Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Apr. 29, 2023 | May 26, 2023 | |
Document And Entity Information | ||
Entity Central Index Key | 0000014707 | |
Entity Registrant Name | CALERES, INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-03 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 29, 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 $0.01 per share | |
Trading Symbol | CAL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 36,272,442 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 29, 2023 | Jan. 28, 2023 | Apr. 30, 2022 |
Current assets: | |||
Cash and cash equivalents | $ 36,151 | $ 33,700 | $ 33,717 |
Receivables, net | 148,068 | 132,802 | 181,551 |
Inventories, net | 559,467 | 580,215 | 643,527 |
Income taxes | 11,882 | 17,527 | 11,815 |
Property and equipment, held for sale | 16,777 | 16,777 | 16,777 |
Prepaid expenses and other current assets | 48,535 | 50,434 | 46,254 |
Total current assets | 820,880 | 831,455 | 933,641 |
Prepaid pension costs | 84,782 | 83,396 | 101,609 |
Lease right-of-use assets | 513,817 | 518,196 | 503,393 |
Property and equipment, net | 157,730 | 160,883 | 137,600 |
Goodwill and intangible assets, net | 212,353 | 215,392 | 224,475 |
Other assets | 28,521 | 27,150 | 27,580 |
Total assets | 1,818,083 | 1,836,472 | 1,928,298 |
Current liabilities: | |||
Borrowings under revolving credit agreement | 291,500 | 307,500 | 305,000 |
Trade accounts payable | 261,753 | 229,908 | 386,821 |
Income taxes | 11,953 | 7,650 | 39,418 |
Lease obligations | 136,297 | 136,051 | 118,692 |
Other accrued expenses | 177,774 | 230,087 | 219,956 |
Total current liabilities | 879,277 | 911,196 | 1,069,887 |
Other liabilities: | |||
Noncurrent lease obligations | 437,171 | 444,074 | 452,742 |
Income taxes | 6,940 | 7,786 | 7,786 |
Deferred income taxes | 19,185 | 19,001 | 14,811 |
Other liabilities | 23,629 | 28,302 | 25,044 |
Total other liabilities | 486,925 | 499,163 | 500,383 |
Equity: | |||
Common stock | 363 | 357 | 374 |
Additional paid-in capital | 173,640 | 180,747 | 169,025 |
Accumulated other comprehensive loss | (26,260) | (26,750) | (8,328) |
Retained earnings | 298,574 | 266,329 | 191,165 |
Total Caleres, Inc. shareholders' equity | 446,317 | 420,683 | 352,236 |
Noncontrolling interests | 5,564 | 5,430 | 5,792 |
Total equity | 451,881 | 426,113 | 358,028 |
Total liabilities and equity | $ 1,818,083 | $ 1,836,472 | $ 1,928,298 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||
Net sales | $ 662,734 | $ 735,116 |
Cost of goods sold | 360,052 | 408,122 |
Gross profit | 302,682 | 326,994 |
Selling and administrative expenses | 253,095 | 260,799 |
Operating earnings | 49,587 | 66,195 |
Interest expense, net | (5,623) | (2,299) |
Other income, net | 1,492 | 3,422 |
Earnings before income taxes | 45,456 | 67,318 |
Income tax provision | (10,664) | (17,333) |
Net earnings | 34,792 | 49,985 |
Net earnings (loss) attributable to noncontrolling interests | 65 | (524) |
Net earnings attributable to Caleres, Inc. | $ 34,727 | $ 50,509 |
Basic earnings per common share attributable to Caleres, Inc. shareholders | $ 0.97 | $ 1.34 |
Diluted earnings per common share attributable to Caleres, Inc. shareholders | $ 0.97 | $ 1.32 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net earnings | $ 34,792 | $ 49,985 |
Other comprehensive income (loss) ("OCI"), net of tax: | ||
Foreign currency translation adjustment | (151) | (163) |
Pension and other postretirement benefits adjustments | 710 | 440 |
Other comprehensive income, net of tax | 559 | 277 |
Comprehensive income | 35,351 | 50,262 |
Comprehensive income (loss) attributable to noncontrolling interests | 134 | (525) |
Comprehensive income attributable to Caleres, Inc. | $ 35,217 | $ 50,787 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Operating Activities | ||
Net earnings | $ 34,792 | $ 49,985 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 8,481 | 8,064 |
Amortization of capitalized software | 1,194 | 1,265 |
Amortization of intangible assets | 3,039 | 3,028 |
Amortization of debt issuance costs and debt discount | 102 | 102 |
Share-based compensation expense | 2,905 | 3,799 |
Loss on disposal of property and equipment | 245 | 933 |
Impairment charges for property, equipment, and lease right-of-use assets | 39 | 1,777 |
Adjustment to expected credit losses | (264) | (617) |
Deferred income taxes | 184 | 80 |
Changes in operating assets and liabilities: | ||
Receivables | (15,028) | (58,698) |
Inventories | 20,656 | (46,775) |
Prepaid expenses and other current and noncurrent assets | (648) | 1,044 |
Trade accounts payable | 31,885 | 55,372 |
Accrued expenses and other liabilities | (59,624) | (43,126) |
Income taxes, net | 9,102 | 43,376 |
Other, net | 437 | 77 |
Net cash provided by operating activities | 37,497 | 19,686 |
Investing Activities | ||
Purchases of property and equipment | (5,750) | (9,305) |
Capitalized software | (798) | (2,345) |
Net cash used for investing activities | (6,548) | (11,650) |
Financing Activities | ||
Borrowings under revolving credit agreement | 126,000 | 205,000 |
Repayments under revolving credit agreement | (142,000) | (190,000) |
Dividends paid | (2,482) | (2,648) |
Acquisition of treasury stock | 0 | (14,673) |
Issuance of common stock under share-based plans, net | (10,006) | (3,599) |
Contributions by noncontrolling interests | 0 | 1,500 |
Net cash used for financing activities | (28,488) | (4,420) |
Effect of exchange rate changes on cash and cash equivalents | (10) | (14) |
Increase in cash and cash equivalents | 2,451 | 3,602 |
Cash and cash equivalents at beginning of period | 33,700 | 30,115 |
Cash and cash equivalents at end of period | $ 36,151 | $ 33,717 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Caleres, Inc. | Non-controlling Interest | Total |
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) | 50,509 | 50,509 | (524) | 49,985 | |||
Foreign currency translation adjustment | (162) | (162) | (1) | (163) | |||
Pension and other postretirement benefits adjustments, net of tax | 440 | 440 | 440 | ||||
Comprehensive income (loss) | 278 | 50,509 | 50,787 | (525) | 50,262 | ||
Contributions by noncontrolling interests, net | 1,500 | 1,500 | |||||
Dividends | (2,648) | (2,648) | (2,648) | ||||
Acquisition of treasury stock | $ (7) | (14,666) | (14,673) | (14,673) | |||
Acquisition of treasury stock (in shares) | (701,324) | ||||||
Issuance of common stock under share-based plans, net | $ 5 | (3,604) | (3,599) | (3,599) | |||
Issuance of common stock under share-based plans, net (in shares) | 512,508 | ||||||
Share-based compensation expense | 3,799 | 3,799 | 3,799 | ||||
BALANCE at Apr. 30, 2022 | $ 374 | 169,025 | (8,328) | 191,165 | 352,236 | 5,792 | 358,028 |
BALANCE (in shares) at Apr. 30, 2022 | 37,446,329 | ||||||
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 | ||||||
Net earnings (loss) | 34,727 | 34,727 | 65 | 34,792 | |||
Foreign currency translation adjustment | (220) | (220) | 69 | (151) | |||
Pension and other postretirement benefits adjustments, net of tax | 710 | 710 | 710 | ||||
Comprehensive income (loss) | 490 | 34,727 | 35,217 | 134 | 35,351 | ||
Dividends | (2,482) | (2,482) | (2,482) | ||||
Issuance of common stock under share-based plans, net | $ 6 | (10,012) | (10,006) | (10,006) | |||
Issuance of common stock under share-based plans, net (in shares) | 558,847 | ||||||
Share-based compensation expense | 2,905 | 2,905 | 2,905 | ||||
BALANCE at Apr. 29, 2023 | $ 363 | $ 173,640 | $ (26,260) | $ 298,574 | $ 446,317 | $ 5,564 | $ 451,881 |
BALANCE (in shares) at Apr. 29, 2023 | 36,274,599 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ||
Pension and other postretirement benefits adjustments, tax | $ 245 | $ 141 |
Dividends, per share (in dollars per share) | $ 0.07 | $ 0.07 |
Basis of Presentation and Gener
Basis of Presentation and General | 3 Months Ended |
Apr. 29, 2023 | |
Basis of Presentation and General | |
