Genesco Inc. Reports Fiscal 2021 Third Quarter Results

Rhea-AI Summary

Genesco reported third-quarter fiscal 2021 net sales of $479 million, an 11% decrease from the previous year. Despite this decline, e-commerce sales surged by 62%. GAAP EPS was $0.52, down from $1.31, while non-GAAP EPS was $0.85 compared to $1.33 last year. The company paid down $178 million in debt and operated at 97% of its locations. Although digital performance improved, challenges persist at Johnston & Murphy, impacting overall growth. The company remains cautious about future guidance due to the ongoing pandemic's effects on consumer behavior.

Positive

• 62% e-commerce sales growth
• Successfully paid down $178 million of debt
• Operating at 97% of locations
• Cash and cash equivalents increased to $115.1 million

Negative

• Net sales decreased by 11% year-over-year
• GAAP EPS decreased from $1.31 to $0.52
• Johnston & Murphy sales down 43%
• No guidance provided due to economic uncertainty

NASHVILLE, Tenn., Dec. 4, 2020 /PRNewswire/ -- 

Third Quarter Fiscal 2021 Financial Summary

• Net sales decreased 11% from last year to $479 million with stores open 95% of days
• Highlighted by strong 62% e-commerce comp growth
• Inventory down 22%
• GAAP EPS from continuing operations was $0.52
• Non-GAAP EPS from continuing operations was $0.85¹
• Paid down $178 million of debt

Genesco Inc. (NYSE: GCO) today reported GAAP earnings from continuing operations per diluted share of $0.52 for the three months ended October 31, 2020, compared to $1.31 per diluted share in the third quarter last year.  Adjusted for the excluded items in both periods, the Company reported third quarter earnings from continuing operations per diluted share of $0.85, compared to $1.33 per diluted share last year.

Mimi E. Vaughn, Genesco board chair, president and chief executive officer, said, "We successfully navigated with executional excellence through a back-to-school season like none other to deliver sales results that exceeded expectations and returned the Company to profitability. Journeys and Schuh performed well despite recent pressures, underscoring the strong strategic market positions and tremendous customer loyalty both have built over time, along with the ability to pivot and capitalize on the accelerated shift to online spending. At the same time, Johnston & Murphy's business has been slower to recover as the brand's competitive space faces stronger headwinds from the pandemic. Total net revenue decreased 11%, a meaningful improvement compared with our second quarter performance, as more stores were open and digital sales remained robust. With the decisive cost cutting actions we took early in the outbreak and one-time expense relief benefits, combined with better gross margins, solid profitability in our ecommerce channel and a lower tax rate, we dramatically improved our bottom line on a sequential basis with adjusted earnings per share coming in at $0.85.

"We believe we have the right assortments and are ready for this holiday season; that said, consumer demand has been very different this year due to the pandemic, which has caused us to take a conservative approach to our outlook. In November, we faced headwinds from the re-closure of stores in North America and the U.K., but most stores have since reopened at this time. For the Black Friday weekend, as expected, traffic was more subdued than usual, but for the month of November, sales were in line with our expectations with an even heavier mix of digital versus store sales. With the vast majority of the holiday season ahead of us, we believe we are well positioned to meet demand regardless of when and how the consumer decides to shop thanks to the technology investments we've made in our stores and ecommerce platforms.  It's a privilege to lead a team that is facing the challenges brought by COVID-19 head on, adapting continuously to the dynamic retail environment. This is bolstering my optimism that we will successfully weather this storm and emerge strong to take advantage of the many opportunities the pandemic has created."

Store Re-opening Update
As of December 4, 2020, the Company is operating in 97% of its locations, including approximately 1,150 Journeys, 170 Johnston & Murphy and 110 Schuh locations.

Third Quarter Review
Net sales for the third quarter of Fiscal 2021 decreased 11% to $479 million from $537 million in the third quarter of Fiscal 2020.  This sales decrease was driven by lower store comps reflecting decreased back-to-school sales, continued pressure at Johnston & Murphy and the impact from store closures during the quarter, partially offset by digital comp growth of 62%. Stores were open about 95% of days. Although the Company has disclosed comparable sales for the third quarter Fiscal 2021, it believes that overall sales is a more meaningful metric during this period due to the impact of COVID-19.

