Caleres Announces Acquisition of Majority Stake in Blowfish Malibu

Caleres (NYSE: CAL) (caleres.com),
a diverse portfolio of global footwear brands, today announced it has
acquired a controlling interest in Blowfish Malibu, which has trailing
12-month revenue of approximately $27 million. The Blowfish Malibu
footwear collection is curated to reflect the fresh, laid-back aesthetic
that defines the California lifestyle and honors the spirit of youth.

“The decision to partner with Blowfish Malibu was an easy one, as it allows
for continued expansion of our overall business and gives us additional
exposure to the growing sneaker and casual lifestyle segment of the
market,” said Diane Sullivan, CEO, president and chairman of Caleres.
“Since they were formed in 2005, Blowfish Malibu has focused on
interpreting current global trends to create the newest and hottest
original styles in women’s footwear, with a great value proposition, and
we can’t wait to welcome the team to Caleres.”

“The opportunity to partner with Caleres, and to grow our brand even
further, has inspired the entire team at Blowfish Malibu,” said Don
Weiss, co-founder and president of Blowfish Malibu. “The support of a
strong partner – in terms of sourcing and back-office – is something
we’ve been searching for, and we’re glad we found it with Caleres.”

“We’re looking forward to working with the entire Caleres team,” said
Stephen Hoyt, co-founder and lead designer of Blowfish Malibu. “This
partnership, with an industry leader in leveraging sourcing
infrastructure, will open up even more potential for our brand as we
continue to make footwear that is comfortable on your feet and good for
your soul.”

The majority stake in Blowfish Malibu is being funded using the
company’s existing cash flow, and the acquisition is expected to be
accretive within one year.

Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995This press release contains certain forward-looking
statements and expectations regarding the company’s future performance
and the performance of its brands. Such statements are subject to
various risks and uncertainties that could cause actual results to
differ materially. These risks include (i) changing consumer demands,
which may be influenced by consumers’ disposable income, which in turn
can be influenced by general economic conditions and other factors; (ii)
rapidly changing fashion trends and consumer preferences and purchasing
patterns; (iii) intense competition within the footwear industry; (iv)
political and economic conditions or other threats to the continued and
uninterrupted flow of inventory from China and other countries, where
the Company relies heavily on third-party manufacturing facilities for a
significant amount of its inventory; (v) foreign currency fluctuations;
(vi) the ability to accurately forecast sales and manage inventory
levels; (vii) cybersecurity threats or other major disruption to the
Company’s information technology systems; (viii) customer concentration
and increased consolidation in the retail industry; (ix) transitional
challenges with acquisitions; (x) a disruption in the Company’s
distribution centers; (xi) changes to tax laws, policies and treaties;
(xii) the ability to recruit and retain senior management and other key
associates; (xiii) compliance with applicable laws and standards with
respect to labor, trade and product safety issues; (xiv) the ability to
secure/exit leases on favorable terms; (xv) the ability to maintain
relationships with current suppliers; and (xvi) the ability to attract,
retain, and maintain good relationships with licensors and protect our
intellectual property rights. The company’s reports to the Securities
and Exchange Commission contain detailed information relating to such
factors, including, without limitation, the information under the
caption Risk Factors in Item 1A of the company’s Annual Report on Form
10-K for the year ended February 3, 2018, which information is
incorporated by reference herein and updated by the company’s Quarterly
Reports on Form 10-Q. The company does not undertake any obligation or
plan to update these forward-looking statements, even though its
situation may change.

About CaleresCaleres is a diverse portfolio of global
footwear brands. Our products are available virtually everywhere – in
the over 1,200 retail stores we operate, in hundreds of major department
and specialty stores, on our branded e-commerce sites, and on many
additional third-party retail websites. Famous Footwear
and Famous.com serve as our Family brands. Our Contemporary Fashion
brands include Sam Edelman, Allen Edmonds, Franco Sarto, Vince, Via
Spiga, George Brown Bilt, Diane von Furstenberg, Fergie Footwear and
Carlos Santana. Naturalizer, Dr. Scholl’s Shoes, LifeStride, Bzees and
Ryka represent our Healthy Living brands. Combined, these brands help
make Caleres a company with both a legacy and a mission. Our legacy is
our more than 130-years of craftsmanship, our passion for fit and our
business savvy, while our mission is to continue to inspire people to
feel good…feet first. Visit caleres.com to learn more about us.

About BlowfishThirteen years ago, two famed footwear
executives decided to combine their business and creative talents to
create a unique brand of shoes. Their goal was simple: make quality
fashionable shoes and sell them at affordable prices. For every season
since, Blowfish Malibu has delighted shoe lovers with on-trend styles
that embody emerging fashion trends from Europe and Asia and capture the
fresh youthful spirit and casual living that is distinctively Southern
California. Visit blowfishshoes.com to learn more.

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