Basis of Presentation and General | Note 1 Basis of Presentation and General Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the United States Securities and Exchange Commission (“SEC”) and reflect all adjustments and accruals of a normal recurring nature, which management believes are necessary to present fairly the financial position, results of operations, comprehensive income and cash flows of Caleres, Inc. ("the Company"). These statements, however, do not include all information and footnotes necessary for a complete presentation of the Company’s consolidated financial position, results of operations, comprehensive income and cash flows in conformity with accounting principles generally accepted in the United States. The condensed 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. 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. Interim results may not necessarily be indicative of results which may be expected for any other interim period or for the year as a whole. The accompanying condensed consolidated financial statements and footnotes should be read in conjunction with the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended January 28, 2023. Noncontrolling Interests During 2019, the Company entered into a joint venture with Brand Investment Holding Limited (“Brand Investment Holding”), a member of the Gemkell Group, to sell Sam Edelman, Naturalizer and other branded footwear in China. The Company and Brand Investment Holding are each 50% owners of the joint venture, which is named CLT Brand Solutions (“CLT”). During the thirteen weeks ended April 30, 2022, capital contributions of $3.0 million were made to CLT, including $1.5 million received from Brand Investment Holding. There were no capital contributions during the thirteen weeks ended April 29, 2023. Net sales and operating earnings were $5.2 million and $0.1 million, respectively, for the thirteen weeks ended April 29, 2023. Net sales and operating losses were $2.9 million and $0.9 million, respectively, for the thirteen weeks ended April 30, 2022. The Company consolidates CLT into its condensed consolidated financial statements. Net earnings (loss) attributable to noncontrolling interests represents the share of net earnings or losses that is attributable to Brand Investment Holding. Transactions between the Company and the joint venture have been eliminated in the condensed consolidated financial statements. 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 condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. P roperty 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 April 2022, the Company entered into an agreement for the sale of the Campus. Although the Company expected the Campus to qualify as a completed sale within a year, the agreement was terminated in the fourth quarter of 2022. The Company continued to actively market the Campus for sale and 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 on the consolidated balance sheets as of April 29, 2023 within the Eliminations and Other category. The Company evaluated the Campus asset group for impairment and determined that no indicators were present as of April 29, 2023. |
Impact of New Accounting Pronou
Impact of New Accounting Pronouncements | 3 Months Ended |
Apr. 29, 2023 | |
Impact of New Accounting Pronouncements | |
Impact of New Accounting Pronouncements | Note 2 Impact of New Accounting Pronouncements Impact of Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, Liabilities – Supplier Finance Programs (Topic 405-50): Disclosure of Supplier Finance Program Obligations quantitative disclosures about supplier finance programs in annual financial statements, including key terms of the programs, amounts outstanding, balance sheet presentation and a rollforward of amounts outstanding during the year. For interim periods, the ASU requires disclosure of total obligations outstanding that have been confirmed as valid. The ASU is effective for years beginning after December 15, 2022, except for the rollforward requirement, which is effective in fiscal year 2024. The Company adopted the amendments on a retrospective basis during the first quarter of 2023, with the exception of the annual rollforward requirement, which will be adopted on a prospective basis by the effective date. Refer to Note 5 to the condensed consolidated financial statements for additional information regarding the Company’s supplier finance program. |
Revenues
Revenues | 3 Months Ended |
Apr. 29, 2023 | |
Revenues | |
Revenues | Note 3 Revenues Disaggregation of Revenues The following table disaggregates revenue by segment and major source for the periods ended April 29, 2023 and April 30, 2022: Thirteen Weeks Ended April 29, 2023 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 308,239 $ 16,438 $ — $ 324,677 E-commerce - Company websites (1) 40,206 53,431 — 93,637 E-commerce - wholesale drop-ship (1) — 34,798 (1,268) 33,530 Total direct-to-consumer sales 348,445 104,667 (1,268) 451,844 Wholesale - e-commerce (1) — 54,979 — 54,979 Wholesale - landed — 142,896 (10,672) 132,224 Wholesale - first cost — 19,949 — 19,949 Licensing and royalty 585 3,015 — 3,600 Other (2) 128 10 — 138 Net sales $ 349,158 $ 325,516 $ (11,940) $ 662,734 Thirteen Weeks Ended April 30, 2022 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 331,988 $ 14,217 $ — $ 346,205 E-commerce - Company websites (1) 51,938 50,702 — 102,640 E-commerce - wholesale drop-ship (1) — 31,773 (998) 30,775 Total direct-to-consumer sales 383,926 96,692 (998) 479,620 Wholesale - e-commerce (1) — 60,716 — 60,716 Wholesale - landed — 175,327 (14,128) 161,199 Wholesale - first cost — 30,076 — 30,076 Licensing and royalty 422 2,906 — 3,328 Other (2) 154 23 — 177 Net sales $ 384,502 $ 365,740 $ (15,126) $ 735,116 (1) Collectively referred to as "e-commerce" in the narrative below (2) Includes breakage revenue from unredeemed gift cards Retail stores The Company generates revenue 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 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 purchasing 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) April 29, 2023 April 30, 2022 January 28, 2023 Customer allowances and discounts $ 19,076 $ 22,896 $ 21,917 Loyalty programs liability 16,993 18,152 17,732 Returns reserve 13,915 16,376 12,038 Gift card liability 5,920 6,130 6,659 Changes in contract balances with customers generally reflect differences in relative sales volume for the periods presented. In addition, during the thirteen weeks ended April 29, 2023, the loyalty programs liability increased $8.8 million due to points and material rights earned on purchases and decreased $9.5 million due to expirations and redemptions. During the thirteen weeks ended April 30, 2022, the loyalty programs liability increased $7.6 million due to points and material rights earned on purchases and decreased $8.2 million due to expirations and redemptions. The liability for loyalty programs is presented within other accrued expenses when earned and is generally expected to be recognized as revenue within one year. The gift card liability is established upon the sale of a gift card and revenue is recognized either upon redemption of the gift card by the consumer or based upon the gift card breakage rate, which is generally within the 24-month period following the sale of the gift card. The following table summarizes the activity in the Company’s allowance for expected credit losses during the thirteen weeks ended April 29, 2023 and April 30, 2022: Thirteen Weeks Ended ($ thousands) April 29, 2023 April 30, 2022 Balance, beginning of period $ 8,903 $ 9,601 Adjustment to expected credit losses (264) (617) Uncollectible accounts written off, net of recoveries (20) (526) Balance, end of period $ 8,619 $ 8,458 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 29, 2023 | |
Earnings Per Share | |
Earnings Per Share | Note 4 Earnings Per Share The Company uses the two-class method to compute basic and diluted earnings 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 per common share attributable to Caleres, Inc. shareholders for the periods ended April 29, 2023 and April 30, 2022: Thirteen Weeks Ended ($ thousands, except per share amounts) April 29, 2023 April 30, 2022 NUMERATOR Net earnings $ 34,792 $ 49,985 Net (earnings) loss attributable to noncontrolling interests (65) 524 Net earnings attributable to Caleres, Inc. $ 34,727 $ 50,509 Net earnings allocated to participating securities (1,478) (2,017) Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 33,249 $ 48,492 DENOMINATOR Denominator for basic earnings per common share attributable to Caleres, Inc. shareholders 34,407 36,209 Dilutive effect of share-based awards — 467 Denominator for diluted earnings per common share attributable to Caleres, Inc. shareholders 34,407 36,676 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 0.97 $ 1.34 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 0.97 $ 1.32 There were no outstanding options to purchase shares of common stock for the thirteen weeks ended April 29, 2023. Options to purchase 16,667 shares of common stock for the thirteen weeks ended April 30, 2022 were not included in the denominator for diluted earnings per common share attributable to Caleres, Inc. shareholders because the effect would be anti-dilutive. The Company did not repurchase any shares under the share repurchase programs during the thirteen weeks ended April 29, 2023. During the thirteen weeks ended April 30, 2022, the Company repurchased 701,324 shares under the 2019 publicly announced share repurchase program, which permits repurchases of up to 5.0 million shares. Refer to further discussion in Item 2, Unregistered Sales of Equity Securities and Use of Proceeds |
Supply Chain Financing
Supply Chain Financing | 3 Months Ended |
Apr. 29, 2023 | |
Supply Chain Financing | |
Supply Chain Financing | Note 5 Supply Chain Financing The Company facilitates a voluntary supply chain finance program (“the Program”) that provides certain of the Company’s suppliers the opportunity to sell receivables related to products that the Company has purchased to participating financial institutions at a rate that leverages the Company’s credit rating, which may be more beneficial to the suppliers than the rate they can obtain based upon their own credit rating. The Company negotiates payment and other terms directly with the suppliers, regardless of whether the supplier participates in the Program, and the Company’s responsibility is limited to making payment based on the terms originally negotiated with the supplier. The suppliers that participate in the Program have discretion to determine which invoices, if any, are sold to the participating financing institutions. The liabilities to the suppliers that participate in the Program are presented as accounts payable in the Company’s condensed consolidated balance sheets, with changes reflected within cash flows from operating activities when settled. As of April 29, 2023 and April 30, 2022, the Company had $16.8 million and $45.0 million, respectively, of accounts payable subject to supply chain financing arrangements. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Apr. 29, 2023 | |
