Caleres provided an update on its ongoing response to the extensive spread of COVID-19. In addition to the previous steps the company has taken to temporarily close its branded retail stores and certain Famous Footwear stores located in highly impacted areas, Caleres has elected to close its remaining Famous Footwear locations.
These additional closures will begin March 19, with all retail locations, both branded and Famous Footwear, expected to remain closed through April 2, 2020. During this time, Caleres understands the need to balance overall health and safety with the ongoing requirements of our consumers. To that end, consumers can still purchase products online from Famous Footwear, Naturalizer, Allen Edmonds and Sam Edelman for shipment directly to their home during this closure period.
As a result, Caleres is withdrawing its 2020 financial guidance, which only included estimated impacts from virus-related supply chain disruptions and did not accommodate any virus-related decline in consumer demand. While it remains difficult to quantify the impact on full-year financial results, the company will reassess and expects to discuss its outlook on its first-quarter 2020 conference call.
“During these extraordinary times we are taking steps to manage the company conservatively,” said Ken Hannah, senior vice president and chief financial officer. “We are reducing capital expenditures and operating expenses, and we have the flexibility to leverage our strong balance sheet to shift our capital allocation priorities to align with the best interest of our shareholders. As of March 18, 2020, we had a cash and liquidity position in excess of $175 million. Caleres has the ability to bolster its liquidity position through an accordion feature which allows for an increase in the capacity of the asset-based credit facility by up to $250 million. We remain confident in our ability to service our debt and in the long-term outlook for Caleres.”
“As we progress through this very volatile health crisis, we will continue to balance the distinct needs of our communities with ongoing requirements of our consumers, while working tirelessly to ensure the safety of our team members and to protect our business,” said Diane Sullivan, CEO, president and chairman of Caleres.
Photo courtesy Caleres
