2 to the consolidated financial statements for additional information regarding the Company’s revenue by category and Note 7 for discussion of the Company’s business segments. The Company’s business is seasonal in nature due to consumer spending patterns with higher back-to-school and holiday season sales. Although the third fiscal quarter has historically accounted for a substantial portion of the Company’s earnings for the year, the Company has experienced more equal distribution among the quarters in recent years. Certain prior period amounts in the notes to the consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications did not affect net earnings (loss) attributable to Caleres, Inc. Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries, after the elimination of intercompany accounts and transactions. Noncontrolling Interests Noncontrolling interests in the Company’s consolidated financial statements result from the accounting for noncontrolling interests in partially-owned consolidated subsidiaries or affiliates. In 2019, the Company entered into a joint venture with Brand Investment Holding Limited ("Brand Investment Holding"), a member of the Gemkell Group, to sell branded footwear in China, including Sam Edelman, Naturalizer and other brands. The Company and Brand Investment Holding are each 50% owners of the joint venture, which is named CLT Brand Solutions ("CLT"). In 2022, capital contributions of $6.3 million were made to CLT, including $3.1 million received from Brand Investment Holding. In addition, during 2020, CLT was funded with $3.0 million in capital contributions, including approximately $1.5 million from the Company and $1.5 million from Brand Investment Holding. As of January 28, 2023 and January 29, 2022, assets of CLT were $19.8 million and $13.8 million, respectively, and liabilities were $9.1 million and $5.4 million, respectively. Net sales of CLT were $16.9 million and $17.5 million in 2022 and 2021, respectively. Operating losses of CLT were $2.7 million for 2022, compared to operating earnings of $1.2 million in 2021. Net sales and operating earnings were immaterial in 2020. The Company consolidates CLT into its consolidated financial statements on a one-month lag. Net earnings (loss) attributable to noncontrolling interests represents the share of net earnings or losses that are attributable to Brand Investment Holding. Transactions between the Company and the joint venture have been eliminated in the consolidated financial statements. Accounting Period The Company’s fiscal year is the 52- or 53-week period ending the Saturday nearest to January 31. Fiscal years 2022, 2021 and 2020, all of which included 52 weeks, ended on January 28, 2023, January 29, 2022 and January 30, 2021, respectively. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. COVID-19 Pandemic During 2020, the United States and global economies were adversely impacted by COVID-19. The Company’s financial results were also adversely impacted , driven by the temporary closure of all retail store locations for a portion of the first half of 2020 . In response to the impact COVID-19 was having on the United States economy, the Coronavirus Aid, Relief and Economic Security ("CARES") Act was enacted. The CARES Act includes a provision that allowed the Company to defer the employer portion of social security payroll tax payments that would have been paid between the enactment date and December 31, 2020, with 50% payable by December 31, 2021 and 50% payable by December 31, 2022. During 2020, the Company deferred $9.4 million of employer social security payroll taxes, of which $5.0 million were payable by December 31, 2022 and presented in other accrued expenses on the consolidated balance sheet as of January 29, 2022. The deferred payroll taxes were paid in December 2022 and therefore, there is no corresponding deferral on the consolidated balance sheet as of January 28, 2023. In addition, as further discussed below and in Note 6 to the consolidated financial statements, the CARES Act permits the carryback of certain current operating losses to prior years, which resulted in an incremental tax benefit of $8.2 million in 2020. Refer to further discussion of the impact of the pandemic on the Company’s business throughout this document, including Note 4, Note 6, Note 10 and Note 12 to the consolidated financial statements. Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash equivalents also include amounts due from third-party financial institutions for credit and debit card transactions. These receivables typically settle in five days or less. The Company had an immaterial amount of restricted cash as of January 28, 2023 and January 29, 2022. Receivables In accordance with Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments - Credit Losses, Customer allowances represent reserves against the Company’s wholesale customers’ accounts receivable for margin assistance, product returns, customer deductions and co-op advertising allowances. The Company estimates the reserves needed for margin assistance by reviewing inventory levels on the retail floors, sell-through rates, historical dilution, current gross margin levels and other performance indicators of the Company’s major retail customers. Product returns and customer deductions are estimated using historical experience and anticipated future trends. Co-op advertising allowances are estimated based on customer agreements. The Company recognized provisions for customer allowances of $27.6 million, $26.1 million and $20.4 million in 2022, 2021 and 2020, respectively. Customer discounts represent reserves against the Company’s accounts receivable for discounts that wholesale customers may take based on meeting certain order, payment or return guidelines. The Company estimates the reserves needed for customer discounts based upon customer net sales and terms of the respective agreements. The Company recognized a provision for customer discounts of $11.4 million in 2022, $7.5 million in 2021 and $11.7 million in 2020. Inventories The Company values inventories at the lower of cost or market for approximately 86% of consolidated inventories, which represents divisions using the last-in, first-out (“LIFO”) method. For the remaining portion, the Company’s inventories are valued at the lower of cost or net realizable value. For inventory valued at LIFO, the Company regularly reviews the inventory for excess, obsolete or impaired inventory, and writes it down to the lower of cost or market. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. If the first-in, first-out (“FIFO”) method had been used, consolidated inventories would have been $6.3 million and $1.3 million higher at January 28, 2023 and January 29, 2022, respectively. In 2022, the Company recorded a LIFO provision of $4.7 million on certain inventories at the Famous Footwear segment as a result of product cost inflation. I n 2020, a reduction in inventory quantities associated with the ongoing exit of the Naturalizer retail business resulted in a liquidation of LIFO layers and reduction of the LIFO reserve of $2.9 million, with a corresponding reduction of cost of goods sold. The Company applies judgment in determining the market value of inventory, which requires an estimate of net realizable value, including current and expected selling prices, costs to sell and normal gross profit rates. The method used to determine market value varies by business division, based on the unique operating models. At the Famous Footwear segment and certain operations within the Brand Portfolio segment, market value is determined based on net realizable value less an estimate of expected costs to be incurred to sell the product. Accordingly, the Company records markdowns when it becomes evident that inventory items will be sold at prices below cost. As a result, gross profit rates at the Famous Footwear segment and, to a lesser extent, the Brand Portfolio segment are lower than the initial markup during periods when permanent price reductions are taken to clear product. For the majority of the Brand Portfolio segment, the Company determines market value based upon the net realizable value of inventory less a normal gross profit rate. The Company believes these policies reflect the difference in operating models between the Famous Footwear and Brand Portfolio segments. Famous Footwear periodically runs promotional events to drive sales to clear seasonal inventories. The Brand Portfolio segment generally relies on permanent price reductions to clear slower-moving inventory. The determination of markdown reserves for the Brand Portfolio segment requires significant assumptions, estimates and judgments by management, and is subject to inherent uncertainties and subjectivity. In determining markdown reserves, management considers recent and forecasted sales prices, historical gross profit rates, the length of time the product is held in inventory and quantities of various product styles contained in inventory, as well as demand, among other factors. The ultimate amount realized from the sale of certain products could differ from management estimates. The costs of inventory, inbound freight and duties, markdowns, shrinkage and royalty expense are classified in cost of goods sold. Costs of warehousing and distribution are classified in selling and administrative expenses and are expensed as incurred. Such warehousing and distribution costs totaled $121.0 million, $99.5 million and $84.0 million in 2022, 2021 and 2020, respectively. Costs of overseas sourcing offices and other inventory procurement costs are reflected in selling and administrative expenses and are expensed as incurred. Such sourcing and procurement costs totaled $21.4 million, $22.2 million and $18.6 million in 2022, 2021 and 2020, respectively. The Company performs physical inventory counts or cycle counts on all merchandise inventory on hand throughout the year and adjusts the recorded balance to reflect the results. The Company records estimated shrinkage between physical inventory counts based on historical results. Computer Software Costs The Company capitalizes certain costs in other assets, including internal payroll costs incurred in connection with the development or acquisition of software for internal use. Other assets on the consolidated balance sheets include $16.0 million and $14.1 million of computer software costs as of January 28, 2023 and January 29, 2022, respectively, which are net of accumulated amortization of $88.5 million and $130.3 million as of the end of the respective periods. In addition, other assets on the consolidated balance sheets include $5.6 million and $7.7 million of implementation costs for software as a service as of January 28, 2023 and January 29, 2022, respectively, which are net of accumulated amortization of $4.7 million and $2.7 million as of the end of the respective periods. Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is provided over the estimated useful lives of the assets or the remaining lease terms, where applicable, using the straight-line method. Interest Expense Interest expense generally includes interest for borrowings under the Company’s revolving credit agreement, fees paid for the unused portion of the line of credit, and amortization of the deferred debt issuance costs. Interest expense for 2021 and 2020 also included interest for the Company’s long-term debt and related amortization of deferred debt issuance costs and debt discount, as well as fair value adjustments on the mandatory purchase obligation from the acquisition of Blowfish Malibu, as further described in Note 4 to the consolidated financial statements. Goodwill and Intangible Assets Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests. In accordance with ASC 350, Intangibles-Goodwill and Other The Company performs its goodwill impairment assessment and impairment tests on its indefinite-lived intangible assets as of the first day of the fourth quarter of each fiscal year unless events indicate an interim test is required. Definite-lived intangible assets are amortized over their useful lives and are reviewed for impairment if and when impairment indicators are present. Refer to Note 10 to the consolidated financial statements for further discussion of goodwill and intangible assets. Self-Insurance Reserves The Company is self-insured and/or retains high deductibles for a significant portion of its workers’ compensation, health, disability, cyber risk, general liability, automobile and property programs, among others. Liabilities associated with the risks that are retained by the Company are estimated by considering historical claims experience, trends of the Company and the industry and other actuarial assumptions. The estimated accruals for these liabilities could be affected if development of costs on claims differ from these assumptions and historical trends. Based on available information as of January 28, 2023, the Company believes it has provided adequate reserves for its self-insurance exposure. As of January 28, 2023 and January 29, 2022, self-insurance reserves were $9.7 million and $11.4 million, respectively. Revenue Recognition Retail sales, recognized at the point of sale, are recorded net of returns and exclude sales tax. Wholesale sales are recorded, net of returns, allowances and discounts, when obligations under the terms of a contract with the consumer are satisfied. This generally occurs at the time of transfer of control of merchandise. The Company considers several control indicators in its assessment of the timing of the transfer of control, including significant risks and rewards of ownership, physical possession and the Company’s right to receive payment. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring merchandise. Reserves for projected merchandise returns, discounts and allowances are determined based on historical experience and current expectations. Revenue is recognized on license fees related to Company-owned brand names, where the Company is the licensor, when the related sales of the licensee are made. The Company applies the guidance using the portfolio approach in ASC 606, Revenue from Contracts with Customers, Gift Cards The Company sells gift cards to its customers in its retail stores, through its e-commerce sites and at other retailers. The Company’s gift cards do not have expiration dates or inactivity fees. The Company recognizes revenue from gift cards when (i) the gift card is redeemed by the consumer or (ii) the likelihood of the gift card being redeemed by the consumer is remote (“gift card breakage”) and the Company determines that it does not have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions. The gift card breakage rate is determined based upon historical redemption patterns. Gift card breakage is recognized during the 24-month Loyalty Program The Company maintains a loyalty program at Famous Footwear, through which consumers earn points toward savings certificates for qualifying purchases. Upon reaching specified point values, consumers are issued a savings certificate that may be redeemed for purchases at Famous Footwear. Savings certificates earned must be redeemed within stated expiration dates. In addition to the savings certificates, the Company also offers exclusive member discounts. The value of points and rewards earned by Famous Footwear’s loyalty program members are recorded as a reduction of net sales and a liability is established within other accrued expenses at the time the points are earned based on historical conversion and redemption rates. Approximately 77% of net sales in the Famous Footwear segment were made to its loyalty program members in 2022, compared to 78% in 2021. As of January 28, 2023 and January 29, 2022, the Company had a loyalty program liability of $17.7 million and $18.8 million, respectively, which is included in other accrued expenses on the consolidated balance sheets. Store Impairment Charges The Company regularly analyzes the results of all of its stores and assesses the viability of underperforming stores to determine whether events or circumstances exist that indicate the stores should be closed or whether the carrying amount of their long-lived assets may not be recoverable. After allowing for an appropriate start-up period, unusual nonrecurring events or favorable trends, property and equipment at stores and the lease right-of-use asset, indicated as impaired are written down to fair value as calculated using a discounted cash flow method. The Company recorded asset impairment charges, primarily for operating lease right-of-use assets, leasehold improvements, and furniture and fixtures in the Company’s retail stores, of $1.8 million, $4.1 million and $56.3 million in 2022, 2021 and 2020, respectively. Impairment charges were higher in 2020 as a result of the adverse economic conditions driven by the COVID-19 pandemic. Advertising and Marketing Expense Advertising and marketing costs are expensed as incurred, except for the costs of direct response advertising that relate primarily to the production and distribution of the Company’s catalogs and coupon mailers. Direct response advertising costs are capitalized and amortized over the expected future revenue stream, which is generally one In addition, the Company participates in co-op advertising programs with certain of its wholesale customers. For those co-op advertising programs where the Company has validated the fair value of the advertising received, co-op advertising costs are reflected as advertising expense within selling and administrative expenses. Otherwise, co-op advertising costs are reflected as a reduction of net sales. Total advertising and marketing expense was $138.0 million, $118.1 million and $77.9 million in 2022, 2021 and 2020, respectively. These costs were offset by co-op advertising allowances recovered by the Company’s retail business of $6.0 million, $5.4 million and $3.4 million in 2022, 2021 and 2020, respectively. Total co-op advertising costs reflected as a reduction of net sales were $18.5 million in 2022, $10.8 million in 2021 and $7.2 million in 2020. Total advertising costs attributable to future periods that are deferred and recognized as a component of prepaid expenses and other current assets were $4.6 million and $4.4 million at January 28, 2023 and January 29, 2022, respectively. Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the consolidated financial statement carrying amounts and the tax bases of its assets and liabilities. The Company establishes valuation allowances if it believes that it is more-likely-than-not that some or all of its deferred tax assets will not be realized. The Company does not recognize a tax benefit unless it concludes that it is more-likely- than-not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, the Company recognizes a tax benefit measured at the largest amount of the tax benefit that, in its judgment, is greater than 50% likely to be realized. The Company records interest and penalties related to unrecognized tax positions within the income tax (provision) benefit on the consolidated statements of earnings (loss). Operating Leases The Company leases all of its retail locations, a manufacturing facility and certain office locations, distribution centers and equipment under operating leases. Approximately 35% of the leases entered into by the Company include options that allow the Company to extend the lease term beyond the initial commitment period, subject to terms agreed to at lease inception. Some leases also include early termination options that can be exercised under specific conditions. In accordance with ASC Topic 842, Leases Contingent Rentals Many of the leases covering retail stores require contingent rental payments in addition to the minimum monthly rental charge based on retail sales volume. The Company excludes from lease payments any variable payments that are not based on an index or market. If payment for a lease is fully contingent on sales, such as a percentage of sales gross rent lease, none of the lease payments are included in the lease right-of-use asset or the lease liability. Construction Allowances Received From Landlords At the time its retail facilities are initially leased, the Company often receives consideration from landlords to be applied against the cost of leasehold improvements necessary to open the store. The Company treats these construction allowances as a lease incentive. In accordance with ASC 842, the allowances are recorded within the lease right-of-use asset and amortized to income over the lease term as a reduction of rent expense. Straight-Line Rents and Rent Holidays The Company records rent expense on a straight-line basis over the lease term for all of its leased facilities. For leases that have predetermined fixed escalations of the minimum rentals, the Company recognizes the related rental expense on a straight-line basis and records the difference between the recognized rental expense and amounts payable under the lease as the lease right-of-use asset. At the time its retail facilities are leased, the Company is frequently not charged rent for a specified period of time, typically 30 to 60 days, while the store is being prepared for opening. This rent-free period is referred to as a rent holiday. The Company recognizes rent expense over the lease term, including any rent holiday, within selling and administrative expenses on the consolidated statements of earnings (loss). Pre-opening Costs Pre-opening costs associated with opening retail stores, including payroll, supplies and facility costs, are expensed as incurred. Earnings (Loss) Per Common Share Attributable to Caleres, Inc. Shareholders The Company uses the two-class method to calculate basic and diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders. Unvested restricted stock awards are considered participating units because they entitle holders to non-forfeitable rights to dividends or dividend equivalents during the vesting term. Under the two-class method, basic earnings (loss) per common share attributable to Caleres, Inc. shareholders is computed by dividing the net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities by the weighted-average number of common shares outstanding during the year. Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders is computed by dividing the net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities by the weighted-average number of common shares and potential dilutive securities outstanding during the year. Potential dilutive securities consist of outstanding stock options and contingently issuable shares for the Company’s performance share awards. Refer to Note 3 to the consolidated financial statements for additional information related to the calculation of earnings (loss) per common share attributable to Caleres, Inc. shareholders. Comprehensive Income (Loss) Comprehensive income (loss) primarily includes the effect of foreign currency translation adjustments and pension and other postretirement benefits adjustments. Foreign Currency Translation Adjustment For certain of the Company’s international subsidiaries, the local currency is the functional currency. Assets and liabilities of these subsidiaries are translated into United States dollars at the period-end exchange rate or historical rates as appropriate. Consolidated statements of earnings (loss) amounts are translated at average exchange rates for the period. The cumulative translation adjustments resulting from changes in exchange rates are included in the consolidated balance sheets as a component of accumulated other comprehensive loss in total Caleres, Inc. shareholders’ equity. Transaction gains and losses are included in the consolidated statements of earnings (loss). Pension and Other Postretirement Benefits Adjustments The Company determines the expense and obligations for retirement and other benefit plans using assumptions related to discount rates, expected long-term rates of return on invested plan assets, expected salary increases and certain employee-related factors. The Company determines the fair value of plan assets and benefit obligations as of the January 31 measurement date. The unrecognized portion of the gain or loss on plan assets is included in the consolidated balance sheets as a component of accumulated other comprehensive loss in total Caleres, Inc. shareholders’ equity and is recognized into the plans’ expense over time. Refer to additional information related to pension and other postretirement benefits in Note 5 and Note 14 to the consolidated financial statements. Litigation Contingencies The Company is the defendant in several claims and lawsuits arising in the ordinary course of business. The Company believes the outcome of such proceedings and litigation currently pending will not have a material adverse effect on the consolidated financial position or results of operations. The Company accrues its best estimate of the cost of resolution of these claims. Legal defense costs of such claims are recognized in the period in which the costs are incurred. Refer to Note 16 to the consolidated financial statements for further discussion of commitments and contingencies. Environmental Matters The Company is involved in environmental remediation and ongoing compliance activities at several sites. The Company is remediating, under the oversight of Colorado authorities, the groundwater and indoor air at its owned facility and residential neighborhoods adjacent to and near the property, which have been affected by solvents previously used at the facility. In addition, various federal and state authorities have identified the Company as a potentially responsible party for remediation at certain other sites. The Company’s prior operations included numerous manufacturing and other facilities for which the Company may have responsibility under various environmental laws to address conditions that may be identified in the future. Refer to Note 16 to the consolidated financial statements for additional information. Environmental expenditures relating to an existing condition caused by past operations and that do not contribute to current or future revenue generation are expensed. Based upon independent environmental assessments, liabilities are recorded when remedial action is considered probable and the costs can be reasonably estimated and are evaluated independently of any future claims recovery. Generally, the timing of these accruals coincides with completion of a feasibility study or the Company’s commitment to a formal plan of action, and our estimates of cost are subject to change as new information becomes available. Costs of future expenditures for environmental remediation obligations are discounted to their present value in those situations requiring only continuing maintenance and monitoring based upon a schedule of fixed payments. Share-Based Compensation The Company has share-based incentive compensation plans under which certain officers, employees and members of the Board of Directors are participants and may be granted restricted stock, stock performance awards and stock options. Additionally, share-based grants may be made to non-employee members of the Board of Directors in the form of restricted stock units (“RSUs”) payable in cash or the Company’s common stock. The Company accounts for share-based compensation in accordance with the fair value recognition provisions of ASC 718, Compensation – Stock Compensation Equity four years one-year Consolidated Statements of Cash Flows Supplemental Disclosures The Company made payments for federal, state and international taxes, net of refunds, of $17.4 million, and $29.3 million in 2022 and 2021, respectively, and received refunds, net of payments, of $0.6 million in 2020. Refer to Note 6 to the consolidated financial statements for further information regarding income taxes. Cash payments of interest for the Company’s borrowings under the revolving credit agreement and long-term debt during 2022, 2021 and 2020 were $12.5 million, $20.4 million and $23.6 million, respectively. Refer to Note 11 to the consolidated financial statements for further discussion regarding the Company’s financing arrangements. Impact of Prospective Accounting Pronouncements In Liabilities – Supplier Finance Programs (Topic 405-50): Disclosure of Supplier Finance Program Obligations |
REVENUES
REVENUES | 12 Months Ended |
Jan. 28, 2023 | |
REVENUES | |
