CAL - Earnings call transcript Q4 2021

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Operator

Good afternoon, and welcome to the Caleres Fourth Quarter Earnings Conference Call. My name is Jamaria, and I will be your conference coordinator. [Operator Instructions].

As a reminder, this conference is being recorded. At this time, I will turn the call over to Logan Bonacorsi, Vice President of Investor Relations. ahead. go Please

Logan Bonacorsi

today's Please slide and like statements, quarter I'd release risks you which joining our contains for detailed Good caleres.com. earnings to risk not results Actual may call to fourth at limited online. factors, factors quarterly as could other well XXXX to information obligation Copies due discussion and tables number factors, to but SEC the Commission. subject Securities various a forward-looking no press are disclosed and to, aware be our our of forward-looking uncertainties. Form in available discussed financial more factors afternoon. as refer XX-K to are update filings thank other presentation risk differ webcast. and materially with any the including and on this time. which today's Please company U.S. any The call information and at for company's press undertakes release with reports impact the are on statements. filings of these Exchange A

and on Chairman is Schmidt, the today Hannah, and Ken and Diane call President. Vice Sullivan, Jay me CFO; Senior Joining President CEO;

and begin turn to your with call will prepared we'll like brief Diane? take Diane. We happy be the to questions. remarks now the would over I thereafter, to call

Diane Sullivan

off exceeding and year you, best results, the that expectations our report XXXX, our strong Logan, good delivered during capping Thank quarter afternoon, everyone. to I'm ever. Caleres thrilled fourth of

million capabilities, financial ongoing our keeping that at and a with share challenges rapid to coupled $XXX us In our balance core previous pass investments established earnings the Our our into strengths, leveraged global measure. the consumer adjusted always navigated on of nearly efforts, total, every effectively resulted double the the earnings of while macro in level tremendous record. workforce return of by. of of and in the delivered didn't nearly our we consumer $X.XX, a and strengthened rebound our the allow and operating per record-breaking sheet year adjusted significant These strategies annual We demand focus. our leaned

in In we the highlighted sound social report XXXX ongoing value ranked recent update targets, forward ESG most nationally and shareholders. exited for to consumer and report, recognized addition, EBITDA. progress set and we in on look next category. our adjusted in efforts environmental, responsible XXXX on that our companies ambitious XX top to approximately a million generated and Furthermore, agile inaugural in $XXX for the our organization, was providing governance Newsweek's our and more significant We an these report. financially Overall, generate poised goods we a list

our some me let of ended. quarter just performance move Now from the to highlights

our fourth delivered earnings was fourth fourth achieved During the adjusted styles approximately Furthermore, million demand entering strong operating sales sales us this to Famous strongest on with Most $X.XX. the love. strong and looked of growth quarter XXXX, margin down for Eliminated the and the record focus maintained generated another inventory despite $XX season the enterprise. our they Famous record fourth consumers XX%. quarter the quarter on debt Leading period quarter connecting and quarter, gross of across record unlock the levels to quarter notably, Footwear, opportunities in consumers Famous per earnings a share fourth remaining portion as achieved holiday in of over record its X% our for our and largest performance efforts our advancing at increase outstanding nearly resulted which delivered higher-cost with long-term we brand. brands of

and or XX% as selling period. of X margin ultimately of margin This nearly with levels margin continued during gross margin. rate better it's XX% improvement year-over-year marks a of gross In brand in wide than addition, the year we by sustained a year, And best for XXXX. basis record delivered price quarters points margin full full resulting on Famous the full strong a gross rate XXX our year

merchandising, local the marketing, right expertise knowledge, the Our and and coupled to planning to the have unmatched needs the us our Famous with enabled allocation product places right of consumer. targeted consumer meet in

