Dive Brief:
- Footwear company Caleres appointed Chief Accounting Officer Daniel Karpel to the role of interim CFO, succeeding finance chief Jack Calandra, the company said Thursday in a press release and securities filing.
- Calandra stepped down from his role as an officer effective Jan. 15 to pursue “other opportunities,” and will depart from the company on Jan. 30, the St. Louis, Missouri-based parent of Famous Footwear and Dr. Scholl’s said. The company began an external search for a permanent CFO successor, according to the press release.
- The company on Thursday also updated its guidance for the fourth quarter to account for potential impacts from the Saks Global bankruptcy, warning of potential sales volatility.
Dive Insight:
The aftermath of the Saks Global bankruptcy leaves many vendors waiting for what could be a lengthy process of reimbursement. The retail giant filed for Chapter 11 bankruptcy earlier this month after a year of financial challenges, including struggling to pay its vendors, weak sales and an inability to offload $4.7 billion in debt.
As part of its restructuring, Saks is prioritizing the payment of outstanding and partially paid invoices, as well as payment for goods shipped after its bankruptcy filing, but it could take some time for vendors to receive reimbursement.
While it is still evaluating the full potential effects of the bankruptcy on its upcoming Q4 earnings, Caleres flagged that the Saks Global bankruptcy could result in “up to $0.06 risk to our fourth quarter earnings per diluted share guidance,” according to the press release. Caleres said it may also incur additional charges related to restructuring “not previously anticipated” in its guidance.
Karpel, who previously served as Caleres’ chief accounting officer from 2013 to 2016, reprised the role at the footwear company in October, according to the press release. Prior to rejoining Caleres, Karpel served as CFO for Club Car Wash Operating and CFO for CW Holdings, a legacy entity that owned Soft Surroundings and Coldwater Creek.
Karpel’s “deep familiarity with our company coupled with his financial expertise will ensure a smooth transition,” CEO and President Jay Schmidt said in a statement.
In rejoining Caleres as its chief accounting officer, the company noted in a previous SEC filing that he was set to receive a “customary compensation package consisting of an annual salary commensurate with his duties and will be eligible to participate in the Company’s short- and long-term incentive plans, and other benefit plans generally available to similarly situated employees.” The SEC filing this week did not detail compensation arrangements associated with Karpel’s appointment as interim finance chief.
Caleres declined to comment beyond its press release.