Business Segment Information | |
Business Segment Information | Note 6 Business Segment Information Following is a summary of certain key financial measures for the Company’s business segments for the periods ended April 29, 2023 and April 30, 2022: Famous Brand Eliminations ($ thousands) Footwear Portfolio and Other Total Thirteen Weeks Ended April 29, 2023 Net sales $ 349,158 $ 325,516 $ (11,940) $ 662,734 Intersegment sales (1) — 11,940 — 11,940 Operating earnings (loss) 17,056 42,669 (10,138) 49,587 Segment assets 830,994 844,263 142,826 1,818,083 Thirteen Weeks Ended April 30, 2022 Net sales $ 384,502 $ 365,740 $ (15,126) $ 735,116 Intersegment sales (1) — 15,126 — 15,126 Operating earnings (loss) 49,688 41,349 (24,842) 66,195 Segment assets 790,778 987,397 150,123 1,928,298 (1) Included in net sales in the Brand Portfolio segment and eliminated in the Eliminations and Other category. The Eliminations and Other category includes corporate assets, administrative expenses and other costs and recoveries, which are not allocated to the operating segments, as well as the elimination of intersegment sales and profit. Following is a reconciliation of operating earnings to earnings before income taxes: Thirteen Weeks Ended ($ thousands) April 29, 2023 April 30, 2022 Operating earnings $ 49,587 $ 66,195 Interest expense, net (5,623) (2,299) Other income, net 1,492 3,422 Earnings before income taxes $ 45,456 $ 67,318 |
Inventories
Inventories | 3 Months Ended |
Apr. 29, 2023 | |
Inventories | |
Inventories | Note 7 Inventories The Company’s net inventory balance was comprised of the following: ($ thousands) April 29, 2023 April 30, 2022 January 28, 2023 Raw materials $ 18,367 $ 16,112 $ 21,172 Work-in-process 563 666 569 Finished goods 540,537 626,749 558,474 Inventories, net $ 559,467 $ 643,527 $ 580,215 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Apr. 29, 2023 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Goodwill and intangible assets were as follows: ($ thousands) April 29, 2023 April 30, 2022 January 28, 2023 Intangible Assets Famous Footwear $ 2,800 $ 2,800 $ 2,800 Brand Portfolio (1) 342,083 342,083 342,083 Total intangible assets 344,883 344,883 344,883 Accumulated amortization (137,486) (125,364) (134,447) Total intangible assets, net 207,397 219,519 210,436 Goodwill Brand Portfolio (2) 4,956 4,956 4,956 Total goodwill 4,956 4,956 4,956 Goodwill and intangible assets, net $ 212,353 $ 224,475 $ 215,392 (1) The carrying amount of intangible assets as of April 29, 2023, April 30, 2022 and January 28, 2023 is presented net of accumulated impairment charges of $106.2 million. (2) The carrying amount of goodwill as of April 29, 2023, April 30, 2022 and January 28, 2023 is presented net of accumulated impairment charges of $415.7 million. The Company’s intangible assets as of April 29, 2023, April 30, 2022 and January 28, 2023 were as follows: ($ thousands) April 29, 2023 Estimated Useful Lives Accumulated Accumulated (In Years) Cost Basis Amortization Impairment Net Carrying Value Trade names 2 - 40 $ 299,488 $ 123,755 $ 10,200 $ 165,533 Trade names Indefinite 107,400 — 92,000 15,400 Customer relationships 15 - 16 44,200 13,731 4,005 26,464 $ 451,088 $ 137,486 $ 106,205 $ 207,397 April 30, 2022 Estimated Useful Lives Accumulated Accumulated (In Years) Cost Basis Amortization Impairment Net Carrying Value Trade names 2 - 40 $ 299,488 $ 114,528 $ 10,200 $ 174,760 Trade names Indefinite 107,400 — 92,000 15,400 Customer relationships 15 - 16 44,200 10,836 4,005 29,359 $ 451,088 $ 125,364 $ 106,205 $ 219,519 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 Amortization expense related to intangible assets was $3.0 million for both the thirteen weeks ended April 29, 2023 and April 30, 2022. The Company estimates that amortization expense related to intangible assets will be approximately $11.9 million in 2023, $11.0 million in 2024, 2025 2026 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. The Company recorded no goodwill impairment charges during the thirteen weeks ended April 29, 2023 or April 30, 2022. 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 recorded no impairment charges for indefinite-lived intangible assets during the thirteen weeks ended April 29, 2023 or April 30, 2022. |
Leases
Leases | 3 Months Ended |
Apr. 29, 2023 | |
Leases | |
Leases | Note 9 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 information available at the commencement date to determine the present value of future payments. For operating leases, lease expense for 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 and consideration of any 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. The Company recorded an immaterial amount of asset impairment charges in the thirteen weeks ended April 29, 2023. During the thirteen weeks ended April 30, 2022, the Company recorded asset impairment charges of $1.8 million, primarily related to capitalized software. Refer to Note 14 to the condensed consolidated financial statements for further discussion on these impairment charges. During the thirteen weeks ended April 29, 2023, the Company entered into new or amended leases that resulted in the recognition of right-of-use assets and lease obligations of $29.6 million on the condensed consolidated balance sheets. As of April 29, 2023, the Company has entered into lease commitments for six retail locations for which the leases have not yet commenced. The Company anticipates that two leases will begin in the current fiscal year, three leases will begin in fiscal 2024 and one lease will begin in fiscal 2025. Upon commencement, right-of-use assets and lease liabilities of approximately $1.4 million, $2.2 million and $0.4 million will be recorded on the condensed consolidated balance sheets in 2023 2024 2025 The components of lease expense for the thirteen weeks ended April 29, 2023 and April 30, 2022 were as follows: Thirteen Weeks Ended ($ thousands) April 29, 2023 April 30, 2022 Operating lease expense $ 39,142 $ 38,064 Variable lease expense 10,465 9,016 Short-term lease expense 687 1,195 Sublease income — (59) Total lease expense $ 50,294 $ 48,216 Supplemental cash flow information related to leases is as follows: Thirteen Weeks Ended ($ thousands) April 29, 2023 April 30, 2022 Cash paid for lease liabilities $ 41,163 $ 48,793 Cash received from sublease income — 59 |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Apr. 29, 2023 | |
Financing Arrangements | |
Financing Arrangements | Note 10 Financing Arrangements Credit Agreement The Company maintains a revolving credit facility for working capital needs. The Company is the lead borrower, and Sidney Rich Associates, Inc., BG Retail, LLC, Allen Edmonds LLC, Vionic Group LLC, Vionic International LLC and Blowfish, LLC are each co-borrowers and guarantors. 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. On April 27, 2023, the Company entered into a Sixth Amendment to Fourth Amended and Restated Credit agreement to transition the borrowings on the revolving credit facility from bearing interest based on LIBOR to a term secured overnight financing rate (“SOFR”). 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 the SOFR, 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 an unused line 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 such amount 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 April 29, 2023. At April 29, 2023, the Company had $291.5 million of borrowings outstanding and $10.6 million in letters of credit outstanding under the Credit Agreement. Total additional borrowing availability was $197.9 million at April 29, 2023. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Apr. 29, 2023 | |
Shareholders' Equity | |
Shareholders' Equity | Note 11 Shareholders’ Equity Accumulated Other Comprehensive Loss The following table sets forth the changes in accumulated other comprehensive loss (OCL) by component for the periods ended April 29, 2023 and April 30, 2022: Pension and Accumulated Foreign Other Other Currency Postretirement Comprehensive ($ thousands) Translation Transactions (1) (Loss) Income Balance at January 28, 2023 $ (1,213) $ (25,537) $ (26,750) Other comprehensive loss before reclassifications (220) — (220) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 955 955 Tax benefit — (245) (245) Net reclassifications — 710 710 Other comprehensive (loss) income (220) 710 490 Balance at April 29, 2023 $ (1,433) $ (24,827) $ (26,260) Balance at January 29, 2022 $ (788) $ (7,818) $ (8,606) Other comprehensive loss before reclassifications (162) — (162) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 581 581 Tax benefit — (141) (141) Net reclassifications — 440 440 Other comprehensive (loss) income (162) 440 278 Balance at April 30, 2022 $ (950) $ (7,378) $ (8,328) (1) Amounts reclassified are included in other income, net. Refer to Note 13 to the condensed consolidated financial statements for additional information related to pension and other postretirement benefits. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Apr. 29, 2023 | |