the higher also are historical Going shift enable forward, our The while in inventory to value during This supply quarter that environment new these differentiate performance in with a brand averages. is our also our and our strides Sam all underscores will sales integrating of recent owned Also course of disruptions strong brands: furthered compared portfolio and to creating. headwinds. industry's worth further margin performance turned quarterly and X portfolio key outpacing in business fourth chain, the approach earnings its XXXX. years during approximately X e-commerce segments. and we quarter, the the of the confident turned to of despite the Famous in our last expectations fourth still number leveraging sustain consumer due made in experiencing capabilities Allen quarter our and then that significant impressive with are increasing quarter XX% X the structural surpassing assets a XXXX grow of levels. Edelman, to It's direct-to-consumer strong way X disciplined sales promotional efforts an acquired reach we that than to our our growing X and noting Notably, Edmonds, brands level cultivating, results in acquired Blowfish, margin our fourth we ongoing and Caleres to and fourth rebound when Vionic

momentum expect X and to portfolio. these entire to beginning the pandemic brands we the with of effects further build mass the and critical With recede,

to really to focus enable key win attention that turn XXXX. I'd on like areas our to will us now our highlight So in

another this Looking first we strong at Famous, expect where year. performance earnings

our continue and marketing merchandising, We execute on experience consumer to excellence with strategies.

in seasonal and comes to will consumer sport product, both store balanced it to athletic continue what styles, the a wants when we of offer First, our through online. assortment and

upon with key position will and and to our partners We build strong categories demand. relationships these in the on capitalize leadership order leverage to continue sport in our in athletic ongoing

categories in benefit our believe their particularly in limited these have consumers most expect to exceptionally gravitate We competitors been of to remains brands and distribute still will some as ability situated brands. certain well-known Famous the well iconic towards

evolve localized product Famous and we behaviors addition, are with and same the Famous to current emerging a at offerings, preferences work this additional and We we consumer. the the nationwide genders expertise and In meet new time, adding while attract providing using our could customer shifting to across our categories testing as the new network and and believe options. consumers brands knowledge of

represented moved our this to and excellent year, the than with as could Blowfish, sports whole. Vionic Famous potential sales current owned in margin between on great our provides Famous the XX growth. brands represent the be their growing for with fit this consumers' And brands, portfolio XX% as include These enterprise that portfolio top the A the runway desire for a XX our Beach. several brands an and and of LifeStride, provide the Scholl's top the XX. opportunity brands styling for higher Birkenstock of more and example into Dr. are for has a the increasing third, brands within merchandise, During we focused which would XX There are athletic top on importance.

Famous. sit the brands currently top In at fact, sales performers X in XX these of

and styles another recent our the brands, could consumer the for avenue in lift addition, in-store interest and for demand dress by fashion-focused Famous occasion both on famousfootwear.com. some In provide of and

Turning to marketing.

same understand the Famous time undertaking During to attribution work consumer while marketing did a at further we XXXX, the tremendous study. amount of a

our investment We existing Famous findings and acquire to are strategies new in importantly, perhaps, media and order consumers. most to optimize using our inform reactivate to previous our retain

as margins improved pull AURs our significant back inventory Over efficiencies promotions. increase Famous the saw last we in we year, on a in and and

activity, an brand As we to engaging limited XXXX, Famous establishing the connecting through different connection that's overall. a continue ones of in consumers support approach to competitive with the requiring strong new we a landscape current and with environment progress promotional expect

to As to surgical we shift our drive result, in using consumers. repeat personalization and shoppers working one-channel traditional in being order omnichannel marketing are purchases to tactics a and targeting

We value value-creating a bring are be the of Famous. long-term highly lifetime for customers this omnichannel to and believe aware opportunity

by amount across discussion consistent of experience, was striving to to sales an better where always and done a want work. at on the important It's consumer driven focus we we're making worth increased with is do brick-and-mortar, our I that it growth area enhancing much more noting on have where significant that top year-over-year experience Famous line the close consumer Finally, the the omnichannel.