REVENUES | 2. REVENUES Disaggregation of Revenues The following table disaggregates revenue by segment and major source for 2022, 2021 and 2020: 2022 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 1,467,968 $ 60,113 $ — $ 1,528,081 E-commerce - Company websites (1) 233,977 218,434 — 452,411 E-commerce - wholesale drop-ship (1) — 148,825 (5,649) 143,176 Total direct-to-consumer sales $ 1,701,945 $ 427,372 $ (5,649) $ 2,123,668 Wholesale - e-commerce (1) — 207,779 — 207,779 Wholesale - landed — 548,838 (54,078) 494,760 Wholesale - first cost — 125,091 — 125,091 Licensing and royalty 2,105 13,604 — 15,709 Other (2) 1,043 88 — 1,131 Net sales $ 1,705,093 $ 1,322,772 $ (59,727) $ 2,968,138 2021 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 1,494,595 $ 59,269 $ — $ 1,553,864 E-commerce - Company websites (1) 251,823 189,564 — 441,387 E-commerce - wholesale drop-ship (1) — 93,783 (2,427) 91,356 Total direct-to-consumer sales $ 1,746,418 $ 342,616 $ (2,427) $ 2,086,607 Wholesale - e-commerce (1) — 157,195 — 157,195 Wholesale - landed — 468,436 (49,263) 419,173 Wholesale - first cost — 100,467 — 100,467 Licensing and royalty 1,010 12,138 — 13,148 Other (2) 863 151 — 1,014 Net sales $ 1,748,291 $ 1,081,003 $ (51,690) $ 2,777,604 2020 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 983,669 $ 52,796 $ — $ 1,036,465 E-commerce - Company websites (1) 279,353 149,090 — 428,443 E-commerce - wholesale drop-ship (1) — 87,226 (4,192) 83,034 Total direct-to-consumer sales 1,263,022 $ 289,112 $ (4,192) $ 1,547,942 Wholesale - e-commerce (1) $ — 125,797 — 125,797 Wholesale - landed — 408,752 (44,770) 363,982 Wholesale - first cost — 69,172 — 69,172 Licensing and royalty — 9,478 — 9,478 Other (2) 529 170 — 699 Net sales $ 1,263,551 $ 902,481 $ (48,962) $ 2,117,070 (1) Collectively referred to as "e-commerce" below (2) Includes breakage revenue from unredeemed gift cards Retail stores Traditionally, the majority of the Company’s revenue is generated from retail sales where control is transferred and revenue is recognized at the point of sale. Retail sales are recorded net of estimated returns and exclude sales tax. The Company records a returns reserve and a corresponding return asset for expected returns of merchandise. Retail sales to members of the Company’s loyalty programs, including the Famously You Rewards program, include two performance obligations: the sale of merchandise and the delivery of points that may be redeemed for future purchases. The transaction price is allocated to the separate performance obligations based on the relative stand-alone selling price. The stand-alone selling price for the points is estimated using the retail value of the merchandise earned, adjusted for estimated breakage based upon historical redemption patterns. The revenue associated with the initial merchandise purchased is recognized immediately and the value assigned to the points is deferred until the points are redeemed, forfeited or expired. E-commerce The Company also generates revenue from sales on websites maintained by the Company that are shipped from the Company’s distribution centers or retail stores directly to the consumer, or picked up directly by the consumer from the Company’s stores (“e-commerce - Company websites”); sales from the Company’s wholesale customers’ websites that are fulfilled on a drop-ship basis (“e-commerce - wholesale drop-ship”); and other e-commerce sales (wholesale - e-commerce”), collectively referred to as “e-commerce”. The Company transfers control and recognizes revenue for merchandise sold that is shipped directly to an individual consumer upon delivery to the consumer. Landed wholesale Landed sales are wholesale sales in which the Company obtains title to the footwear from the overseas suppliers and maintains title until the merchandise clears United States customs. The merchandise is shipped directly to the customer from the Company’s warehouses. Many customers that purchase footwear on a landed basis arrange their own transportation of merchandise and, with limited exceptions, control is transferred at the time of shipment. Landed sales generally carry a higher profit rate than first-cost wholesale sales as a result of the brand equity associated with the product along with the additional customs, warehousing and logistics services provided to customers and the risks associated with inventory ownership. First-cost wholesale First-cost sales are wholesale sales in which the Company purchases merchandise from an international factory that manufactures the product and subsequently sells to a customer at an overseas port. Many of the customers then import this product into the United States. Revenue is recognized at the time the merchandise is delivered to the customer’s designated freight forwarder and control is transferred to the customer. Licensing and royalty The Company has license agreements with third parties allowing them to sell the Company’s branded product, or other merchandise that uses the Company’s owned or licensed brand names. These license agreements provide the licensee access to the Company’s symbolic intellectual property, and revenue is therefore recognized over the license term. For royalty contracts that do not have guaranteed minimums, the Company recognizes revenue as the licensee’s sales occur. For royalty contracts that have guaranteed minimums, revenue for the guaranteed minimum is recognized on a straight-line basis during the term, until such time that the cumulative royalties exceed the total minimum guarantee. Up-front payments are recognized over the contractual term to which the guaranteed minimum relates. The Company also licenses its Famous Footwear trade name and logo to a third-party financial institution to offer Famous Footwear-branded credit cards to its consumers. The Company receives royalties based upon cardholder spending, which is recognized as licensing revenue at the time when the credit card is used. Contract Balances Revenue is recorded at the transaction price, net of estimates for variable consideration for which reserves are established, including returns, allowances and discounts. Variable consideration is estimated using the expected value method and given the large number of contracts with similar characteristics, the portfolio approach is applied to determine the variable consideration for each revenue stream. Reserves for projected returns are based on historical patterns and current expectations. Information about significant contract balances from contracts with customers is as follows: ($ thousands) January 28, 2023 January 29, 2022 Customer allowances and discounts $ 21,917 $ 20,328 Loyalty programs liability 17,732 18,814 Returns reserve 12,038 12,468 Gift card liability 6,659 6,804 Changes in contract balances with customers generally reflect differences in relative sales volume for the period presented. In addition, during 2022, the loyalty programs liability increased $36.6 million due to points and material rights earned on purchases and decreased $37.7 million due to expirations and redemptions. During 2021, the loyalty programs liability increased $36.3 million due to points and material rights earned on purchases and decreased $31.5 million due to expirations and redemptions. Allowance for Expected Credit Losses The following table summarizes the activity in the Company’s allowance for expected credit losses for 2022 and 2021: ($ thousands) 2022 2021 Balance, beginning of period $ 9,601 $ 14,928 Adjustment for expected credit losses (262) (2,242) Uncollectible accounts written off, net of recoveries (436) (3,085) Balance, end of period $ 8,903 $ 9,601 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Jan. 28, 2023 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | 3. EARNINGS (LOSS) PER SHARE The Company uses the two-class method to compute basic and diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders. In periods of net loss, no effect is given to the Company’s participating securities since they do not contractually participate in the losses of the Company. The following table sets forth the computation of basic and diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders: ($ thousands, except per share amounts) 2022 2021 2020 NUMERATOR Net earnings (loss) $ 179,695 $ 138,163 $ (438,994) Net loss (earnings) attributable to noncontrolling interests 2,047 (1,144) (120) Net earnings (loss) attributable to Caleres, Inc. $ 181,742 $ 137,019 $ (439,114) Net earnings allocated to participating securities (7,716) (4,982) — Net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities $ 174,026 $ 132,037 $ (439,114) DENOMINATOR Denominator for basic earnings (loss) per common share attributable to Caleres, Inc. shareholders 34,930 36,741 37,220 Dilutive effect of share-based awards 475 354 — Denominator for diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders 35,405 37,095 37,220 Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 4.98 $ 3.59 $ (11.80) Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 4.92 $ 3.56 $ (11.80) There were no outstanding options to purchase shares of common stock in 2022. Options to purchase 16,667 shares of common stock in 2021 and 22,667 shares of common stock in 2020 were not included in the denominator for diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders because the effect would be antidilutive. Due to the Company’s net loss attributable to Caleres, Inc. in 2020, the denominator for diluted loss per common share attributed to Caleres, Inc. shareholders is the same as the denominator for basic loss per common share attributable to Caleres, Inc. shareholders. The Company repurchased 2,622,845, 661,265 and 2,902,122 shares at a cost of $63.2 million, $17.0 million and $23.3 million during the years ended January 28, 2023, January 29, 2022, and January 30, 2021, respectively, under the 2019 and 2022 publicly announced share repurchase programs. The 2019 repurchase program permits repurchases of up to 5.0 million shares and the 2022 repurchase program permits the repurchase of up to 7.0 million shares, as further discussed in Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
RESTRUCTURING AND OTHER INITIAT
RESTRUCTURING AND OTHER INITIATIVES | 12 Months Ended |
Jan. 28, 2023 | |
RESTRUCTURING AND OTHER INITIATIVES | |
RESTRUCTURING AND OTHER INITIATIVES | 4. RESTRUCTURING AND OTHER INITIATIVES Organizational Change During 2022, the Company incurred costs of $2.9 million ($2.7 million on an after-tax basis, or $0.07 per diluted share) related to a CFO transition at the corporate headquarters. These costs were recognized as restructuring and other special charges in the consolidated statement of earnings (loss) within the Eliminations and Other category. There were no corresponding charges in 2021 or 2020. Blowfish Mandatory Purchase Obligation On July 6, 2018, the Company acquired a controlling interest in Blowfish Malibu. The remaining interest was subject to a mandatory purchase obligation after a three-year period, which ended on July 31, 2021, based upon an earnings multiple formula as specified in the purchase agreement. Approximately $9.0 million was initially assigned to the mandatory purchase obligation and fair value adjustments on the mandatory purchase obligation were recorded as interest expense. The fair value adjustments on the mandatory purchase obligation totaled $15.4 million ($11.5 million on an after-tax basis, or $0.30 per diluted share) in 2021 and $23.9 million ($17.8 million on an after-tax basis, or $0.48 per diluted share) in 2020. The mandatory purchase obligation was settled for $54.6 million on November 4, 2021. The settlement of the $9.0 million initially assigned to the mandatory purchase obligation is presented within financing activities on the consolidated statements of cash flows and the remaining $45.6 million is presented within operating activities, in accordance with ASC 230, Statement of Cash Flows Brand Portfolio – Business Exits During 2021, the Company incurred costs of $13.5 million ($11.9 million on an after-tax basis, or $0.31 per diluted share) related to the strategic realignment of the Naturalizer retail store operations. These costs primarily represented lease termination and other stores closure costs, including employee severance, for the 73 stores that were closed during the first quarter of 2022. These charges are presented in restructuring and special charges on the consolidated statement of earnings (loss) within the Brand Portfolio segment. As of January 29, 2022, reserves of $0.4 million were included in other accrued expenses on the consolidated balance sheets related to the strategic realignment of the Naturalizer retail store operations, with no reserves as of January 28, 2023. During 2020, the Company incurred costs of $16.4 million ($14.9 million on an after-tax basis, or $0.40 per diluted share) related to the decision to close all but a limited number of its Naturalizer retail stores and exit the Fergie Brand. Of these charges, which are all reflected within the Brand Portfolio segment, $12.4 million is presented as restructuring and other special charges and primarily represents non-cash impairment of property and right-of-use lease assets, incremental rent and lease termination costs, and severance costs. An additional $4.0 million is presented as cost of goods sold and represents the incremental inventory markdowns required to reduce the value of inventory for these two brands to net realizable value. COVID-19-Related Impairments and Expenses The Company incurred costs associated with the COVID-19 pandemic and related impacts on the Company’s business, totaling $114.3 million ($115.5 million on an after-tax basis, or $3.10 per diluted share) during 2020. These costs included non-cash impairment of property and equipment and lease right-of-use assets, incremental inventory markdowns, employee severance and other direct expenses specific to the impact of COVID-19 on the Company’s operations. Of the $114.3 million in charges, $80.9 million is presented in restructuring and other special charges, net and $33.4 million is reflected as cost of goods sold in the consolidated statements of earnings (loss). Of the $80.9 million presented as restructuring and other special charges, $63.7 million is reflected in the Brand Portfolio segment, $16.6 million is reflected in the Famous Footwear segment and $0.6 million is reflected within the Eliminations and Other category. The $33.4 million presented as cost of goods sold represents incremental inventory markdowns, of which $27.4 million is reflected in the Brand Portfolio segment and $6.0 million is reflected in the Famous Footwear segment. There were no corresponding charges in 2022 or 2021. Vionic Integration-Related Costs On October 18, 2018, the Company acquired all of the outstanding equity interests of Vionic Group LLC and Vionic International LLC. The Company incurred integration-related costs associated with the acquisition totaling $3.4 million ($2.6 million on an after-tax basis, $0.07 per diluted share) during 2020. Of the $3.4 million in charges in 2020, which were presented as restructuring and other special charges in the consolidated statements of earnings (loss), $3.3 million is reflected within the Brand Portfolio segment and $0.1 million is reflected within the Eliminations and Other category, and represent non-cash impairment of assets, severance and other related costs. There were no corresponding charges during 2022 or 2021. |
RETIREMENT AND OTHER BENEFIT PL
RETIREMENT AND OTHER BENEFIT PLANS | 12 Months Ended |
Jan. 28, 2023 | |
RETIREMENT AND OTHER BENEFIT PLANS | |
RETIREMENT AND OTHER BENEFIT PLANS | 5. RETIREMENT AND OTHER BENEFIT PLANS The Company sponsors pension plans in both the United States and Canada. Under the domestic plans, salaried, management and certain hourly employees’ pension benefits are based on a two-rate formula applied to each year of service. Participants receive the larger of the accrued benefit as of December 31, 2015 (based on service commencing at the date of hire and a 35-year service cap and an average annual salary for the five 30 years The Company’s Canadian pension plans cover certain employees based on plan specifications. Under the Canadian plans, employees’ pension benefits are based on the employee’s highest consecutive five years of compensation during the 10 years before retirement. The Company’s funding policy for all plans is to make the minimum annual contributions required by applicable regulations. The Company also maintains an unfunded Supplemental Executive Retirement Plan (“SERP”). In addition to providing pension benefits, the Company sponsors unfunded postretirement life insurance plans that cover both salaried and hourly employees who became eligible for benefits by January 1, 1995. The life insurance plans provide coverage of up to $20,000 for qualifying retired employees. Benefit Obligations The following table sets forth changes in benefit obligations, including all domestic and Canadian plans: Pension Benefits Other Postretirement Benefits ($ thousands) 2022 2021 2022 2021 Benefit obligation at beginning of year $ 355,286 $ 365,570 $ 1,143 $ 1,249 Service cost 7,143 7,494 — — Interest cost 11,977 11,236 35 35 Plan participants’ contribution 10 11 4 5 Plan amendments 407 — — — Actuarial (gain) loss (70,775) (13,962) (85) (50) Benefits paid (15,440) (15,062) (79) (96) Settlements (3,032) — — — Curtailments 13 — — — Foreign exchange rate changes (17) (1) — — Benefit obligation at end of year $ 285,572 $ 355,286 $ 1,018 $ 1,143 The accumulated benefit obligation for the United States pension plans was $280.5 million and $348.8 million as of January 28, 2023 and January 29, 2022, respectively. The accumulated benefit obligation for the Canadian pension plans was $3.3 million and $3.9 million as of January 28, 2023 and January 29, 2022, respectively. Pension Benefits Other Postretirement Benefits Weighted–average assumptions used to determine benefit obligations, end of year 2022 2021 2022 2021 Discount rate 5.20 % 3.40 % 5.20 % 3.40 % Rate of compensation increase 3.00 % 3.00 % N/A N/A As of January 28, 2023 and January 29, 2022, the Company used the PRI-2012 Bottom Quartile mortality table, projected using generational scale MP-2021, a base mortality table issued by the Society of Actuaries in 2021, to estimate the plan liabilities. Actuarial losses related to the change in mortality projection scales from the MP-2020 scale used in 2020 increased the projected benefit obligation by approximately $1.1 million as of January 29, 2022. Plan Assets Pension assets are managed in accordance with the prudent investor standards of the Employee Retirement Income Security Act (“ERISA”). The plan’s investment objective is to earn a competitive total return on assets, while also ensuring plan assets are adequately managed to provide for future pension obligations. This results in the protection of plan surplus and is accomplished by matching the duration of the projected benefit obligation using leveraged fixed income instruments and, while maintaining an equity commitment, managing an equity overlay strategy. The overlay strategy is intended to protect the managed equity portfolios against adverse stock market environments. The Company delegates investment management of the plan assets to specialists in each asset class and regularly monitors manager performance and compliance with investment guidelines. The Company’s overall investment strategy is to achieve a mix of approximately 97% of investments for long-term growth and 3% for near-term benefit payments with a wide diversification of asset types, fund strategies and fund managers. The target allocations for plan assets for 2022 were 70% equities and 30% debt securities. Allocations may change periodically based upon changing market conditions. Corporate stocks – common did not include any Company stock at January 28, 2023 or January 29, 2022. Assets of the Canadian pension plans, which total approximately $4.5 million on January 28, 2023, were invested 55% in equity funds, 42% in bond funds and 3% in money market funds. The Canadian pension plans did not include any Company stock as of January 28, 2023 or January 29, 2022. A financial instrument’s level within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Refer to further discussion on the fair value hierarchy in Note 13 to the consolidated financial statements. Following is a description of the pension plan investments measured at fair value, including the general classification of such investments pursuant to the valuation hierarchy. ● Cash and cash equivalents include cash collateral and margin as well as money market funds. The fair values are based on unadjusted quoted market prices in active markets with sufficient volume and frequency and therefore are classified within Level 1 of the fair value hierarchy. ● Investments in U.S. government securities, the mutual fund, exchange-traded funds, corporate stocks - common and S&P 500 Index put and call options (traded on security exchanges) are classified within Level 1 of the fair value hierarchy because the fair values are based on unadjusted quoted market prices in active markets with sufficient volume and frequency. Interest rate swap agreements and certain U.S. government securities are not traded on an exchange but are based on observable inputs that can be corroborated. Therefore, these investments are classified within Level 2 of the fair value hierarchy. The preferred securities were offered in a private placement. The fair value of these investments is based on unobservable prices and therefore, they are classified within Level 3 of the fair value hierarchy. ● The alternative investment fund is an investment in a pool of long-duration domestic investment grade assets. This investment is measured using net asset value per share, and therefore, is not classified within the fair value hierarchy. ● The unallocated insurance contract is measured at net asset value per share, and therefore, is not classified within the fair value hierarchy. The fair values of the Company’s pension plan assets at January 28, 2023 by asset category were as follows: Fair Value Measurements at January 28, 2023 ($ thousands) Total Level 1 Level 2 Level 3 Asset Cash and cash equivalents $ 12,962 $ 12,962 $ — $ — U.S. government securities 80,522 45,872 34,650 — Interest rate swap agreements (2,793) — (2,793) — Mutual fund 29,548 29,548 — — Exchange-traded funds 92,338 92,338 — — Corporate stocks - common 132,138 132,138 — — Preferred securities 335 — — 335 S&P 500 Index options (2,634) (2,634) — — Total investments in the fair value hierarchy $ 342,416 $ 310,224 $ 31,857 $ 335 Investments measured at net asset value: Alternative investment fund 14,293 — — — Unallocated insurance contract 36 — — — Total investments measured at net asset value 14,329 — — — Total investments at fair value $ 356,745 $ 310,224 $ 31,857 $ 335 The fair values of the Company’s pension plan assets at January 29, 2022 by asset category were as follows: Fair Value Measurements at January 29, 2022 ($ thousands) Total Level 1 Level 2 Level 3 Asset Cash and cash equivalents $ 11,714 $ 11,714 $ — $ — U.S. government securities 102,525 46,668 55,857 — Interest rate swap agreements (232) — (232) Mutual fund 31,595 31,595 — — Exchange-traded funds 120,323 120,323 — — Corporate stocks - common 155,014 155,014 — — Preferred securities 523 — — 523 S&P 500 Index options 5,694 5,694 — — Total investments in the fair value hierarchy $ 427,156 $ 371,008 $ 55,625 $ 523 Investments measured at net asset value: Alternative investment fund 16,891 — — — Unallocated insurance contract 44 — — — Total investments measured at net asset value 16,935 — — — Total investments at fair value $ 444,091 $ 371,008 $ 55,625 $ 523 The following table sets forth changes in the fair value of plan assets, including all domestic and Canadian plans: Pension Benefits Other Postretirement Benefits ($ thousands) 2022 2021 2022 2021 Fair value of plan assets at beginning of year $ 444,091 $ 444,717 $ — $ — Actual return on plan assets (69,361) 14,322 — — Employer contributions 494 104 75 91 Plan participants’ contributions 10 11 4 5 Benefits paid (15,440) (15,062) (79) (96) Settlements (3,032) — — — Foreign exchange rate changes (17) (1) — — Fair value of plan assets at end of year $ 356,745 $ 444,091 $ — $ — Funded Status The over-funded status as of January 28, 2023 and January 29, 2022 for pension benefits was $71.2 million and $88.8 million, respectively. The under-funded status for other postretirement benefits was $1.0 million and $1.1 million as of January 28, 2023 and January 29, 2022, respectively. Amounts recognized in the consolidated balance sheets consist of: ….. Pension Benefits Other Postretirement Benefits ($ thousands) 2022 2021 2022 2021 Prepaid pension costs (noncurrent assets) $ 83,396 $ 99,139 $ — $ — Accrued benefit liabilities (current liability) (5,189) (3,755) (182) (189) Accrued benefit liabilities (noncurrent liability) (7,034) (6,579) (836) (954) Net amount recognized at end of year $ 71,173 $ 88,805 $ (1,018) $ (1,143) The projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets and for pension plans with an accumulated benefit obligation in excess of plan assets, which includes only the Company’s SERP, were as follows: Projected Benefit Obligation Exceeds the Accumulated Benefit Obligation Fair Value of Plan Assets Exceeds the Fair Value of Plan Assets ($ thousands) 2022 2021 2022 2021 End of Year Projected benefit obligation $ 12,223 $ 10,334 $ 12,223 $ 10,334 Accumulated benefit obligation 11,392 9,247 11,392 9,247 Fair value of plan assets — — — — The accumulated postretirement benefit obligation exceeds assets for all of the Company’s other postretirement benefit plans. The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit income at January 28, 2023 and January 29, 2022 are as follows: Pension Benefits Other Postretirement Benefits ($ thousands) 2022 2021 2022 2021 Components of accumulated other comprehensive loss, net of tax: Net actuarial loss (gain) $ 25,967 $ 8,807 $ (410) $ (424) Net prior service credit (20) (565) — — Accumulated other comprehensive loss, net of tax $ 25,947 $ 8,242 $ (410) $ (424) Net Periodic Benefit Income Net periodic benefit income for 2022, 2021 and 2020 for all domestic and Canadian plans included the following components: Pension Benefits Other Postretirement Benefits ($ thousands) 2022 2021 2020 2022 2021 2020 Service cost $ 7,143 $ 7,494 $ 8,492 $ — $ — $ — Interest cost 11,977 11,236 12,205 35 35 41 Expected return on assets (27,987) (28,437) (31,498) — — — Amortization of: Actuarial loss (gain) 3,088 2,410 2,718 (103) (108) (110) Prior service credit (314) (514) (1,354) — — — Settlement cost 320 — 1,353 — — — Curtailments 13 — (189) — — — Total net periodic benefit income $ (5,760) $ (7,811) $ (8,273) $ (68) $ (73) $ (69) The non-service cost components of net periodic benefit income are included in other income, net in the consolidated statements of earnings (loss). Service cost is included in selling and administrative expenses. Pension Benefits Other Postretirement Benefits Weighted–average assumptions used to determine net periodic benefit income 2022 2021 2020 2022 2021 2020 Discount rate 3.40 % 3.10 % 3.25 % 3.40 % 3.10 % 3.25 % Rate of compensation increase 3.00 % 3.00 % 3.00 % N/A N/A N/A Expected return on plan assets 7.20 % 7.25 % 7.50 % N/A N/A N/A The net actuarial loss (gain) subject to amortization is amortized on a straight-line basis over the average future service of active plan participants as of the measurement date. The prior service credit is amortized on a straight-line basis over the average future service of active plan participants benefiting under the plan at the time of each plan amendment. The expected long-term rate of return on plan assets is based on historical and projected rates of return for current and planned asset classes in the plan’s investment portfolio. Assumed projected rates of return for each asset class were selected after analyzing experience and future expectations of the returns. The overall expected rate of return for the portfolio was developed based on the target allocation for each asset class. Expected Cash Flows Information about expected cash flows for all pension and postretirement benefit plans follows: Pension Benefits Other Postretirement ($ thousands) Funded Plan SERP Total Benefits Employer Contributions 2023 expected contributions to plan trusts $ 91 $ — $ 91 $ — 2023 expected contributions to plan participants — 5,323 5,323 187 2023 refund of assets (e.g. surplus) to employer 135 — 135 — Expected Benefit Payments — 2023 $ 15,174 $ 5,323 $ 20,497 $ 187 2024 15,591 2,348 17,939 153 2025 16,272 3,011 19,283 124 2026 16,855 675 17,530 101 2027 17,302 856 18,158 81 2028-2032 91,942 1,641 93,583 217 Defined Contribution Plans The Company’s domestic defined contribution 401(k) plan covers certain salaried employees. For eligible salaried employees, the Company makes a core contribution of 1.5% and a matching contribution of up to 50% of the first 6% of the employees’ contributions. The Company’s expense for this plan was $4.6 million in 2022, $5.5 million in 2021, and $4.0 million in 2020. In addition to the core and matching contributions, the Company has the discretion to contribute up to an additional 2% profit-sharing benefit based on the Company’s performance. The Company’s expense for the profit-sharing contribution was $2.6 million for 2022 and $3.3 million for 2021. Deferred Compensation Plan The Company has a non-qualified deferred compensation plan (the “Deferred Compensation Plan”) for the benefit of certain management employees. The investment funds offered to the participants generally correspond to the funds offered in the Company’s 401(k) plan and the account balance fluctuates with the investment returns on those funds. The Deferred Compensation Plan permits the deferral of up to 50% of base salary and 100% of compensation received under the Company’s annual incentive plan. The deferrals are held in a separate trust, which has been established by the Company to administer the Deferred Compensation Plan. The assets of the trust are subject to the claims of the Company’s creditors in the event that the Company becomes insolvent. Consequently, the trust qualifies as a grantor trust for income tax purposes (i.e., a “Rabbi Trust”). The liabilities of the Deferred Compensation Plan of $7.9 million and $7.5 million as of January 28, 2023 and January 29, 2022, respectively, are presented in employee compensation and benefits in the accompanying consolidated balance sheets. The assets held by the trust of $7.9 million and $7.5 million as of January 28, 2023 and January 29, 2022, respectively, are presented within prepaid expenses and other current assets in the accompanying consolidated balance sheets, with changes in the deferred compensation charged to selling and administrative expenses in the accompanying consolidated statements of earnings (loss). Deferred Compensation Plan for Non-Employee Directors Non-employee directors are eligible to participate in a deferred compensation plan, whereby deferred compensation amounts are valued as if invested in the Company’s common stock through the use of phantom stock units (“PSUs”). Under the plan, each participating director’s account is credited with the number of PSUs equal to the number of shares of the Company’s common stock that the participant could purchase or receive with the amount of the deferred compensation, based upon the fair value (as determined based on the average of the high and low prices) of the Company’s common stock on the last trading day of the fiscal quarter when the cash compensation was earned. Dividend equivalents are paid on PSUs at the same rate as dividends on the Company’s common stock and are re-invested in additional PSUs at the next fiscal quarter-end. The PSUs are payable in cash based on the number of PSUs credited to the participating director’s account, valued on the basis of the fair value at fiscal quarter-end on or following termination of the director’s service. The liabilities of the plan of $1.8 million as of both January 28, 2023 and January 29, 2022 are based on 60,067 and 64,227 outstanding PSUs, respectively, and are presented in other liabilities in the accompanying consolidated balance sheets. Gains and losses resulting from changes in the fair value of the PSUs are charged to selling and administrative expenses in the accompanying consolidated statements of earnings (loss). |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 28, 2023 | |
INCOME TAXES | |