Share-Based Compensation | |
Share-Based Compensation | Note 12 Share-Based Compensation The Company recognized share-based compensation expense of $2.9 million and $3.8 million during the thirteen weeks ended April 29, 2023 and April 30, 2022, respectively. The Company had net issuances of 558,847 and 512,508 shares of common stock during the thirteen weeks ended April 29, 2023 and April 30, 2022, respectively, for restricted stock grants, stock performance awards issued to employees and common and restricted stock grants issued to non-employee directors, net of forfeitures and shares withheld to satisfy the tax withholding requirement. Restricted Stock The following table summarizes restricted stock activity for the periods ended April 29, 2023 and April 30, 2022: Thirteen Weeks Ended Thirteen Weeks Ended April 29, 2023 April 30, 2022 Weighted- Weighted- Total Number Average Total Number Average of Restricted Grant Date of Restricted Grant Date Shares Fair Value Shares Fair Value January 28, 2023 1,603,960 $ 18.57 January 29, 2022 1,390,397 $ 14.24 Granted 546,384 23.09 Granted 671,200 21.00 Forfeited (122,245) 17.96 Forfeited (50,966) 12.63 Vested (420,504) 12.88 Vested (387,854) 12.48 April 29, 2023 1,607,595 $ 21.64 April 30, 2022 1,622,777 $ 17.51 Of the 546,384 restricted shares granted during the thirteen weeks ended April 29, 2023, 533,584 shares have a graded vesting term of three years, with 50% vesting after two years and 50% after three years, 7,000 shares have a graded vesting term of three years, with 50% vesting after eighteen months and 50% after three years, and 5,800 shares have a cliff-vesting term of two years. The Company granted 671,200 restricted shares during the thirteen weeks ended April 30, 2022, which have a graded-vesting term of three years, with 50% vesting after two years and 50% after three years. Performance Awards During the thirteen weeks ended April 29, 2023, the Company granted performance share awards for a targeted 276,434 shares, with a weighted-average grant date fair value of $23.12 in connection with the 2023 performance award (2023 – 2025 performance period). During the thirteen weeks ended April 30, 2022, the Company granted performance share awards for a targeted 87,750 shares, with a weighted-average grant date fair value of $20.99 in connection with the 2020 performance award (2020 – 2022 performance period). At the end of the vesting period, the employee will have earned an amount of shares or units between 0% and 200% of the targeted award, depending on the attainment of certain financial goals for the service period and individual achievement of strategic initiatives over the cumulative period of the award. The 2023 performance award is payable in common stock for up to 100% of the targeted award and the remainder in cash if any portion exceeds the targeted award. Compensation expense is recognized based on the fair value of the award and the anticipated number of shares or units to be awarded for each tranche in accordance with the vesting schedule of the units over the three-year service period. During the thirteen weeks ended April 30, 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. This award, which vests after a three-year period, is 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 condensed consolidated balance sheets, is being expensed ratably over the three-year performance period. 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) and earn dividend equivalents at the same rate as dividends on the Company’s common stock. The dividend equivalents, which vest immediately, are automatically re-invested in additional RSUs. 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 when the dividend equivalents are granted. 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 condensed consolidated statements of earnings. The Company granted 1,423 and 1,907 RSUs to non-employee directors for dividend equivalents, during the thirteen weeks ended April 29, 2023 and April 30, 2022, respectively, with weighted-average grant date fair values of $21.47 and $20.64, respectively. |
Retirement and Other Benefit Pl
Retirement and Other Benefit Plans | 3 Months Ended |
Apr. 29, 2023 | |
Retirement and Other Benefit Plans | |
Retirement and Other Benefit Plans | Note 13 Retirement and Other Benefit Plans The following table sets forth the components of net periodic benefit income for the Company, including the domestic and Canadian plans: Pension Benefits Other Postretirement Benefits Thirteen Weeks Ended Thirteen Weeks Ended ($ thousands) April 29, 2023 April 30, 2022 April 29, 2023 April 30, 2022 Service cost $ 1,258 $ 1,762 $ — $ — Interest cost 3,615 2,971 13 10 Expected return on assets (6,075) (6,984) — — Amortization of: Actuarial loss (gain) 1,011 681 (28) (25) Prior service income (28) (75) — — Total net periodic benefit income $ (219) $ (1,645) $ (15) $ (15) The non-service cost components of net periodic benefit income are included in other income, net in the condensed consolidated statements of earnings. Service cost is included in selling and administrative expenses. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 29, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | Note 14 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. Non-Qualified 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 condensed 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 condensed 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 condensed consolidated statements of earnings. 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), earn dividend-equivalent units, and are settled in cash 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. The fair value of each cash-equivalent RSU 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). Additional information related to RSUs for non-employee directors is disclosed in Note 12 to the condensed consolidated financial statements. The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at April 29, 2023, April 30, 2022 and January 28, 2023. During the thirteen weeks ended April 29, 2023 and April 30, 2022, there were no transfers into or out of Level 3. Fair Value Measurements ($ thousands) Total Level 1 Level 2 Level 3 Asset (Liability) April 29, 2023: Non-qualified deferred compensation plan assets $ 8,841 $ 8,841 $ — $ — Non-qualified deferred compensation plan liabilities (8,841) (8,841) — — Deferred compensation plan liabilities for non-employee directors (1,527) (1,527) — — Restricted stock units for non-employee directors (1,846) (1,846) — — April 30, 2022: Non-qualified deferred compensation plan assets 7,567 7,567 — — Non-qualified deferred compensation plan liabilities (7,567) (7,567) — — Deferred compensation plan liabilities for non-employee directors (1,765) (1,765) — — Restricted stock units for non-employee directors (2,559) (2,559) — — 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) — — 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 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 Topic 820, Fair Value Measurement Thirteen Weeks Ended ($ thousands) April 29, 2023 April 30, 2022 Long-Lived Asset Impairment Charges Famous Footwear $ 39 $ 370 Brand Portfolio — 1,407 Total long-lived asset impairment charges $ 39 $ 1,777 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 $291.5 million and $305.0 million as of April 29, 2023 and April 30, 2022, respectively, approximate their carrying values due to the short-term nature of the borrowings (Level 1). |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 29, 2023 | |
Income Taxes | |
Income Taxes | Note 15 Income Taxes The Company’s consolidated effective tax rate can vary considerably from period to period, depending on a number of factors. The Company’s consolidated effective tax rates were 23.5% and 25.7% for the thirteen weeks ended April 29, 2023 and April 30, 2022, respectively. The lower effective tax rate for the thirteen weeks ended April 29, 2023 was driven by discrete tax benefits of approximately $0.6 million in the first quarter of 2023 related to the Company’s stock-based compensation. As of April 29, 2023, no deferred taxes have been provided on the accumulated unremitted earnings of the Company’s foreign 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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 29, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 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 began implementing the conversion during the first quarter of 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 work plan 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 work plan, 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 work plan 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 April 29, 2023 were $33.4 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 April 29, 2023 is $9.6 million, of which $8.7 million is recorded within other liabilities and $0.9 million is recorded within other accrued expenses. Of the total $9.6 million reserve, $4.8 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 $13.2 million as of April 29, 2023. The Company expects to spend approximately $0.6 million in 2023, $0.1 million in each 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 remediation plans in conjunction with its environmental consultants and records its best estimate of remediation 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 expensed as incurred. |