digital brands developed localized shopping the Most showcasing experience As fact our experience and most and brand's an very offers that carry the importantly, is we convenient. DNA. prototype enhanced and have it's a are true consistent with that enhanced styles, and store a stays we result, the completely to extremely in-demand testing

we're additional prototypes to consumers' there So year. here we over seeing, the XX move making far, look few in geographically reactions We diverse months. and results through we stores markets next really several the key forward to adjustments a like as sharing open new plan the the to and

Beyond locations share our grow where be this, to we are leverage we and we we gain markets assortment earnings. where athletic may constantly leading adding and exploring in underpenetrated, believe can

refresh to stores this and plans Famous traffic have we addition, high year. high potential In upgrade and

store stores XXXX. XX you'll XXXX update that we the completed value enhance began We're XXXX. in this to unlock elevate stories the greater already As due in pandemic high-performing recall, in and nearly restarted an still which on paused to initiative top is upgrades locations. was and further enhancements experience, of year, should but was XXX these brand this key the These consumer we from then planning

and already efforts consumer previously are are refreshes generate presence that seeing further differentiation national We our excitement, completed our we stores solid bolster these and create returns. optimistic and in positive trends will have

So now the for portfolio let's XXXX. focus turn areas key brand in of to the

A of that with year can that performance component fiscal continue be inventory view an in and central XXXX on XXXX. to build component and believe to our our in be the to growth drive established ability strong strong better we results is we key ensure improving which First, a portfolio this demand. year align exceptionally the foundation to have will we consumer brand to brand

certain During adequately the half dislocations of XXXX, to meet back products. and certain for our of brands supply our of ability limited our demand chain improving global

the emphasis in-transit the last inventory we same alignment opportunity the to approximately period. in aggressively of of to several this up months, inventory year. capture sales. drive strong managing possible wherever view real greater each We to in supply the placing building demand a real styles during of growth on 'XX building and said, slowly inventory, less brand's a more receipts top-selling and as which back 'XX, than our the quarter have chain XX% as fact, time, our accelerating excluding operated when for quarter we high inventory levels was over compared That In been twice fourth with fourth accelerate

to short, Caleres and with Next, a brand brand in initiated strategy our and on we that the an win really, brands, consumers, have retail we're while as products sourcing own the whole. edit building want. In productivity frankly, across costs portfolio for consumers impacts positive lower our each tightening enhance and SKU count demand to successful partners and

and do want outcomes. not cycle. this That's the result of We consumer focus development and retail to no-brainer to the of life with simplification functions loves, in leading wouldn't fewer sample expect lower and loyalty what will do to of more margins, sure stock you and why a that sell-throughs satisfaction and product prices that costs kind allowances, across and in better I'm better rates those of higher that. markdowns kind higher much

a of investing degree optimizing in focus lead emphasizing portfolio, the and Finally, on high brands. we're putting our

with runway Sam to addition seamlessly central have continues include to these in these Edelman's while of worth and trends, consumer for positioned products, been will business. to the Footwear, notably, increases which Sam and to been consumer we've for take Most in on Vionic Allen the have growth. which new are significant view to innovation advantage brands their our Elman, which discussed, be direct-to-consumer and driven continue around clear have products demand excitement strong. had advanced and footwear to Famous loyalty health and for It's recognition styles work Edmonds their pivot in and We product that strong extremely beautifully as Vionic. catalogs Edelman the showcased portfolio. Allen Edmonds and well noting has event capabilities Sam They with In and a recent resurgence wellness capitalize

e-commerce its compared period. traffic, average over fiscal XXXX, business to fact, 'XX all In showing XXX% value when with order and during conversion strong increased metrics the year improvements same

and are our to Avenue the by brand furthered design which sneaker Avenue in all innovation of and this lug-sole, Looking Avenue Park Park at Allen create top-selling on new at we will and receiving a a product Edmonds, loyalty. the leveraging evolution Park This our very and the capabilities our to fantastic on a time consumer signature build brand response from and consumers, brand attract style awareness allow progression its same while strong consumers. reinforcing to building popular nicely the

