Caleres, Inc. (NYSE:CAL) Q4 2015 Earnings Conference Call - Final Transcript

Mar 15, 2016 • 04:30 pm ET


Caleres, Inc. (NYSE:CAL) Q4 2015 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Jennifer and I would like to welcome everyone to the Caleres Fourth Quarter of 2015 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

And I would like to turn the conference over to Peggy Reilly Tharp.

Peggy Reilly Tharp

Thank you. Good afternoon and thank you for participating in the Caleres fourth quarter 2015 earnings call, which is being made available to the public via webcast. I'm Peggy Reilly Tharp, Vice President of Investor Relations for Caleres. Earlier today, we distributed a press release with detailed financial tables which is available on our website at In addition, slides are available on our website for you to reference during this call.

Please be aware today's discussion contains forward-looking statements, which are subject to a number of risks and uncertainties. Actual results may differ materially due to various risk factors, including, but not limited to, the factors disclosed in the Company's Form 10-K and other filings with the US Securities and Exchange Commission. Please refer to today's press release and our SEC filings for more information on risk factors and other factors which could impact forward-looking statements. Copies of these reports are available online. The Company undertakes no obligation to update any information discussed on this call at any time.

Joining us on the call today are Diane Sullivan, CEO, President and Chairman; Ken Hannah, Chief Financial Officer; and Rick Ausick, President of Famous Footwear. Today we'll begin with the review from Diane, followed by a financial summary from Ken, before turning the call back over for Q&A.

And I'd now like to turn the call over to Diane Sullivan.

Diane Sullivan

Thanks, Peggy, and good afternoon, everyone. And thanks so much for joining us. It's been a little over three months since our third quarter call, where we compressed confidence in our ability to manage the factors under our control and to deal with fourth-quarter challenges like weather, our promotional holiday season and excess inventory in the marketplace. At that time, I had said that these types of short-term industry-wide challenges wouldn't derail us from delivering consistent, profitable and sustainable growth. And we did just that in the fourth quarter, with adjusted EPS up 30%. For the full-year, we saw improvement at both the top and bottom-line.

Now starting with Famous Footwear, fourth-quarter same-store sales were up 0.8% and steadily improved as the quarter progressed. November was down about 2% as unseasonably warm weather lingered, however, December was up about 2% and this positive trend continued into January. While some retailers were more promotional during the quarter, we actually reduced the rate of some of our promotions. We maintained the same marketing calendar as we did in 2014 and we continued to offer trend-right merchandise.

Canvas, part of our overall athletic business was once again up double-digits, while total athletic was up 5%. And while women's dress and casual styles were