Basis of Presentation and Gen_2
Basis of Presentation and General (Policies) | 3 Months Ended |
Apr. 29, 2023 | |
Basis of Presentation and General | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the United States Securities and Exchange Commission (“SEC”) and reflect all adjustments and accruals of a normal recurring nature, which management believes are necessary to present fairly the financial position, results of operations, comprehensive income and cash flows of Caleres, Inc. ("the Company"). These statements, however, do not include all information and footnotes necessary for a complete presentation of the Company’s consolidated financial position, results of operations, comprehensive income and cash flows in conformity with accounting principles generally accepted in the United States. The condensed 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. 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. Interim results may not necessarily be indicative of results which may be expected for any other interim period or for the year as a whole. The accompanying condensed consolidated financial statements and footnotes should be read in conjunction with the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended January 28, 2023. |
Noncontrolling Interests | Noncontrolling Interests During 2019, the Company entered into a joint venture with Brand Investment Holding Limited (“Brand Investment Holding”), a member of the Gemkell Group, to sell Sam Edelman, Naturalizer and other branded footwear in China. The Company and Brand Investment Holding are each 50% owners of the joint venture, which is named CLT Brand Solutions (“CLT”). During the thirteen weeks ended April 30, 2022, capital contributions of $3.0 million were made to CLT, including $1.5 million received from Brand Investment Holding. There were no capital contributions during the thirteen weeks ended April 29, 2023. Net sales and operating earnings were $5.2 million and $0.1 million, respectively, for the thirteen weeks ended April 29, 2023. Net sales and operating losses were $2.9 million and $0.9 million, respectively, for the thirteen weeks ended April 30, 2022. The Company consolidates CLT into its condensed consolidated financial statements. Net earnings (loss) attributable to noncontrolling interests represents the share of net earnings or losses that is attributable to Brand Investment Holding. Transactions between the Company and the joint venture have been eliminated in the condensed consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Revenues | |
Schedule of disaggregated revenue by segment and major source | Thirteen Weeks Ended April 29, 2023 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 308,239 $ 16,438 $ — $ 324,677 E-commerce - Company websites (1) 40,206 53,431 — 93,637 E-commerce - wholesale drop-ship (1) — 34,798 (1,268) 33,530 Total direct-to-consumer sales 348,445 104,667 (1,268) 451,844 Wholesale - e-commerce (1) — 54,979 — 54,979 Wholesale - landed — 142,896 (10,672) 132,224 Wholesale - first cost — 19,949 — 19,949 Licensing and royalty 585 3,015 — 3,600 Other (2) 128 10 — 138 Net sales $ 349,158 $ 325,516 $ (11,940) $ 662,734 Thirteen Weeks Ended April 30, 2022 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 331,988 $ 14,217 $ — $ 346,205 E-commerce - Company websites (1) 51,938 50,702 — 102,640 E-commerce - wholesale drop-ship (1) — 31,773 (998) 30,775 Total direct-to-consumer sales 383,926 96,692 (998) 479,620 Wholesale - e-commerce (1) — 60,716 — 60,716 Wholesale - landed — 175,327 (14,128) 161,199 Wholesale - first cost — 30,076 — 30,076 Licensing and royalty 422 2,906 — 3,328 Other (2) 154 23 — 177 Net sales $ 384,502 $ 365,740 $ (15,126) $ 735,116 (1) Collectively referred to as "e-commerce" in the narrative below (2) Includes breakage revenue from unredeemed gift cards |
Schedule of significant contract balances from contracts with customers | ($ thousands) April 29, 2023 April 30, 2022 January 28, 2023 Customer allowances and discounts $ 19,076 $ 22,896 $ 21,917 Loyalty programs liability 16,993 18,152 17,732 Returns reserve 13,915 16,376 12,038 Gift card liability 5,920 6,130 6,659 |
Schedule of allowance for expected credit losses | Thirteen Weeks Ended ($ thousands) April 29, 2023 April 30, 2022 Balance, beginning of period $ 8,903 $ 9,601 Adjustment to expected credit losses (264) (617) Uncollectible accounts written off, net of recoveries (20) (526) Balance, end of period $ 8,619 $ 8,458 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Earnings Per Share | |
Schedule of earnings per share, basic and diluted | Thirteen Weeks Ended ($ thousands, except per share amounts) April 29, 2023 April 30, 2022 NUMERATOR Net earnings $ 34,792 $ 49,985 Net (earnings) loss attributable to noncontrolling interests (65) 524 Net earnings attributable to Caleres, Inc. $ 34,727 $ 50,509 Net earnings allocated to participating securities (1,478) (2,017) Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 33,249 $ 48,492 DENOMINATOR Denominator for basic earnings per common share attributable to Caleres, Inc. shareholders 34,407 36,209 Dilutive effect of share-based awards — 467 Denominator for diluted earnings per common share attributable to Caleres, Inc. shareholders 34,407 36,676 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 0.97 $ 1.34 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 0.97 $ 1.32 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Business Segment Information | |
Schedule of segment reporting information, by segment | Famous Brand Eliminations ($ thousands) Footwear Portfolio and Other Total Thirteen Weeks Ended April 29, 2023 Net sales $ 349,158 $ 325,516 $ (11,940) $ 662,734 Intersegment sales (1) — 11,940 — 11,940 Operating earnings (loss) 17,056 42,669 (10,138) 49,587 Segment assets 830,994 844,263 142,826 1,818,083 Thirteen Weeks Ended April 30, 2022 Net sales $ 384,502 $ 365,740 $ (15,126) $ 735,116 Intersegment sales (1) — 15,126 — 15,126 Operating earnings (loss) 49,688 41,349 (24,842) 66,195 Segment assets 790,778 987,397 150,123 1,928,298 (1) Included in net sales in the Brand Portfolio segment and eliminated in the Eliminations and Other category. |
Reconciliation of operating profit (loss) from segments to consolidated | Thirteen Weeks Ended ($ thousands) April 29, 2023 April 30, 2022 Operating earnings $ 49,587 $ 66,195 Interest expense, net (5,623) (2,299) Other income, net 1,492 3,422 Earnings before income taxes $ 45,456 $ 67,318 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Inventories | |
Schedule of inventory, current | ($ thousands) April 29, 2023 April 30, 2022 January 28, 2023 Raw materials $ 18,367 $ 16,112 $ 21,172 Work-in-process 563 666 569 Finished goods 540,537 626,749 558,474 Inventories, net $ 559,467 $ 643,527 $ 580,215 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Goodwill and Intangible Assets | |
Schedule of intangible assets and goodwill | ($ thousands) April 29, 2023 April 30, 2022 January 28, 2023 Intangible Assets Famous Footwear $ 2,800 $ 2,800 $ 2,800 Brand Portfolio (1) 342,083 342,083 342,083 Total intangible assets 344,883 344,883 344,883 Accumulated amortization (137,486) (125,364) (134,447) Total intangible assets, net 207,397 219,519 210,436 Goodwill Brand Portfolio (2) 4,956 4,956 4,956 Total goodwill 4,956 4,956 4,956 Goodwill and intangible assets, net $ 212,353 $ 224,475 $ 215,392 (1) The carrying amount of intangible assets as of April 29, 2023, April 30, 2022 and January 28, 2023 is presented net of accumulated impairment charges of $106.2 million. (2) The carrying amount of goodwill as of April 29, 2023, April 30, 2022 and January 28, 2023 is presented net of accumulated impairment charges of $415.7 million. |
Schedule of finite-lived and indefinite lived intangible assets | ($ thousands) April 29, 2023 Estimated Useful Lives Accumulated Accumulated (In Years) Cost Basis Amortization Impairment Net Carrying Value Trade names 2 - 40 $ 299,488 $ 123,755 $ 10,200 $ 165,533 Trade names Indefinite 107,400 — 92,000 15,400 Customer relationships 15 - 16 44,200 13,731 4,005 26,464 $ 451,088 $ 137,486 $ 106,205 $ 207,397 April 30, 2022 Estimated Useful Lives Accumulated Accumulated (In Years) Cost Basis Amortization Impairment Net Carrying Value Trade names 2 - 40 $ 299,488 $ 114,528 $ 10,200 $ 174,760 Trade names Indefinite 107,400 — 92,000 15,400 Customer relationships 15 - 16 44,200 10,836 4,005 29,359 $ 451,088 $ 125,364 $ 106,205 $ 219,519 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 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Leases | |
Schedule of components of lease expenses | Thirteen Weeks Ended ($ thousands) April 29, 2023 April 30, 2022 Operating lease expense $ 39,142 $ 38,064 Variable lease expense 10,465 9,016 Short-term lease expense 687 1,195 Sublease income — (59) Total lease expense $ 50,294 $ 48,216 |