brand Speaking an of be the a its will century Allen in Edmonds, anniversary XXXth excitingly, of brand. American Made May, celebrating

this the activists across story musicians, entrepreneurs, celebrate their during these generations, dancers, and that and of years highlight Avenue. to milestone, making we for significant pride underscores I'd stories legacy. the from XXX of month will you in thought work, them follow all and designing the encourage our creators, creating artists, shoes. and we honor Park further As our race. leaders to have on we as XXX stories the life's genders we Through and and passion the allenedmonds.com Photographing the like commitment remarkable May people, curated our to comes

see the well leadership pandemic Franco Beard, are have dress affected brands, new were the offerings demand to by celebrate upside year. Beyond styles social known more the during our disproportionately lifestyle. the which for exciting and brands, we event-driven and Naturalizer consumer These for during Sarto consumers significant Veronica accelerate as

big In Naturalizer. capitalize years be up X shaping on up it. all sure, particular, to as and opportunity bridal One brands its of leading on that celebrations. events offerings showcases and brand expanded is tremendous fact, shop naturalizer.com, positioned her biggest guests wedding is natural the all in our what the as bride for to for of of a designed launched that brand That the gatherings styles for and ideally social a day has wedding well and to events, the for many are and has special as party

is to bring touch are our web with it to Naturalizer with key more wedding shop. this coming amplifying across life collaborations further the Currently, We business retail of many points. through partners XX% than

rebound increased these for expect driver We also the the portfolio to significant brand for overall the demand a be brands in XXXX. in

have wrap have and for up the power we earnings opportunities earnings progress excited in comments as through my of potential seen for long-term capital enhance creation. the stage the to the date strategies are set even step to value and So the year. have change The brands greatly power of invested our afternoon, for we the some organization, a advance about our the this deployed served greater and and to future we

unpredictable over While common clearly, capital are an Ken outlook. we will with operating we challenges, to prepared are sustainable our and in the the times. and company's Caleres' how performance of plans most outlook it confidence these exceptional at Caleres uncertain are shares swiftly, Even operating its continuing financials, during share cash-generating improvements million we financial future and ongoing hand allocation move a to given more Polaris detailed that, period Ken? the of our we possible in recently continuously and believe to deliver uncertainty in long-term and evolving look macro and authorized Board capabilities, and this XXXX know a I stock now With X additional repurchases. for poised for

Kenneth Hannah

XXXX. start outlook sustainable allocation delivering sharing discussion recent and Diane, success and business XXXX. Thanks, of detailing experienced perspective building in the maintaining on our our our I'd controlling we're by control, a the for capital excited variables everyone. on afternoon, like about momentum driving outstanding our our closing in momentum, plans I'm top focusing my this shareholder good our Clearly, within to our on priority value. with we during results of today

be be We will my XX% quarter in more period consolidated relevant million, some focus of the comparable $XXX.X where below sales a quarter there instances X.X% such. XXXX, and will is as and was most fourth While period comparison of noted XXXX will of XXXX above on the commentary fourth which delivered XXXX.

quarter increase the XXXX. over brick-and-mortar to this mentioned, increases strong when Diane brand delivering reflecting XXXX of in by stores Famous quarterly XX in an operating and fewer another despite performance X.X% record compared business XXXX, for fourth our As was the driven

continued including quarter of declining increasing the fourth brands. exited the with of portfolio improve quarter to versus XX.X% the while quarter impact brand to XX.X% XXXX, XXXX the fourth compared fourth Our sales of

XXX performance fourth Our from reflecting up points margin margin XX.X%, of of at consolidated Famous another the was XXXX, basis gross strong quarter quarter Footwear.