INCOME TAXES | 6. INCOME TAXES The components of earnings (loss) before income taxes consisted of domestic earnings before income taxes of $168.0 million and $152.5 million in 2022 and 2021, respectively, and domestic loss before income taxes of $441.5 million in 2020. The Company’s international earnings before incomes taxes were $45.0 and $36.7 million in 2022 and 2021, respectively, and international losses before income taxes were $75.6 million in 2020. The components of income tax provision (benefit) on earnings (loss) were as follows: ($ thousands) 2022 2021 2020 Federal Current $ 11,506 $ 36,388 $ (37,140) Deferred 6,975 (227) (45,145) Total federal income tax provision (benefit) 18,481 36,161 (82,285) State Current 6,660 4,012 1,532 Deferred 3,421 6,531 (9,038) Total state income tax provision (benefit) 10,081 10,543 (7,506) International Current 4,759 4,615 2,288 Deferred 18 (238) 9,386 Total international income tax provision 4,777 4,377 11,674 Total income tax provision (benefit) $ 33,339 $ 51,081 $ (78,117) The differences between the income tax provision (benefit) reflected in the consolidated financial statements and the amounts calculated at the federal statutory income tax rate were as follows: ($ thousands) 2022 2021 2020 Income taxes at statutory rate $ 44,737 $ 39,741 $ (108,593) State income taxes, net of federal tax benefit 8,981 8,361 (17,433) International earnings taxed at differing rates from U.S. statutory (1,974) (3,588) (5,210) Share-based compensation (602) 94 1,094 Provision for valuation allowance, net of utilization (20,743) 8,978 41,019 Non-deductibility of 162(m) limitations 3,363 3,377 1,005 GILTI, BEAT and FDII provisions 422 346 — Non-deductibility of goodwill impairment — — 20,179 Impairment of international trade name taxed at higher rate — — (1,440) CARES Act NOL, net carryback benefit (1) — 365 (8,203) International entity restructuring (2) — (6,697) — Other (3) (845) 104 (535) Total income tax provision (benefit) $ 33,339 $ 51,081 $ (78,117) (1) The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law during 2020. Among the Internal Revenue Code provisions modified by the CARES Act was a five-year carryback period for net operating losses incurred in the 2018, 2019 and 2020 tax years; temporary removal of the 80% limitation on net operating loss usage, reinstated for tax years after 2020; a temporary increase in the interest expense limitation and acceleration of refundable AMT credit. The five-year carryback presented an opportunity to carry back net operating losses from years with a statutory 21% federal tax rate to years when the rate was 35% . (2) Reflects the deferred tax impacts of the liquidation of certain international subsidiaries, with related impacts presented in the provision for valuation allowance, net of utilization line in the table above. (3) The other category of income tax provision (benefit) principally represents the impact of expenses that are not deductible or partially deductible for federal income tax purposes and the impact of any return-to-provision adjustments. Significant components of the Company’s deferred income tax assets and liabilities were as follows: ($ thousands) January 28, 2023 January 29, 2022 Deferred Tax Assets Lease obligations $ 147,910 $ 149,123 Goodwill 38,407 43,510 Net operating loss carryforward/carryback 13,303 14,441 Accrued expenses 19,478 25,314 Employee benefits, compensation and insurance 17,350 15,751 Accounts receivable 6,304 5,735 Inventory capitalization and inventory reserves 6,642 6,013 Impairment of investment in nonconsolidated affiliate 1,470 1,470 Postretirement and postemployment benefit plans 228 259 Other 1,261 1,261 Total deferred tax assets, before valuation allowance 252,353 262,877 Valuation allowance (39,540) (58,959) Total deferred tax assets, net of valuation allowance $ 212,813 $ 203,918 Deferred Tax Liabilities Lease right-of-use assets $ (136,618) $ (134,888) Intangible assets (12,054) (10,624) LIFO inventory valuation (46,551) (37,675) Retirement plans (19,381) (23,718) Capitalized software (3,309) (5,042) Depreciation (10,823) (3,818) Other (3,078) (2,884) Total deferred tax liabilities (231,814) (218,649) Net deferred tax liability $ (19,001) $ (14,731) As of January 28, 2023, the Company had various federal, state and international net operating loss (“NOL”) carryforwards with tax values totaling $13.3 million. The state NOLs totaling $5.5 million have carryforward periods ranging from one 18 As of January 28, 2023, no deferred taxes have been provided on the accumulated unremitted earnings of the Company’s international subsidiaries that are not subject to United States income tax, beyond the amounts recorded for the one-time transition tax for the mandatory deemed repatriation of cumulative international earnings, as required by the Tax Cuts and Jobs Act. The Company periodically evaluates its international investment opportunities and plans, as well as its international working capital needs, to determine the level of investment required and, accordingly, determines the level of international earnings that is considered indefinitely reinvested. Based upon that evaluation, earnings of the Company’s international subsidiaries that are not otherwise subject to United States taxation are considered to be indefinitely reinvested, and accordingly, deferred taxes have not been provided. If changes occur in future investment opportunities and plans, those changes will be reflected when known and may result in providing residual United States deferred taxes on unremitted international earnings. If the Company’s unremitted international earnings were not considered indefinitely reinvested as of January 28, 2023, an immaterial amount of additional deferred taxes would have been provided. Uncertain Tax Positions ASC 740, Income Taxes For federal purposes, the Company’s tax filings for fiscal years 2019 to 2021 remain open to examination but are not currently being examined. The Company also files tax returns in various international jurisdictions and numerous states for which various tax years are subject to examination and currently involved in audits. While the Company is involved in examinations in certain jurisdictions, it does not expect any significant changes in its liability for uncertain tax positions during the next 12 months. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Jan. 28, 2023 | |
BUSINESS SEGMENT INFORMATION | |
BUSINESS SEGMENT INFORMATION | 7. BUSINESS SEGMENT INFORMATION The Company’s reportable segments are Famous Footwear and Brand Portfolio. The Famous Footwear segment is comprised of Famous Footwear, famousfootwear.com and famousfootwear.ca. Famous Footwear operated 873 stores at the end of 2022, selling primarily branded footwear for the entire family. The Brand Portfolio segment is comprised of wholesale operations selling the Company’s branded footwear, and the retail stores and e-commerce sites associated with those brands. This segment sources, manufactures and markets branded, licensed and private-label footwear primarily to online retailers, national chains, department stores, mass merchandisers and independent retailers as well as Company-owned Famous Footwear, Sam Edelman, Naturalizer and Allen Edmonds stores and e-commerce businesses. The Brand Portfolio segment included 63 branded retail stores in the United States and 29 branded retail stores in China at the end of 2022. The Company’s Famous Footwear and Brand Portfolio reportable segments are operating units that are managed separately. These reportable segments reflect the level at which the Company’s chief operating decision maker evaluates financial performance and allocates resources. Operating earnings (loss) for the reportable segments represents gross profit, less selling and administrative expenses, impairment of goodwill and intangible assets and restructuring and other special charges, net. The accounting policies of the reportable segments are the same as those described in Note 1 to the consolidated financial statements. Intersegment sales are generally recorded at a profit, and intersegment earnings related to inventory on hand at the purchasing segment are eliminated against the earnings. Corporate assets, administrative expenses and other costs and recoveries that are not allocated to the operating units, as well as the elimination of intersegment sales and profit, are reported in the Eliminations and Other category. Following is a summary of certain key financial measures for the respective periods: Famous Brand Eliminations ($ thousands) Footwear Portfolio and Other Total Fiscal 2022 Net sales $ 1,705,093 $ 1,322,772 $ (59,727) $ 2,968,138 Intersegment sales — 59,727 — 59,727 Depreciation and amortization 20,585 21,812 6,614 49,011 Operating earnings (loss) 195,837 112,345 (93,855) 214,327 Segment assets 767,575 921,110 147,787 1,836,472 Purchases of property and equipment 41,755 4,170 9,988 55,913 Capitalized software — 42 8,082 8,124 Fiscal 2021 Net sales $ 1,748,291 $ 1,081,003 $ (51,690) $ 2,777,604 Intersegment sales — 51,690 — 51,690 Depreciation and amortization 20,333 23,762 8,235 52,330 Operating earnings (loss) 276,415 35,928 (106,536) 205,807 Segment assets 705,063 944,241 194,622 1,843,926 Purchases of property and equipment 12,480 3,977 1,936 18,393 Capitalized software 121 8 5,623 5,752 Fiscal 2020 Net sales $ 1,263,551 $ 902,481 $ (48,962) $ 2,117,070 Intersegment sales — 48,962 — 48,962 Depreciation and amortization 23,090 28,889 8,560 60,539 Operating loss (23,821) (408,444) (53,393) (485,658) Segment assets 765,754 851,027 250,269 1,867,050 Purchases of property and equipment 7,693 6,486 2,607 16,786 Capitalized software 870 153 4,251 5,274 Products purchased for the Famous Footwear segment from three key third-party suppliers (Nike, Skechers and adidas) represented approximately 24%, 26% and 25% of consolidated net sales for 2022, 2021 and 2020, respectively. Following is a reconciliation of operating earnings (loss) to earnings (loss) before income taxes: ($ thousands) 2022 2021 2020 Operating earnings (loss) $ 214,327 $ 205,807 $ (485,658) Interest expense, net (14,264) (30,930) (48,287) Loss on early extinguishment of debt — (1,011) — Other income, net 12,971 15,378 16,834 Earnings (loss) before income taxes $ 213,034 $ 189,244 $ (517,111) For geographic purposes, the domestic operations include the Company’s domestic retail operations, the wholesale distribution of licensed, branded and private-label footwear to a variety of retail customers, including the Famous Footwear and Brand Portfolio stores, as well as the Company’s e-commerce businesses. The Company’s international operations consist of wholesale and retail operations primarily in Eastern Asia, Canada and Europe. The Eastern Asia operations primarily include first-cost transactions, where footwear is sold at international ports to customers who then import the footwear into the United States and other countries. A summary of the Company’s net sales and long-lived assets, including lease right-of-use assets and property and equipment, by geographic area were as follows: ($ thousands) 2022 2021 2020 Net Sales United States $ 2,763,896 $ 2,600,848 $ 1,984,713 Eastern Asia 146,700 119,857 77,793 Canada 44,484 43,789 46,781 Other 13,058 13,110 7,783 Total net sales $ 2,968,138 $ 2,777,604 $ 2,117,070 Long-Lived Assets United States $ 656,840 $ 630,519 $ 703,642 Eastern Asia 11,614 8,357 2,660 Canada 10,441 14,687 20,246 Other 184 105 192 Total long-lived assets $ 679,079 $ 653,668 $ 726,740 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jan. 28, 2023 | |
INVENTORIES | |
INVENTORIES | 8. INVENTORIES The Company’s net inventory balance was comprised of the following: ($ thousands) January 28, 2023 January 29, 2022 Raw materials $ 21,172 $ 16,764 Work-in-process 569 614 Finished goods 558,474 579,429 Inventories, net $ 580,215 $ 596,807 As of January 28, 2023 and January 29, 2022, the Company’s inventory balance included $0.2 million and $0.1 million, respectively, of finished goods product subject to consignment arrangements with wholesale customers. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Jan. 28, 2023 | |
PROPERTY AND EQUIPMENT. | |
PROPERTY AND EQUIPMENT | 9. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: ($thousands) January 28, 2023 January 29, 2022 Land and buildings $ 37,394 $ 48,355 Leasehold improvements 204,378 197,218 Technology equipment 50,628 49,550 Machinery and equipment 106,197 98,308 Furniture and fixtures 130,761 127,125 Construction in progress 20,504 3,066 Property and equipment 549,862 523,622 Allowances for depreciation (388,979) (373,384) Property and equipment, net $ 160,883 $ 150,238 Useful lives of property and equipment are as follows: Years Buildings 5 - 30 Leasehold improvements 5 - 20 Technology equipment 2 - 10 Machinery and equipment 4 - 20 Furniture and fixtures 3 - 10 After allowing for an appropriate start-up period, property and equipment at stores and any lease right-of-use assets indicated as impaired are written down to fair value as calculated using a discounted cash flow method. The Company recorded charges for impairment of $1.8 million, $4.1 million and $56.3 million in 2022, 2021 and 2020, respectively, primarily for operating lease right-of-use assets, leasehold improvements and furniture and fixtures in the Company’s retail stores and capitalized software. All of the charges in 2022 and 2021 are presented in selling and administrative expenses. Of the $56.3 million of impairment charges in 2020, $55.3 million is reflected in restructuring and other special charges and $1.0 million is reflected in selling and administrative expenses. Fair value was based on estimated future cash flows to be generated by retail stores, discounted at a market rate of interest. Refer to Note 4, Note 12 and Note 13 to the consolidated financial statements for further discussion of these impairment charges. Property and Equipment, Held for Sale During 2021, the Company began actively marketing for sale its nine-acre corporate headquarters campus (the “Campus”) located in Clayton, Missouri. In January 2023, the Company entered into a letter of intent to sell the Campus. Subsequent to fiscal year-end, in February 2023, the Company entered into an agreement to sell the Campus, subject to certain closing conditions. The Company expects the Campus to qualify as a completed sale within the next year. Accordingly, the Campus, primarily consisting of land and buildings, has been classified as property and equipment, held for sale within the Eliminations and Other category on the consolidated balance sheet as of January 28, 2023. The Company evaluated the Campus asset group for impairment and determined that no indicators were present as of January 28, 2023. As of January 29, 2022, the Company was in negotiations to sell the campus and expected only a portion of the campus to qualify as a completed sale within twelve months. That portion of the campus, which was included in the Eliminations and Other category, was classified within property and equipment, held for sale on the consolidated balance sheet as of January 29, 2022. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Jan. 28, 2023 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 10. GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets were as follows: ($ thousands) January 28, 2023 January 29, 2022 Intangible Assets Famous Footwear $ 2,800 $ 2,800 Brand Portfolio 342,083 342,083 Total intangible assets 344,883 344,883 Accumulated amortization (134,447) (122,336) Total intangible assets, net 210,436 222,547 Goodwill Brand Portfolio (1) 4,956 4,956 Total goodwill 4,956 4,956 Goodwill and intangible assets, net $ 215,392 $ 227,503 (1) The carrying amount of goodwill as of January 28, 2023 and January 29, 2022 is presented net of accumulated impairment charges of $415.7 million. The Company’s intangible assets as of January 28, 2023 and January 29, 2022 were as follows: ($ thousands) January 28, 2023 Estimated Useful Lives Accumulated Accumulated (In Years) Cost Basis Amortization Impairment Net Carrying Value Trade names 2 - 40 $ 299,488 $ 121,928 $ 10,200 $ 167,360 Trade names Indefinite 107,400 — 92,000 15,400 Customer relationships 15 - 16 44,200 12,519 4,005 27,676 $ 451,088 $ 134,447 $ 106,205 $ 210,436 January 29, 2022 Estimated Useful Lives Accumulated Accumulated (In Years) Cost Basis Amortization Impairment Net Carrying Value Trade names 2 - 40 $ 299,488 $ 112,061 $ 10,200 $ 177,227 Trade names Indefinite 107,400 — 92,000 15,400 Customer relationships 15 - 16 44,200 10,275 4,005 29,920 $ 451,088 $ 122,336 $ 106,205 $ 222,547 Amortization expense related to intangible assets was $12.1 million in 2022, $12.6 million in 2021 and $13.0 million in 2020. The Company estimates $11.9 million of amortization expense related to intangible assets in 2023, $11.0 2025 2026 $10.9 Goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate it might be impaired, using either the qualitative assessment or a quantitative fair value-based test. During 2022 and 2021, the goodwill impairment testing was performed as of the first day of the fourth fiscal quarter, which resulted in no impairment charges. During the first quarter of 2020, as a result of the significant decline in the Company’s share price and market capitalization and the impact of the pandemic on the Company’s business operations, the Company determined that an interim assessment of goodwill was required. A quantitative assessment was performed for all reporting units as of May 2, 2020. The assessment indicated that the carrying value of the goodwill associated with the Brand Portfolio and Vionic reporting units was impaired, resulting in total goodwill impairment charges of $240.3 million, which are reflected within the Brand Portfolio segment. In addition to the interim assessment, the Company performed an impairment review of the remaining goodwill balance, which is associated with the Blowfish Malibu reporting unit, as of the first day of the fourth fiscal quarter. That review indicated no impairment. Indefinite-lived intangible assets are tested for impairment as of the first day of the fourth quarter of each fiscal year unless events or circumstances indicate an interim test is required. The Company did not record any impairment charges for intangible assets during 2022 or 2021. As a result of the triggering event from the economic impacts of the pandemic, an interim assessment was performed as of May 2, 2020. The interim indefinite-lived trade name impairment review resulted in total impairment charges impairment |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Jan. 28, 2023 | |
FINANCING ARRANGEMENTS | |
FINANCING ARRANGEMENTS | 11. FINANCING ARRANGEMENTS Credit Agreement The Company maintains a revolving credit facility for working capital needs. The Company is the lead borrower, and certain wholly-owned subsidiaries, including Sidney Rich Associates, Inc., BG Retail, LLC, Allen Edmonds LLC, Vionic Group LLC and Vionic International LLC, are co-borrowers and guarantors. On April 8, 2022, Blowfish, LLC was joined to the revolving credit facility as a co-borrower and guarantor. On October 5, 2021, the Company entered into a Fifth Amendment to Fourth Amended and Restated Credit Agreement (as so amended, the "Credit Agreement") which, among other modifications, decreased the amount available under the revolving credit facility by $100.0 million to an aggregate amount of up to $500.0 million, subject to borrowing base restrictions, and may be increased by up to $250.0 million. The Credit Agreement also decreased the spread applied to the London Interbank Offered Rate (“LIBOR”) or prime rate by a total of 75 basis points. Borrowing availability under the Credit Agreement is limited to the lesser of the total commitments and the borrowing base ("Loan Cap"), which is based on stated percentages of the sum of eligible accounts receivable, eligible inventory and eligible credit card receivables, as defined, less applicable reserves. Under the Credit Agreement, the Loan Parties’ obligations are secured by a first-priority security interest in all accounts receivable, inventory and certain other collateral. Interest on borrowings is at variable rates based on LIBOR (with a floor of 0.0%) or the prime rate (as defined in the Credit Agreement), plus a spread. The interest rate and fees for letters of credit vary based upon the level of excess availability under the Credit Agreement. There is a fee payable on the unused portion under the facility and a letter of credit fee payable on the outstanding face amount under letters of credit. The Credit Agreement limits the Company’s ability to create, incur, assume or permit to exist additional indebtedness and liens, make investments or specified payments, give guarantees, pay dividends, make capital expenditures and merge or acquire or sell assets. In addition, if excess availability falls below the greater of 10.0% of the Loan Cap and $40.0 million for three consecutive business days, and the fixed charge coverage ratio is less than 1.25 to 1.0, the Company would be in default under the Credit Agreement and certain additional covenants would be triggered. The Credit Agreement contains customary events of default, including, without limitation, payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to similar obligations, certain events of bankruptcy and insolvency, judgment defaults and the failure of any guaranty or security document supporting the agreement to be in full force and effect. If an event of default occurs, the collateral agent may assume dominion and control over the Company’s cash (a “cash dominion event”) until such event of default is cured or waived or the excess availability exceeds an amount as defined in the Credit Agreement for 30 consecutive days, provided that a cash dominion event shall be deemed continuing (even if an event of default is no longer continuing and/or excess availability exceeds the required amount for 30 consecutive business days) after a cash dominion event has occurred and been discontinued on two occasions in any 12-month period. The Credit Agreement also contains certain other covenants and restrictions. The Company was in compliance with all covenants and restrictions under the Credit Agreement as of January 28, 2023. The maximum amount of borrowings under the Credit Agreement at the end of any month was $380.5 million and $290.0 million in 2022 and 2021, respectively. As of January 28, 2023, the Company had $307.5 million of borrowings outstanding and $10.6 million in letters of credit outstanding under the Credit Agreement, with total additional borrowing availability of $181.9 million. Average daily borrowings were $356.4 million and $172.8 million in 2022 and 2021, respectively, and the weighted-average interest rates approximated 3.6% and 2.5% for the respective periods. Senior Notes On July 27, 2015, the Company issued $200.0 million aggregate principal amount of senior notes due on August 15, 2023 (the "Senior Notes"). The Senior Notes bore interest at 6.25%, which was payable on February 15 and August 15 of each year. The Senior Notes were guaranteed on a senior unsecured basis by each of the Company’s subsidiaries that is a borrower or guarantor under the Credit Agreement. On August 16, 2021, the Company redeemed $100.0 million of Senior Notes at 100.0%. In addition, on January 3, 2022, the remaining $100.0 million of Senior Notes were redeemed at 100.0%, extinguishing the Company’s long-term debt. Loss on Early Extinguishment of Debt In conjunction with the redemptions of the Senior Notes in August 2021 and January 2022, prior to the maturity in August 2023, the Company incurred losses on early extinguishment of debt totaling $0.8 million. In addition, the Company incurred a loss on early extinguishment of debt of $0.2 million associated with the amendment of the revolving credit facility prior to its maturity. |
LEASES
LEASES | 12 Months Ended |
Jan. 28, 2023 | |
LEASES | |
LEASES | 12. LEASES The Company leases all of its retail locations, a manufacturing facility, and certain office locations, distribution centers and equipment. At contract inception, leases are evaluated and classified as either operating or finance leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease right-of-use assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. The majority of the Company’s leases do not provide an implicit rate and therefore, the Company uses an incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Lease expense for the minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred. The Company regularly analyzes the results of all of its stores and assesses the viability of underperforming stores to determine whether events or circumstances exist that indicate the stores should be closed or whether the carrying amount of their long-lived assets may not be recoverable. After allowing for an appropriate start-up period, unusual nonrecurring events, property and equipment at stores and the lease right-of-use assets indicated as impaired are written down to fair value as calculated using a discounted cash flow method. The fair value of the lease right-of-use assets is determined utilizing projected cash flows for each store location, discounted using a risk-adjusted discount rate, subject to a market floor based on current market lease rates. As a result of the temporary store closures during the first half of 2020 associated with the pandemic, certain leases were amended to provide rent abatements and/or deferral of lease payments. Deferred payments continue to be reflected in the lease obligations on the consolidated balance sheets. Under relief provided by the FASB, entities could make a policy election to account for the lease concessions related to COVID-19 as if the enforceable rights existed under the original contract, accounting for them as variable rent rather than lease modifications. The Company made a policy election to account for rent abatements as variable rent. Accordingly, in 2022, 2021 and 2020, the Company recorded $1.3 million, $2.1 million and $5.4 million, respectively, in lease concessions as a reduction of rent expense within selling and administrative expenses in the consolidated statements of earnings (loss). Rent concessions for leases that were extended were recognized as a lease modification. The weighted-average lease term and discount rate as of January 28, 2023 and January 29, 2022 were as follows: January 28, 2023 January 29, 2022 Weighted-average remaining lease term (in years) 6.0 6.5 Weighted-average discount rate 4.5 % 4.2 % During 2022, the Company entered into new or amended leases that resulted in the recognition of right-of-use assets and lease obligations of $162.2 million on the consolidated balance sheets. As of January 28, 2023, the Company has entered into lease commitments for six retail locations for which the leases have not yet commenced. The Company anticipates that the leases for four of the new retail locations will begin in the next fiscal year and two will begin in fiscal year 2024. Upon commencement, right-of-use assets lease liabilities The components of lease expense for 2022, 2021 and 2020 were as follows: ($ thousands) 2022 2021 2020 Operating lease expense $ 148,299 $ 149,850 $ 167,624 Variable lease expense 40,233 40,654 48,443 Short-term lease expense 4,059 2,837 4,512 Sublease income (59) (652) (96) Total lease expense (1) $ 192,532 $ 192,689 $ 220,483 (1) Net of lease concessions recognized of $1.3 million, $2.1 million and $5.4 million for 2022, 2021 and 2020, respectively. The aggregate future annual lease payments at January 28, 2023 were as follows: ($ thousands) 2023 $ 156,589 2024 129,221 2025 100,282 2026 80,255 2027 58,171 Thereafter 139,877 Total minimum operating lease payments $ 664,395 Less imputed interest (84,270) Present value of lease obligations $ 580,125 Supplemental cash flow information related to leases is as follows: ($ thousands) 2022 2021 2020 Cash paid for lease obligations (1) $ 167,163 $ 179,921 $ 145,552 Cash received from sublease income 59 652 96 (1) Cash paid for lease obligations in 2021 includes payment of certain lease payments deferred in 2020, as described above, as well as lease termination costs associated with the Naturalizer retail store closures, as further discussed in Note 4 to the consolidated financial statements. In addition, cash paid for lease obligations in 2020 was significantly lower than comparable periods, reflecting the deferral of lease payments during the onset of the pandemic. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jan. 28, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 13. FAIR VALUE MEASUREMENTS Fair Value Hierarchy Fair value measurement disclosure requirements specify a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (“observable inputs”) or reflect the Company’s own assumptions of market participant valuation (“unobservable inputs”). In accordance with the fair value guidance, the inputs to valuation techniques used to measure fair value are categorized into three levels based on the reliability of the inputs as follows: ● 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. In determining fair value, the Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company also considers counterparty credit risk in its assessment of fair value. Classification of the financial or non-financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Measurement of Fair Value The Company measures fair value as an exit price, the price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date, using the procedures described below for all financial and non-financial assets and liabilities measured at fair value. Deferred Compensation Plan Assets and Liabilities The Company maintains a non-qualified deferred compensation plan (the “Deferred Compensation Plan”) for the benefit of certain management employees. The investment funds offered to the participants generally correspond to the funds offered in the Company’s 401(k) plan, and the account balance fluctuates with the investment returns on those funds. The Deferred Compensation Plan permits the deferral of up to 50% of base salary and 100% of compensation received under the Company’s annual incentive plan. The deferrals are held in a separate trust, which has been established by the Company to administer the Deferred Compensation Plan. The assets of the trust are subject to the claims of the Company’s creditors in the event that the Company becomes insolvent. Consequently, the trust qualifies as a grantor trust for income tax purposes (i.e., a “Rabbi Trust”). The liabilities of the Deferred Compensation Plan are presented in other accrued expenses and the assets held by the trust are classified within prepaid expenses and other current assets in the accompanying consolidated balance sheets. Changes in deferred compensation plan assets and liabilities are charged to selling and administrative expenses. The fair value is based on unadjusted quoted market prices for the funds in active markets with sufficient volume and frequency (Level 1). Deferred Compensation Plan for Non-Employee Directors Non-employee directors are eligible to participate in a deferred compensation plan with deferred amounts valued as if invested in the Company’s common stock through the use of phantom stock units (“PSUs”). Under the plan, each participating director’s account is credited with the number of PSUs equal to the number of shares of the Company’s common stock that the participant could purchase or receive with the amount of the deferred compensation, based upon the average of the high and low prices of the Company’s common stock on the last trading day of the fiscal quarter when the cash compensation was earned. Dividend equivalents are paid on PSUs at the same rate as dividends on the Company’s common stock and are re-invested in additional PSUs at the next fiscal quarter-end. The liabilities of the plan are based on the fair value of the outstanding PSUs and are presented in other accrued expenses (current portion) or other liabilities in the accompanying consolidated balance sheets. Gains and losses resulting from changes in the fair value of the PSUs are presented in selling and administrative expenses in the Company’s consolidated statements of earnings (loss). The fair value of each PSU is based on an unadjusted quoted market price for the Company’s common stock in an active market with sufficient volume and frequency on each measurement date (Level 1). Restricted Stock Units for Non-Employee Directors Under the Company’s incentive compensation plans, cash-equivalent restricted stock units (“RSUs”) of the Company were previously granted at no cost to non-employee directors. These cash-equivalent RSUs are subject to a vesting requirement (usually one year The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at January 28, 2023 and January 29, 2022. The Company did not have any transfers between Level 1, Level 2 or Level 3 during 2022, 2021 or 2020. Fair Value Measurements ($ thousands) Total Level 1 Level 2 Level 3 Asset (Liability) January 28, 2023: Non-qualified deferred compensation plan assets $ 7,890 $ 7,890 $ — $ — Non-qualified deferred compensation plan liabilities (7,890) (7,890) — — Deferred compensation plan liabilities for non-employee directors (1,662) (1,662) — — Restricted stock units for non-employee directors (2,028) (2,028) — — January 29, 2022: Non-qualified deferred compensation plan assets 7,463 7,463 — — Non-qualified deferred compensation plan liabilities (7,463) (7,463) — — Deferred compensation plan liabilities for non-employee directors (1,770) (1,770) — — Restricted stock units for non-employee directors (2,568) (2,568) — — Impairment Charges The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers important that could trigger an impairment review include underperformance relative to expected historical or projected future operating results, a significant change in the manner of the use of the asset or a negative industry or economic trend. When the Company determines that the carrying value of long-lived assets may not be recoverable based upon the existence of one or more of the aforementioned factors, impairment is measured based on a projected discounted cash flow method. Certain factors, such as estimated store sales and expenses, used for this nonrecurring fair value measurement are considered Level 3 inputs as defined by FASB ASC 820, Fair Value Measurement ($ thousands) 2022 2021 2020 Long-Lived Asset Impairment Charges Famous Footwear $ 200 $ 1,241 $ 14,900 Brand Portfolio 1,603 2,894 41,443 Total long-lived asset impairment charges $ 1,803 $ 4,135 $ 56,343 The Company performed its annual impairment review of intangible assets, which involves estimating the fair value using significant unobservable inputs (Level 3). The intangible asset impairment reviews performed in 2022 and 2021 resulted in no impairment charges. As a result of its annual impairment testing, the Company recorded $46.2 million in impairment charges in 2020, as further discussed in Note 1 and Note 10 to the consolidated financial statements. During 2022 and 2021, the Company performed a qualitative assessment of goodwill as of the first day of the fourth fiscal quarter. The reviews indicated no impairment. During 2020, the Company performed an interim impairment test of goodwill, as further discussed in Note 10 to the consolidated financial statements. A quantitative assessment was performed for all reporting units as of May 2, 2020, which involved estimating the fair value of the reporting units using significant unobservable inputs (Level 3). The assessment indicated that the carrying values of the goodwill associated with the Brand Portfolio and Vionic reporting units were impaired, resulting in total goodwill impairment charges of $240.3 million. The quantitative assessment performed as of the first day of the fourth fiscal quarter of 2020 resulted in no further impairment charges. Refer to Note 1 and Note 10 to the consolidated financial statements for additional information related to the goodwill impairment tests. Fair Value of the Company’s Other Financial Instruments The fair values of cash and cash equivalents, receivables and trade accounts payable approximate their carrying values due to the short-term nature of these instruments. The fair values of the borrowings under revolving credit agreement of $307.5 million and $290.0 million as of January 28, 2023 and January 29, 2022, respectively, approximate their carrying value due to the short-term nature of the borrowings. (Level 1). |
SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY | 12 Months Ended |
Jan. 28, 2023 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 14. SHAREHOLDERS’ EQUITY Company Stock The Company’s common stock, which has a $0.01 par value per share, is listed for trading under the ticker symbol “CAL” on the New York Stock Exchange. Holders of the common shares are entitled to one vote per share. The Company is also authorized to issue preferred shares with a $1.00 par value per share. The following table provides additional information regarding the Company’s common and preferred stock: (in thousands) January 28, 2023 January 29, 2022 Common Preferred Common Preferred Authorized shares 100,000 1,000 100,000 1,000 Outstanding shares 35,716 — 37,635 — Treasury shares 10,371 — 8,452 — Stock Repurchase Programs On September 2, 2019 and March 10, 2022, the Board of Directors approved stock repurchase programs (“2019 Program" and "2022 Program", respectively) authorizing the repurchase of the Company’s outstanding common stock of up to 5.0 million shares in the 2019 Program and 7.0 million in the 2022 Program. The Company can use the repurchase programs to repurchase shares on the open market or in private transactions from time to time, depending on market conditions. The repurchase programs do not have an expiration date. Repurchases of common stock are limited under the Company’s debt agreements. During 2022, the Company repurchased 2,622,845 shares under the share repurchase programs. In total, 5.0 million shares have been repurchased under the 2019 Program and there are no additional shares authorized to be repurchased. There are 6,367,379 additional shares authorized to be repurchased under the 2022 Program as of January 28, 2023. Repurchases Related to Employee Share-based Awards During 2022, 2021 and 2020, employees tendered 246,688, 205,213 and 160,101 shares, respectively, related to certain share-based awards. These 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. Accordingly, these share repurchases are not considered a part of the Company’s publicly announced stock repurchase programs. Accumulated Other Comprehensive Loss The following table sets forth the changes in accumulated other comprehensive loss, net of tax, by component for 2022, 2021 and 2020: Pension and Accumulated Foreign Other Other Currency Postretirement Derivative Comprehensive ($ thousands) Translation Transactions (1) Transactions (2) (Loss) Income Balance February 1, 2020 $ (580) $ (31,171) $ (92) $ (31,843) Other comprehensive income before reclassifications 469 20,351 87 20,907 Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 2,418 6 2,424 Tax benefit — (623) (1) (624) Net reclassifications — 1,795 5 1,800 Other comprehensive income 469 22,146 92 22,707 Balance January 30, 2021 $ (111) $ (9,025) $ — $ (9,136) Other comprehensive loss before reclassifications (677) (116) — (793) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 1,788 — 1,788 Tax benefit — (465) — (465) Net reclassifications — 1,323 — 1,323 Other comprehensive (loss) income (677) 1,207 — 530 Balance January 29, 2022 $ (788) $ (7,818) $ — $ (8,606) Other comprehensive loss before reclassifications (425) (19,776) — (20,201) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 2,991 — 2,991 Tax benefit — (934) — (934) Net reclassifications — 2,057 — 2,057 Other comprehensive loss (425) (17,719) — (18,144) Balance January 28, 2023 $ (1,213) $ (25,537) $ — $ (26,750) (1) Amounts reclassified are included in other income, net. Refer to Note 5 to the 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 and selling and administrative expenses. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Jan. 28, 2023 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 15. SHARE-BASED COMPENSATION The Company has share-based incentive compensation plans under which certain officers, employees and members of the Board of Directors are participants and may be granted restricted stock, stock performance awards, restricted stock units and stock options. ASC 718, Compensation – Stock Compensation Equity Share-based compensation expense of $17.3 million, $12.3 million and $8.1 million was recognized in 2022, 2021 and 2020, respectively, as a component of selling and administrative expenses. The following table details the share-based compensation expense by plan for 2022, 2021 and 2020: ($ thousands) 2022 2021 2020 Expense for share-based compensation plans, net of forfeitures: Restricted stock $ 10,974 $ 7,308 $ 6,840 Stock performance awards 5,190 3,904 147 Restricted stock units 1,147 1,085 1,109 Stock options — — 1 Total share-based compensation expense $ 17,311 $ 12,297 $ 8,097 The Company issued 703,452, 330,206 and 471,569 shares of common stock in 2022, 2021 and 2020, respectively, for restricted stock grants, stock performance awards issued to employees, stock options exercised and common and restricted stock issued to non-employee directors, net of forfeitures and shares withheld to satisfy the tax withholding requirement. The Company recognized an excess tax benefit of $0.6 million in 2022 and an excess tax provision of $0.1 million in 2021 and $1.1 million in 2020, respectively, related to restricted stock vestings and dividends, performance share award vestings and stock options exercised. The excess tax benefit or provision for the respective periods were recorded in income tax (provision) benefit. Restricted Stock Under the Company’s incentive compensation plans, restricted stock of the Company may be granted at no cost to certain officers, key employees and directors. Plan participants are entitled to cash dividends and voting rights for their respective shares. The restricted stock awards limit the sale or transfer of these shares during the requisite service period. Expense for restricted stock grants is recognized on a straight-line basis separately for each vesting portion of the stock award based upon fair value of the award on the date of grant. The fair value of the restricted stock grants is the quoted market price for the Company’s common stock on the date of grant. The following table summarizes restricted stock activity for 2022, 2021 and 2020: Number of Nonvested Weighted- Restricted Average Grant Shares Date Fair Value Nonvested at February 1, 2020 1,271,795 $ 26.77 Granted 707,931 6.99 Vested (430,837) 28.27 Forfeited (151,662) 22.19 Nonvested at January 30, 2021 1,397,227 16.74 Granted 616,442 19.40 Vested (540,647) 26.39 Forfeited (82,625) 15.37 Nonvested at January 29, 2022 1,390,397 14.24 Granted 848,678 21.76 Vested (525,399) 12.87 Forfeited (109,716) 15.67 Nonvested at January 28, 2023 1,603,960 $ 18.57 Of the 848,678 restricted shares granted during 2022, 10,470 shares have a cliff-vesting term of one year, 63,614 shares have a graded-vesting term of two years, and 774,594 shares have a graded-vesting term of three years. Of the 616,442 restricted shares granted during 2021, 4,910 shares have a cliff-vesting term of one year, 20,000 shares have a cliff-vesting term of two years and 591,532 shares have a graded-vesting term of three years. Of the 707,931 restricted shares granted during 2020, 12,748 shares have a cliff-vesting term of one year and 695,183 shares have a graded-vesting term of three years. The shares that have a graded-vesting term of two years vest 50% after one year and 50% after two years and shares that have a graded-vesting term of three years vest 50% after two years and 50% after three years. The total grant date fair value of restricted stock awards vested during the years ended January 28, 2023, January 29, 2022 and January 30, 2021, was $6.8 million, $14.3 million and $4.4 million, respectively. As of January 28, 2023, the total remaining unrecognized compensation cost related to nonvested restricted stock grants was $15.0 million, which will be amortized over the weighted-average remaining requisite service period of 1.7 years. Performance Share Awards Under the Company’s incentive compensation plans, common stock or cash may be awarded at the end of the performance period at no cost to certain officers and key employees if certain financial goals are met. Under the plan, employees are granted performance share awards at a target number of shares or units, which generally vest over a three-year service period. At the end of the vesting period, the employee will have earned an amount of shares between 0% and 200% of the targeted award, depending on the attainment of certain financial goals during the service period. If the awards are granted in units, the employee will be given an amount of cash ranging from 0% to 200% of the equivalent market value of the targeted award. Expense for performance share awards is recognized based upon the fair value of the awards on the date of grant and the anticipated number of shares or cash to be awarded on a straight-line basis for each performance period of the share award. In connection with the Company’s CFO transition during 2022, the Company approved the accelerated vesting of 30,000 performance-based share awards, representing the maximum payout of two of the four award tranches from the 2020 performance award. The performance conditions had been satisfied for the two award tranches based on the achievement of financial goals for the 2020 and 2021 fiscal periods. The modification to accelerate vesting eliminated the remaining service requirement. These awards had a weighted-average grant date fair value of $13.05 per share, but were revalued using a fair value on the date of modification of $24.31 per share. The modification of these awards resulted in incremental compensation expense of $0.4 million, which is presented in restructuring and other special charges on the consolidated statements of earnings for 2022. The following table summarizes performance share award activity for 2022, 2021 and 2020: Number of Nonvested Number of Nonvested Performance Share Performance Share Awards at Target Awards at Maximum Weighted-Average Level Level Grant Date Fair Value Nonvested at February 1, 2020 476,000 952,000 $ 27.16 Granted 87,750 175,500 7.47 Vested (153,000) (306,000) 26.90 Forfeited (25,000) (50,000) 18.64 Nonvested at January 30, 2021 385,750 771,500 23.33 Granted 160,500 321,000 13.05 Vested (148,000) (296,000) 31.84 Forfeited (7,500) (15,000) 11.19 Nonvested at January 29, 2022 390,750 781,500 16.12 Granted 77,750 155,500 21.00 Vested (172,500) (345,000) 23.50 Forfeited (15,000) (30,000) 14.24 Nonvested at January 28, 2023 281,000 562,000 $ 13.64 As of January 28, 2023, the remaining unrecognized compensation cost related to nonvested performance share awards was $0.4 million, which will be recognized over the remaining service period of one month. During 2022, the Company granted long-term incentive awards payable in cash for the 2022-2024 performance period, with a target value of $8.3 million and a maximum value of $16.6 million. During 2021, the Company granted long-term incentive awards payable in cash for the 2021-2023 performance period, with a target value of $7.3 million and a maximum value of $14.6 million. These awards, which vest after a three-year period, are dependent upon the attainment of certain financial goals of the Company for each of the three years and individual achievement of strategic initiatives over the cumulative period of the award. The estimated value of the award, which is reflected within other liabilities on the consolidated balance sheets, is being accrued over the three-year performance period. There were no long-term cash incentive awards granted by the Company during 2020. Stock Options Stock options are granted to employees at exercise prices equal to the quoted market price of the Company’s stock at the date of grant. Stock options generally vest over four years and have a term of 10 years. Compensation cost for all stock options is recognized over the requisite service period for each award. No dividends are paid on unexercised options. Expense for stock options is recognized on a straight-line basis separately for each vesting portion of the stock option award. The Company granted no stock options during 2022, 2021 and 2020. The remaining 16,667 options outstanding at January 29, 2022 were canceled exercisable Restricted Stock Units for Non-Employee Directors Equity-based grants may be made to non-employee directors in the form of restricted stock units (“RSUs”) payable in cash or common stock at no cost to the non-employee director. The RSUs are subject to a vesting requirement (usually one year), earn dividend equivalent units and are payable in cash or common stock on the date the director terminates service or such earlier date as a director may elect, subject to restrictions, based on the then current fair value of the Company’s common stock. Dividend equivalents are paid on outstanding RSUs at the same rate as dividends on the Company’s common stock, are automatically re-invested in additional RSUs and vest immediately as of the payment date for the dividend. Expense related to the initial grant of RSUs is recognized ratably over the vesting period based upon the fair value of the RSUs. The RSUs payable in cash are remeasured at the end of each period. Expense for the dividend equivalents is recognized at fair value immediately. Gains and losses resulting from changes in the fair value of the RSUs payable in cash subsequent to the vesting period and through the settlement date are recognized in the Company’s consolidated statements of earnings (loss). Refer to Note 5 and Note 13 to the consolidated financial statements for information regarding the deferred compensation plan for non-employee directors. The following table summarizes restricted stock unit activity for the year ended January 28, 2023: Nonvested Outstanding Accrued (3) RSUs Weighted- Number of Number of Total Total Average Vested Nonvested Number of Number of Grant Date RSUs RSUs RSUs (2) RSUs Fair Value January 29, 2022 524,824 45,079 569,903 554,876 $ 23.56 Granted (1) 5,354 37,112 42,466 30,251 27.64 Vested 39,747 (39,747) — 13,093 27.45 Settled (114,242) — (114,242) (114,242) 27.91 January 28, 2023 455,683 42,444 498,127 483,978 $ 23.49 (1) Granted RSUs include 5,821 RSUs resulting from dividend equivalents paid on outstanding RSUs, of which 5,354 related to outstanding vested RSUs and 467 to outstanding nonvested RSUs. (2) Total number of RSUs as of January 28, 2023 includes 360,448 RSUs payable in shares and 137,679 RSUs payable in cash. (3) Accrued RSUs include all fully vested awards and a pro-rata portion of nonvested awards based on the elapsed portion of the vesting period. The following table summarizes RSUs granted, vested and settled during 2022, 2021 and 2020: ($ thousands, except per unit amounts) 2022 2021 2020 Weighted-average grant date fair value of RSUs granted (1) $ 27.09 $ 26.88 $ 10.12 Fair value of RSUs vested $ 998 $ 2,370 $ 1,125 RSUs settled 114,242 — 88,370 (1) Includes dividend equivalents granted on outstanding RSUs, which vest immediately. The following table details the RSU compensation expense and the related income tax (benefit) provision for 2022, 2021 and 2020: ($ thousands) 2022 2021 2020 Compensation expense (income) $ 335 $ 907 $ (613) Income tax (benefit) provision (86) (233) 158 Compensation expense (income), net of tax $ 249 $ 674 $ (455) The aggregate fair value of RSUs outstanding and currently vested at January 28, 2023 is $12.5 million and $11.4 million, respectively. The liabilities associated with the accrued RSUs totaled $2.0 million and $2.6 million as of January 28, 2023 and January 29, 2022, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jan. 28, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES Environmental Remediation Prior operations included numerous manufacturing and other facilities for which the Company may have responsibility under various environmental laws for the remediation of conditions that may be identified in the future. The Company is involved in environmental remediation and ongoing compliance activities at several sites and has been notified that it is or may be a potentially responsible party at several other sites. Redfield The Company is remediating, under the oversight of Colorado authorities, the groundwater and indoor air at its owned facility in Colorado (the “Redfield site” or, when referring to remediation activities at or under the facility, the “on-site remediation”) and residential neighborhoods adjacent to and near the property (the “off-site remediation”) that have been affected by solvents previously used at the facility. The on-site remediation calls for the operation of a pump and treat system (which prevents migration of contaminated groundwater off the property) as the final remedy for the site, subject to monitoring and periodic review of the on-site conditions and other remedial technologies that may be developed in the future. In 2016, the Company submitted a revised plan to address on-site conditions, including direct treatment of source areas, and received approval from the oversight authorities to begin implementing the revised plan. The Company has received permission from the oversight authorities to convert the pump and treat system to a passive treatment barrier system and will begin implementing that conversion in 2023. Off-site groundwater concentrations have been reducing over time since installation of the pump and treat system in 2000 and injection of clean water beginning in 2003. However, localized areas of contaminated bedrock just beyond the property line continue to impact off-site groundwater. The modified workplan for addressing this condition includes converting the off-site bioremediation system into a monitoring well network and employing different remediation methods in these recalcitrant areas. In accordance with the workplan, a pilot test was conducted of certain groundwater remediation methods and the results of that test were used to develop more detailed plans for remedial activities in the off-site areas, which were approved by the authorities and are being implemented in a phased manner. The results of groundwater monitoring are being used to evaluate the effectiveness of these activities. The Company continues to implement the expanded remedy workplan that was approved by the oversight authorities in 2015 and to work with the oversight authorities on the off-site work plan. The cumulative expenditures for both on-site and off-site remediation through January 28, 2023 were $33.1 million. The Company has recovered a portion of these expenditures from insurers and other third parties. The reserve for the anticipated future remediation activities at January 28, 2023 is $9.8 million, of which $8.8 million is recorded within other liabilities and $1.0 million is recorded within other accrued expenses. Of the total $9.8 million reserve, $5.0 million is for off-site remediation and $4.8 million is for on-site remediation. The liability for the on-site remediation was discounted at 4.8%. On an undiscounted basis, the on-site remediation liability would be $13.1 million as of January 28, 2023 next year four years Other Various federal and state authorities have identified the Company as a potentially responsible party for remediation at certain other sites. However, the Company does not currently believe that its liability for such sites, if any, would be material. The Company continues to evaluate its estimated costs in conjunction with its environmental consultants and records its best estimate of such liabilities. However, future actions and the associated costs are subject to oversight and approval of various governmental authorities. Accordingly, the ultimate costs may vary, and it is possible costs may exceed the recorded amounts. Litigation The Company is involved in legal proceedings and litigation arising in the ordinary course of business. In the opinion of management, the outcome of such ordinary course of business proceedings and litigation currently pending is not expected to have a material adverse effect on the Company’s results of operations or financial position. Legal costs associated with litigation are generally expensed as incurred. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jan. 28, 2023 | |
Schedule II - Valuation and Qualifying Accounts | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Col. A Col. B Col. C Col. D Col. E Additions Balance at Charged to Charged to Other Balance at Beginning Costs and Accounts - Deductions - End of Description of Period Expenses Describe Describe Period ($ thousands) YEAR ENDED JANUARY 28, 2023 Deducted from assets or accounts: Allowance for expected credit losses $ 9,601 $ (262) $ — $ 436 (A) $ 8,903 Customer allowances 17,857 27,559 — 26,792 (B) 18,624 Customer discounts 2,472 11,357 — 10,536 (B) 3,293 Inventory valuation allowances 30,455 53,787 — 40,331 (C) 43,911 Deferred tax asset valuation allowance 58,959 (19,419) — — (D) 39,540 YEAR ENDED JANUARY 29, 2022 Deducted from assets or accounts: Allowance for expected credit losses $ 14,928 $ (2,242) $ — $ 3,085 (A) $ 9,601 Customer allowances 15,151 26,100 — 23,394 (B) 17,857 Customer discounts 1,892 7,459 — 6,879 (B) 2,472 Inventory valuation allowances 32,628 23,825 — 25,998 (C) 30,455 Deferred tax asset valuation allowance 49,981 8,978 — — (D) 58,959 YEAR ENDED JANUARY 30, 2021 Deducted from assets or accounts: Allowance for expected credit losses $ 1,813 $ 10,575 $ 2,521 (E) $ (19) (A) $ 14,928 Customer allowances 25,816 20,355 — 31,020 (B) 15,151 Customer discounts 1,198 11,692 — 10,998 (B) 1,892 Inventory valuation allowances 20,610 63,543 — 51,525 (C) 32,628 Deferred tax asset valuation allowance 4,809 45,434 — 262 (D) 49,981 (A) Accounts written off, net of recoveries. (B) Discounts and allowances granted to wholesale customers of the Brand Portfolio segment. (C) Adjustment upon sale of related inventories. (D) Reductions to the valuation allowances for the net operating loss carryforwards for certain states based on the Company’s expectations for utilization of net operating loss carryforwards. (E) Adjustment upon adoption of ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) . |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jan. 28, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Organization | Organization Caleres, Inc., originally founded as Brown Shoe Company in 1878 and incorporated in 1913, is a global footwear company. The Company’s shares are traded under the “CAL” symbol on the New York Stock Exchange. The Company provides a broad offering of branded, licensed and private-label athletic, casual and dress footwear products to women, men and children. The footwear is sold at a variety of price points through multiple distribution channels both domestically and internationally. The Company currently operates 965 retail shoe stores in the United States, Canada, China and Guam under the Famous Footwear, Sam Edelman, Naturalizer and Allen Edmonds names. In addition, through its Brand Portfolio segment, the Company designs, sources, manufactures and markets footwear to retail stores domestically and internationally, including online retailers, national chains, department stores, mass merchandisers and independent retailers. Refer to Note 2 to the consolidated financial statements for additional information regarding the Company’s revenue by category and Note 7 for discussion of the Company’s business segments. The Company’s business is seasonal in nature due to consumer spending patterns with higher back-to-school and holiday season sales. Although the third fiscal quarter has historically accounted for a substantial portion of the Company’s earnings for the year, the Company has experienced more equal distribution among the quarters in recent years. Certain prior period amounts in the notes to the consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications did not affect net earnings (loss) attributable to Caleres, Inc. |
Consolidation | Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries, after the elimination of intercompany accounts and transactions. |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests in the Company’s consolidated financial statements result from the accounting for noncontrolling interests in partially-owned consolidated subsidiaries or affiliates. In 2019, the Company entered into a joint venture with Brand Investment Holding Limited ("Brand Investment Holding"), a member of the Gemkell Group, to sell branded footwear in China, including Sam Edelman, Naturalizer and other brands. The Company and Brand Investment Holding are each 50% owners of the joint venture, which is named CLT Brand Solutions ("CLT"). In 2022, capital contributions of $6.3 million were made to CLT, including $3.1 million received from Brand Investment Holding. In addition, during 2020, CLT was funded with $3.0 million in capital contributions, including approximately $1.5 million from the Company and $1.5 million from Brand Investment Holding. As of January 28, 2023 and January 29, 2022, assets of CLT were $19.8 million and $13.8 million, respectively, and liabilities were $9.1 million and $5.4 million, respectively. Net sales of CLT were $16.9 million and $17.5 million in 2022 and 2021, respectively. Operating losses of CLT were $2.7 million for 2022, compared to operating earnings of $1.2 million in 2021. Net sales and operating earnings were immaterial in 2020. The Company consolidates CLT into its consolidated financial statements on a one-month lag. Net earnings (loss) attributable to noncontrolling interests represents the share of net earnings or losses that are attributable to Brand Investment Holding. Transactions between the Company and the joint venture have been eliminated in the consolidated financial statements. |
Accounting Period | Accounting Period The Company’s fiscal year is the 52- or 53-week period ending the Saturday nearest to January 31. Fiscal years 2022, 2021 and 2020, all of which included 52 weeks, ended on January 28, 2023, January 29, 2022 and January 30, 2021, respectively. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
COVID-19 Pandemic | COVID-19 Pandemic During 2020, the United States and global economies were adversely impacted by COVID-19. The Company’s financial results were also adversely impacted , driven by the temporary closure of all retail store locations for a portion of the first half of 2020 . In response to the impact COVID-19 was having on the United States economy, the Coronavirus Aid, Relief and Economic Security ("CARES") Act was enacted. The CARES Act includes a provision that allowed the Company to defer the employer portion of social security payroll tax payments that would have been paid between the enactment date and December 31, 2020, with 50% payable by December 31, 2021 and 50% payable by December 31, 2022. During 2020, the Company deferred $9.4 million of employer social security payroll taxes, of which $5.0 million were payable by December 31, 2022 and presented in other accrued expenses on the consolidated balance sheet as of January 29, 2022. The deferred payroll taxes were paid in December 2022 and therefore, there is no corresponding deferral on the consolidated balance sheet as of January 28, 2023. In addition, as further discussed below and in Note 6 to the consolidated financial statements, the CARES Act permits the carryback of certain current operating losses to prior years, which resulted in an incremental tax benefit of $8.2 million in 2020. Refer to further discussion of the impact of the pandemic on the Company’s business throughout this document, including Note 4, Note 6, Note 10 and Note 12 to the consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash equivalents also include amounts due from third-party financial institutions for credit and debit card transactions. These receivables typically settle in five days or less. The Company had an immaterial amount of restricted cash as of January 28, 2023 and January 29, 2022. |
Receivables | Receivables In accordance with Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments - Credit Losses, Customer allowances represent reserves against the Company’s wholesale customers’ accounts receivable for margin assistance, product returns, customer deductions and co-op advertising allowances. The Company estimates the reserves needed for margin assistance by reviewing inventory levels on the retail floors, sell-through rates, historical dilution, current gross margin levels and other performance indicators of the Company’s major retail customers. Product returns and customer deductions are estimated using historical experience and anticipated future trends. Co-op advertising allowances are estimated based on customer agreements. The Company recognized provisions for customer allowances of $27.6 million, $26.1 million and $20.4 million in 2022, 2021 and 2020, respectively. Customer discounts represent reserves against the Company’s accounts receivable for discounts that wholesale customers may take based on meeting certain order, payment or return guidelines. The Company estimates the reserves needed for customer discounts based upon customer net sales and terms of the respective agreements. The Company recognized a provision for customer discounts of $11.4 million in 2022, $7.5 million in 2021 and $11.7 million in 2020. |
