“This past quarter represented a period of tremendous uncertainty and challenge for the global community, our consumers and our company. After a strong start – with year-over-year sales at Famous Footwear up by nearly 13% through mid-March – Caleres pivoted sharply to address the rapidly escalating global health crisis. We temporarily closed our entire network of Famous Footwear and branded retail stores; instituted work from home capabilities for the vast majority of our Associates; shifted our focus to ecommerce; and repurposed our Allen Edmonds factory to assist in the production of personal protective equipment to support frontline healthcare workers”, commented Diane Sullivan, Chief Executive Officer, President and Chairman.

Net sales in the period totalled 397.2 million US dollars, down by 42% from 677.8 million US dollars in the first quarter of fiscal 2019. Famous Footwear total sales of 191.3 million US dollars, down by 45.7% with same-store-sales up by 12.8% through mid-March, and up by 12.6% for the entire quarter; and Brand Portfolio sales of 217.2 million US dollars, down by 36.3%.
  
Net loss of 345.8 million US dollars or a loss of 8.95 US dollars per diluted share compared to net income of 9.1 million US dollars, or 0.22 US dollars per diluted share in the first quarter of fiscal 2019. The loss of 8.95 US dollars per share includes 7.56 US dollars of adjustments related to COVID-19, consisting primarily of non-cash impairments. Adjusted net loss was 50.4 million US dollars; or an adjusted loss of 1.30 US dollars per diluted share compared to adjusted net income of 15.0 million US dollars, or adjusted earnings of 0.36 US dollars per diluted share in the first quarter of fiscal 2019.

On the 11^th of May Caleres initiated the reopening of its Famous Footwear and branded retail stores. To date, the company has successfully resumed in-store operations at approximately 625 locations, including 555 Famous Footwear stores (60% of the store fleet). Caleres expects nearly 90% of its Famous Footwear stores to be open by late-June with the remaining locations – primarily in regions heavily impacted by the virus and still under state and local closure restrictions – reopening when it is safe to do so.

According to Caleres, stores that have reopened are running ahead of expectations with the Famous Footwear stores running ahead of last year. The company also said that it managed to maintain its Associate base through the course of the shutdown and has achieved a nearly 95% retention rate among store managers at stores reopened so far.

2020 Guidance

Given the evolving nature of today’s retail marketplace, Caleres says it will continue to work with multiple scenarios, but given the ongoing business disruption and substantial uncertainty surrounding the impact of COVID-19, the company is not providing formal financial guidance for fiscal year 2020.