offerings, the activity. In margin fact, continuation Famous fourth another brand minimal quarter delivered robust for of Footwear our profit gross promotional in quarter. over basis of primarily driven more the demand This by selling full-price XXX XX.X% improvement was of XXXX the point consumer and

third freight. points $XX improvement fourth in mark of recorded of ocean quarter This a portfolio the on annual basis XXXX. Caleres brand XXXX. than quarter delivered XXXX. million Freight the gross fourth of XXX basis margin from the basis was XX.X%, impact did including point Ocean XX%, than incremental XXX year a higher of It lower gross Our quarter margin sequential consolidated quarter. had full XXX points the

expansion structural margin change the our averages. Footwear's potential and profile exceed we to for gross in continue further portfolio, consolidated Famous will forward the going our historical expect margin brand in Given

fourth X quarter the investments million or experience made sales, was digital the million ago, $X.X the period of expense consumer in quarter. decline a and SG&A marketing Our during in $XXX including XX.X% years from same period

a expense $XX.X were $X For million the fiscal year of sales, XX.X% our SG&A year, was decline billion, net representing XXXX. from

year approximately achieved sharing expense and results to a of the relating includes compared SG&A As extraordinary compensation reminder, our incentive incremental profit $XX year. million XXXX, this full expense to for

million, representing earnings of million for EBITDA X.X% or was and XX.X% XX the $XX.X $XXX year. of full operating Our sales. or sales the of for for sales $XXX.X million the quarter X.X% months were trailing

for was inventory Portfolio included XX.X% decline Famous in at Brand more to brand portfolio. XXXX, and and The increase a $XXX year-end fiscal approximately inventory inventory compared X.X% than a Footwear million of XX.X% included the Our transit. at down

be Excluding in-transit Portfolio Brand inventory XX%. this inventory, approximately the down would

million reduce focused inventory the inventory and an levels to from invest our and to with delays better higher in As our debt these borrowings the under cash all XXXX ongoing to counterbalance shifted and that Diane overall fund of be long-term company subsequently in consumer We our fiscal align year discussed, brands brand managing cost laser levels our effort reduce strong us lower $XXX.X XXXX generated business. of consumer back our plans. execute demand will and with allowed with portfolio, levels year, the Ultimately, credit activities million of and million sales. these end and by buy $XXX interest at styles levels, we end flexibility receipts and use down forward focusing the in from our shares $XXX.X million in All need further expense we going actions will provide $XX cost XXXX. to our momentum operations our called fiscal to the told, cash during proactively revolving drive from facility. in to continue The debt, financial dividend, approximately on the top on debt

quarter, from fourth cash $XX.X operations investment capital as needs of in working our selling. million we spring our approximately the During utilized ahead increased

We expect into XXXX. of quarter first this the to continue

now turn Let's capital to our allocation.

it flexible be free cash first we return we This and dividends, returning know, the no of different, business. to the via and buybacks. will allocation buybacks dividends will cash most share capital on constantly value-enhancing a shareholders focus evaluate carefully avenues put and capital for growing inclusive and you investing and and As our program, year in our place flow

our increase mentioned approximately we authorized this With repurchase authorization. million shares X increase, million an share program. shares now for this As earlier, the of Directors of Board announced under current we X afternoon, our have Diane

investing be consumer growth in digital organic as marketing, experiences. and Second, such we in areas will

we continue Third, bolt-on strategic at fourth, to selectively we looking credit. will will revolving funding at acquisitions. and be looking line our of opportunities to be And reduce

be challenges when as comparable of sales include company's business, look flat with we of pressures, XXXX. X% its inflationary expect that up to compared disruptions to fiscal forward Finally, we underlying our ongoing concerns annual the anticipated and for lack geopolitical efforts, into XXXX and along validated expectations government chain to supply XXXX macro inclusive stimulus in current

expect $X $X.XX share to This associated any range repurchases. with impact earnings also our share. We between be per not any share and per does include

operator ongoing current that, earnings noting over we the the underlying the of worth first it's business, to the turn for XXXX I'd the that in with strength seeing environment, half Additionally, expect given the uncertainties With in year. call in along our in be like macro questions. the XX% the to we're of to

