Caleres Inc's Business Segments

Caleres, Inc., originally founded as Brown Shoe Company, Inc. in 1878 and incorporated in 1913, is a global footwear retailer and wholesaler. In May 2015, the shareholders of Brown Shoe Company, Inc. approved a rebranding initiative that changed the name of the company to Caleres, Inc. (the "Company"). Current activities include the operation of retail shoe stores and e-commerce websites as well as the design, sourcing and marketing of footwear for women and men. Our business is seasonal in nature due to consumer spending patterns, with higher back-to-school and Christmas season sales. Traditionally, the third fiscal quarter accounts for a substantial portion of our earnings for the year.

Portfolio of Brands

Healthy Living
Naturalizer: Introduced in 1927, Naturalizer has become a global family of comfort lifestyle footwear brands meeting the needs of women across the marketplace with uncompromising comfort, fit and style. Our flagship Naturalizer brand is sold throughout the United States and Canada, primarily at Naturalizer retail stores, national chains, online retailers, department stores, catalog retailers and independent retailers. At the end of 2015, we operated 159 Naturalizer stores in the United States, Guam and Canada. Naturalizer footwear is also distributed through approximately 40 retail and wholesale partners in 57 countries around the world. In addition, Naturalizer footwear is distributed in China through stores operated by our joint venture partner, C. banner International Holdings Limited (“CBI”). CBI operated 94 stores at the end of 2015 and expects net store openings of approximately 10 stores in 2016. Through our majority-owned subsidiary, B&H Footwear Company Limited (“B&H Footwear”), we sell footwear to CBI on a wholesale basis, as further discussed in Note 16 to the consolidated financial statements. Suggested retail price points range from $79 for shoes to $209 for boots.

Dr. Scholl’s: Dr. Scholl’s is an authentic brand of innovative footwear designed with an uncomplicated, playful style for a healthier life. Dr. Scholl’s delivers proprietary comfort technology across all distribution tiers. Dr. Scholl’s crafts unique styles that offer men and women the freedom to live active lives. This footwear reaches consumers at a wide range of distribution channels: mass merchandisers, national chains, online and catalogs, specialty and independent retailers, department stores and our Famous Footwear retail stores. Suggested price points range from $25 for shoes to $200 for boots. We have a long-term license agreement with Bayer HealthCare, LLC to sell Dr. Scholl’s, which is renewable through December 2026 for the United States and Canada and December 2017 for Latin America.

LifeStride: For more than 70 years, LifeStride has created quality footwear for women who value style and comfort. Offering work-to-weekend styles, LifeStride is both versatile and comfortable for all-day wear. LifeStride offers comfortable footwear that dresses up or down at the right value. The brand is sold in national chains, our Famous Footwear retail stores, online and department stores at suggested retail price points ranging from $45 for shoes to $100 for boots.

Ryka: For over 25 years, Ryka has been innovating athletic footwear exclusively for women by providing women with more than just a downsized version of a men’s athletic shoe. The brand’s commitment goes beyond footwear design to include fitness and other apparel.

Bzees: Bzees is the brand of women’s sporty footwear that energizes the mind and body from the feet up. Playful and versatile, Bzees delivers a weightless and energized feeling through its proprietary Cloud Technology system.

Contemporary Fashion
Sam Edelman: Since its inception in 2004, designer Sam Edelman’s brand has quickly emerged as a favorite among celebrities and fashionistas around the globe. Sam Edelman captures the imagination of women with on-trend styling and unique materials. Sam Edelman continues to expand its retail presence by opening additional stores.

Franco Sarto: The Franco Sarto brand serves a loyal, career-focused consumer who is passionate about the brand’s modern Italian-inspired style, fit and quality. The brand is sold in major national chains, department stores and independent retailers at suggested retail price points from $79 for shoes to $275 for boots.

Vince: The Vince womens shoe collection launched in the fall of 2012 and was expanded in 2014 to include the Vince mens footwear collection. Vince delivers contemporary casual footwear that sophisticated, modern women and men wear effortlessly, serving as a luxury staple in their shoe closet. The collection is distinguished by clean lines, rich fabrics and intricate details. The brand is primarily sold in premier department stores, online and independent retailers at suggested price points ranging from $225 for shoes to $495 for boots. We have a license agreement with Vince, LLC to sell Vince footwear that expires in December 2018.

Diane von Furstenberg: The Diane von Furstenberg (DVF) brand is a staple of American luxury design. The DVF collection exemplifies feminine, effortless and classic styles that are sold in more than 55 countries worldwide. Suggested price points range from $178 for shoes to $648 for boots. In December 2014, we entered into a license agreement with DVF Studio, LLC to produce and distribute the DVF womens shoe collection, which expires in December 2020, with an extension option through December 2023.

Via Spiga: Via Spiga is named after the main street in one of the most famed shopping districts in Milan, Italy. For over 25 years, Via Spiga has maintained its rich Italian heritage through its use of luxurious materials and beautiful detailing, providing chic, sophisticated footwear for the cosmopolitan woman who wants to make a fashion statement every day. The brand is primarily sold in premier department stores, national chains and online at suggested retail price points from $150 for shoes to $595 for boots.

Fergie and Fergalicious by Fergie: We have created two namesake footwear lines in collaboration with entertainment superstar Fergie (Fergie Duhamel, formerly Stacy Ferguson) to fully capture the artist’s confident, individual style in a line of sophisticated, sexy footwear with a glam rock influence.

Carlos by Carlos Santana: The Carlos by Carlos Santana collection of women’s footwear is sold at major department stores, national chains, our Famous Footwear stores and online. Marketed under a license agreement with legendary musician Carlos Santana, this brand targets trend-conscious consumers with hot, fashionable shoes inspired by the passion and energy of Santana’s music. Suggested retail price points range from $80 for shoes to $225 for boots. We have a license agreement with Santana Tesoro, LLC to sell Carlos by Carlos Santana footwear that expires in December 2017 with extension options through December 2020.

Wholesale
Within our Brand Portfolio segment, footwear is distributed on a wholesale basis to over 1,700 retailers, including national chains, department stores, online retailers, mass merchandisers, independent retailers and catalogs throughout the United States and Canada, as well as approximately 65 other countries (including sales to our retail operations). Our most significant wholesale customers include Famous Footwear and many of the nation’s largest retailers including national chains such as DSW, TJX Corporation (including TJ Maxx and Marshalls), Nordstrom Rack and Ross; department stores such as Nordstrom, Macy’s, Bloomingdales and Dillards; online retailers such as Nordstrom.com, Zappos.com and Amazon; mass merchandisers such as Walmart and Target; and independent retailers such as QVC and Home Shopping Network. We also sell product to a variety of international retail customers and distributors. The loss of any one or more of our significant customers could have a material negative impact on our Brand Portfolio segment and the Company.

In connection with our omni-channel approach to reach consumers, we also operate Naturalizer.com, Naturalizer.ca, Ryka.com, DrSchollsShoes.com, LifeStride.com, ViaSpiga.com, SamEdelman.com, CarlosShoes.com, Bzees.com and FergieShoes.com, which offer substantially the same product selection to consumers as we sell to our retail partners. Vince.com and DVF.com complement our distribution of those brands, and we have plans to begin selling product on FrancoSarto.com in the second quarter of 2016.