Inventories | Inventories The Company values inventories at the lower of cost or market for approximately 86% of consolidated inventories, which represents divisions using the last-in, first-out (“LIFO”) method. For the remaining portion, the Company’s inventories are valued at the lower of cost or net realizable value. For inventory valued at LIFO, the Company regularly reviews the inventory for excess, obsolete or impaired inventory, and writes it down to the lower of cost or market. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. If the first-in, first-out (“FIFO”) method had been used, consolidated inventories would have been $6.3 million and $1.3 million higher at January 28, 2023 and January 29, 2022, respectively. In 2022, the Company recorded a LIFO provision of $4.7 million on certain inventories at the Famous Footwear segment as a result of product cost inflation. I n 2020, a reduction in inventory quantities associated with the ongoing exit of the Naturalizer retail business resulted in a liquidation of LIFO layers and reduction of the LIFO reserve of $2.9 million, with a corresponding reduction of cost of goods sold. The Company applies judgment in determining the market value of inventory, which requires an estimate of net realizable value, including current and expected selling prices, costs to sell and normal gross profit rates. The method used to determine market value varies by business division, based on the unique operating models. At the Famous Footwear segment and certain operations within the Brand Portfolio segment, market value is determined based on net realizable value less an estimate of expected costs to be incurred to sell the product. Accordingly, the Company records markdowns when it becomes evident that inventory items will be sold at prices below cost. As a result, gross profit rates at the Famous Footwear segment and, to a lesser extent, the Brand Portfolio segment are lower than the initial markup during periods when permanent price reductions are taken to clear product. For the majority of the Brand Portfolio segment, the Company determines market value based upon the net realizable value of inventory less a normal gross profit rate. The Company believes these policies reflect the difference in operating models between the Famous Footwear and Brand Portfolio segments. Famous Footwear periodically runs promotional events to drive sales to clear seasonal inventories. The Brand Portfolio segment generally relies on permanent price reductions to clear slower-moving inventory. The determination of markdown reserves for the Brand Portfolio segment requires significant assumptions, estimates and judgments by management, and is subject to inherent uncertainties and subjectivity. In determining markdown reserves, management considers recent and forecasted sales prices, historical gross profit rates, the length of time the product is held in inventory and quantities of various product styles contained in inventory, as well as demand, among other factors. The ultimate amount realized from the sale of certain products could differ from management estimates. The costs of inventory, inbound freight and duties, markdowns, shrinkage and royalty expense are classified in cost of goods sold. Costs of warehousing and distribution are classified in selling and administrative expenses and are expensed as incurred. Such warehousing and distribution costs totaled $121.0 million, $99.5 million and $84.0 million in 2022, 2021 and 2020, respectively. Costs of overseas sourcing offices and other inventory procurement costs are reflected in selling and administrative expenses and are expensed as incurred. Such sourcing and procurement costs totaled $21.4 million, $22.2 million and $18.6 million in 2022, 2021 and 2020, respectively. The Company performs physical inventory counts or cycle counts on all merchandise inventory on hand throughout the year and adjusts the recorded balance to reflect the results. The Company records estimated shrinkage between physical inventory counts based on historical results. |
Computer Software Costs | Computer Software Costs The Company capitalizes certain costs in other assets, including internal payroll costs incurred in connection with the development or acquisition of software for internal use. Other assets on the consolidated balance sheets include $16.0 million and $14.1 million of computer software costs as of January 28, 2023 and January 29, 2022, respectively, which are net of accumulated amortization of $88.5 million and $130.3 million as of the end of the respective periods. In addition, other assets on the consolidated balance sheets include $5.6 million and $7.7 million of implementation costs for software as a service as of January 28, 2023 and January 29, 2022, respectively, which are net of accumulated amortization of $4.7 million and $2.7 million as of the end of the respective periods. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is provided over the estimated useful lives of the assets or the remaining lease terms, where applicable, using the straight-line method. |
Interest Expense | Interest Expense Interest expense generally includes interest for borrowings under the Company’s revolving credit agreement, fees paid for the unused portion of the line of credit, and amortization of the deferred debt issuance costs. Interest expense for 2021 and 2020 also included interest for the Company’s long-term debt and related amortization of deferred debt issuance costs and debt discount, as well as fair value adjustments on the mandatory purchase obligation from the acquisition of Blowfish Malibu, as further described in Note 4 to the consolidated financial statements. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests. In accordance with ASC 350, Intangibles-Goodwill and Other The Company performs its goodwill impairment assessment and impairment tests on its indefinite-lived intangible assets as of the first day of the fourth quarter of each fiscal year unless events indicate an interim test is required. Definite-lived intangible assets are amortized over their useful lives and are reviewed for impairment if and when impairment indicators are present. Refer to Note 10 to the consolidated financial statements for further discussion of goodwill and intangible assets. |
Self-Insurance Reserves | Self-Insurance Reserves The Company is self-insured and/or retains high deductibles for a significant portion of its workers’ compensation, health, disability, cyber risk, general liability, automobile and property programs, among others. Liabilities associated with the risks that are retained by the Company are estimated by considering historical claims experience, trends of the Company and the industry and other actuarial assumptions. The estimated accruals for these liabilities could be affected if development of costs on claims differ from these assumptions and historical trends. Based on available information as of January 28, 2023, the Company believes it has provided adequate reserves for its self-insurance exposure. As of January 28, 2023 and January 29, 2022, self-insurance reserves were $9.7 million and $11.4 million, respectively. |
Revenue Recognition | Revenue Recognition Retail sales, recognized at the point of sale, are recorded net of returns and exclude sales tax. Wholesale sales are recorded, net of returns, allowances and discounts, when obligations under the terms of a contract with the consumer are satisfied. This generally occurs at the time of transfer of control of merchandise. The Company considers several control indicators in its assessment of the timing of the transfer of control, including significant risks and rewards of ownership, physical possession and the Company’s right to receive payment. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring merchandise. Reserves for projected merchandise returns, discounts and allowances are determined based on historical experience and current expectations. Revenue is recognized on license fees related to Company-owned brand names, where the Company is the licensor, when the related sales of the licensee are made. The Company applies the guidance using the portfolio approach in ASC 606, Revenue from Contracts with Customers, |
Gift Cards | Gift Cards The Company sells gift cards to its customers in its retail stores, through its e-commerce sites and at other retailers. The Company’s gift cards do not have expiration dates or inactivity fees. The Company recognizes revenue from gift cards when (i) the gift card is redeemed by the consumer or (ii) the likelihood of the gift card being redeemed by the consumer is remote (“gift card breakage”) and the Company determines that it does not have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions. The gift card breakage rate is determined based upon historical redemption patterns. Gift card breakage is recognized during the 24-month |
Loyalty Program | Loyalty Program The Company maintains a loyalty program at Famous Footwear, through which consumers earn points toward savings certificates for qualifying purchases. Upon reaching specified point values, consumers are issued a savings certificate that may be redeemed for purchases at Famous Footwear. Savings certificates earned must be redeemed within stated expiration dates. In addition to the savings certificates, the Company also offers exclusive member discounts. The value of points and rewards earned by Famous Footwear’s loyalty program members are recorded as a reduction of net sales and a liability is established within other accrued expenses at the time the points are earned based on historical conversion and redemption rates. Approximately 77% of net sales in the Famous Footwear segment were made to its loyalty program members in 2022, compared to 78% in 2021. As of January 28, 2023 and January 29, 2022, the Company had a loyalty program liability of $17.7 million and $18.8 million, respectively, which is included in other accrued expenses on the consolidated balance sheets. |
Store Impairment Charges | Store Impairment Charges The Company regularly analyzes the results of all of its stores and assesses the viability of underperforming stores to determine whether events or circumstances exist that indicate the stores should be closed or whether the carrying amount of their long-lived assets may not be recoverable. After allowing for an appropriate start-up period, unusual nonrecurring events or favorable trends, property and equipment at stores and the lease right-of-use asset, indicated as impaired are written down to fair value as calculated using a discounted cash flow method. The Company recorded asset impairment charges, primarily for operating lease right-of-use assets, leasehold improvements, and furniture and fixtures in the Company’s retail stores, of $1.8 million, $4.1 million and $56.3 million in 2022, 2021 and 2020, respectively. Impairment charges were higher in 2020 as a result of the adverse economic conditions driven by the COVID-19 pandemic. |
Advertising and Marketing Expense | Advertising and Marketing Expense Advertising and marketing costs are expensed as incurred, except for the costs of direct response advertising that relate primarily to the production and distribution of the Company’s catalogs and coupon mailers. Direct response advertising costs are capitalized and amortized over the expected future revenue stream, which is generally one In addition, the Company participates in co-op advertising programs with certain of its wholesale customers. For those co-op advertising programs where the Company has validated the fair value of the advertising received, co-op advertising costs are reflected as advertising expense within selling and administrative expenses. Otherwise, co-op advertising costs are reflected as a reduction of net sales. Total advertising and marketing expense was $138.0 million, $118.1 million and $77.9 million in 2022, 2021 and 2020, respectively. These costs were offset by co-op advertising allowances recovered by the Company’s retail business of $6.0 million, $5.4 million and $3.4 million in 2022, 2021 and 2020, respectively. Total co-op advertising costs reflected as a reduction of net sales were $18.5 million in 2022, $10.8 million in 2021 and $7.2 million in 2020. Total advertising costs attributable to future periods that are deferred and recognized as a component of prepaid expenses and other current assets were $4.6 million and $4.4 million at January 28, 2023 and January 29, 2022, respectively. |
Income Taxes | Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the consolidated financial statement carrying amounts and the tax bases of its assets and liabilities. The Company establishes valuation allowances if it believes that it is more-likely-than-not that some or all of its deferred tax assets will not be realized. The Company does not recognize a tax benefit unless it concludes that it is more-likely- than-not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, the Company recognizes a tax benefit measured at the largest amount of the tax benefit that, in its judgment, is greater than 50% likely to be realized. The Company records interest and penalties related to unrecognized tax positions within the income tax (provision) benefit on the consolidated statements of earnings (loss). |
Operating Leases | Operating Leases The Company leases all of its retail locations, a manufacturing facility and certain office locations, distribution centers and equipment under operating leases. Approximately 35% of the leases entered into by the Company include options that allow the Company to extend the lease term beyond the initial commitment period, subject to terms agreed to at lease inception. Some leases also include early termination options that can be exercised under specific conditions. In accordance with ASC Topic 842, Leases Contingent Rentals Many of the leases covering retail stores require contingent rental payments in addition to the minimum monthly rental charge based on retail sales volume. The Company excludes from lease payments any variable payments that are not based on an index or market. If payment for a lease is fully contingent on sales, such as a percentage of sales gross rent lease, none of the lease payments are included in the lease right-of-use asset or the lease liability. Construction Allowances Received From Landlords At the time its retail facilities are initially leased, the Company often receives consideration from landlords to be applied against the cost of leasehold improvements necessary to open the store. The Company treats these construction allowances as a lease incentive. In accordance with ASC 842, the allowances are recorded within the lease right-of-use asset and amortized to income over the lease term as a reduction of rent expense. Straight-Line Rents and Rent Holidays The Company records rent expense on a straight-line basis over the lease term for all of its leased facilities. For leases that have predetermined fixed escalations of the minimum rentals, the Company recognizes the related rental expense on a straight-line basis and records the difference between the recognized rental expense and amounts payable under the lease as the lease right-of-use asset. At the time its retail facilities are leased, the Company is frequently not charged rent for a specified period of time, typically 30 to 60 days, while the store is being prepared for opening. This rent-free period is referred to as a rent holiday. The Company recognizes rent expense over the lease term, including any rent holiday, within selling and administrative expenses on the consolidated statements of earnings (loss). Pre-opening Costs Pre-opening costs associated with opening retail stores, including payroll, supplies and facility costs, are expensed as incurred. |
Earnings (Loss) Per Common Share Attributable to Caleres, Inc. Shareholders | Earnings (Loss) Per Common Share Attributable to Caleres, Inc. Shareholders The Company uses the two-class method to calculate basic and diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders. Unvested restricted stock awards are considered participating units because they entitle holders to non-forfeitable rights to dividends or dividend equivalents during the vesting term. Under the two-class method, basic earnings (loss) per common share attributable to Caleres, Inc. shareholders is computed by dividing the net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities by the weighted-average number of common shares outstanding during the year. Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders is computed by dividing the net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities by the weighted-average number of common shares and potential dilutive securities outstanding during the year. Potential dilutive securities consist of outstanding stock options and contingently issuable shares for the Company’s performance share awards. Refer to Note 3 to the consolidated financial statements for additional information related to the calculation of earnings (loss) per common share attributable to Caleres, Inc. shareholders. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) primarily includes the effect of foreign currency translation adjustments and pension and other postretirement benefits adjustments. Foreign Currency Translation Adjustment For certain of the Company’s international subsidiaries, the local currency is the functional currency. Assets and liabilities of these subsidiaries are translated into United States dollars at the period-end exchange rate or historical rates as appropriate. Consolidated statements of earnings (loss) amounts are translated at average exchange rates for the period. The cumulative translation adjustments resulting from changes in exchange rates are included in the consolidated balance sheets as a component of accumulated other comprehensive loss in total Caleres, Inc. shareholders’ equity. Transaction gains and losses are included in the consolidated statements of earnings (loss). Pension and Other Postretirement Benefits Adjustments The Company determines the expense and obligations for retirement and other benefit plans using assumptions related to discount rates, expected long-term rates of return on invested plan assets, expected salary increases and certain employee-related factors. The Company determines the fair value of plan assets and benefit obligations as of the January 31 measurement date. The unrecognized portion of the gain or loss on plan assets is included in the consolidated balance sheets as a component of accumulated other comprehensive loss in total Caleres, Inc. shareholders’ equity and is recognized into the plans’ expense over time. Refer to additional information related to pension and other postretirement benefits in Note 5 and Note 14 to the consolidated financial statements. |
Litigation Contingencies | Litigation Contingencies The Company is the defendant in several claims and lawsuits arising in the ordinary course of business. The Company believes the outcome of such proceedings and litigation currently pending will not have a material adverse effect on the consolidated financial position or results of operations. The Company accrues its best estimate of the cost of resolution of these claims. Legal defense costs of such claims are recognized in the period in which the costs are incurred. Refer to Note 16 to the consolidated financial statements for further discussion of commitments and contingencies. |
Environmental Matters | Environmental Matters The Company is involved in environmental remediation and ongoing compliance activities at several sites. The Company is remediating, under the oversight of Colorado authorities, the groundwater and indoor air at its owned facility and residential neighborhoods adjacent to and near the property, which have been affected by solvents previously used at the facility. In addition, various federal and state authorities have identified the Company as a potentially responsible party for remediation at certain other sites. The Company’s prior operations included numerous manufacturing and other facilities for which the Company may have responsibility under various environmental laws to address conditions that may be identified in the future. Refer to Note 16 to the consolidated financial statements for additional information. Environmental expenditures relating to an existing condition caused by past operations and that do not contribute to current or future revenue generation are expensed. Based upon independent environmental assessments, liabilities are recorded when remedial action is considered probable and the costs can be reasonably estimated and are evaluated independently of any future claims recovery. Generally, the timing of these accruals coincides with completion of a feasibility study or the Company’s commitment to a formal plan of action, and our estimates of cost are subject to change as new information becomes available. Costs of future expenditures for environmental remediation obligations are discounted to their present value in those situations requiring only continuing maintenance and monitoring based upon a schedule of fixed payments. |
Share-Based Compensation | Share-Based Compensation The Company has share-based incentive compensation plans under which certain officers, employees and members of the Board of Directors are participants and may be granted restricted stock, stock performance awards and stock options. Additionally, share-based grants may be made to non-employee members of the Board of Directors in the form of restricted stock units (“RSUs”) payable in cash or the Company’s common stock. The Company accounts for share-based compensation in accordance with the fair value recognition provisions of ASC 718, Compensation – Stock Compensation Equity four years one-year |
Consolidated Statements of Cash Flows Supplemental Disclosures | Consolidated Statements of Cash Flows Supplemental Disclosures The Company made payments for federal, state and international taxes, net of refunds, of $17.4 million, and $29.3 million in 2022 and 2021, respectively, and received refunds, net of payments, of $0.6 million in 2020. Refer to Note 6 to the consolidated financial statements for further information regarding income taxes. Cash payments of interest for the Company’s borrowings under the revolving credit agreement and long-term debt during 2022, 2021 and 2020 were $12.5 million, $20.4 million and $23.6 million, respectively. Refer to Note 11 to the consolidated financial statements for further discussion regarding the Company’s financing arrangements. |
Impact of Prospective Accounting Pronouncements | Impact of Prospective Accounting Pronouncements In Liabilities – Supplier Finance Programs (Topic 405-50): Disclosure of Supplier Finance Program Obligations |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
REVENUES | |
Schedule of disaggregated revenue by segment and major source | 2022 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 1,467,968 $ 60,113 $ — $ 1,528,081 E-commerce - Company websites (1) 233,977 218,434 — 452,411 E-commerce - wholesale drop-ship (1) — 148,825 (5,649) 143,176 Total direct-to-consumer sales $ 1,701,945 $ 427,372 $ (5,649) $ 2,123,668 Wholesale - e-commerce (1) — 207,779 — 207,779 Wholesale - landed — 548,838 (54,078) 494,760 Wholesale - first cost — 125,091 — 125,091 Licensing and royalty 2,105 13,604 — 15,709 Other (2) 1,043 88 — 1,131 Net sales $ 1,705,093 $ 1,322,772 $ (59,727) $ 2,968,138 2021 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 1,494,595 $ 59,269 $ — $ 1,553,864 E-commerce - Company websites (1) 251,823 189,564 — 441,387 E-commerce - wholesale drop-ship (1) — 93,783 (2,427) 91,356 Total direct-to-consumer sales $ 1,746,418 $ 342,616 $ (2,427) $ 2,086,607 Wholesale - e-commerce (1) — 157,195 — 157,195 Wholesale - landed — 468,436 (49,263) 419,173 Wholesale - first cost — 100,467 — 100,467 Licensing and royalty 1,010 12,138 — 13,148 Other (2) 863 151 — 1,014 Net sales $ 1,748,291 $ 1,081,003 $ (51,690) $ 2,777,604 2020 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 983,669 $ 52,796 $ — $ 1,036,465 E-commerce - Company websites (1) 279,353 149,090 — 428,443 E-commerce - wholesale drop-ship (1) — 87,226 (4,192) 83,034 Total direct-to-consumer sales 1,263,022 $ 289,112 $ (4,192) $ 1,547,942 Wholesale - e-commerce (1) $ — 125,797 — 125,797 Wholesale - landed — 408,752 (44,770) 363,982 Wholesale - first cost — 69,172 — 69,172 Licensing and royalty — 9,478 — 9,478 Other (2) 529 170 — 699 Net sales $ 1,263,551 $ 902,481 $ (48,962) $ 2,117,070 (1) Collectively referred to as "e-commerce" below (2) Includes breakage revenue from unredeemed gift cards |
Schedule of significant contract balances from contracts with customers | ($ thousands) January 28, 2023 January 29, 2022 Customer allowances and discounts $ 21,917 $ 20,328 Loyalty programs liability 17,732 18,814 Returns reserve 12,038 12,468 Gift card liability 6,659 6,804 |
Schedule of allowance for expected credit losses | ($ thousands) 2022 2021 Balance, beginning of period $ 9,601 $ 14,928 Adjustment for expected credit losses (262) (2,242) Uncollectible accounts written off, net of recoveries (436) (3,085) Balance, end of period $ 8,903 $ 9,601 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
EARNINGS (LOSS) PER SHARE | |
Schedule of earnings per share, basic and diluted | ($ thousands, except per share amounts) 2022 2021 2020 NUMERATOR Net earnings (loss) $ 179,695 $ 138,163 $ (438,994) Net loss (earnings) attributable to noncontrolling interests 2,047 (1,144) (120) Net earnings (loss) attributable to Caleres, Inc. $ 181,742 $ 137,019 $ (439,114) Net earnings allocated to participating securities (7,716) (4,982) — Net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities $ 174,026 $ 132,037 $ (439,114) DENOMINATOR Denominator for basic earnings (loss) per common share attributable to Caleres, Inc. shareholders 34,930 36,741 37,220 Dilutive effect of share-based awards 475 354 — Denominator for diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders 35,405 37,095 37,220 Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 4.98 $ 3.59 $ (11.80) Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 4.92 $ 3.56 $ (11.80) |
RETIREMENT AND OTHER BENEFIT _2
RETIREMENT AND OTHER BENEFIT PLANS (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Notes Tables | |
Schedule of Changes in Projected Benefit Obligations | Pension Benefits Other Postretirement Benefits ($ thousands) 2022 2021 2022 2021 Benefit obligation at beginning of year $ 355,286 $ 365,570 $ 1,143 $ 1,249 Service cost 7,143 7,494 — — Interest cost 11,977 11,236 35 35 Plan participants’ contribution 10 11 4 5 Plan amendments 407 — — — Actuarial (gain) loss (70,775) (13,962) (85) (50) Benefits paid (15,440) (15,062) (79) (96) Settlements (3,032) — — — Curtailments 13 — — — Foreign exchange rate changes (17) (1) — — Benefit obligation at end of year $ 285,572 $ 355,286 $ 1,018 $ 1,143 |
Defined Benefit Plan, Assumptions | Pension Benefits Other Postretirement Benefits Weighted–average assumptions used to determine benefit obligations, end of year 2022 2021 2022 2021 Discount rate 5.20 % 3.40 % 5.20 % 3.40 % Rate of compensation increase 3.00 % 3.00 % N/A N/A Pension Benefits Other Postretirement Benefits Weighted–average assumptions used to determine net periodic benefit income 2022 2021 2020 2022 2021 2020 Discount rate 3.40 % 3.10 % 3.25 % 3.40 % 3.10 % 3.25 % Rate of compensation increase 3.00 % 3.00 % 3.00 % N/A N/A N/A Expected return on plan assets 7.20 % 7.25 % 7.50 % N/A N/A N/A |
Schedule of Allocation of Plan Assets | Fair Value Measurements at January 28, 2023 ($ thousands) Total Level 1 Level 2 Level 3 Asset Cash and cash equivalents $ 12,962 $ 12,962 $ — $ — U.S. government securities 80,522 45,872 34,650 — Interest rate swap agreements (2,793) — (2,793) — Mutual fund 29,548 29,548 — — Exchange-traded funds 92,338 92,338 — — Corporate stocks - common 132,138 132,138 — — Preferred securities 335 — — 335 S&P 500 Index options (2,634) (2,634) — — Total investments in the fair value hierarchy $ 342,416 $ 310,224 $ 31,857 $ 335 Investments measured at net asset value: Alternative investment fund 14,293 — — — Unallocated insurance contract 36 — — — Total investments measured at net asset value 14,329 — — — Total investments at fair value $ 356,745 $ 310,224 $ 31,857 $ 335 Fair Value Measurements at January 29, 2022 ($ thousands) Total Level 1 Level 2 Level 3 Asset Cash and cash equivalents $ 11,714 $ 11,714 $ — $ — U.S. government securities 102,525 46,668 55,857 — Interest rate swap agreements (232) — (232) Mutual fund 31,595 31,595 — — Exchange-traded funds 120,323 120,323 — — Corporate stocks - common 155,014 155,014 — — Preferred securities 523 — — 523 S&P 500 Index options 5,694 5,694 — — Total investments in the fair value hierarchy $ 427,156 $ 371,008 $ 55,625 $ 523 Investments measured at net asset value: Alternative investment fund 16,891 — — — Unallocated insurance contract 44 — — — Total investments measured at net asset value 16,935 — — — Total investments at fair value $ 444,091 $ 371,008 $ 55,625 $ 523 |
Schedule of Changes in Fair Value of Plan Assets | Pension Benefits Other Postretirement Benefits ($ thousands) 2022 2021 2022 2021 Fair value of plan assets at beginning of year $ 444,091 $ 444,717 $ — $ — Actual return on plan assets (69,361) 14,322 — — Employer contributions 494 104 75 91 Plan participants’ contributions 10 11 4 5 Benefits paid (15,440) (15,062) (79) (96) Settlements (3,032) — — — Foreign exchange rate changes (17) (1) — — Fair value of plan assets at end of year $ 356,745 $ 444,091 $ — $ — |
Schedule of Amounts Recognized in Balance Sheet | ….. Pension Benefits Other Postretirement Benefits ($ thousands) 2022 2021 2022 2021 Prepaid pension costs (noncurrent assets) $ 83,396 $ 99,139 $ — $ — Accrued benefit liabilities (current liability) (5,189) (3,755) (182) (189) Accrued benefit liabilities (noncurrent liability) (7,034) (6,579) (836) (954) Net amount recognized at end of year $ 71,173 $ 88,805 $ (1,018) $ (1,143) |
Schedule of Projected Benefit Obligation and Accumulated Benefit Obligation in Excess of Plan Assets | Projected Benefit Obligation Exceeds the Accumulated Benefit Obligation Fair Value of Plan Assets Exceeds the Fair Value of Plan Assets ($ thousands) 2022 2021 2022 2021 End of Year Projected benefit obligation $ 12,223 $ 10,334 $ 12,223 $ 10,334 Accumulated benefit obligation 11,392 9,247 11,392 9,247 Fair value of plan assets — — — — |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | Pension Benefits Other Postretirement Benefits ($ thousands) 2022 2021 2022 2021 Components of accumulated other comprehensive loss, net of tax: Net actuarial loss (gain) $ 25,967 $ 8,807 $ (410) $ (424) Net prior service credit (20) (565) — — Accumulated other comprehensive loss, net of tax $ 25,947 $ 8,242 $ (410) $ (424) |
Schedule of net benefit costs | Pension Benefits Other Postretirement Benefits ($ thousands) 2022 2021 2020 2022 2021 2020 Service cost $ 7,143 $ 7,494 $ 8,492 $ — $ — $ — Interest cost 11,977 11,236 12,205 35 35 41 Expected return on assets (27,987) (28,437) (31,498) — — — Amortization of: Actuarial loss (gain) 3,088 2,410 2,718 (103) (108) (110) Prior service credit (314) (514) (1,354) — — — Settlement cost 320 — 1,353 — — — Curtailments 13 — (189) — — — Total net periodic benefit income $ (5,760) $ (7,811) $ (8,273) $ (68) $ (73) $ (69) |
Schedule of Expected Benefit Payments | Pension Benefits Other Postretirement ($ thousands) Funded Plan SERP Total Benefits Employer Contributions 2023 expected contributions to plan trusts $ 91 $ — $ 91 $ — 2023 expected contributions to plan participants — 5,323 5,323 187 2023 refund of assets (e.g. surplus) to employer 135 — 135 — Expected Benefit Payments — 2023 $ 15,174 $ 5,323 $ 20,497 $ 187 2024 15,591 2,348 17,939 153 2025 16,272 3,011 19,283 124 2026 16,855 675 17,530 101 2027 17,302 856 18,158 81 2028-2032 91,942 1,641 93,583 217 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) | ($ thousands) 2022 2021 2020 Federal Current $ 11,506 $ 36,388 $ (37,140) Deferred 6,975 (227) (45,145) Total federal income tax provision (benefit) 18,481 36,161 (82,285) State Current 6,660 4,012 1,532 Deferred 3,421 6,531 (9,038) Total state income tax provision (benefit) 10,081 10,543 (7,506) International Current 4,759 4,615 2,288 Deferred 18 (238) 9,386 Total international income tax provision 4,777 4,377 11,674 Total income tax provision (benefit) $ 33,339 $ 51,081 $ (78,117) |
