Key Points

  • Shoe company Caleres announced Thursday that Chief Accounting Officer Daniel Karpel will serve as interim Chief Financial Officer (CFO), succeeding finance chief Jack Calandra, as disclosed in a press release and securities filing.
  • Calandra stepped down from his executive role on January 15 to pursue "other opportunities" and will officially leave the company on January 30. Caleres, headquartered in St. Louis, Missouri, is the parent company of Famous Footwear and Dr. Scholl's, and has launched an external search for a permanent CFO successor.
  • The company also updated its fourth-quarter guidance the same day, flagging sales volatility risks related to the potential impact of Saks Global's bankruptcy.

Deep Dive

The fallout from Saks Global's bankruptcy has left many suppliers facing lengthy waits for reimbursement. The retail giant filed for Chapter 11 bankruptcy protection on January 14 after a year of financial struggles, during which it fell behind on supplier payments, saw weak sales, and failed to offload $4.7 billion in debt, according to Retail Dive, a sister publication of CFO Dive.

As part of the restructuring, Saks is prioritizing unpaid and partially paid invoices, as well as payments for goods shipped after the bankruptcy filing, but smaller suppliers may take time to receive reimbursement, Retail Dive previously reported.

Although Caleres is still assessing the full potential impact of the bankruptcy on its upcoming fourth-quarter results, the company noted that the bankruptcy could pose "a risk of up to $0.06 per diluted share to fourth-quarter guidance," according to Thursday's press release.

Caleres also said it may incur additional restructuring-related charges that "were not anticipated in prior guidance." Otherwise, the guidance aligns with estimates provided during the third-quarter earnings call on December 9. Caleres expects sales across its brand portfolio to be relatively flat but anticipates the recently completed acquisition of the Stuart Weitzman brand will contribute $55 million to $60 million in sales for the quarter, according to the earnings call transcript.

Karpel previously served as the company's chief accounting officer in 2013 and rejoined Caleres in October of this year to take on the role again, according to the press release. Before returning to Caleres, Karpel most recently served as CFO of Club Car Wash, a tunnel car wash brand, according to his LinkedIn profile.

He has held senior finance positions, including chief accounting officer and CFO, at companies such as Save-A-Lot, telecommunications firm Spectrum Brands, and CW Holdings, parent of Coldwater Creek and Soft Surroundings, and began his career at Big Four accounting firm Ernst & Young.

Karpel's "deep understanding of the company, combined with his financial expertise, will ensure a smooth transition," said Jay Schmidt, the company's president and CEO, in a statement in the press release.

Thursday's filing with the U.S. Securities and Exchange Commission did not disclose compensation arrangements related to Karpel's appointment as interim CFO. When he rejoined Caleres as chief accounting officer, the company noted in a prior SEC filing that he would receive a "customary compensation package, including an annual salary commensurate with his responsibilities, and be eligible to participate in the company's short-term and long-term incentive plans, as well as other general benefit plans applicable to employees in similar positions."

Caleres declined to comment further beyond the press release.