Operator

Instructions]. [Operator

Steve from will Your question first come Marotta & CL Associates. King from

Steven Marotta

through well Congratulations walk incremental then, share the a a the $X.XX SG&A details the not on comparables year on margin the on That's just from takes comparables I you just gross gross increased wondering, to freight what of channel for in SG&A an year the against, very expectations margin couple on would for basis, the the and terrifically as the year, maybe promotion And was maybe well. puts can big very, consider ending say, done. standpoint. you a guidance. deltas but purchase. Ken, quarterly all assume well, line on necessarily Does and then $X incremental standpoint, from and and through

Diane Sullivan

these effort. time helping results. it's Thanks deliver it's the into amount And across kind put to comments. for team a and a tremendous Everyone Steve, energy company of the Diane. obviously,

go guidance $X.XX as quick we were everybody $X. to a let as And along. in not And So included in just start share through on well, repurchases, thank walking that note, as you of Ken, that. we of I'll the terms that of some

Kenneth Hannah

Yes.

think going assume over easiest delivered the you can is probably that margin year. XX% we it, Steve, think I this we're gross little to I from And way standpoint, to about Famous a delivered promotion We're of a is for X that there. hold bit going allowing a on. There's had XX%. that little some and rate dynamics the XXXX investment in period. really are different One think

don't the fourth the increases away we basis be quarter, little from only part, and half But then that. the to point be against mentioned, brand be the the see We we'll were offset going we basis And ocean expect XXX in the to would freight will points. price for expense to gross bit Portfolio has as team portfolio, half. put the it could we comped back margin across And XXX-or-so expect you be most the a up up that impact freight. that on through in to ocean lower. XXX So down Brand points first XXX that able basis

So when you right work think just all hold it out, net XX% kind range around of that year. make and of easy kind we're to I that for really the you to assume going of can

On the expense side, we went through -- dollars. we shared where we were investing

that I think year the we ended of XX%, XX.X%. being around

think not that and or can bit, assume probably basis DCs, with inflation in more up I points. that we wages, to than whether our expect XXX in a also little stores you it's would go

think provided really government to brand can portfolio. some lapping driven I that think of to you see up guidance on get and the the can year. model we I kind is across be sales clearly, stimulus within X%. then of And so like. And going The is the flat to use And we that that growth Famous the you the --

way. And I get that can think to it so ranges modeling by those you

Steven Marotta

are incremental as very half of just ocean That's just year expected the like price I a been to I first offset follow-up costs, to what that, instituted those the guess, you just incremental said. for increases sort reiterate as want freight, of that have fourth And quarter? unlike helpful. far the to offsetting The costs

Diane Sullivan

That's right. right. That's

what back recall, by of is those almost already you That ocean million when going we costs driven we I roughly at guys we basis if didn't had and were taken the $XX XXX quarter, all said change Jay, incremental was XXX ocean up. go on we to time the freight that pricing points. orders saw The freight. down third And

really see passed increases we spring that offset increases should price based of our that. about were and and the offset on the the come basis We QX And that through. expectation through QX XXX the then we that points in were had fourth effective of is in some And for to able spring. so price shipped quarter, you

Steven Marotta

are a That's the Diane, half a book. first Do a very year say, order versus the you goods on the for helpful. being in question items it of half portion second just of and being of in what material of wholesale is fashion dressier that dress change delivered, back see similar? wholesale in at the becoming larger half? the Or the is is demanded mix relatively the year

Diane Sullivan

Steve. question, Great

sell-through can position, we're and looks we very get that well order in right As in like. our feeling that and front demand for good what book who of really a quickly, more come about it expected the get out but taken just currently And retail as imagine, our rates very tremendous. you to we this now dress, have at as and consumer, we see inventory continuing it's as improve. to back And this would have look right, we really our that would been

heel that category. things it don't of our bookings have social and So in traditional but as the thing. to And that dress close we've been some of about a go really anything things think that taking occasions, a look at that, not to so-called been of up to, dress, I sort a as XX% think, opened -- on

and it's going is wants out wedding. get the to yes, considerably because grown consumer to really So

think a weddings million of we and and I lot -- and places wave reception. Jay XXXX have X.X a I hard the the that think people didn't to weddings heard and have So time they're the having getting

we're of anything lot also course, sort that XXXX, and So people paying actually which, on But that's into of happen. for all pre-books thinking going Jay, backlog that there's thing? the and of the of a to

