Caleres, Inc. (NYSE:CAL) Q4 2017 Earnings Conference Call Transcript

Mar 13, 2018 • 04:30 pm ET

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Caleres, Inc. (NYSE:CAL) Q4 2017 Earnings Conference Call Transcript

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Presentation
Executive
Kenneth H. Hannah

of approximately $2.8 billion, with same-store sales at Famous Footwear up low single digits and net sales for the brand portfolio segment up low single digits. Our gross margin is expected to be up approximately 5 to 10 basis points, and we expect to leverage our SG&A expense as a percentage of sales 5 to 10 basis points. Interest expense is approximately $16 million and our effective tax rate of between 25% and 26%, down from a four-year historical average of approximately 28% on a GAAP basis and 29% on a non-GAAP due to the Tax Cuts and Jobs Act.

And our earnings per diluted share of between $2.40 and $2.50, up 11% to 16% over 2017, including an expected benefit of approximately $0.13 per share due to our lower effective tax rate and excluding approximately $0.07 to $0.08 of the remaining Allen Edmonds transition cost that Diane discussed earlier. Additionally, if the reduced tax rate related to the Tax Cuts and Jobs Act had been in effect for all of 2017, we believe our adjusted 2017 diluted earnings per share would have been $0.11 higher or approximately $2.27. Based on our 2018 guidance, this would equate to a 6% to 10% increase in earnings per share year-over-year on an apples-to-apples basis.

Finally, this guidance includes, as usual, a number of store openings and closings and these details can be found on the earnings slides available at caleres.com. As a reminder, last year included a 53rd week, which increased brand portfolio sales by $3.7 million and Famous Footwear sales by $19.7 million that had an immaterial impact on our 2017 earnings.

Overall, 2017 was a great year for Caleres. And once again, we expect to deliver consistent, profitable and sustainable growth in 2018.

And with that, I'd like to turn the call back over to the operator for Q&A.