Schedule of Effective Income Tax Rate Reconciliation | ($ thousands) 2022 2021 2020 Income taxes at statutory rate $ 44,737 $ 39,741 $ (108,593) State income taxes, net of federal tax benefit 8,981 8,361 (17,433) International earnings taxed at differing rates from U.S. statutory (1,974) (3,588) (5,210) Share-based compensation (602) 94 1,094 Provision for valuation allowance, net of utilization (20,743) 8,978 41,019 Non-deductibility of 162(m) limitations 3,363 3,377 1,005 GILTI, BEAT and FDII provisions 422 346 — Non-deductibility of goodwill impairment — — 20,179 Impairment of international trade name taxed at higher rate — — (1,440) CARES Act NOL, net carryback benefit (1) — 365 (8,203) International entity restructuring (2) — (6,697) — Other (3) (845) 104 (535) Total income tax provision (benefit) $ 33,339 $ 51,081 $ (78,117) (1) The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law during 2020. Among the Internal Revenue Code provisions modified by the CARES Act was a five-year carryback period for net operating losses incurred in the 2018, 2019 and 2020 tax years; temporary removal of the 80% limitation on net operating loss usage, reinstated for tax years after 2020; a temporary increase in the interest expense limitation and acceleration of refundable AMT credit. The five-year carryback presented an opportunity to carry back net operating losses from years with a statutory 21% federal tax rate to years when the rate was 35% . (2) Reflects the deferred tax impacts of the liquidation of certain international subsidiaries, with related impacts presented in the provision for valuation allowance, net of utilization line in the table above. (3) The other category of income tax provision (benefit) principally represents the impact of expenses that are not deductible or partially deductible for federal income tax purposes and the impact of any return-to-provision adjustments. |
Schedule of Deferred Tax Assets and Liabilities | ($ thousands) January 28, 2023 January 29, 2022 Deferred Tax Assets Lease obligations $ 147,910 $ 149,123 Goodwill 38,407 43,510 Net operating loss carryforward/carryback 13,303 14,441 Accrued expenses 19,478 25,314 Employee benefits, compensation and insurance 17,350 15,751 Accounts receivable 6,304 5,735 Inventory capitalization and inventory reserves 6,642 6,013 Impairment of investment in nonconsolidated affiliate 1,470 1,470 Postretirement and postemployment benefit plans 228 259 Other 1,261 1,261 Total deferred tax assets, before valuation allowance 252,353 262,877 Valuation allowance (39,540) (58,959) Total deferred tax assets, net of valuation allowance $ 212,813 $ 203,918 Deferred Tax Liabilities Lease right-of-use assets $ (136,618) $ (134,888) Intangible assets (12,054) (10,624) LIFO inventory valuation (46,551) (37,675) Retirement plans (19,381) (23,718) Capitalized software (3,309) (5,042) Depreciation (10,823) (3,818) Other (3,078) (2,884) Total deferred tax liabilities (231,814) (218,649) Net deferred tax liability $ (19,001) $ (14,731) |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
BUSINESS SEGMENT INFORMATION | |
Schedule of segment reporting information, by segment | Famous Brand Eliminations ($ thousands) Footwear Portfolio and Other Total Fiscal 2022 Net sales $ 1,705,093 $ 1,322,772 $ (59,727) $ 2,968,138 Intersegment sales — 59,727 — 59,727 Depreciation and amortization 20,585 21,812 6,614 49,011 Operating earnings (loss) 195,837 112,345 (93,855) 214,327 Segment assets 767,575 921,110 147,787 1,836,472 Purchases of property and equipment 41,755 4,170 9,988 55,913 Capitalized software — 42 8,082 8,124 Fiscal 2021 Net sales $ 1,748,291 $ 1,081,003 $ (51,690) $ 2,777,604 Intersegment sales — 51,690 — 51,690 Depreciation and amortization 20,333 23,762 8,235 52,330 Operating earnings (loss) 276,415 35,928 (106,536) 205,807 Segment assets 705,063 944,241 194,622 1,843,926 Purchases of property and equipment 12,480 3,977 1,936 18,393 Capitalized software 121 8 5,623 5,752 Fiscal 2020 Net sales $ 1,263,551 $ 902,481 $ (48,962) $ 2,117,070 Intersegment sales — 48,962 — 48,962 Depreciation and amortization 23,090 28,889 8,560 60,539 Operating loss (23,821) (408,444) (53,393) (485,658) Segment assets 765,754 851,027 250,269 1,867,050 Purchases of property and equipment 7,693 6,486 2,607 16,786 Capitalized software 870 153 4,251 5,274 |
Reconciliation of operating profit (loss) from segments to consolidated | ($ thousands) 2022 2021 2020 Operating earnings (loss) $ 214,327 $ 205,807 $ (485,658) Interest expense, net (14,264) (30,930) (48,287) Loss on early extinguishment of debt — (1,011) — Other income, net 12,971 15,378 16,834 Earnings (loss) before income taxes $ 213,034 $ 189,244 $ (517,111) |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | ($ thousands) 2022 2021 2020 Net Sales United States $ 2,763,896 $ 2,600,848 $ 1,984,713 Eastern Asia 146,700 119,857 77,793 Canada 44,484 43,789 46,781 Other 13,058 13,110 7,783 Total net sales $ 2,968,138 $ 2,777,604 $ 2,117,070 Long-Lived Assets United States $ 656,840 $ 630,519 $ 703,642 Eastern Asia 11,614 8,357 2,660 Canada 10,441 14,687 20,246 Other 184 105 192 Total long-lived assets $ 679,079 $ 653,668 $ 726,740 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
INVENTORIES | |
Schedule of inventory, current | ($ thousands) January 28, 2023 January 29, 2022 Raw materials $ 21,172 $ 16,764 Work-in-process 569 614 Finished goods 558,474 579,429 Inventories, net $ 580,215 $ 596,807 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
PROPERTY AND EQUIPMENT. | |
Property, Plant and Equipment | ($thousands) January 28, 2023 January 29, 2022 Land and buildings $ 37,394 $ 48,355 Leasehold improvements 204,378 197,218 Technology equipment 50,628 49,550 Machinery and equipment 106,197 98,308 Furniture and fixtures 130,761 127,125 Construction in progress 20,504 3,066 Property and equipment 549,862 523,622 Allowances for depreciation (388,979) (373,384) Property and equipment, net $ 160,883 $ 150,238 Years Buildings 5 - 30 Leasehold improvements 5 - 20 Technology equipment 2 - 10 Machinery and equipment 4 - 20 Furniture and fixtures 3 - 10 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
GOODWILL AND INTANGIBLE ASSETS | |
Schedule of intangible assets and goodwill | ($ thousands) January 28, 2023 January 29, 2022 Intangible Assets Famous Footwear $ 2,800 $ 2,800 Brand Portfolio 342,083 342,083 Total intangible assets 344,883 344,883 Accumulated amortization (134,447) (122,336) Total intangible assets, net 210,436 222,547 Goodwill Brand Portfolio (1) 4,956 4,956 Total goodwill 4,956 4,956 Goodwill and intangible assets, net $ 215,392 $ 227,503 (1) The carrying amount of goodwill as of January 28, 2023 and January 29, 2022 is presented net of accumulated impairment charges of $415.7 million. |
Schedule of finite-lived and indefinite lived intangible assets | ($ thousands) January 28, 2023 Estimated Useful Lives Accumulated Accumulated (In Years) Cost Basis Amortization Impairment Net Carrying Value Trade names 2 - 40 $ 299,488 $ 121,928 $ 10,200 $ 167,360 Trade names Indefinite 107,400 — 92,000 15,400 Customer relationships 15 - 16 44,200 12,519 4,005 27,676 $ 451,088 $ 134,447 $ 106,205 $ 210,436 January 29, 2022 Estimated Useful Lives Accumulated Accumulated (In Years) Cost Basis Amortization Impairment Net Carrying Value Trade names 2 - 40 $ 299,488 $ 112,061 $ 10,200 $ 177,227 Trade names Indefinite 107,400 — 92,000 15,400 Customer relationships 15 - 16 44,200 10,275 4,005 29,920 $ 451,088 $ 122,336 $ 106,205 $ 222,547 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
LEASES | |
Lessee, Weighted Average Lease Term and Discount Rate | January 28, 2023 January 29, 2022 Weighted-average remaining lease term (in years) 6.0 6.5 Weighted-average discount rate 4.5 % 4.2 % |
Schedule of components of lease expenses | ($ thousands) 2022 2021 2020 Operating lease expense $ 148,299 $ 149,850 $ 167,624 Variable lease expense 40,233 40,654 48,443 Short-term lease expense 4,059 2,837 4,512 Sublease income (59) (652) (96) Total lease expense (1) $ 192,532 $ 192,689 $ 220,483 (1) Net of lease concessions recognized of $1.3 million, $2.1 million and $5.4 million for 2022, 2021 and 2020, respectively. |
Lessee, Operating Lease, Liability, Maturity | ($ thousands) 2023 $ 156,589 2024 129,221 2025 100,282 2026 80,255 2027 58,171 Thereafter 139,877 Total minimum operating lease payments $ 664,395 Less imputed interest (84,270) Present value of lease obligations $ 580,125 |
Schedule of supplemental cash flow information related to leases | ($ thousands) 2022 2021 2020 Cash paid for lease obligations (1) $ 167,163 $ 179,921 $ 145,552 Cash received from sublease income 59 652 96 (1) Cash paid for lease obligations in 2021 includes payment of certain lease payments deferred in 2020, as described above, as well as lease termination costs associated with the Naturalizer retail store closures, as further discussed in Note 4 to the consolidated financial statements. In addition, cash paid for lease obligations in 2020 was significantly lower than comparable periods, reflecting the deferral of lease payments during the onset of the pandemic. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value, assets and liabilities measured on recurring basis | Fair Value Measurements ($ thousands) Total Level 1 Level 2 Level 3 Asset (Liability) January 28, 2023: Non-qualified deferred compensation plan assets $ 7,890 $ 7,890 $ — $ — Non-qualified deferred compensation plan liabilities (7,890) (7,890) — — Deferred compensation plan liabilities for non-employee directors (1,662) (1,662) — — Restricted stock units for non-employee directors (2,028) (2,028) — — January 29, 2022: Non-qualified deferred compensation plan assets 7,463 7,463 — — Non-qualified deferred compensation plan liabilities (7,463) (7,463) — — Deferred compensation plan liabilities for non-employee directors (1,770) (1,770) — — Restricted stock units for non-employee directors (2,568) (2,568) — — |
Details of long-lived asset impairment charges | ($ thousands) 2022 2021 2020 Long-Lived Asset Impairment Charges Famous Footwear $ 200 $ 1,241 $ 14,900 Brand Portfolio 1,603 2,894 41,443 Total long-lived asset impairment charges $ 1,803 $ 4,135 $ 56,343 |
SHAREHOLDERS EQUITY (Tables)
SHAREHOLDERS EQUITY (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
SHAREHOLDERS' EQUITY | |
Schedule of common stock | (in thousands) January 28, 2023 January 29, 2022 Common Preferred Common Preferred Authorized shares 100,000 1,000 100,000 1,000 Outstanding shares 35,716 — 37,635 — Treasury shares 10,371 — 8,452 — |
Schedule of accumulated other comprehensive loss | Pension and Accumulated Foreign Other Other Currency Postretirement Derivative Comprehensive ($ thousands) Translation Transactions (1) Transactions (2) (Loss) Income Balance February 1, 2020 $ (580) $ (31,171) $ (92) $ (31,843) Other comprehensive income before reclassifications 469 20,351 87 20,907 Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 2,418 6 2,424 Tax benefit — (623) (1) (624) Net reclassifications — 1,795 5 1,800 Other comprehensive income 469 22,146 92 22,707 Balance January 30, 2021 $ (111) $ (9,025) $ — $ (9,136) Other comprehensive loss before reclassifications (677) (116) — (793) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 1,788 — 1,788 Tax benefit — (465) — (465) Net reclassifications — 1,323 — 1,323 Other comprehensive (loss) income (677) 1,207 — 530 Balance January 29, 2022 $ (788) $ (7,818) $ — $ (8,606) Other comprehensive loss before reclassifications (425) (19,776) — (20,201) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 2,991 — 2,991 Tax benefit — (934) — (934) Net reclassifications — 2,057 — 2,057 Other comprehensive loss (425) (17,719) — (18,144) Balance January 28, 2023 $ (1,213) $ (25,537) $ — $ (26,750) (1) Amounts reclassified are included in other income, net. Refer to Note 5 to the 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 and selling and administrative expenses. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
SHARE-BASED COMPENSATION | |
Share-based Payment Arrangement, Cost by Plan | ($ thousands) 2022 2021 2020 Expense for share-based compensation plans, net of forfeitures: Restricted stock $ 10,974 $ 7,308 $ 6,840 Stock performance awards 5,190 3,904 147 Restricted stock units 1,147 1,085 1,109 Stock options — — 1 Total share-based compensation expense $ 17,311 $ 12,297 $ 8,097 |
Share-based payment arrangement, restricted stock and restricted stock unit, activity | Number of Nonvested Weighted- Restricted Average Grant Shares Date Fair Value Nonvested at February 1, 2020 1,271,795 $ 26.77 Granted 707,931 6.99 Vested (430,837) 28.27 Forfeited (151,662) 22.19 Nonvested at January 30, 2021 1,397,227 16.74 Granted 616,442 19.40 Vested (540,647) 26.39 Forfeited (82,625) 15.37 Nonvested at January 29, 2022 1,390,397 14.24 Granted 848,678 21.76 Vested (525,399) 12.87 Forfeited (109,716) 15.67 Nonvested at January 28, 2023 1,603,960 $ 18.57 |
Share-based Payment Arrangement, Performance Shares, Outstanding Activity | Number of Nonvested Number of Nonvested Performance Share Performance Share Awards at Target Awards at Maximum Weighted-Average Level Level Grant Date Fair Value Nonvested at February 1, 2020 476,000 952,000 $ 27.16 Granted 87,750 175,500 7.47 Vested (153,000) (306,000) 26.90 Forfeited (25,000) (50,000) 18.64 Nonvested at January 30, 2021 385,750 771,500 23.33 Granted 160,500 321,000 13.05 Vested (148,000) (296,000) 31.84 Forfeited (7,500) (15,000) 11.19 Nonvested at January 29, 2022 390,750 781,500 16.12 Granted 77,750 155,500 21.00 Vested (172,500) (345,000) 23.50 Forfeited (15,000) (30,000) 14.24 Nonvested at January 28, 2023 281,000 562,000 $ 13.64 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | Nonvested Outstanding Accrued (3) RSUs Weighted- Number of Number of Total Total Average Vested Nonvested Number of Number of Grant Date RSUs RSUs RSUs (2) RSUs Fair Value January 29, 2022 524,824 45,079 569,903 554,876 $ 23.56 Granted (1) 5,354 37,112 42,466 30,251 27.64 Vested 39,747 (39,747) — 13,093 27.45 Settled (114,242) — (114,242) (114,242) 27.91 January 28, 2023 455,683 42,444 498,127 483,978 $ 23.49 (1) Granted RSUs include 5,821 RSUs resulting from dividend equivalents paid on outstanding RSUs, of which 5,354 related to outstanding vested RSUs and 467 to outstanding nonvested RSUs. (2) Total number of RSUs as of January 28, 2023 includes 360,448 RSUs payable in shares and 137,679 RSUs payable in cash. (3) Accrued RSUs include all fully vested awards and a pro-rata portion of nonvested awards based on the elapsed portion of the vesting period. |
Restricted Stock Units Granted, Vested and Settles | ($ thousands, except per unit amounts) 2022 2021 2020 Weighted-average grant date fair value of RSUs granted (1) $ 27.09 $ 26.88 $ 10.12 Fair value of RSUs vested $ 998 $ 2,370 $ 1,125 RSUs settled 114,242 — 88,370 (1) Includes dividend equivalents granted on outstanding RSUs, which vest immediately. |
Restricted Stock Unit Compensation Expense | ($ thousands) 2022 2021 2020 Compensation expense (income) $ 335 $ 907 $ (613) Income tax (benefit) provision (86) (233) 158 Compensation expense (income), net of tax $ 249 $ 674 $ (455) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | ||||||||
Oct. 30, 2022 USD ($) | Nov. 01, 2020 USD ($) | May 02, 2020 USD ($) | Jan. 28, 2023 USD ($) store | Jan. 29, 2022 USD ($) | Dec. 31, 2021 | Jan. 30, 2021 USD ($) | Dec. 31, 2020 | Feb. 01, 2020 USD ($) | |
Number of Stores | store | 965 | ||||||||
Deferred employer social security payroll taxes, CARES Act | $ 9,400 | ||||||||
Income tax benefit related to the carryback of the net operating loss | 8,200 | ||||||||
Adjustment for expected credit losses | $ (262) | $ (2,242) | 10,575 | ||||||
Net sales | 2,968,138 | 2,777,604 | 2,117,070 | ||||||
Total assets | 1,836,472 | 1,843,926 | 1,867,050 | ||||||
Operating earnings (loss) | $ 214,327 | 205,807 | (485,658) | ||||||
Percentage of LIFO Inventory | 86% | ||||||||
Inventory, LIFO Reserve | $ 6,301 | 1,255 | |||||||
Capitalized Computer Software, Accumulated Amortization | 88,500 | 130,300 | |||||||
Capitalized Computer Software, Implementation Cost, Accumulated Amortization | $ 4,700 | 2,700 | |||||||
Goodwill, impairment loss | $ 0 | ||||||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of goodwill and intangible assets | ||||||||
Self Insurance Reserve | $ 9,700 | 11,400 | |||||||
Gift card redemption term | 24 months | ||||||||
Customer Loyalty Program Liability | $ 17,732 | 18,814 | |||||||
Impairment of long-lived assets held-for-use | 1,803 | 4,135 | 56,343 | ||||||
Marketing and Advertising Expense, Total | 138,000 | 118,100 | 77,900 | ||||||
Cooperative Advertising Amount | 6,000 | 5,400 | 3,400 | ||||||
Cooperative Advertising Expense | 18,500 | 10,800 | 7,200 | ||||||
Prepaid Advertising | $ 4,600 | 4,400 | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 35% | |||||||
Percentage of Operating Leases | 35% | ||||||||
Tax refunds received | 600 | ||||||||
Income taxes paid, net of refunds | $ 17,400 | 29,300 | |||||||
Interest paid on borrowings | 12,500 | 20,400 | 23,600 | ||||||
Operating lease, right-of-use asset | 518,196 | 503,430 | |||||||
Total operating lease liability | 580,125 | ||||||||
Retained earnings | 426,113 | 323,387 | 203,854 | $ 649,130 | |||||
Retained Earnings (Accumulated Deficit), Ending Balance | 266,329 | 157,970 | |||||||
Lease concessions | $ 1,300 | $ 2,100 | 5,400 | ||||||
Naturalizer Store Closings | |||||||||
Reduction in LIFO Reserve Due to Restructuring | 2,900 | ||||||||
Cumulative effect adjustment | Accounting Standards Update 2016-13 (ASC 326) | |||||||||
Retained earnings | (2,146) | ||||||||
Minimum | |||||||||
Amortization period of capitalized advertising cost | 1 month | ||||||||
Maximum | |||||||||
Amortization period of capitalized advertising cost | 3 months | ||||||||
Revolving Credit Facility | |||||||||
Total long-term line of credit | $ 307,500 | ||||||||
Share-based Payment Arrangement, Option | |||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years | ||||||||
Share-based Payment Arrangement, Option | Share-based Payment Arrangement, Annual | |||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25% | ||||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50% | ||||||||
Restricted Stock | Share-based Compensation Award Graded Vesting Tranche One | |||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 2 years | 3 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50% | ||||||||
Restricted Stock | Share-based Compensation Award Graded Vesting Tranche Two | |||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||||||||
Restricted Stock | Share-based Compensation Award Cliff Vesting | |||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | ||||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | ||||||||
Brand Portfolio | |||||||||
Net sales | $ 1,322,772 | $ 1,081,003 | 902,481 | ||||||
Total assets | 921,110 | 944,241 | 851,027 | ||||||
Operating earnings (loss) | 112,345 | 35,928 | (408,444) | ||||||
Impairment of long-lived assets held-for-use | $ 1,603 | 2,894 | 41,443 | ||||||
Brand Portfolio | Fergie Brand Exit and Close Naturalizer Stores | |||||||||
Total restructuring costs | 16,400 | ||||||||
Famous Footwear | |||||||||
Number of Stores | store | 873 | ||||||||
Net sales | $ 1,705,093 | 1,748,291 | 1,263,551 | ||||||
Total assets | 767,575 | 705,063 | 765,754 | ||||||
Operating earnings (loss) | 195,837 | 276,415 | (23,821) | ||||||
Inventory, LIFO Reserve, Period Charge | 4,700 | ||||||||
Impairment of long-lived assets held-for-use | 200 | 1,241 | 14,900 | ||||||
Famous Footwear | Rewards Program Members | |||||||||
Customer Loyalty Program Liability | 17,700 | 18,800 | |||||||
Blowfish, LLC | |||||||||
Goodwill, impairment loss | $ 0 | ||||||||
Vionic | Brand Portfolio | |||||||||
Goodwill, impairment loss | $ 0 | $ 240,300 | |||||||
Other Accrued Liabilities | |||||||||
Deferred employer social security payroll taxes, CARES Act | 5,000 | ||||||||
Other Assets. | |||||||||
Capitalized Computer Software, Gross | 16,000 | 14,100 | |||||||
Capitalized Computer Software, Implementation Costs | 5,600 | 7,700 | |||||||
Selling and Administrative Expenses | |||||||||
Production and Distribution Costs | 121,000 | 99,500 | 84,000 | ||||||
Overseas Sourcing and Other Inventory Procurement Expense | 21,400 | 22,200 | 18,600 | ||||||
Impairment of long-lived assets held-for-use | 1,000 | ||||||||
Lease concessions | 1,300 | 2,100 | 5,400 | ||||||
Customer Allowance | |||||||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 27,559 | 26,100 | 20,355 | ||||||
Customer Discounts | |||||||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | $ 11,357 | 7,459 | 11,692 | ||||||
CLT Brand Solutions | |||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 50% | ||||||||
Capital Contributions | $ 6,300 | 1,500 | |||||||
Net sales | 16,900 | 17,500 | |||||||
Total assets | 19,800 | 13,800 | |||||||
Total Liabilities | 9,100 | 5,400 | |||||||
Operating earnings (loss) | (2,700) | 1,200 | |||||||
CLT Brand Solutions | CLT Brand Solutions | |||||||||
Capital Contributions | 3,000 | ||||||||
Retail stores | |||||||||
Net sales | 1,528,081 | 1,553,864 | 1,036,465 | ||||||
Retail stores | Brand Portfolio | |||||||||
Net sales | 60,113 | 59,269 | 52,796 | ||||||
Retail stores | Famous Footwear | |||||||||
Net sales | 1,467,968 | 1,494,595 | 983,669 | ||||||
Gift Cards | |||||||||
Gift card breakage income | 1,100 | $ 1,000 | 700 | ||||||
Brand Investment Holding Ltd | |||||||||
Capital Contributions | $ 1,500 | ||||||||
Brand Investment Holding Ltd | CLT Brand Solutions | |||||||||
Capital Contributions | $ 3,100 | ||||||||
Customer Concentration Risk | Revenue Benchmark | Famous Footwear | Rewards Program Members | |||||||||
Concentration risk percentage | 77% | 78% |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | ||
Revenues | ||||
Net sales | $ 2,968,138 | $ 2,777,604 | $ 2,117,070 | |
Famous Footwear | ||||
Revenues | ||||
Net sales | 1,705,093 | 1,748,291 | 1,263,551 | |
Brand Portfolio | ||||
Revenues | ||||
Net sales | 1,322,772 | 1,081,003 | 902,481 | |
Eliminations and Other | ||||
Revenues | ||||
Net sales | (59,727) | (51,690) | (48,962) | |
Retail stores | ||||
Revenues | ||||
Net sales | 1,528,081 | 1,553,864 | 1,036,465 | |
Retail stores | Famous Footwear | ||||
Revenues | ||||
Net sales | 1,467,968 | 1,494,595 | 983,669 | |
Retail stores | Brand Portfolio | ||||
Revenues | ||||
Net sales | 60,113 | 59,269 | 52,796 | |
Retail stores | Eliminations and Other | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
E-commerce - Company websites | ||||
Revenues | ||||
Net sales | 452,411 | [1] | 441,387 | 428,443 |
E-commerce - Company websites | Famous Footwear | ||||
Revenues | ||||
Net sales | 233,977 | [1] | 251,823 | 279,353 |
E-commerce - Company websites | Brand Portfolio | ||||
Revenues | ||||
Net sales | 218,434 | [1] | 189,564 | 149,090 |
E-commerce - Company websites | Eliminations and Other | ||||
Revenues | ||||
Net sales | 0 | [1] | 0 | 0 |
E-commerce - wholesale drop ship | ||||
Revenues | ||||
Net sales | 143,176 | [1] | 91,356 | 83,034 |
E-commerce - wholesale drop ship | Famous Footwear | ||||
Revenues | ||||
Net sales | 0 | [1] | 0 | 0 |
E-commerce - wholesale drop ship | Brand Portfolio | ||||
Revenues | ||||
Net sales | 148,825 | [1] | 93,783 | 87,226 |
E-commerce - wholesale drop ship | Eliminations and Other | ||||
Revenues | ||||
Net sales | (5,649) | [1] | (2,427) | (4,192) |
Direct to consumer | ||||
Revenues | ||||
Net sales | 2,123,668 | 2,086,607 | 1,547,942 | |
Direct to consumer | Famous Footwear | ||||
Revenues | ||||
Net sales | 1,701,945 | 1,746,418 | 1,263,022 | |
Direct to consumer | Brand Portfolio | ||||
Revenues | ||||
Net sales | 427,372 | 342,616 | 289,112 | |
Direct to consumer | Eliminations and Other | ||||
Revenues | ||||
Net sales | (5,649) | (2,427) | (4,192) | |
Wholesale - e-commerce | ||||
Revenues | ||||
Net sales | 207,779 | 157,195 | 125,797 | |
Wholesale - e-commerce | Famous Footwear | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Wholesale - e-commerce | Brand Portfolio | ||||
Revenues | ||||
Net sales | 207,779 | 157,195 | 125,797 | |
Wholesale - e-commerce | Eliminations and Other | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Wholesale - landed | ||||
Revenues | ||||
Net sales | 494,760 | 419,173 | 363,982 | |
Wholesale - landed | Famous Footwear | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Wholesale - landed | Brand Portfolio | ||||
Revenues | ||||
Net sales | 548,838 | 468,436 | 408,752 | |
Wholesale - landed | Eliminations and Other | ||||
Revenues | ||||
Net sales | (54,078) | (49,263) | (44,770) | |
Wholesale - first cost | ||||
Revenues | ||||
Net sales | 125,091 | 100,467 | 69,172 | |
Wholesale - first cost | Famous Footwear | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Wholesale - first cost | Brand Portfolio | ||||
Revenues | ||||
Net sales | 125,091 | 100,467 | 69,172 | |
Wholesale - first cost | Eliminations and Other | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Licensing and royalty | ||||
Revenues | ||||
Net sales | 15,709 | 13,148 | 9,478 | |
Licensing and royalty | Famous Footwear | ||||
Revenues | ||||
Net sales | 2,105 | 1,010 | 0 | |
Licensing and royalty | Brand Portfolio | ||||
Revenues | ||||
Net sales | 13,604 | 12,138 | 9,478 | |
Licensing and royalty | Eliminations and Other | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Other. | ||||
Revenues | ||||
Net sales | 1,131 | [2] | 1,014 | 699 |
Other. | Famous Footwear | ||||
Revenues | ||||
Net sales | 1,043 | [2] | 863 | 529 |
Other. | Brand Portfolio | ||||
Revenues | ||||
Net sales | 88 | [2] | 151 | 170 |
Other. | Eliminations and Other | ||||
Revenues | ||||
Net sales | $ 0 | [2] | $ 0 | $ 0 |
[1] Collectively referred to as "e-commerce" below Includes breakage revenue from unredeemed gift cards |
REVENUES (Details)
REVENUES (Details) $ in Millions | 12 Months Ended | |
Jan. 28, 2023 USD ($) item | Jan. 29, 2022 USD ($) | |
Revenues | ||
Number of performance obligations | item | 2 | |
Loyalty Program | ||
Revenues | ||
Contract with customer, liability, increase due to points and material rights earned on purchases | $ 36.6 | $ 36.3 |
Contract with customer, liability, decrease due to expirations and redemptions | $ 37.7 | $ 31.5 |
REVENUES - Contract Balances (D
REVENUES - Contract Balances (Details) - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
REVENUES | ||
Customer allowances and discounts | $ 21,917 | $ 20,328 |
Loyalty programs liability | 17,732 | 18,814 |
Returns reserve | 12,038 | 12,468 |
Gift card liability | $ 6,659 | $ 6,804 |
REVENUES- Allowance for Expecte
REVENUES- Allowance for Expected Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
REVENUES | |||
Balance, beginning of period | $ 9,601 | $ 14,928 | |
Adjustment for expected credit losses | (262) | (2,242) | $ 10,575 |
Uncollectible accounts written off, net of recoveries | (436) | (3,085) | |
Balance, end of period | $ 8,903 | $ 9,601 | $ 14,928 |
EARNINGS (LOSS) PER SHARE - Sch
EARNINGS (LOSS) PER SHARE - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
EARNINGS (LOSS) PER SHARE | |||
Net earnings (loss) | $ 179,695 | $ 138,163 | $ (438,994) |
Net loss (earnings) attributable to noncontrolling interests | 2,047 | (1,144) | (120) |
Net earnings (loss) attributable to Caleres, Inc. | 181,742 | 137,019 | (439,114) |
Net earnings allocated to participating securities | (7,716) | (4,982) | |
Net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities | $ 174,026 | $ 132,037 | $ (439,114) |
Denominator for basic earnings (loss) per common share attributable to Caleres, Inc. shareholders | 34,930 | 36,741 | 37,220 |
Dilutive effect of share-based awards (in shares) | 475 | 354 | |
Denominator for diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders | 35,405 | 37,095 | 37,220 |
Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders | $ 4.98 | $ 3.59 | $ (11.80) |
Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders | $ 4.92 | $ 3.56 | $ (11.80) |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Mar. 10, 2022 | Sep. 02, 2019 | |
Earnings (Loss) Per Share | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 16,667 | 22,667 | ||
Stock Repurchase Program, 2019 | |||||
Earnings (Loss) Per Share | |||||
Stock repurchase program, number of shares authorized to be repurchased | 5,000,000 | ||||
Stock Repurchase Program, 2022 | |||||
Earnings (Loss) Per Share | |||||
Stock repurchase program, number of shares authorized to be repurchased | 7,000,000 | 7,000,000 | |||
Stock Repurchase Programs, 2019 and 2022 | |||||
Earnings (Loss) Per Share | |||||
Treasury stock, shares, acquired (in shares) | 2,622,845 | 661,265 | 2,902,122 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 63.2 | $ 17 | $ 23.3 |
RESTRUCTURING AND OTHER INITI_2
RESTRUCTURING AND OTHER INITIATIVES (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Nov. 04, 2021 USD ($) | Apr. 30, 2022 store | Jul. 31, 2021 | Jan. 28, 2023 USD ($) $ / shares | Jan. 29, 2022 USD ($) $ / shares | Jan. 30, 2021 USD ($) $ / shares | Jul. 06, 2018 USD ($) | |
Restructuring and Other Special Charges | |||||||
Fair value adjustments of mandatory purchase obligation | $ 0 | $ 15,424 | $ 23,934 | ||||
Settlement of Blowfish mandatory purchase obligation presented in financing activities | 0 | 8,996 | 0 | ||||
Settlement of Blowfish mandatory purchase obligation presented in operating activities | 0 | 45,562 | 0 | ||||
Deferred tax valuation allowances | 39,540 | 58,959 | |||||
Restructuring Charges, Total | 2,910 | 13,482 | 96,694 | ||||
Blowfish, LLC | |||||||
Restructuring and Other Special Charges | |||||||
Period after which noncontrolling interest is subject to the mandatory purchase obligation | 3 years | ||||||
Business acquisitions purchase obligation | $ 9,000 | ||||||
Fair value adjustments of mandatory purchase obligation | 0 | 15,400 | 23,900 | ||||
Fair value adjustments of mandatory purchase obligation, after tax basis | $ 11,500 | $ 17,800 | |||||
Fair value adjustments of mandatory purchase obligation, per diluted share (in dollars per share) | $ / shares | $ 0.30 | $ 0.48 | |||||
Settlement of mandatory purchase obligation. | $ 54,600 | ||||||
Settlement of Blowfish mandatory purchase obligation presented in financing activities | $ 9,000 | ||||||
Settlement of Blowfish mandatory purchase obligation presented in operating activities | 45,600 | ||||||
Restructuring and Other Special Charges | Restructuring and Other Special Charges | |||||||
Restructuring and Other Special Charges | |||||||
Total restructuring costs | $ 2,900 | 0 | $ 0 | ||||
Restructuring and related cost, incurred cost, per diluted share | $ / shares | $ 0.07 | ||||||
Restructuring and related cost, incurred cost, after tax | $ 2,700 | ||||||
Restructuring and Other Special Charges | Vionic | |||||||
Restructuring and Other Special Charges | |||||||
Business Combination, Acquisition Related Costs | 0 | 0 | 3,400 | ||||
Business Combination, Acquisition Related Costs, After-Tax Basis | $ 2,600 | ||||||
Business Combination, Acquisition Related Costs Per Share, Diluted | $ / shares | $ 0.07 | ||||||
Brand Portfolio | Naturalizer Store Closings | Restructuring and Other Special Charges | |||||||
Restructuring and Other Special Charges | |||||||
Number of retail stores closed | store | 73 | ||||||
Brand Portfolio | Fergie Brand Exit and Close Naturalizer Stores | |||||||
Restructuring and Other Special Charges | |||||||
Total restructuring costs | $ 16,400 | ||||||
Restructuring and related cost, incurred cost, per diluted share | $ / shares | $ 0.40 | ||||||
Restructuring and related cost, incurred cost, after tax | $ 14,900 | ||||||