Schedule of supplemental cash flow information related to leases | Supplemental cash flow information related to leases is as follows: Thirteen Weeks Ended ($ thousands) April 29, 2023 April 30, 2022 Cash paid for lease liabilities $ 41,163 $ 48,793 Cash received from sublease income — 59 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Shareholders' Equity | |
Schedule of accumulated other comprehensive loss | Pension and Accumulated Foreign Other Other Currency Postretirement Comprehensive ($ thousands) Translation Transactions (1) (Loss) Income Balance at January 28, 2023 $ (1,213) $ (25,537) $ (26,750) Other comprehensive loss before reclassifications (220) — (220) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 955 955 Tax benefit — (245) (245) Net reclassifications — 710 710 Other comprehensive (loss) income (220) 710 490 Balance at April 29, 2023 $ (1,433) $ (24,827) $ (26,260) Balance at January 29, 2022 $ (788) $ (7,818) $ (8,606) Other comprehensive loss before reclassifications (162) — (162) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 581 581 Tax benefit — (141) (141) Net reclassifications — 440 440 Other comprehensive (loss) income (162) 440 278 Balance at April 30, 2022 $ (950) $ (7,378) $ (8,328) (1) Amounts reclassified are included in other income, net. Refer to Note 13 to the condensed consolidated financial statements for additional information related to pension and other postretirement benefits. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Share-Based Compensation | |
Share-based payment arrangement, restricted stock and restricted stock unit, activity | Thirteen Weeks Ended Thirteen Weeks Ended April 29, 2023 April 30, 2022 Weighted- Weighted- Total Number Average Total Number Average of Restricted Grant Date of Restricted Grant Date Shares Fair Value Shares Fair Value January 28, 2023 1,603,960 $ 18.57 January 29, 2022 1,390,397 $ 14.24 Granted 546,384 23.09 Granted 671,200 21.00 Forfeited (122,245) 17.96 Forfeited (50,966) 12.63 Vested (420,504) 12.88 Vested (387,854) 12.48 April 29, 2023 1,607,595 $ 21.64 April 30, 2022 1,622,777 $ 17.51 |
Retirement and Other Benefit _2
Retirement and Other Benefit Plans (Tables) | 3 Months Ended |
Apr. 29, 2023 | |
Notes Tables | |
Schedule of net benefit costs | Pension Benefits Other Postretirement Benefits Thirteen Weeks Ended Thirteen Weeks Ended ($ thousands) April 29, 2023 April 30, 2022 April 29, 2023 April 30, 2022 Service cost $ 1,258 $ 1,762 $ — $ — Interest cost 3,615 2,971 13 10 Expected return on assets (6,075) (6,984) — — Amortization of: Actuarial loss (gain) 1,011 681 (28) (25) Prior service income (28) (75) — — Total net periodic benefit income $ (219) $ (1,645) $ (15) $ (15) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 29, 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) April 29, 2023: Non-qualified deferred compensation plan assets $ 8,841 $ 8,841 $ — $ — Non-qualified deferred compensation plan liabilities (8,841) (8,841) — — Deferred compensation plan liabilities for non-employee directors (1,527) (1,527) — — Restricted stock units for non-employee directors (1,846) (1,846) — — April 30, 2022: Non-qualified deferred compensation plan assets 7,567 7,567 — — Non-qualified deferred compensation plan liabilities (7,567) (7,567) — — Deferred compensation plan liabilities for non-employee directors (1,765) (1,765) — — Restricted stock units for non-employee directors (2,559) (2,559) — — 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) — — |
Details of long-lived asset impairment charges | Thirteen Weeks Ended ($ thousands) April 29, 2023 April 30, 2022 Long-Lived Asset Impairment Charges Famous Footwear $ 39 $ 370 Brand Portfolio — 1,407 Total long-lived asset impairment charges $ 39 $ 1,777 |
Basis of Presentation and Gen_3
Basis of Presentation and General (Details) $ in Thousands | 3 Months Ended | ||
Apr. 29, 2023 USD ($) | Apr. 30, 2022 USD ($) | Apr. 30, 2021 a | |
Basis of Presentation | |||
Net sales | $ 662,734 | $ 735,116 | |
Operating earnings (loss) | $ 49,587 | 66,195 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Corporate Headquarters, Clayton, Missouri | |||
Basis of Presentation | |||
Number of acres | a | 9 | ||
CLT Brand Solutions | |||
Basis of Presentation | |||
Percentage of joint venture | 50% | ||
CLT Brand Solutions | |||
Basis of Presentation | |||
Net sales | $ 5,200 | 2,900 | |
Operating earnings (loss) | 100 | (900) | |
Capital Contributions | $ 0 | 3,000 | |
Brand Investment Holding Ltd | |||
Basis of Presentation | |||
Capital Contributions | $ 1,500 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Revenues | ||
Net sales | $ 662,734 | $ 735,116 |
Famous Footwear | ||
Revenues | ||
Net sales | 349,158 | 384,502 |
Brand Portfolio | ||
Revenues | ||
Net sales | 325,516 | 365,740 |
Eliminations and Other | ||
Revenues | ||
Net sales | (11,940) | (15,126) |
Retail stores | ||
Revenues | ||
Net sales | 324,677 | 346,205 |
Retail stores | Famous Footwear | ||
Revenues | ||
Net sales | 308,239 | 331,988 |
Retail stores | Brand Portfolio | ||
Revenues | ||
Net sales | 16,438 | 14,217 |
Retail stores | Eliminations and Other | ||
Revenues | ||
Net sales | 0 | 0 |
E-commerce - Company websites | ||
Revenues | ||
Net sales | 93,637 | 102,640 |
E-commerce - Company websites | Famous Footwear | ||
Revenues | ||
Net sales | 40,206 | 51,938 |
E-commerce - Company websites | Brand Portfolio | ||
Revenues | ||
Net sales | 53,431 | 50,702 |
E-commerce - Company websites | Eliminations and Other | ||
Revenues | ||
Net sales | 0 | 0 |
E-commerce - wholesale drop ship | ||
Revenues | ||
Net sales | 33,530 | 30,775 |
E-commerce - wholesale drop ship | Famous Footwear | ||
Revenues | ||
Net sales | 0 | 0 |
E-commerce - wholesale drop ship | Brand Portfolio | ||
Revenues | ||
Net sales | 34,798 | 31,773 |
E-commerce - wholesale drop ship | Eliminations and Other | ||
Revenues | ||
Net sales | (1,268) | (998) |
Direct to consumer | ||
Revenues | ||
Net sales | 451,844 | 479,620 |
Direct to consumer | Famous Footwear | ||
Revenues | ||
Net sales | 348,445 | 383,926 |
Direct to consumer | Brand Portfolio | ||
Revenues | ||
Net sales | 104,667 | 96,692 |
Direct to consumer | Eliminations and Other | ||
Revenues | ||
Net sales | (1,268) | (998) |
Wholesale - e-commerce | ||
Revenues | ||
Net sales | 54,979 | 60,716 |
Wholesale - e-commerce | Famous Footwear | ||
Revenues | ||
Net sales | 0 | 0 |
Wholesale - e-commerce | Brand Portfolio | ||
Revenues | ||
Net sales | 54,979 | 60,716 |
Wholesale - e-commerce | Eliminations and Other | ||
Revenues | ||
Net sales | 0 | 0 |
Wholesale - landed | ||
Revenues | ||
Net sales | 132,224 | 161,199 |
Wholesale - landed | Famous Footwear | ||
Revenues | ||
Net sales | 0 | 0 |
Wholesale - landed | Brand Portfolio | ||
Revenues | ||
Net sales | 142,896 | 175,327 |
Wholesale - landed | Eliminations and Other | ||
Revenues | ||
Net sales | (10,672) | (14,128) |
Wholesale - first cost | ||
Revenues | ||
Net sales | 19,949 | 30,076 |
Wholesale - first cost | Famous Footwear | ||
Revenues | ||
Net sales | 0 | 0 |
Wholesale - first cost | Brand Portfolio | ||
Revenues | ||
Net sales | 19,949 | 30,076 |
Wholesale - first cost | Eliminations and Other | ||
Revenues | ||
Net sales | 0 | 0 |
Licensing and royalty | ||
Revenues | ||
Net sales | 3,600 | 3,328 |
Licensing and royalty | Famous Footwear | ||
Revenues | ||
Net sales | 585 | 422 |
Licensing and royalty | Brand Portfolio | ||
Revenues | ||
Net sales | 3,015 | 2,906 |
Licensing and royalty | Eliminations and Other | ||
Revenues | ||
Net sales | 0 | 0 |
Other. | ||
Revenues | ||
Net sales | 138 | 177 |
Other. | Famous Footwear | ||
Revenues | ||
Net sales | 128 | 154 |
Other. | Brand Portfolio | ||
Revenues | ||
Net sales | 10 | 23 |
Other. | Eliminations and Other | ||
Revenues | ||
Net sales | $ 0 | $ 0 |
Revenues (Details)
Revenues (Details) $ in Millions | 3 Months Ended | |
Apr. 29, 2023 USD ($) item | Apr. 30, 2022 USD ($) | |
Revenues | ||
Number of performance obligations | item | 2 | |
Gift Card Breakage Term | 24 months | |
Loyalty Program | ||
Revenues | ||
Contract with customer, liability, increase due to points and material rights earned on purchases | $ 8.8 | $ 7.6 |
Contract with customer, liability, decrease due to expirations and redemptions | $ 9.5 | $ 8.2 |
Revenues - Contract Balances (D
Revenues - Contract Balances (Details) - USD ($) $ in Thousands | Apr. 29, 2023 | Jan. 28, 2023 | Apr. 30, 2022 |
Revenues | |||
Customer allowances and discounts | $ 19,076 | $ 21,917 | $ 22,896 |
Loyalty programs liability | 16,993 | 17,732 | 18,152 |
Returns reserve | 13,915 | 12,038 | 16,376 |
Gift card liability | $ 5,920 | $ 6,659 | $ 6,130 |
Revenues - Allowance for Expect
Revenues - Allowance for Expected Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Revenues | ||
Balance, beginning of period | $ 8,903 | $ 9,601 |
Adjustment to expected credit losses | (264) | (617) |
Uncollectible accounts written off, net of recoveries | (20) | (526) |
Balance, end of period | $ 8,619 | $ 8,458 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Earnings Per Share | ||
Net earnings | $ 34,792 | $ 49,985 |
Net (earnings) loss attributable to noncontrolling interests | (65) | 524 |
Net earnings attributable to Caleres, Inc. | 34,727 | 50,509 |
Net earnings allocated to participating securities | (1,478) | (2,017) |
Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities | $ 33,249 | $ 48,492 |