John Schmidt

we our piece, about it's the above see we XX% the of dress Steve, actually that is in XX% first were compares we think, half said on-order against in of position I XXXX. where that XXXX. And

strong it's So trend. really a

as sell-throughs is the most the thing think exciting are I very, high. comes the very product in,

that we as continuing the see we through go year. So

Steven Marotta

year? in Do one fourth as is chain. really whoever to sticky be through by just wants this up let helpful. is answer the and see it just the planned the Or either And question that's or this for third I really Okay, balance to you supply as now of more regarding of have the any quarter year?

Diane Sullivan

Steve, should to assumption sticky there's through different. is our think, don't believe all it's to right the XXXX. that reason think we I I be way any anything going now that expect

to to think ensure our I we us have to really what have allows consumers working way to all the through partners do our it proactive satisfy and be the through. goods and that here we

change don't a there's COVID the coming hear in out the up significantly. China we latest or one shutdown expect will yesterday lockdown happening or bits where And where it So or pop Vietnam with a districts of to to little you different little cities.

that's we to that So can think away expect that -- don't go completely. going that I

we're way to in it. to against normal of new and changing. operating do. it it through sort need and It's don't we just our used manage we're we'll But what do So the that see

Operator

Next Laura question Capital. with come Loop Champine will from

Laura Champine

a does with bit in first trends half to around probably season? of earnings come more back imply half for the this of margins. promotional for back-to-school Especially has a that little portfolio in better the the that Ken, keeping half. It's and terms sales guidance What based on thought brand expectations in

Kenneth Hannah

less. a out traditionally QX it's opposed it's been as more the momentum being what think and of QX and larger than bit quite QX to coming QX I have being they

in we earnings would we come half come our of half. what the and go in first we if -- you back back XX% typically see So then pre-pandemic, XX% -- the

first to make thinking. of was just across lot be and the by what make pretty across So to happen happen, going split of would view kind you X close just Obviously, you of if to probably what's in explain you modeling, ought to actually there's the we but to take it we're we the work $X.XX like a X thought we easiest first that you felt it the half. way everyone quarters, of kind that and our easy to required divide for $X, it

Diane Sullivan

question versus Laura, activity, And about maybe to what our for half. in mean and did It change did your promotional at that back XXXX. really will what calendar relative in not we promotional all the 'XX

So very in consistent the calendar quarter.

Laura Champine

guidance second outlook keep the that a Does but the you top today? Or sales a in half not that in the your find sales it. lower Got see momentum try first to positive result maybe half? should I in imply line

Kenneth Hannah

you order is I good. that mean think Jay, book I No. heard from our as spring

spring right seem a view good way the off. and then just day-to-day think expect our long selling. is QX And managing QX now, We I like

the first back so And is our the visibility than is much better over half half. across clearly, it

a read we the that to to selling. range some flat X% to between of into whole mean, wouldn't you I up So variability. I for give that lot tried account

Operator

Telsey Your Group. next with will Telsey come Advisory question Dana from

Dana Telsey

the nice things. on Congratulations couple A progress. of

do then you I SKU you're it As tightening going And And where and follow-up. about mentioned any how count, Nike, had what has Where forward? go Diane, Active I is been? you from And the the on updates and now have a see think that seen it had contributed. you in you where count. think SKU Famous you've

Diane Sullivan

Great. Thank for well. as you, Dana, your comments

momentum our first. quarter. at ended the second with me first business quarter fourth continued your start with Let that Actually, Famous, one really so we into has