Brand Portfolio | Fergie Brand Exit and Close Naturalizer Stores | Inventory Mark downs | |||||||
Restructuring and Other Special Charges | |||||||
Total restructuring costs | 4,000 | ||||||
Brand Portfolio | Fergie Brand Exit and Close Naturalizer Stores | Restructuring and Other Special Charges | |||||||
Restructuring and Other Special Charges | |||||||
Total restructuring costs | 12,400 | ||||||
Brand Portfolio | Restructuring and Other Special Charges | Naturalizer Store Closings | Restructuring and Other Special Charges | |||||||
Restructuring and Other Special Charges | |||||||
Total restructuring costs | $ 13,500 | ||||||
Restructuring and related cost, incurred cost, per diluted share | $ / shares | $ 0.31 | ||||||
Restructuring and related cost, incurred cost, after tax | $ 11,900 | ||||||
Brand Portfolio | Restructuring and Other Special Charges | Vionic | |||||||
Restructuring and Other Special Charges | |||||||
Business Combination, Acquisition Related Costs | 3,300 | ||||||
Brand Portfolio | Other Accrued Expenses | Naturalizer Store Closings | |||||||
Restructuring and Other Special Charges | |||||||
Restructuring reserve | 0 | 400 | |||||
Eliminations and Other | Restructuring and Other Special Charges | Vionic | |||||||
Restructuring and Other Special Charges | |||||||
Business Combination, Acquisition Related Costs | $ 100 | ||||||
COVID-19 | |||||||
Restructuring and Other Special Charges | |||||||
Restructuring and related cost, incurred cost, per diluted share | $ / shares | $ 3.10 | ||||||
Restructuring and related costs, incurred cost, total | $ 0 | $ 0 | $ 114,300 | ||||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of goods sold, Restructuring Charges, Total | Cost of goods sold, Restructuring Charges, Total | Cost of goods sold, Restructuring Charges, Total | ||||
Restructuring and related cost, incurred cost, after tax | $ 115,500 | ||||||
COVID-19 | Cost of Sales | |||||||
Restructuring and Other Special Charges | |||||||
Inventory write-down | 33,400 | ||||||
COVID-19 | Restructuring and Other Special Charges | |||||||
Restructuring and Other Special Charges | |||||||
Restructuring Charges, Total | 80,900 | ||||||
COVID-19 | Brand Portfolio | Cost of Sales | |||||||
Restructuring and Other Special Charges | |||||||
Inventory write-down | 27,400 | ||||||
COVID-19 | Brand Portfolio | Restructuring and Other Special Charges | |||||||
Restructuring and Other Special Charges | |||||||
Restructuring Charges, Total | 63,700 | ||||||
COVID-19 | Famous Footwear | Cost of Sales | |||||||
Restructuring and Other Special Charges | |||||||
Inventory write-down | 6,000 | ||||||
COVID-19 | Famous Footwear | Restructuring and Other Special Charges | |||||||
Restructuring and Other Special Charges | |||||||
Restructuring Charges, Total | 16,600 | ||||||
COVID-19 | Eliminations and Other | Restructuring and Other Special Charges | |||||||
Restructuring and Other Special Charges | |||||||
Restructuring Charges, Total | $ 600 |
RETIREMENT AND OTHER BENEFIT _3
RETIREMENT AND OTHER BENEFIT PLANS (Details) - USD ($) | 12 Months Ended | |||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Dec. 31, 2015 | |
Retirement and Other Benefit Plans | ||||
Defined Benefit Plan, Plan Assets, Amount, Ending Balance | $ 342,416,000 | $ 427,156,000 | ||
Management | ||||
Retirement and Other Benefit Plans | ||||
Deferred Compensation Arrangement with Individual, Maximum Percentage of Deferral of Base Salary | 50% | |||
Deferred Compensation Arrangement with Individual, Maximum Percentage of Deferral of Annual Incentive Compensation | 100% | |||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 7,900,000 | 7,500,000 | ||
Deferred Compensation Plan Assets | 7,900,000 | 7,500,000 | ||
Non-employee Director | ||||
Retirement and Other Benefit Plans | ||||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 1,800,000 | $ 1,800,000 | ||
Non-employee Director | Phantom Share Units (PSUs) | ||||
Retirement and Other Benefit Plans | ||||
Deferred Compensation Arrangement with Individual, Shares Issued | 60,067 | 64,227 | ||
Long-term Investments | ||||
Retirement and Other Benefit Plans | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 97% | |||
Short-term Investments 1 | ||||
Retirement and Other Benefit Plans | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 3% | |||
Equities | ||||
Retirement and Other Benefit Plans | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 70% | |||
Debt Securities 1 | ||||
Retirement and Other Benefit Plans | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 30% | |||
Domestic Defined Contribution 401(k) Plan | ||||
Retirement and Other Benefit Plans | ||||
Defined Contribution Plan, Employer Core Contribution | 1.50% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6% | |||
Defined Contribution Plan, Percentage of employee contributions matched by employer | 50% | |||
Defined Contribution Plan, Employer Matching Contribution, Additional Discretionary Percentage | 2% | |||
Defined Contribution Plan, Cost | $ 4,600,000 | $ 5,500,000 | $ 4,000,000 | |
Defined contribution plan, Profit sharing contribution expense | 2,600,000 | 3,300,000 | ||
Pension Plan | ||||
Retirement and Other Benefit Plans | ||||
Defined Benefit Plan, Benefit Obligation, Ending Balance | 285,572,000 | 355,286,000 | 365,570,000 | |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) Due to Change in Mortality Projection Scales | 1,100,000 | |||
Defined Benefit Plan, Plan Assets, Amount, Ending Balance | 356,745,000 | 444,091,000 | 444,717,000 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position, Total | 71,173,000 | 88,805,000 | ||
Postretirement Life Insurance | ||||
Retirement and Other Benefit Plans | ||||
Defined Benefit Plan, Maximum Insurance Coverage | 20,000 | |||
Other Postretirement Benefits Plan | ||||
Retirement and Other Benefit Plans | ||||
Defined Benefit Plan, Benefit Obligation, Ending Balance | 1,018,000 | 1,143,000 | $ 1,249,000 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position, Total | $ (1,018,000) | (1,143,000) | ||
UNITED STATES | Pension Plan | ||||
Retirement and Other Benefit Plans | ||||
Defined Benefit Plan, Years Service Cap | 35 years | |||
Defined Benefit Plan, Number of Highest Annual Salary Consecutive Years | 5 years | |||
Defined Benefit Plan, Number of Years Before Retirement | 10 years | |||
Defined Benefit Plan, Maximum Years of Service | 30 years | |||
Defined Benefit Plan, Benefit Obligation, Ending Balance | $ 280,500,000 | 348,800,000 | ||
Foreign Plan | Pension Plan | ||||
Retirement and Other Benefit Plans | ||||
Defined Benefit Plan, Number of Highest Annual Salary Consecutive Years | 5 years | |||
Defined Benefit Plan, Number of Years Before Retirement | 10 years | |||
Defined Benefit Plan, Benefit Obligation, Ending Balance | $ 3,300,000 | $ 3,900,000 | ||
Defined Benefit Plan, Plan Assets, Amount, Ending Balance | $ 4,500,000 | |||
Foreign Plan | Pension Plan | Equities | ||||
Retirement and Other Benefit Plans | ||||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 55% | |||
Foreign Plan | Pension Plan | Bond Funds | ||||
Retirement and Other Benefit Plans | ||||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 42% | |||
Foreign Plan | Pension Plan | Money Market Fund | ||||
Retirement and Other Benefit Plans | ||||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 3% |
RETIREMENT AND OTHER BENEFIT _4
RETIREMENT AND OTHER BENEFIT PLANS - Changes in Benefit Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Pension Plan | |||
Retirement and Other Benefit Plans | |||
Benefit obligation | $ 355,286 | $ 365,570 | |
Service cost | 7,143 | 7,494 | $ 8,492 |
Interest cost | 11,977 | 11,236 | 12,205 |
Plan participant's contribution | 10 | 11 | |
Plan amendments | 407 | ||
Actuarial (gain) loss | (70,775) | (13,962) | |
Benefits paid | (15,440) | (15,062) | |
Settlements | (3,032) | ||
Curtailments | 13 | ||
Foreign exchange rate changes | (17) | (1) | |
Benefit obligation | 285,572 | 355,286 | 365,570 |
Other Postretirement Benefits Plan | |||
Retirement and Other Benefit Plans | |||
Benefit obligation | 1,143 | 1,249 | |
Interest cost | 35 | 35 | 41 |
Plan participant's contribution | 4 | 5 | |
Actuarial (gain) loss | (85) | (50) | |
Benefits paid | (79) | (96) | |
Benefit obligation | $ 1,018 | $ 1,143 | $ 1,249 |
RETIREMENT AND OTHER BENEFIT _5
RETIREMENT AND OTHER BENEFIT PLANS - Weighted-average Assumptions Used (Details) | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Pension Plan | |||
Retirement and Other Benefit Plans | |||
Discount rate, benefit obligations | 5.20% | 3.40% | |
Rate of compensation increase, benefit obligations | 3% | 3% | |
Discount rate, net periodic benefit income | 3.40% | 3.10% | 3.25% |
Rate of compensation increase, net periodic benefit income | 3% | 3% | 3% |
Expected return on plan assets, net periodic benefit income | 7.20% | 7.25% | 7.50% |
Other Postretirement Benefits Plan | |||
Retirement and Other Benefit Plans | |||
Discount rate, benefit obligations | 5.20% | 3.40% | |
Discount rate, net periodic benefit income | 3.40% | 3.10% | 3.25% |
RETIREMENT AND OTHER BENEFIT _6
RETIREMENT AND OTHER BENEFIT PLANS - Pension Plan Assets (Details) - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Retirement and Other Benefit Plans | ||
Plan assets | $ 342,416 | $ 427,156 |
Investments | 14,329 | 16,935 |
Total investments at fair value | 356,745 | 444,091 |
Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 310,224 | 371,008 |
Total investments at fair value | 310,224 | 371,008 |
Fair Value, Inputs, Level 2 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 31,857 | 55,625 |
Total investments at fair value | 31,857 | 55,625 |
Fair Value, Inputs, Level 3 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 335 | 523 |
Total investments at fair value | 335 | 523 |
Defined Benefit Plan, Cash and Cash Equivalents | ||
Retirement and Other Benefit Plans | ||
Plan assets | 12,962 | 11,714 |
Defined Benefit Plan, Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 12,962 | 11,714 |
US Government Agencies Debt Securities | ||
Retirement and Other Benefit Plans | ||
Plan assets | 80,522 | 102,525 |
US Government Agencies Debt Securities | Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 45,872 | 46,668 |
US Government Agencies Debt Securities | Fair Value, Inputs, Level 2 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 34,650 | 55,857 |
Interest Rate Swap Agreements | ||
Retirement and Other Benefit Plans | ||
Plan assets | (2,793) | (232) |
Interest Rate Swap Agreements | Fair Value, Inputs, Level 2 | ||
Retirement and Other Benefit Plans | ||
Plan assets | (2,793) | (232) |
Mutual Fund | ||
Retirement and Other Benefit Plans | ||
Plan assets | 29,548 | 31,595 |
Mutual Fund | Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 29,548 | 31,595 |
Exchange Traded Funds | ||
Retirement and Other Benefit Plans | ||
Plan assets | 92,338 | 120,323 |
Exchange Traded Funds | Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 92,338 | 120,323 |
Defined Benefit Plan, Equity Securities, Common Stock | ||
Retirement and Other Benefit Plans | ||
Plan assets | 132,138 | 155,014 |
Defined Benefit Plan, Equity Securities, Common Stock | Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 132,138 | 155,014 |
Preferred Securities | ||
Retirement and Other Benefit Plans | ||
Plan assets | 335 | 523 |
Preferred Securities | Fair Value, Inputs, Level 3 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 335 | 523 |
S&P 500 Index Options | ||
Retirement and Other Benefit Plans | ||
Plan assets | (2,634) | 5,694 |
S&P 500 Index Options | Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | (2,634) | 5,694 |
Alternative Investment Fund | ||
Retirement and Other Benefit Plans | ||
Investments | 14,293 | 16,891 |
Unallocated Insurance Contracts | ||
Retirement and Other Benefit Plans | ||
Investments | $ 36 | $ 44 |
RETIREMENT AND OTHER BENEFIT _7
RETIREMENT AND OTHER BENEFIT PLANS - Changes in Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 28, 2023 | Jan. 29, 2022 | |
Retirement and Other Benefit Plans | ||
Fair value of plan assets | $ 427,156 | |
Fair value of plan assets | 342,416 | $ 427,156 |
Pension Plan | ||
Retirement and Other Benefit Plans | ||
Fair value of plan assets | 444,091 | 444,717 |
Actual return on plan assets | (69,361) | 14,322 |
Employer contributions | 494 | 104 |
Plan participant's contributions | 10 | 11 |
Benefits paid | (15,440) | (15,062) |
Settlements | (3,032) | |
Foreign exchange rate changes | (17) | (1) |
Fair value of plan assets | 356,745 | 444,091 |
Other Postretirement Benefits Plan | ||
Retirement and Other Benefit Plans | ||
Employer contributions | 75 | 91 |
Plan participant's contributions | 4 | 5 |
Benefits paid | $ (79) | $ (96) |
RETIREMENT AND OTHER BENEFIT _8
RETIREMENT AND OTHER BENEFIT PLANS - Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Retirement and Other Benefit Plans | ||
Prepaid pension costs | $ 83,396 | $ 99,139 |
Pension Plan | ||
Retirement and Other Benefit Plans | ||
Prepaid pension costs | 83,396 | 99,139 |
Accrued benefit liabilities (current liability) | (5,189) | (3,755) |
Accrued benefit liabilities (noncurrent liability) | (7,034) | (6,579) |
Net amount recognized at end of year | 71,173 | 88,805 |
Other Postretirement Benefits Plan | ||
Retirement and Other Benefit Plans | ||
Accrued benefit liabilities (current liability) | (182) | (189) |
Accrued benefit liabilities (noncurrent liability) | (836) | (954) |
Net amount recognized at end of year | $ (1,018) | $ (1,143) |
RETIREMENT AND OTHER BENEFIT _9
RETIREMENT AND OTHER BENEFIT PLANS - Projected and Accumulated Benefit Obligation in Excess of Plan Assets (Details) - Supplemental Employee Retirement Plan - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Retirement and Other Benefit Plans | ||
Projected benefit obligation | $ 12,223 | $ 10,334 |
Projected benefit obligation | 12,223 | 10,334 |
Accumulated benefit obligation | 11,392 | 9,247 |
Accumulated benefit obligation | $ 11,392 | $ 9,247 |
RETIREMENT AND OTHER BENEFIT_10
RETIREMENT AND OTHER BENEFIT PLANS - Amounts in Accumulated Other Comprehensive Loss and Expected Amortization (Details) - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Pension Plan | ||
Retirement and Other Benefit Plans | ||
Net actuarial loss (gain) | $ 25,967 | $ 8,807 |
Net prior service credit | (20) | (565) |
Accumulated other comprehensive loss, net of tax | 25,947 | 8,242 |
Other Postretirement Benefits Plan | ||
Retirement and Other Benefit Plans | ||
Net actuarial loss (gain) | (410) | (424) |
Accumulated other comprehensive loss, net of tax | $ (410) | $ (424) |
RETIREMENT AND OTHER BENEFIT_11
RETIREMENT AND OTHER BENEFIT PLANS - Net Periodic Benefit Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Retirement and Other Benefit Plans | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income, net | Other income, net | Other income, net |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income, net | Other income, net | Other income, net |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income, net | Other income, net | Other income, net |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income, net | Other income, net | Other income, net |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income, net | Other income, net | Other income, net |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income, net | Other income, net | Other income, net |
Pension Plan | |||
Retirement and Other Benefit Plans | |||
Service cost | $ 7,143 | $ 7,494 | $ 8,492 |
Interest cost | 11,977 | 11,236 | 12,205 |
Expected return on assets | (27,987) | (28,437) | (31,498) |
Actuarial loss (gain) | 3,088 | 2,410 | 2,718 |
Prior service credit | (314) | (514) | (1,354) |
Settlement cost | 320 | 1,353 | |
Curtailments | 13 | (189) | |
Total net periodic benefit income | (5,760) | (7,811) | (8,273) |
Other Postretirement Benefits Plan | |||
Retirement and Other Benefit Plans | |||
Interest cost | 35 | 35 | 41 |
Actuarial loss (gain) | (103) | (108) | (110) |
Total net periodic benefit income | $ (68) | $ (73) | $ (69) |
RETIREMENT AND OTHER BENEFIT_12
RETIREMENT AND OTHER BENEFIT PLANS - Expected Cash Flows (Details) $ in Thousands | Jan. 28, 2023 USD ($) |
Pension Plan | |
Retirement and Other Benefit Plans | |
2023 refund of assets (e.g. surplus) to employer | $ 135 |
2023 | 20,497 |
2024 | 17,939 |
2025 | 19,283 |
2026 | 17,530 |
2027 | 18,158 |
2028-2032 | 93,583 |
Pension Plan | Trust for Benefit of Employees | |
Retirement and Other Benefit Plans | |
2023 expected employer contributions | 91 |
Pension Plan | Plan Participants | |
Retirement and Other Benefit Plans | |
2023 expected employer contributions | 5,323 |
Pension Plan | Funded Plan | |
Retirement and Other Benefit Plans | |
2023 refund of assets (e.g. surplus) to employer | 135 |
2023 | 15,174 |
2024 | 15,591 |
2025 | 16,272 |
2026 | 16,855 |
2027 | 17,302 |
2028-2032 | 91,942 |
Pension Plan | Funded Plan | Trust for Benefit of Employees | |
Retirement and Other Benefit Plans | |
2023 expected employer contributions | 91 |
Supplemental Employee Retirement Plan | |
Retirement and Other Benefit Plans | |
2023 | 5,323 |
2024 | 2,348 |
2025 | 3,011 |
2026 | 675 |
2027 | 856 |
2028-2032 | 1,641 |
Supplemental Employee Retirement Plan | Plan Participants | |
Retirement and Other Benefit Plans | |
2023 expected employer contributions | 5,323 |
Other Postretirement Benefits Plan | |
Retirement and Other Benefit Plans | |
2023 | 187 |
2024 | 153 |
2025 | 124 |
2026 | 101 |
2027 | 81 |
2028-2032 | 217 |
Other Postretirement Benefits Plan | Plan Participants | |
Retirement and Other Benefit Plans | |
2023 expected employer contributions | $ 187 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Oct. 30, 2022 | Jan. 28, 2023 | Jan. 29, 2022 | Dec. 31, 2021 | Jan. 30, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 35% | ||||
Earnings (Loss) from Continuing Operations before Income Taxes, Domestic | $ 168,000 | $ 152,500 | $ (441,500) | |||
Earnings Loss) from Continuing Operations before Income Taxes, International | 45,000 | 36,700 | (75,600) | |||
Goodwill, impairment loss | $ 0 | |||||
Net operating loss | 13,300 | |||||
Valuation allowance on net deferred taxes | 39,540 | 58,959 | ||||
Deferred Income Tax Expense (Benefit), Total | 4,270 | 6,487 | (37,034) | |||
Unrecognized Tax Benefits | 0 | $ 1,000 | 1,500 | |||
Income tax benefit related to the carryback of the net operating loss | $ 8,200 | |||||
CANADA | ||||||
Effective Income Tax Rate Reconciliation | ||||||
Net operating loss | $ 5,700 | |||||
CANADA | Minimum | ||||||
Effective Income Tax Rate Reconciliation | ||||||
Operating loss carryforwards period | 18 years | |||||
CANADA | Maximum | ||||||
Effective Income Tax Rate Reconciliation | ||||||
Operating loss carryforwards period | 19 years | |||||
UNITED KINGDOM | ||||||
Effective Income Tax Rate Reconciliation | ||||||
Net operating loss | $ 2,100 | |||||
State and Local Jurisdiction and Foreign Tax Authority | ||||||
Effective Income Tax Rate Reconciliation | ||||||
Net operating loss | $ 5,500 | |||||
State and Local Jurisdiction and Foreign Tax Authority | Minimum | ||||||
Effective Income Tax Rate Reconciliation | ||||||
Operating loss carryforwards period | 1 year | |||||
State and Local Jurisdiction and Foreign Tax Authority | Maximum | ||||||
Effective Income Tax Rate Reconciliation | ||||||
Operating loss carryforwards period | 20 years | |||||
Foreign Tax Authority | ||||||
Effective Income Tax Rate Reconciliation | ||||||
Deferred Income Tax Expense (Benefit), Total | $ 0 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Provision (Benefit) on Earnings (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Components of Income Tax Provision (Benefit) on Earnings (Loss) | |||
Current | $ 11,506 | $ 36,388 | $ (37,140) |
Deferred | 6,975 | (227) | (45,145) |
Total federal income tax provision (benefit) | 18,481 | 36,161 | (82,285) |
Current | 6,660 | 4,012 | 1,532 |
Deferred | 3,421 | 6,531 | (9,038) |
Total state income tax provision (benefit) | 10,081 | 10,543 | (7,506) |
Current | 4,759 | 4,615 | 2,288 |
Deferred | 18 | (238) | 9,386 |
Total international income tax provision | 4,777 | 4,377 | 11,674 |
Total income tax provision (benefit) | $ 33,339 | $ 51,081 | $ (78,117) |
INCOME TAXES - Differences Betw
INCOME TAXES - Differences Between the Income Tax Provision (Benefit) and Federal Statutory Income Tax Rate Calculation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income taxes at statutory rate | $ 44,737 | $ 39,741 | $ (108,593) |
State income taxes, net of federal tax benefit | 8,981 | 8,361 | (17,433) |
International earnings taxed at differing rates from U.S. statutory | (1,974) | (3,588) | (5,210) |
Share-based compensation. | (602) | 94 | 1,094 |
Provision for valuation allowance, net of utilization | (20,743) | 8,978 | 41,019 |
Non-deductibility of 162(m) limitations | 3,363 | 3,377 | 1,005 |
GILTI, BEAT and FDII provisions | 422 | 346 | 0 |
Non-deductibility of goodwill impairment | 0 | 0 | 20,179 |
Impairment of international tradename taxed at higher rate | 0 | 0 | (1,440) |
CARES Act NOL, net carryback benefit | 0 | 365 | (8,203) |
International entity restructuring | 0 | (6,697) | 0 |
Other | (845) | 104 | (535) |
Total income tax provision (benefit) | $ 33,339 | $ 51,081 | $ (78,117) |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits [Abstract] | ||
Lease obligations | $ 147,910 | $ 149,123 |
Goodwill | 38,407 | 43,510 |
Net operating loss carryforward/carryback | 13,303 | 14,441 |
Accrued expenses | 19,478 | 25,314 |
Employee benefits, compensation and insurance | 17,350 | 15,751 |
Accounts receivable | 6,304 | 5,735 |
Inventory capitalization and inventory reserves | 6,642 | 6,013 |
Impairment of investment in nonconsolidated affiliate | 1,470 | 1,470 |
Postretirement and postemployment benefit plans | 228 | 259 |
Other | 1,261 | 1,261 |
Total deferred tax assets, before valuation allowance | 252,353 | 262,877 |
Valuation allowance | (39,540) | (58,959) |
Total deferred tax assets, net of valuation allowance | 212,813 | 203,918 |
Lease right-of-use assets | (136,618) | (134,888) |
Intangible assets | (12,054) | (10,624) |
LIFO inventory valuation | (46,551) | (37,675) |
Retirement plans | (19,381) | (23,718) |
Capitalized software | (3,309) | (5,042) |
Depreciation | (10,823) | (3,818) |
Other | (3,078) | (2,884) |
Total deferred tax liabilities | (231,814) | (218,649) |
Net deferred tax liability | $ (19,001) | $ (14,731) |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized Tax Benefits, Beginning Balance | $ 1 | $ 1.5 |
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 1 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Key Financial Measures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Business Segment Information - Key Financial Measures | |||
Net sales | $ 2,968,138 | $ 2,777,604 | $ 2,117,070 |
Intersegment sales | 59,727 | 51,690 | 48,962 |
Depreciation and amortization | 49,011 | 52,330 | 60,539 |
Operating earnings (loss) | 214,327 | 205,807 | (485,658) |
Segment assets | 1,836,472 | 1,843,926 | 1,867,050 |
Purchases of property and equipment | 55,913 | 18,393 | 16,786 |
Capitalized software | 8,124 | 5,752 | 5,274 |
Famous Footwear | |||
Business Segment Information - Key Financial Measures | |||
Net sales | 1,705,093 | 1,748,291 | 1,263,551 |
Intersegment sales | 0 | 0 | 0 |
Depreciation and amortization | 20,585 | 20,333 | 23,090 |
Operating earnings (loss) | 195,837 | 276,415 | (23,821) |
Segment assets | 767,575 | 705,063 | 765,754 |
Purchases of property and equipment | 41,755 | 12,480 | 7,693 |
Capitalized software | 0 | 121 | 870 |
Brand Portfolio | |||
Business Segment Information - Key Financial Measures | |||
Net sales | 1,322,772 | 1,081,003 | 902,481 |
Intersegment sales | 59,727 | 51,690 | 48,962 |
Depreciation and amortization | 21,812 | 23,762 | 28,889 |
Operating earnings (loss) | 112,345 | 35,928 | (408,444) |
Segment assets | 921,110 | 944,241 | 851,027 |
Purchases of property and equipment | 4,170 | 3,977 | 6,486 |
Capitalized software | 42 | 8 | 153 |
Eliminations and Other | |||
Business Segment Information - Key Financial Measures | |||
Net sales | (59,727) | (51,690) | (48,962) |
Intersegment sales | 0 | 0 | 0 |
Depreciation and amortization | 6,614 | 8,235 | 8,560 |
Operating earnings (loss) | (93,855) | (106,536) | (53,393) |
Segment assets | 147,787 | 194,622 | 250,269 |
Purchases of property and equipment | 9,988 | 1,936 | 2,607 |
Capitalized software | $ 8,082 | $ 5,623 | $ 4,251 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Reconciliation of Operating Earnings Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
BUSINESS SEGMENT INFORMATION | |||
Operating earnings (loss) | $ 214,327 | $ 205,807 | $ (485,658) |
Interest expense, net | (14,264) | (30,930) | (48,287) |
Loss on early extinguishment of debt | 0 | (1,011) | 0 |
Other income, net | 12,971 | 15,378 | 16,834 |
Earnings (loss) before income taxes | $ 213,034 | $ 189,244 | $ (517,111) |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 USD ($) store item | Jan. 29, 2022 USD ($) | Jan. 30, 2021 USD ($) | |
Revenues from External Customers and Long-Lived Assets | |||
Number of Stores | store | 965 | ||
Operating lease, right-of-use asset | $ 518,196 | $ 503,430 | |
Total net sales | 2,968,138 | 2,777,604 | $ 2,117,070 |
Total long-lived assets | 679,079 | 653,668 | 726,740 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets | |||
Total net sales | 2,763,896 | 2,600,848 | 1,984,713 |
Total long-lived assets | 656,840 | 630,519 | 703,642 |
Eastern Asia | |||
Revenues from External Customers and Long-Lived Assets | |||
Total net sales | 146,700 | 119,857 | 77,793 |
Total long-lived assets | 11,614 | 8,357 | 2,660 |
CANADA | |||
Revenues from External Customers and Long-Lived Assets | |||
Total net sales | 44,484 | 43,789 | 46,781 |
Total long-lived assets | 10,441 | 14,687 | 20,246 |
Other. | |||
Revenues from External Customers and Long-Lived Assets | |||
Total net sales | 13,058 | 13,110 | 7,783 |
Total long-lived assets | $ 184 | 105 | 192 |
Famous Footwear | |||
Revenues from External Customers and Long-Lived Assets | |||
Number of Stores | store | 873 | ||
Total net sales | $ 1,705,093 | $ 1,748,291 | $ 1,263,551 |
Famous Footwear | Three Suppliers | Supplier Concentration Risk | Revenue Benchmark | |||
Revenues from External Customers and Long-Lived Assets | |||
Concentration risk percentage | 24% | 26% | 25% |
Number of key suppliers | item | 3 | ||
Brand Portfolio | |||
Revenues from External Customers and Long-Lived Assets | |||
Total net sales | $ 1,322,772 | $ 1,081,003 | $ 902,481 |
Brand Portfolio | UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets | |||
Number of Stores | store | 63 | ||
Brand Portfolio | CHINA | |||
Revenues from External Customers and Long-Lived Assets | |||
Number of Stores | store | 29 |
INVENTORIES- Schedule of Invent
INVENTORIES- Schedule of Inventories (Details) - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
INVENTORIES | ||
Raw materials | $ 21,172 | $ 16,764 |
Work-in-process | 569 | 614 |
Finished goods | 558,474 | 579,429 |
Inventories, net | $ 580,215 | $ 596,807 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
INVENTORIES | ||
Finished goods product subject to consignment arrangements with wholesale customers | $ 0.2 | $ 0.1 |
PROPERTY AND EQUIPMENT - Proper
PROPERTY AND EQUIPMENT - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 28, 2023 | Jan. 29, 2022 | |
Property and Equipment | ||
Property and equipment | $ 549,862 | $ 523,622 |
Allowances for depreciation | (388,979) | (373,384) |
Property and equipment, net | 160,883 | 150,238 |
Land and Building | ||
Property and Equipment | ||
Property and equipment | $ 37,394 | 48,355 |
Building | Minimum | ||
Property and Equipment | ||
Useful life (Year) | 5 years | |
Building | Maximum | ||
Property and Equipment | ||
Useful life (Year) | 30 years | |
Leasehold Improvements | ||
Property and Equipment | ||
Property and equipment | $ 204,378 | 197,218 |
Leasehold Improvements | Minimum | ||
Property and Equipment | ||
Useful life (Year) | 5 years | |
Leasehold Improvements | Maximum | ||
Property and Equipment | ||
Useful life (Year) | 20 years | |
Technology Equipment | ||
Property and Equipment | ||
Property and equipment | $ 50,628 | 49,550 |
Technology Equipment | Minimum | ||
Property and Equipment | ||
Useful life (Year) | 2 years | |
Technology Equipment | Maximum | ||
Property and Equipment | ||
Useful life (Year) | 10 years | |
Machinery and Equipment | ||
Property and Equipment | ||
Property and equipment | $ 106,197 | 98,308 |
Machinery and Equipment | Minimum | ||
Property and Equipment | ||
Useful life (Year) | 4 years | |
Machinery and Equipment | Maximum | ||
Property and Equipment | ||
Useful life (Year) | 20 years | |
Furniture and Fixtures | ||
Property and Equipment | ||
Property and equipment | $ 130,761 | 127,125 |
Furniture and Fixtures | Minimum | ||
Property and Equipment | ||
Useful life (Year) | 3 years | |
Furniture and Fixtures | Maximum | ||
Property and Equipment | ||
Useful life (Year) | 10 years | |
Construction in Progress | ||
Property and Equipment | ||
Property and equipment | $ 20,504 | $ 3,066 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) $ in Thousands | 12 Months Ended | |||
Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | Jan. 30, 2021 USD ($) | Apr. 30, 2021 a | |
Asset Impairment Charges | ||||
Impairment of long-lived assets held-for-use | $ 1,803 | $ 4,135 | $ 56,343 | |
Corporate Headquarters, Clayton, Missouri | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Asset Impairment Charges | ||||
Number of acres | a | 9 | |||
Restructuring and Other Special Charges | ||||
Asset Impairment Charges | ||||
Impairment of long-lived assets held-for-use | 55,300 | |||
Selling and Administrative Expenses | ||||
Asset Impairment Charges | ||||
Impairment of long-lived assets held-for-use | $ 1,000 |
GOODWILL AND INTANGIBLE ASSETS-
GOODWILL AND INTANGIBLE ASSETS- Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Goodwill and Intangible Assets | ||
Intangible assets | $ 344,883 | $ 344,883 |
Accumulated amortization | (134,447) | (122,336) |
Total intangible assets, net | 210,436 | 222,547 |
Goodwill | 4,956 | 4,956 |
Goodwill and intangible assets, net | 215,392 | 227,503 |
Famous Footwear | ||
Goodwill and Intangible Assets | ||
Intangible assets | 2,800 | 2,800 |
Brand Portfolio | ||
Goodwill and Intangible Assets | ||
Intangible assets | 342,083 | 342,083 |
Goodwill | 4,956 | 4,956 |
Goodwill, accumulated impairment charges | $ 415,700 | $ 415,700 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS- Finite and Infinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Nov. 01, 2020 | May 02, 2020 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Goodwill and Intangible Assets | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 134,447 | $ 122,336 | |||
Accumulated Impairment | $ 106,205 | 106,205 | |||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of goodwill and intangible assets | ||||
Intangible assets, cost basis | $ 451,088 | 451,088 | |||
Intangible Assets, Impairment | 0 | 0 | $ 46,200 | ||
Intangible Assets, Net Carrying Value | 210,436 | 222,547 | |||
Indefinite-lived Trade names | |||||
Goodwill and Intangible Assets | |||||
Accumulated Impairment | 92,000 | 92,000 | |||
Indefinite-Lived Intangible Assets, Cost Basis | $ 107,400 | 107,400 | |||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of goodwill and intangible assets | ||||
Indefinite-lived intangible assets, net carrying value | $ 15,400 | 15,400 | |||
Trade names | |||||
Goodwill and Intangible Assets | |||||
Finite-lived intangible assets, cost basis | 299,488 | 299,488 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 121,928 | 112,061 | |||
Accumulated Impairment | 10,200 | 10,200 | |||
Finite-Lived Intangible Assets, Net Carrying Value | $ 167,360 | $ 177,227 | |||