Denominator for basic earnings per common share attributable to Caleres, Inc. shareholders | 34,407 | 36,209 |
Dilutive effect of share-based awards (in shares) | 467 | |
Denominator for diluted earnings per common share attributable to Caleres, Inc. shareholders | 34,407 | 36,676 |
Basic earnings per common share attributable to Caleres, Inc. shareholders | $ 0.97 | $ 1.34 |
Diluted earnings per common share attributable to Caleres, Inc. shareholders | $ 0.97 | $ 1.32 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Earnings (Loss) Per Share | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 16,667 |
Stock Repurchase Program | ||
Earnings (Loss) Per Share | ||
Treasury stock, shares, acquired (in shares) | 0 | |
Stock Repurchase Program, 2019 | ||
Earnings (Loss) Per Share | ||
Treasury stock, shares, acquired (in shares) | 701,324 | |
Stock repurchase program, number of shares authorized to be repurchased | 5,000,000 |
Supply Chain Financing (Details
Supply Chain Financing (Details) - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 30, 2022 |
Supply Chain Financing | ||
Accounts payable subject to supply chain financing arrangements | $ 16.8 | $ 45 |
Business Segment Information -
Business Segment Information - Key Financial Measures (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Jan. 28, 2023 | |
Business Segment Information - Key Financial Measures | |||
Net sales | $ 662,734 | $ 735,116 | |
Intersegment sales | 11,940 | 15,126 | |
Operating earnings (loss) | 49,587 | 66,195 | |
Segment assets | 1,818,083 | 1,928,298 | $ 1,836,472 |
Famous Footwear | |||
Business Segment Information - Key Financial Measures | |||
Net sales | 349,158 | 384,502 | |
Operating earnings (loss) | 17,056 | 49,688 | |
Segment assets | 830,994 | 790,778 | |
Brand Portfolio | |||
Business Segment Information - Key Financial Measures | |||
Net sales | 325,516 | 365,740 | |
Intersegment sales | 11,940 | 15,126 | |
Operating earnings (loss) | 42,669 | 41,349 | |
Segment assets | 844,263 | 987,397 | |
Eliminations and Other | |||
Business Segment Information - Key Financial Measures | |||
Net sales | (11,940) | (15,126) | |
Operating earnings (loss) | (10,138) | (24,842) | |
Segment assets | $ 142,826 | $ 150,123 |
Business Segment Information _2
Business Segment Information - Reconciliation of Operating Earnings Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Business Segment Information | ||
Operating earnings | $ 49,587 | $ 66,195 |
Interest expense, net | (5,623) | (2,299) |
Other income, net | 1,492 | 3,422 |
Earnings before income taxes | $ 45,456 | $ 67,318 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Apr. 29, 2023 | Jan. 28, 2023 | Apr. 30, 2022 |
Inventories | |||
Raw materials | $ 18,367 | $ 21,172 | $ 16,112 |
Work-in-process | 563 | 569 | 666 |
Finished goods | 540,537 | 558,474 | 626,749 |
Inventories, net | $ 559,467 | $ 580,215 | $ 643,527 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 29, 2023 | Jan. 28, 2023 | Apr. 30, 2022 |
Goodwill and Intangible Assets | |||
Intangible assets | $ 344,883 | $ 344,883 | $ 344,883 |
Accumulated amortization | (137,486) | (134,447) | (125,364) |
Total intangible assets, net | 207,397 | 210,436 | 219,519 |
Goodwill | 4,956 | 4,956 | 4,956 |
Goodwill and intangible assets, net | 212,353 | 215,392 | 224,475 |
Finite-Lived Intangible Assets, Accumulated Impairment | 106,205 | 106,205 | 106,205 |
Famous Footwear | |||
Goodwill and Intangible Assets | |||
Intangible assets | 2,800 | 2,800 | 2,800 |
Brand Portfolio | |||
Goodwill and Intangible Assets | |||
Intangible assets | 342,083 | 342,083 | 342,083 |
Goodwill | 4,956 | 4,956 | 4,956 |
Finite-Lived Intangible Assets, Accumulated Impairment | 106,200 | 106,200 | 106,200 |
Goodwill, accumulated impairment charges | $ 415,700 | $ 415,700 | $ 415,700 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Finite and Infinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | Jan. 28, 2023 | |
Goodwill and Intangible Assets | |||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 137,486 | $ 125,364 | $ 134,447 |
Finite-Lived Intangible Assets, Accumulated Impairment | 106,205 | 106,205 | 106,205 |
Indefinite-Lived Intangible Assets, Impairment | 0 | 0 | |
Intangible assets, cost basis | 451,088 | 451,088 | 451,088 |
Intangible Assets, Net Carrying Value | 207,397 | 219,519 | 210,436 |
Indefinite-lived Trade names | |||
Goodwill and Intangible Assets | |||
Finite-Lived Intangible Assets, Accumulated Impairment | 92,000 | 92,000 | 92,000 |
Indefinite-Lived Intangible Assets, Cost Basis | 107,400 | 107,400 | 107,400 |
Indefinite-Lived Intangible Assets, Net Carrying Value | 15,400 | 15,400 | 15,400 |
Trade names | |||
Goodwill and Intangible Assets | |||
Finite-Lived Intangible Assets, Cost Basis | 299,488 | 299,488 | 299,488 |
Finite-Lived Intangible Assets, Accumulated Amortization | 123,755 | 114,528 | 121,928 |
Finite-Lived Intangible Assets, Accumulated Impairment | 10,200 | 10,200 | 10,200 |
Finite-Lived Intangible Assets, Net Carrying Value | $ 165,533 | $ 174,760 | $ 167,360 |
Trade names | Minimum | |||
Goodwill and Intangible Assets | |||
Finite-Lived Intangible Assets, Estimated Useful Life (In Years) | 2 years | 2 years | 2 years |
Trade names | Maximum | |||
Goodwill and Intangible Assets | |||
Finite-Lived Intangible Assets, Estimated Useful Life (In Years) | 40 years | 40 years | 40 years |
Customer relationships | |||
Goodwill and Intangible Assets | |||
Finite-Lived Intangible Assets, Cost Basis | $ 44,200 | $ 44,200 | $ 44,200 |
Finite-Lived Intangible Assets, Accumulated Amortization | 13,731 | 10,836 | 12,519 |
Finite-Lived Intangible Assets, Accumulated Impairment | 4,005 | 4,005 | 4,005 |
Finite-Lived Intangible Assets, Net Carrying Value | $ 26,464 | $ 29,359 | $ 27,676 |
Customer relationships | Minimum | |||
Goodwill and Intangible Assets | |||
Finite-Lived Intangible Assets, Estimated Useful Life (In Years) | 15 years | 15 years | 15 years |
Customer relationships | Maximum | |||
Goodwill and Intangible Assets | |||
Finite-Lived Intangible Assets, Estimated Useful Life (In Years) | 16 years | 16 years | 16 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Goodwill and Intangible Assets | ||
Amortization of intangible assets | $ 3,039 | $ 3,028 |
2023 | 11,900 | |
2024 | 11,000 | |
2025 | 11,000 | |
2026 | 11,000 | |
2027 | 10,900 | |
Goodwill, impairment loss | 0 | 0 |
Indefinite-Lived Intangible Assets, Impairment | $ 0 | $ 0 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended | ||
Apr. 29, 2023 USD ($) location lease | Apr. 30, 2022 USD ($) | Jan. 28, 2023 USD ($) | |
Leases | |||
Right-of-use asset obtained in exchange for operating lease liability | $ 29,600 | ||
Number of locations of Lease commitments not yet commenced in current fiscal year | location | 6 | ||
Operating lease, right-of-use asset | $ 513,817 | $ 503,393 | $ 518,196 |
Fiscal Year 2023 | |||
Leases | |||
Number of anticipated leases in current fiscal year | lease | 2 | ||
Total operating lease liability | $ 1,400 | ||
Operating lease, right-of-use asset | $ 1,400 | ||
Fiscal Year 2024 | |||
Leases | |||
Number of anticipated leases in fiscal year 2024 | lease | 3 | ||
Total operating lease liability | $ 2,200 | ||
Operating lease, right-of-use asset | $ 2,200 | ||
Fiscal Year 2025 | |||
Leases | |||
Number of anticipated leases in fiscal year 2025 | lease | 1 | ||
Total operating lease liability | $ 400 | ||
Operating lease, right-of-use asset | $ 400 | ||
Retail Stores | |||
Leases | |||
Asset impairment charges | $ 1,800 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Leases | ||
Operating lease expense | $ 39,142 | $ 38,064 |
Variable lease expense | 10,465 | 9,016 |
Short-term lease expense | 687 | 1,195 |
Sublease income | (59) | |
Total lease expense | $ 50,294 | $ 48,216 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Leases | ||
Cash paid for lease liabilities | $ 41,163 | $ 48,793 |
Cash received from sublease income | $ 59 |
Financing Arrangements (Details
Financing Arrangements (Details) - Revolving Credit Facility - USD ($) $ in Millions | Oct. 05, 2021 | Apr. 29, 2023 |
Long-term and Short-term Financing Arrangements | ||
Total long-term line of credit | $ 291.5 | |
Letters of credit outstanding, amount | 10.6 | |
Line of credit facility, remaining borrowing capacity | $ 197.9 | |
Fifth Amendment to Fourth Amended and Restated Credit Agreement | ||
Long-term and Short-term Financing Arrangements | ||
Line of credit facility, maximum borrowing capacity | $ 500 | |
Line of credit facility, option to increase, amount | 250 | |
Line of credit facility, decrease in maximum borrowing capacity | $ 100 | |
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 | |
Line of credit facility, fixed charge coverage ratio to trigger debt restrictions | 1.25 |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Balance | $ (26,750) | |
Other comprehensive income, net of tax | 559 | $ 277 |
Balance | (26,260) | (8,328) |
Foreign Currency Translation | ||
Balance | (1,213) | (788) |
Other comprehensive income (loss) before reclassifications | (220) | (162) |
Other comprehensive income, net of tax | (220) | (162) |
Balance | (1,433) | (950) |
Pension and Other Postretirement Transactions | ||
Balance | (25,537) | (7,818) |