We seen all at not sport any slowdown have athletic our our business. in and

some few a as has has strong it's new being been it fact, to nice which with of continued top to be the sellers, been In see. coming items into as

to anything business great, we to see expect Nike change there. our to any be with don't respect Our with continues performance and with

about feeling Famous good really business overall. with So our very the momentum

Jay make our up scores we the sure up those we customer much happy higher of brand the those all too. at portfolio that the as was looked that was brand we that think making things our that as possible. look and we wanted tighter we really we gross critically high important profit at really as much our we ESQI at a margins because sure keep it and architect about and edit-to-win, scores and wanted productivity get supply chain And thought it and to loyalty was I side as of on looked important

you say, on give the I So you're .... Jay, would let think about it back cut we do another that slug numbers, XX% -- looking to or the I I'll think, and to but XX% first I of we XX% top so. But are

John Schmidt

inventory that propel but to to were. the how we the it making seeing XX% quarter-by-quarter really at business. most our our right behind it's And our like I far, where styles closely by the XX% really really was our looking it's on helping that obviously, get the We're to it against -- it initial looks direction. progress pointing to strategy. really going and very say us We're right meaningful continue seem update works, brand story. And decisions. that's allowed like are Yes, results in so have It's to

Dana Telsey

quick And then follow-up. a it. Got

you're the On lower around for the And brand fall portfolio, was Does thinking that portfolio. then selling set the brand at given how is upcoming by I million Ken, spring think Does interest in it versus XXXX. continue Or fall the $XX price in that? increases by selling expense season? about brand? for differ -- around XX% that in one the

forward? selectively going the about look think forward, that of you As picture reducing as you what's debt

Diane Sullivan

right. the Dana, So you're on exactly --

increases. And want do on of Your you how good XX%. forward? see price kind Jay, memory is it the It going comment to was on you

John Schmidt

the fourth obviously, I spring think as think we'll And hit on to we that we'll XX%. quarter already. come go where way that we'll the through start where take lap it I against then into we continue all the up we

really that's would yes, very think number, answer. the consistent. I So But the that be

Diane Sullivan

And that interest Ken, expense. on

Kenneth Hannah

Yes.

expense, the $XXX operating cash over XXXX. generate million I we'll interest well On of mean, in

the it's And so revolver paying on much what how stock of feel undervalued. of kind debt we go these to happens depend will our prices, price likely highly will like decision on at down

willing And was so our increase our Board authorization. Fortunately, to

be buy plan using we shares. that back So cash those to some to of

We've we're our of of comfortable out. we But kind against all will where got that million today. So on debt. X line got $XXX that outstanding long-term plays We've are how credit. depend

will going investing We be working into QX, capital. in

in working us. positioned of make out in inventory that demand there's As think we're sure the we to you way We're is to our of transit. front saw, through million that capture $XXX

putting generation So that forward we're looking work. to to cash

Operator

from & You Associates. do King Marotta Steve follow-up a CL from have question

Steven Marotta

I'm just wondering if there the were year-to-date period. repurchased any shares in

Kenneth Hannah

year-to-date not have in closed of in We window. has been There terms period. would been the any the

back here but have not did in So think, any I shares we in XXX-and-some-odd QX. about we $XX QX, buy million, purchased thousand

Operator

time, to closing questions turn for are further there this over it like remarks. no to Diane at And in queue. I Sullivan would now

Diane Sullivan

our really an our confident 'XX these coupled against and opportunities, for across to Thanks, everyone results, We're shareholders. much. made exceptional the with next company. We excellent year with drive the structural you you for really should control did progress we an when changes on Thank value that providing for capitalize very speak initiatives. this that business strategic We controllables our update May. listening afternoon. look our made with market was forward we've long-term creation you in

Operator

Thank conference for This today's call. concludes you participating.

disconnect. now may You

Caleres (CAL) 16 Mar 222021 Q4 Earnings call transcript