Trade names | Minimum | |||||
Goodwill and Intangible Assets | |||||
Finite-Lived Intangible Assets, Estimated Useful Life (Year) | 2 years | 2 years | |||
Trade names | Maximum | |||||
Goodwill and Intangible Assets | |||||
Finite-Lived Intangible Assets, Estimated Useful Life (Year) | 40 years | 40 years | |||
Customer Relationships | |||||
Goodwill and Intangible Assets | |||||
Finite-lived intangible assets, cost basis | $ 44,200 | $ 44,200 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 12,519 | 10,275 | |||
Accumulated Impairment | 4,005 | 4,005 | |||
Finite-Lived Intangible Assets, Net Carrying Value | $ 27,676 | $ 29,920 | |||
Customer Relationships | Minimum | |||||
Goodwill and Intangible Assets | |||||
Finite-Lived Intangible Assets, Estimated Useful Life (Year) | 15 years | 15 years | |||
Customer Relationships | Maximum | |||||
Goodwill and Intangible Assets | |||||
Finite-Lived Intangible Assets, Estimated Useful Life (Year) | 16 years | 16 years | |||
Via Spiga | Indefinite-lived Via Spiga Trademark | |||||
Goodwill and Intangible Assets | |||||
Indefinite-Lived Intangible Assets, Impairment | $ 10,200 | ||||
Allen Edmonds | |||||
Goodwill and Intangible Assets | |||||
Finite-lived intangible assets, impairment | $ 23,800 | ||||
Allen Edmonds | Trade names | |||||
Goodwill and Intangible Assets | |||||
Finite-lived intangible assets, impairment | 19,800 | ||||
Allen Edmonds | Customer Relationships | |||||
Goodwill and Intangible Assets | |||||
Finite-lived intangible assets, impairment | $ 4,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Oct. 30, 2022 | Nov. 01, 2020 | May 02, 2020 | May 02, 2020 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Goodwill and Intangible Assets | |||||||
Amortization of intangible assets | $ 12,111 | $ 12,568 | $ 12,984 | ||||
2023 | 11,900 | ||||||
2024 | 11,000 | ||||||
2025 | 11,000 | ||||||
2026 | 11,000 | ||||||
2027 | $ 10,900 | ||||||
Goodwill, impairment loss | $ 0 | ||||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of goodwill and intangible assets | ||||||
Intangible Assets, Impairment | $ 0 | 0 | 46,200 | ||||
Indefinite-lived Tradenames | |||||||
Goodwill and Intangible Assets | |||||||
Indefinite-Lived Intangible Assets, Impairment | $ 22,400 | ||||||
Blowfish, LLC | |||||||
Goodwill and Intangible Assets | |||||||
Goodwill, impairment loss | $ 0 | ||||||
Brand Portfolio | |||||||
Goodwill and Intangible Assets | |||||||
Intangible Assets, Impairment | $ 46,200 | ||||||
Brand Portfolio | Vionic | |||||||
Goodwill and Intangible Assets | |||||||
Goodwill, impairment loss | 0 | $ 240,300 | |||||
Allen Edmonds | |||||||
Goodwill and Intangible Assets | |||||||
Goodwill, impairment loss | $ 0 | $ 0 | |||||
Finite-lived intangible assets, impairment | 23,800 | ||||||
Allen Edmonds | Indefinite-lived Allen Edmonds Trademark | |||||||
Goodwill and Intangible Assets | |||||||
Indefinite-Lived Intangible Assets, Impairment | 12,200 | ||||||
Allen Edmonds | Trademarks | |||||||
Goodwill and Intangible Assets | |||||||
Finite-lived intangible assets, impairment | 19,800 | ||||||
Allen Edmonds | Customer Relationships | |||||||
Goodwill and Intangible Assets | |||||||
Finite-lived intangible assets, impairment | $ 4,000 | ||||||
Via Spiga | Indefinite-lived Via Spiga Trademark | |||||||
Goodwill and Intangible Assets | |||||||
Indefinite-Lived Intangible Assets, Impairment | $ 10,200 |
FINANCING ARRANGEMENTS (Details
FINANCING ARRANGEMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Jan. 03, 2022 | Oct. 05, 2021 | Aug. 16, 2021 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Jul. 27, 2015 | |
Long-term and Short-term Financing Arrangements | |||||||
Loss on early extinguishment of debt | $ 0 | $ 1,011 | $ 0 | ||||
Senior Notes Due 2023 | |||||||
Long-term and Short-term Financing Arrangements | |||||||
Total senior notes | $ 200,000 | ||||||
Debt instrument, interest rate, stated percentage | 6.25% | ||||||
Principal amount of debt redeemed | $ 100,000 | $ 100,000 | |||||
Senior notes redemption price | 100% | 100% | |||||
Loss on early extinguishment of debt | 800 | ||||||
Revolving Credit Facility | |||||||
Long-term and Short-term Financing Arrangements | |||||||
Line of Credit Facility, Maximum Month-end Outstanding Amount | 380,500 | 290,000 | |||||
Line of Credit Facility, Average Outstanding Amount | $ 356,400 | $ 172,800 | |||||
Debt, Weighted Average Interest Rate | 3.60% | 2.50% | |||||
Total long-term line of credit | $ 307,500 | ||||||
Letters of credit outstanding, amount | 10,600 | ||||||
Line of credit facility, remaining borrowing capacity | $ 181,900 | ||||||
Loss on early extinguishment of debt | $ 200 | ||||||
Revolving Credit Facility | Fifth Amendment to Fourth Amended and Restated Credit Agreement | |||||||
Long-term and Short-term Financing Arrangements | |||||||
Line of credit facility, maximum borrowing capacity | $ 500,000 | ||||||
Line of credit facility, option to increase, amount | 250,000 | ||||||
Line of credit facility, decrease in maximum borrowing capacity | $ 100,000 | ||||||
Debt instrument, decrease in basis spread on variable rate | 0.75% | ||||||
Line of credit facility, excess availability, percent to trigger debt restrictions | 10% | ||||||
Line of credit facility, excess availability to trigger debt restrictions | $ 40,000 | ||||||
Line of credit facility, fixed charge coverage ratio to trigger debt restrictions | 1.25 | ||||||
Minimum | Revolving Credit Facility | Fifth Amendment to Fourth Amended and Restated Credit Agreement | |||||||
Long-term and Short-term Financing Arrangements | |||||||
Debt instrument, basis spread on variable rate | 0% |
LEASES (Details)
LEASES (Details) $ in Thousands | 12 Months Ended | ||||
Jan. 28, 2023 USD ($) location | Jan. 29, 2022 USD ($) | Jan. 30, 2021 USD ($) | Feb. 01, 2025 USD ($) | Feb. 03, 2024 USD ($) | |
Leases | |||||
Impairment of long-lived assets held-for-use | $ 1,803 | $ 4,135 | $ 56,343 | ||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring and other special charges, net, Selling, General and Administrative Expense | Restructuring and other special charges, net, Selling, General and Administrative Expense | Restructuring and other special charges, net, Selling, General and Administrative Expense | ||
Lease concessions | $ 1,300 | $ 2,100 | $ 5,400 | ||
Right-of-use asset obtained in exchange for operating lease liability | $ 162,200 | ||||
Number Of Lease Commitments Not Yet Commenced In Current Fiscal Year | location | 6 | ||||
Total operating lease liability | $ 580,125 | ||||
Operating lease, right-of-use asset | $ 518,196 | 503,430 | |||
Fiscal year 2023 | |||||
Leases | |||||
Number of anticipated leases in next fiscal year | location | 4 | ||||
Total operating lease liability | $ 1,800 | ||||
Operating lease, right-of-use asset | $ 1,800 | ||||
Fiscal year 2024 | |||||
Leases | |||||
Number of anticipated leases in fiscal year 2023 | location | 2 | ||||
Total operating lease liability | $ 2,600 | ||||
Operating lease, right-of-use asset | $ 2,600 | ||||
Selling and Administrative Expenses | |||||
Leases | |||||
Impairment of long-lived assets held-for-use | 1,000 | ||||
Lease concessions | $ 1,300 | 2,100 | 5,400 | ||
Retail Stores | |||||
Leases | |||||
Asset impairment charges | $ 1,800 | $ 4,100 | $ 56,300 |
LEASES- Weighted-average Lease
LEASES- Weighted-average Lease Term and Discount Rate (Details) | Jan. 28, 2023 | Jan. 29, 2022 |
LEASES | ||
Weighted-average remaining lease term (in years) | 6 years | 6 years 6 months |
Weighted-average discount rate | 4.50% | 4.20% |
LEASES- Components of Lease Exp
LEASES- Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
LEASES | |||
Operating lease expense | $ 148,299 | $ 149,850 | $ 167,624 |
Variable lease expense | 40,233 | 40,654 | 48,443 |
Short-term lease expense | 4,059 | 2,837 | 4,512 |
Sublease income | (59) | (652) | (96) |
Total lease expense | $ 192,532 | $ 192,689 | $ 220,483 |
LEASES - Future Minimum Rent Pa
LEASES - Future Minimum Rent Payments (Details) $ in Thousands | Jan. 28, 2023 USD ($) |
LEASES | |
2023 | $ 156,589 |
2024 | 129,221 |
2025 | 100,282 |
2026 | 80,255 |
2027 | 58,171 |
Thereafter | 139,877 |
Total minimum operating lease payments | 664,395 |
Less imputed interest | (84,270) |
Present value of lease obligations | $ 580,125 |
LEASES- Supplemental Cash Flow
LEASES- Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
LEASES | |||
Cash paid for lease obligations | $ 167,163 | $ 179,921 | $ 145,552 |
Cash received from sublease income | $ 59 | $ 652 | $ 96 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Oct. 30, 2022 | Nov. 01, 2020 | May 02, 2020 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Deferred compensation plan, maximum percentage of deferral of base salary | 50% | |||||
Deferred compensation plan, maximum percentage of deferral of annual incentive compensation | 100% | |||||
Fair value adjustments of mandatory purchase obligation | $ 0 | $ 15,424 | $ 23,934 | |||
Intangible Assets, Impairment | 0 | 0 | 46,200 | |||
Goodwill, impairment loss | $ 0 | |||||
Long-lived assets held and used | $ 562,200 | 545,100 | 615,700 | |||
Restricted Stock Units (RSUs) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | |||||
Blowfish, LLC | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value adjustments of mandatory purchase obligation | $ 0 | $ 15,400 | 23,900 | |||
Goodwill, impairment loss | $ 0 | |||||
Brand Portfolio | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Intangible Assets, Impairment | $ 46,200 | |||||
Brand Portfolio | Vionic | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Goodwill, impairment loss | $ 0 | $ 240,300 |
FAIR VALUE MEASUREMENTS- Assets
FAIR VALUE MEASUREMENTS- Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | ||
Non-qualified deferred compensation plan assets | $ 7,890 | $ 7,463 |
Non-qualified deferred compensation plan liabilities | (7,890) | (7,463) |
Deferred compensation plan liabilities for non-employee directors | (1,662) | (1,770) |
Restricted stock units for non-employee directors | (2,028) | (2,568) |
Fair Value, Inputs, Level 1 | ||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | ||
Non-qualified deferred compensation plan assets | 7,890 | 7,463 |
Non-qualified deferred compensation plan liabilities | (7,890) | (7,463) |
Deferred compensation plan liabilities for non-employee directors | (1,662) | (1,770) |
Restricted stock units for non-employee directors | (2,028) | (2,568) |
Fair Value, Inputs, Level 2 | ||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | ||
Non-qualified deferred compensation plan assets | 0 | 0 |
Non-qualified deferred compensation plan liabilities | 0 | 0 |
Deferred compensation plan liabilities for non-employee directors | 0 | 0 |
Restricted stock units for non-employee directors | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | ||
Non-qualified deferred compensation plan assets | 0 | 0 |
Non-qualified deferred compensation plan liabilities | 0 | 0 |
Deferred compensation plan liabilities for non-employee directors | 0 | 0 |
Restricted stock units for non-employee directors | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Impai
FAIR VALUE MEASUREMENTS - Impairment Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | |||
Total long-lived asset impairment charges | $ 1,803 | $ 4,135 | $ 56,343 |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring and other special charges, net, Selling, General and Administrative Expense | Restructuring and other special charges, net, Selling, General and Administrative Expense | Restructuring and other special charges, net, Selling, General and Administrative Expense |
Famous Footwear | |||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | |||
Total long-lived asset impairment charges | $ 200 | $ 1,241 | $ 14,900 |
Brand Portfolio | |||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | |||
Total long-lived asset impairment charges | $ 1,603 | $ 2,894 | $ 41,443 |
FAIR VALUE MEASUREMENTS- Fair V
FAIR VALUE MEASUREMENTS- Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Revolving Credit Facility | Fair Value, Inputs, Level 1 | ||
Fair Value of Financial Instruments | ||
Borrowings under revolving credit agreement | $ 307.5 | $ 290 |
SHAREHOLDERS EQUITY- Narratives
SHAREHOLDERS EQUITY- Narratives (Details) | 12 Months Ended | 41 Months Ended | ||||
Jan. 28, 2023 Vote $ / shares shares | Jan. 29, 2022 $ / shares shares | Jan. 30, 2021 shares | Jan. 28, 2023 Vote $ / shares shares | Mar. 10, 2022 shares | Sep. 02, 2019 shares | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 | $ 1 | |||
Common stock, voting rights | Vote | 1 | 1 | ||||
Stock Repurchase Program, 2019 | ||||||
Stock repurchase program, number of shares authorized to be repurchased | 5,000,000 | |||||
Stock repurchase program, additional number of shares authorized to be repurchased | 0 | 0 | ||||
Repurchases of common stock | 5,000,000 | |||||
Stock Repurchase Program | ||||||
Repurchases of common stock | 2,622,845 | |||||
Stock Repurchase Program, 2022 | ||||||
Stock repurchase program, number of shares authorized to be repurchased | 7,000,000 | 7,000,000 | 7,000,000 | |||
Stock repurchase program, additional number of shares authorized to be repurchased | 6,367,379 | 6,367,379 | ||||
Repurchases Related To Employee Share Based Awards | ||||||
Share-based awards tendered | 246,688 | 205,213 | 160,101 |
SHAREHOLDERS EQUITY - Company S
SHAREHOLDERS EQUITY - Company Stock (Details) - shares | Jan. 28, 2023 | Jan. 29, 2022 |
SHAREHOLDERS' EQUITY | ||
Common shares, Authorized | 100,000,000 | 100,000,000 |
Preferred shares, Authorized | 1,000,000 | 1,000,000 |
Common stock, outstanding (in shares) | 35,715,752 | 37,635,145 |
Treasury shares, Common | 10,371,000 | 8,452,000 |
SHAREHOLDERS EQUITY - Accumulat
SHAREHOLDERS EQUITY - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Balance | $ (8,606) | |||
Other comprehensive (loss) income, net of tax | (18,626) | $ 596 | $ 22,875 | |
Balance | $ (26,750) | (26,750) | (8,606) | |
Increase in valuation allowance on deferred tax assets | (17,400) | |||
Foreign Currency Translation | ||||
Balance | (788) | (111) | (580) | |
Other comprehensive income (loss) before reclassifications | (425) | (677) | 469 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | |
Tax benefit | 0 | 0 | 0 | |
Net reclassifications | 0 | 0 | 0 | |
Other comprehensive (loss) income, net of tax | (425) | (677) | 469 | |
Balance | (1,213) | (1,213) | (788) | (111) |
Pension and Other Postretirement Transactions | ||||
Balance | (7,818) | (9,025) | (31,171) | |
Other comprehensive income (loss) before reclassifications | (19,776) | (116) | 20,351 | |
Amounts reclassified from accumulated other comprehensive loss | 2,991 | 1,788 | 2,418 | |
Tax benefit | (934) | (465) | (623) | |
Net reclassifications | 2,057 | 1,323 | 1,795 | |
Other comprehensive (loss) income, net of tax | (17,719) | 1,207 | 22,146 | |
Balance | (25,537) | (25,537) | (7,818) | (9,025) |
Derivative Transactions | ||||
Balance | 0 | 0 | (92) | |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 87 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 6 | |
Tax benefit | 0 | 0 | (1) | |
Net reclassifications | 0 | 0 | 5 | |
Other comprehensive (loss) income, net of tax | 0 | 0 | 92 | |
Balance | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive (Loss) Income | ||||
Balance | (8,606) | (9,136) | (31,843) | |
Other comprehensive income (loss) before reclassifications | (20,201) | (793) | 20,907 | |
Amounts reclassified from accumulated other comprehensive loss | 2,991 | 1,788 | 2,424 | |
Tax benefit | (934) | (465) | (624) | |
Net reclassifications | 2,057 | 1,323 | 1,800 | |
Other comprehensive (loss) income, net of tax | (18,144) | 530 | 22,707 | |
Balance | $ (26,750) | $ (26,750) | $ (8,606) | $ (9,136) |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) | 12 Months Ended | ||
Jan. 28, 2023 USD ($) tranche $ / shares shares | Jan. 29, 2022 USD ($) tranche $ / shares shares | Jan. 30, 2021 USD ($) tranche $ / shares shares | |
Share-based Compensation | |||
Share-based payment arrangement, expense | $ | $ 17,311,000 | $ 12,297,000 | $ 8,097,000 |
Share-based compensation arrangement by share-based payment award shares issued in period | 703,452 | 330,206 | 471,569 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Amount | $ | $ 600,000 | $ 100,000 | $ 1,100,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 |
Outstanding, total number of stock options (in shares) | 0 | 16,667 | |
Exercisable, total number of stock options (in shares) | 0 | ||
Canceled or expired, total number of stock options (in shares) | 16,667 | ||
Dividends | $ | $ 0 | ||
Granted (in dollars per share) | $ / shares | $ 21 | $ 13.05 | $ 7.47 |
Restricted Stock | |||
Share-based Compensation | |||
Share-based payment arrangement, expense | $ | $ 10,974,000 | $ 7,308,000 | $ 6,840,000 |
Granted, total number of restricted shares (in shares) | 848,678 | 616,442 | 707,931 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 6,800,000 | $ 14,300,000 | $ 4,400,000 |
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ | $ 15,000,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50% | ||
Granted (in dollars per share) | $ / shares | $ 21.76 | $ 19.40 | $ 6.99 |
Restricted Stock | Graded-vesting term of two years | |||
Share-based Compensation | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 2 years | ||
Restricted Stock | Graded-vesting term of three years | |||
Share-based Compensation | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||
Restricted Stock | Share-based Compensation Award, Cliff-vesting, Tranche One | |||
Share-based Compensation | |||
Granted, total number of restricted shares (in shares) | 10,470 | 4,910 | 12,748 |
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | 1 year | 1 year |
Restricted Stock | Share-based Compensation Award, Cliff-vesting, Tranche Two | |||
Share-based Compensation | |||
Granted, total number of restricted shares (in shares) | 20,000 | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 2 years | ||
Restricted Stock | Share-based Compensation Award Graded Vesting Tranche One | |||
Share-based Compensation | |||
Granted, total number of restricted shares (in shares) | 63,614 | 591,532 | |
Share-based compensation arrangement by share-based payment award, award vesting period | 2 years | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50% | ||
Restricted Stock | Share-based Compensation Award Graded Vesting Tranche One | Graded-vesting term of two years | |||
Share-based Compensation | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50% | ||
Restricted Stock | Share-based Compensation Award Graded Vesting Tranche One | Graded-vesting term of three years | |||
Share-based Compensation | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 2 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50% | ||
Restricted Stock | Share-based Compensation Award Graded Vesting | |||
Share-based Compensation | |||
Granted, total number of restricted shares (in shares) | 695,183 | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||
Restricted Stock | Share-based Compensation Award Graded Vesting Tranche Two | |||
Share-based Compensation | |||
Granted, total number of restricted shares (in shares) | 774,594 | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||
Restricted Stock | Share-based Compensation Award Graded Vesting Tranche Two | Graded-vesting term of two years | |||
Share-based Compensation | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 2 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50% | ||
Restricted Stock | Share-based Compensation Award Graded Vesting Tranche Two | Graded-vesting term of three years | |||
Share-based Compensation | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50% | ||
Performance Awards | |||
Share-based Compensation | |||
Share-based payment arrangement, expense | $ | $ 5,190,000 | $ 3,904,000 | $ 147,000 |
Granted, total number of restricted shares (in shares) | 77,750 | 160,500 | 87,750 |
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 month | ||
Number of tranches | tranche | 4 | ||
Performance Awards | Minimum | |||
Share-based Compensation | |||
Share-based Compensation Arrangement By Share-based Payment Award Award Performance Percentage Earned | 0% | ||
Performance Awards | Maximum | |||
Share-based Compensation | |||
Granted, total number of restricted shares (in shares) | 155,500 | 321,000 | 175,500 |
Share-based Compensation Arrangement By Share-based Payment Award Award Performance Percentage Earned | 200% | ||
Performance Awards | CFO | |||
Share-based Compensation | |||
Number of shares approved for accelerated vesting | 30,000 | ||
Number of tranches of award accelerated under share based payment awards | tranche | 2 | 2 | 2 |
Granted (in dollars per share) | $ / shares | $ 13.05 | ||
Performance Awards | Share-based Compensation Award Accelerated Vesting | CFO | |||
Share-based Compensation | |||
Incremental expense related to accelerated award vesting | $ | $ 400,000 | ||
Granted (in dollars per share) | $ / shares | $ 24.31 | ||
Share-based Payment Arrangement, Option | |||
Share-based Compensation | |||
Share-based payment arrangement, expense | $ | $ 1,000 | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation | |||
Share-based payment arrangement, expense | $ | $ 1,147,000 | $ 1,085,000 | 1,109,000 |
Granted, total number of restricted shares (in shares) | 37,112 | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 998,000 | $ 2,370,000 | $ 1,125,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number, Ending Balance | 498,127 | 569,903 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Dividend Equivalents | 5,354 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Nonvested, Dividend Equivalent | 467 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ | $ 12,500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ | 11,400,000 | ||
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent | $ | $ 2,000,000 | $ 2,600,000 | |
Share-based Compensation Arrangement By Share-based Payment Award Equity Instruments Other Than Options Grants In Period Dividend Equivalent | 5,821 | ||
Granted (in dollars per share) | $ / shares | $ 27.64 | ||
Restricted Stock Units (RSUs) Payable in Stock | |||
Share-based Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number, Ending Balance | 360,448 | ||
Restricted Stock Units (RSUs) Payable in Cash | |||
Share-based Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number, Ending Balance | 137,679 | ||
Long-term incentive award | |||
Share-based Compensation | |||
Granted, total number of restricted shares (in shares) | 0 | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Value | $ | $ 8,300,000 | $ 7,300,000 | |
Share Based Compensation Arrangement By Share Based Payment Award Award, Performance Period | 3 years | ||
Long-term incentive award | Maximum | |||
Share-based Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Value | $ | $ 16,600,000 | $ 14,600,000 |
SHARE-BASED COMPENSATION- Share
SHARE-BASED COMPENSATION- Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Share-based Compensation | |||
Total share-based compensation expense | $ 17,311 | $ 12,297 | $ 8,097 |
Restricted Stock | |||
Share-based Compensation | |||
Total share-based compensation expense | 10,974 | 7,308 | 6,840 |
Stock performance awards | |||
Share-based Compensation | |||
Total share-based compensation expense | 5,190 | 3,904 | 147 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation | |||
Total share-based compensation expense | $ 1,147 | $ 1,085 | 1,109 |
Stock options | |||
Share-based Compensation | |||
Total share-based compensation expense | $ 1 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Share-based Compensation | |||
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 16.12 | $ 23.33 | $ 27.16 |
Granted (in dollars per share) | 21 | 13.05 | 7.47 |
Vested (in dollars per share) | 23.50 | 31.84 | 26.90 |
Forfeited (in dollars per share) | 14.24 | 11.19 | 18.64 |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 13.64 | $ 16.12 | $ 23.33 |
Restricted Stock | |||
Share-based Compensation | |||
Number of Nonvested Shares (in shares) | 1,390,397 | 1,397,227 | 1,271,795 |
Granted (in shares) | 848,678 | 616,442 | 707,931 |
Vested (in shares) | (525,399) | (540,647) | (430,837) |
Forfeited (in shares) | (109,716) | (82,625) | (151,662) |
Number of Nonvested Shares (in shares) | 1,603,960 | 1,390,397 | 1,397,227 |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 14.24 | $ 16.74 | $ 26.77 |
Granted (in dollars per share) | 21.76 | 19.40 | 6.99 |
Vested (in dollars per share) | 12.87 | 26.39 | 28.27 |
Forfeited (in dollars per share) | 15.67 | 15.37 | 22.19 |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 18.57 | $ 14.24 | $ 16.74 |
SHARE-BASED COMPENSATION - Perf
SHARE-BASED COMPENSATION - Performance Shares Award Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Share-based Compensation | |||
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 16.12 | $ 23.33 | $ 27.16 |
Granted, weighted-average grant date fair value (in dollars per share) | 21 | 13.05 | 7.47 |
Vested, weighted-average grant date fair value (in dollars per share) | 23.50 | 31.84 | 26.90 |
Forfeited, weighted-average grant date fair value (in dollars per share) | 14.24 | 11.19 | 18.64 |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 13.64 | $ 16.12 | $ 23.33 |
Performance Awards | |||
Share-based Compensation | |||
Number of Nonvested Shares (in shares) | 390,750 | 385,750 | 476,000 |
Granted (in shares) | 77,750 | 160,500 | 87,750 |
Vested (in shares) | (172,500) | (148,000) | (153,000) |
Forfeited (in shares) | (15,000) | (7,500) | (25,000) |
Number of Nonvested Shares (in shares) | 281,000 | 390,750 | 385,750 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 0.4 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 month | ||
Performance Awards | Maximum | |||
Share-based Compensation | |||
Number of Nonvested Shares (in shares) | 781,500 | 771,500 | 952,000 |
Granted (in shares) | 155,500 | 321,000 | 175,500 |
Vested (in shares) | (345,000) | (296,000) | (306,000) |
Forfeited (in shares) | (30,000) | (15,000) | (50,000) |
Number of Nonvested Shares (in shares) | 562,000 | 781,500 | 771,500 |
SHARE-BASED COMPENSATION- Restr
SHARE-BASED COMPENSATION- Restricted Stock Unit Activity (Details) - $ / shares | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Share-based Compensation | |||
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 16.12 | $ 23.33 | $ 27.16 |
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | 21 | 13.05 | 7.47 |
Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | 23.50 | 31.84 | 26.90 |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 13.64 | $ 16.12 | $ 23.33 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation | |||
Number of Vested RSUs (in shares) | 524,824 | ||
Number of Nonvested Shares (in shares) | 45,079 | ||
Total Number of RSUs (in shares) | 569,903 | ||
Total Number of RSUs Accrued (in shares) | 554,876 | ||
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 23.56 | ||
Granted, Number of Vested RSUs (in shares) | 5,354 | ||
Granted, Number of Nonvested RSUs (in shares) | 37,112 | ||
Granted, Total Number of RSUs (in shares) | 42,466 | ||
Granted, Total Number of RSUs Accrued (in shares) | 30,251 | ||
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 27.64 | ||
Vested, Number of Vested RSUs (in shares) | 39,747 | ||
Vested, Number of Nonvested RSUs (in shares) | (39,747) | ||
Vested, Total Number of RSUs Accrued (in shares) | 13,093 | ||
Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 27.45 | ||
Settled, Number of Vested RSUs (in shares) | (114,242) | ||
Settled, Total Number of RSUs (in shares) | (114,242) | ||
Settled, Total Number of RSUs Accrued (in shares) | (114,242) | ||
Settled, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 27.91 | ||
Number of Vested RSUs (in shares) | 455,683 | 524,824 | |
Number of Nonvested Shares (in shares) | 42,444 | 45,079 | |
Total Number of RSUs (in shares) | 498,127 | 569,903 | |
Total Number of RSUs Accrued (in shares) | 483,978 | 554,876 | |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 23.49 | $ 23.56 |
SHARE-BASED COMPENSATION- RSU G
SHARE-BASED COMPENSATION- RSU Granted, Vested and Settled (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Share-based Compensation | |||
Weighted-average grant date fair value of RSUs granted (1) (in dollars per share) | $ 27.09 | $ 26.88 | $ 10.12 |
Fair value of RSUs vested | $ 998 | $ 2,370 | $ 1,125 |
RSUs settled (in shares) | 114,242 | 88,370 |
SHARE-BASED COMPENSATION - RSU
SHARE-BASED COMPENSATION - RSU Compensation Expense and the Related Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
SHARE-BASED COMPENSATION | |||
Compensation expense (income) | $ 335 | $ 907 | $ (613) |
Income tax (benefit) provision | (86) | (233) | 158 |
Compensation expense (income), net of tax | $ 249 | $ 674 | $ (455) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - Redfield Site $ in Millions | 12 Months Ended |
Jan. 28, 2023 USD ($) | |
COMMITMENTS AND CONTINGENCIES | |
Cumulative environmental remediation expense | $ 33.1 |
Environmental exit costs, assets previously disposed, liability for remediation | 9.8 |
Reserve for anticipated future remediation activities for off site remediation | 5 |
Reserve for anticipated future remediation activities for on site remediation | $ 4.8 |
Accrual for environmental loss contingencies, discount rate | 4.80% |
Accrual for environmental loss contingencies, gross, total | $ 13.1 |
Accrual for environmental loss contingencies, undiscounted, first year | 0.6 |
Accrual for environmental loss contingencies, undiscounted, second year | 0.1 |
Accrual for environmental loss contingencies, undiscounted, third year | 0.1 |
Accrual for environmental loss contingencies, undiscounted, fourth year | 0.1 |
Accrual for environmental loss contingencies, undiscounted, fifth Year | 0.1 |
Accrual for environmental loss contingencies, undiscounted, after fifth year | 12.1 |
Other Noncurrent Liabilities | |
COMMITMENTS AND CONTINGENCIES | |
Environmental exit costs, assets previously disposed, liability for remediation | 8.8 |
Other Accrued Expenses | |
COMMITMENTS AND CONTINGENCIES | |
Environmental exit costs, assets previously disposed, liability for remediation | $ 1 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Balance at Beginning of Period | $ 20,328 | ||
Balance at End of Period | 21,917 | $ 20,328 | |
Allowance for expected credit losses | |||
Balance at Beginning of Period | 9,601 | 14,928 | $ 1,813 |
Charged to Costs and Expenses | (262) | (2,242) | 10,575 |
Charged to Other Accounts | 0 | 0 | 2,521 |
Deductions | 436 | 3,085 | (19) |
Balance at End of Period | 8,903 | 9,601 | 14,928 |
Customer allowances | |||
Balance at Beginning of Period | 17,857 | 15,151 | 25,816 |
Charged to Costs and Expenses | 27,559 | 26,100 | 20,355 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 26,792 | 23,394 | 31,020 |
Balance at End of Period | 18,624 | 17,857 | 15,151 |
Customer discounts | |||
Balance at Beginning of Period | 2,472 | 1,892 | 1,198 |
Charged to Costs and Expenses | 11,357 | 7,459 | 11,692 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 10,536 | 6,879 | 10,998 |
Balance at End of Period | 3,293 | 2,472 | 1,892 |
Inventory valuation allowances | |||
Balance at Beginning of Period | 30,455 | 32,628 | 20,610 |
Charged to Costs and Expenses | 53,787 | 23,825 | 63,543 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 40,331 | 25,998 | 51,525 |
Balance at End of Period | 43,911 | 30,455 | 32,628 |
Deferred tax asset valuation allowance | |||
Balance at Beginning of Period | 58,959 | 49,981 | 4,809 |
Charged to Costs and Expenses | (19,419) | 8,978 | 45,434 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 262 | ||
Balance at End of Period | $ 39,540 | $ 58,959 | $ 49,981 |