Amounts reclassified from accumulated other comprehensive loss | 955 | 581 |
Tax benefit | (245) | (141) |
Net reclassifications | 710 | 440 |
Other comprehensive income, net of tax | 710 | 440 |
Balance | (24,827) | (7,378) |
Accumulated Other Comprehensive (Loss) Income | ||
Balance | (26,750) | (8,606) |
Other comprehensive income (loss) before reclassifications | (220) | (162) |
Amounts reclassified from accumulated other comprehensive loss | 955 | 581 |
Tax benefit | (245) | (141) |
Net reclassifications | 710 | 440 |
Other comprehensive income, net of tax | 490 | 278 |
Balance | $ (26,260) | $ (8,328) |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Share-based Compensation | ||
Share-based payment arrangement, expense | $ 2.9 | $ 3.8 |
Share-based compensation arrangement by share-based payment award shares issued in period | 558,847 | 512,508 |
Share-based Compensation Award Graded Vesting Tranche Two | ||
Share-based Compensation | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |
Granted, total number of restricted shares (in shares) | 7,000 | |
Restricted Stock | ||
Share-based Compensation | ||
Granted, total number of restricted shares (in shares) | 546,384 | 671,200 |
Granted (in dollars per share) | $ 23.09 | $ 21 |
Restricted Stock | Share-based Compensation Award, Cliff-vesting, Tranche One | ||
Share-based Compensation | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 2 years | |
Granted, total number of restricted shares (in shares) | 5,800 | |
Restricted Stock | Share-based Compensation Award Graded Vesting | ||
Share-based Compensation | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |
Restricted Stock | Share-based Compensation Award Graded Vesting Tranche One | ||
Share-based Compensation | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 2 years | |
Granted, total number of restricted shares (in shares) | 533,584 | |
Share-based Compensation Arrangement By Share-based Payment Award Award Performance Percentage Earned | 50% | |
Restricted Stock | Share-based Compensation Award Graded Vesting Tranche Two | ||
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 Performance Percentage Earned | 50% | |
Restricted Stock | Share-based Compensation Award Graded Vesting Tranche Two | Maximum | ||
Share-based Compensation | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 18 months | |
Performance Awards | ||
Share-based Compensation | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |
Granted, total number of restricted shares (in shares) | 276,434 | 87,750 |
Granted (in dollars per share) | $ 23.12 | $ 20.99 |
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 | ||
Share-based Compensation Arrangement By Share-based Payment Award Award Performance Percentage Earned | 200% | |
Percentage of targeted award under share-based payment arrangement | 100% | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | |
Restricted Stock Units (RSUs) | Non-employee Director | ||
Share-based Compensation | ||
Granted, total number of restricted shares (in shares) | 1,423 | 1,907 |
Granted (in dollars per share) | $ 21.47 | $ 20.64 |
Long-term incentive award | ||
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, Equity Instruments Other than Options, Grants in Period, Value | $ 8.3 | |
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 | $ 16.6 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Activity (Details) - Restricted Stock - $ / shares | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Share-based Compensation | ||
Number of Nonvested Shares (in shares) | 1,603,960 | 1,390,397 |
Granted (in shares) | 546,384 | 671,200 |
Forfeited (in shares) | (122,245) | (50,966) |
Vested (in shares) | (420,504) | (387,854) |
Number of Nonvested Shares (in shares) | 1,607,595 | 1,622,777 |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 18.57 | $ 14.24 |
Granted (in dollars per share) | 23.09 | 21 |
Forfeited (in dollars per share) | 17.96 | 12.63 |
Vested (in dollars per share) | 12.88 | 12.48 |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 21.64 | $ 17.51 |
Retirement and Other Benefit _3
Retirement and Other Benefit Plans - Net Periodic Benefit Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
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 |
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 |
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 |
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 |
Pension Plan | ||
Retirement and Other Benefit Plans | ||
Service cost | $ 1,258 | $ 1,762 |
Interest cost | 3,615 | 2,971 |
Expected return on assets | (6,075) | (6,984) |
Actuarial loss (gain) | 1,011 | 681 |
Prior service credit | (28) | (75) |
Total net periodic benefit income | (219) | (1,645) |
Other Postretirement Benefits Plan | ||
Retirement and Other Benefit Plans | ||
Service cost | 0 | 0 |
Interest cost | 13 | 10 |
Expected return on assets | 0 | 0 |
Actuarial loss (gain) | (28) | (25) |
Prior service credit | 0 | 0 |
Total net periodic benefit income | $ (15) | $ (15) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
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% | |
Long-lived assets held and used | $ 559.5 | $ 503.6 |
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 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Jan. 28, 2023 | |
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | |||
Transfers into level 3 | $ 0 | $ 0 | |
Transfers out of level 3 | 0 | 0 | |
Fair Value, Recurring | |||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | |||
Non-qualified deferred compensation plan assets | 8,841 | 7,567 | $ 7,890 |
Non-qualified deferred compensation plan liabilities | (8,841) | (7,567) | (7,890) |
Deferred compensation plan liabilities for non-employee directors | (1,527) | (1,765) | (1,662) |
Restricted stock units for non-employee directors | (1,846) | (2,559) | (2,028) |
Fair Value, Recurring | Fair Value, Inputs, Level 1 | |||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | |||
Non-qualified deferred compensation plan assets | 8,841 | 7,567 | 7,890 |
Non-qualified deferred compensation plan liabilities | (8,841) | (7,567) | (7,890) |
Deferred compensation plan liabilities for non-employee directors | (1,527) | (1,765) | (1,662) |
Restricted stock units for non-employee directors | (1,846) | (2,559) | (2,028) |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | |||
Non-qualified deferred compensation plan assets | 0 | 0 | 0 |
Non-qualified deferred compensation plan liabilities | 0 | 0 | 0 |
Deferred compensation plan liabilities for non-employee directors | 0 | 0 | 0 |
Restricted stock units for non-employee directors | 0 | 0 | 0 |
Fair Value, Recurring | Fair Value, Inputs, Level 3 | |||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | |||
Non-qualified deferred compensation plan assets | 0 | 0 | 0 |
Non-qualified deferred compensation plan liabilities | 0 | 0 | 0 |
Deferred compensation plan liabilities for non-employee directors | 0 | 0 | 0 |
Restricted stock units for non-employee directors | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Impai
Fair Value Measurements - Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | ||
Total long-lived asset impairment charges | $ 39 | $ 1,777 |
Famous Footwear | ||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | ||
Total long-lived asset impairment charges | $ 39 | 370 |
Brand Portfolio | ||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | ||
Total long-lived asset impairment charges | $ 1,407 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 30, 2022 |
Revolving Credit Facility | Fair Value, Inputs, Level 1 | ||
Fair Value of Financial Instruments | ||
Borrowings under revolving credit agreement | $ 291.5 | $ 305 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Income Taxes | ||
Effective income tax rate reconciliation percent | 23.50% | 25.70% |
Discrete tax adjustments | $ 0.6 | |
Deferred taxes | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Redfield Site $ in Thousands | 3 Months Ended |
Apr. 29, 2023 USD ($) | |
COMMITMENTS AND CONTINGENCIES | |
Cumulative environmental remediation expense | $ 33,400 |
Environmental exit costs, assets previously disposed, liability for remediation | 9,600 |
Reserve for anticipated future remediation activities for off site remediation | 4,800 |
Reserve for anticipated future remediation activities for on site remediation | $ 4,800 |
Accrual for environmental loss contingencies, discount rate | 4.80% |
Accrual for environmental loss contingencies, gross, total | $ 13,200 |
Accrual for environmental loss contingencies, undiscounted, remainder of current fiscal year | 600 |
Accrual for environmental loss contingencies, undiscounted, first year | 100 |
Accrual for environmental loss contingencies, undiscounted, second year | 100 |
Accrual for environmental loss contingencies, undiscounted, third year | 100 |
Accrual for environmental loss contingencies, undiscounted, fourth year | 100 |
Accrual for environmental loss contingencies, undiscounted, after fourth year | 12,200 |
Other Noncurrent Liabilities | |
COMMITMENTS AND CONTINGENCIES | |
Environmental exit costs, assets previously disposed, liability for remediation | 8,700 |
Other Accrued Expenses | |
COMMITMENTS AND CONTINGENCIES | |
Environmental exit costs, assets previously disposed, liability for remediation | $ 900 |