Comparable Sales
Comparable Same Store and Direct Sales:	3QFY21	3QFY20
Journeys Group	(6)%	4%
Schuh Group	1%	3%
Johnston & Murphy Group	(43)%	(6)%
Total Genesco Comparable Sales	(9)%	3%
Same Store Sales	(18)%	1%
Comparable Direct Sales	62%	19%

Overall sales were down 10% for Journeys, 3% at Schuh, and 45% at J&M while sales were up 91% at Licensed Brands due to the Togast acquisition in the fourth quarter last year.

Third quarter gross margin this year was 47.1%, down 210 basis points, compared with 49.2% last year. The decrease as a percentage of sales is due primarily to the mix of our businesses, increased markdowns and inventory reserves at Johnston & Murphy and higher shipping and warehouse expense in all of our retail divisions driven by the increase in penetration of e-commerce, partially offset by decreased markdowns at Journeys.

Adjusted selling and administrative expense for the third quarter this year decreased 10 basis points as a percentage of net sales.  On a dollar basis, expenses decreased 11% compared to the same period last year due primarily to reduced occupancy expense, driven by rent abatement agreements with landlords and savings from the government program in the U.K. to provide property tax relief, as well as reduced selling salaries and bonus expense.

Genesco's GAAP operating income for the third quarter was $8.2 million, or 1.7% of sales this year compared to $25.9 million, or 4.8% of sales last year.  Adjusted for the excluded items in both periods, operating income for the third quarter was $13.9 million this year compared to $26.7 million last year.  Adjusted operating margin was 2.9% of sales in the third quarter of Fiscal 2021 and 5.0% last year.

The effective tax rate for the quarter was -7.4% in Fiscal 2021 compared to 25.4% last year.  The adjusted tax rate, reflecting excluded items, was 4.4% in Fiscal 2021 compared to 26.2% last year.  The lower adjusted tax rate for this year primarily reflects the impact of the Company's performance in foreign jurisdictions for which no income tax benefit or expense is recorded in Fiscal 2021.  

GAAP earnings from continuing operations were $7.5 million in the third quarter of Fiscal 2021, compared to $19.0 million in the third quarter last year.  Adjusted for the excluded items in both periods, the third quarter earnings from continuing operations were $12.1 million, or $0.85 earnings per share in Fiscal 2021, compared to $19.4 million, or $1.33 earnings per share last year.       

Cash, Borrowings and Inventory
Cash and cash equivalents at October 31, 2020, were $115.1 million, compared with $55.8 million at November 2, 2019.  Cash decreased $184.1 million during the third quarter driven primarily by a use of cash in financing activities of $177.8 million to pay down debt and $11.0 million for capital expenditures and other activities, partially offset by operating activities generating $4.7 million.  Total debt at the end of the third quarter of Fiscal 2021 was $32.9 million compared with $79.5 million at the end of last year's third quarter. Total unused availability as of October 31, 2020 was $249.4 million.  Inventories decreased 22% in the third quarter of Fiscal 2021 on a year-over-year basis.  

Capital Expenditures and Store Activity
For the third quarter, capital expenditures were $8 million, related primarily to digital and omni-channel initiatives.  Depreciation and amortization was $11 million.  During the quarter, the Company opened seven new stores and closed seven stores.  The Company ended the quarter with 1,476 stores compared with 1,492 stores at the end of the third quarter last year, or a decrease of 1%.  Square footage was down 1% on a year-over-year basis.

Share Repurchases
The Company did not repurchase any shares during the third quarter of Fiscal 2021. 

Fiscal 2021 Outlook
Due to the continued uncertainty in the overall economy driven by COVID-19, the Company is not providing guidance at this time.

Conference Call, Management Commentary and Investor Presentation
The Company has posted detailed financial commentary and a supplemental financial presentation of third quarter results on its website, www.genesco.com, in the investor relations section. The Company's live conference call on December 4, 2020, at 7:30 a.m. (Central time), may be accessed through the Company's website, www.genesco.com. To listen live, please go to the website at least 15 minutes early to register, download and install any necessary software.

Safe Harbor Statement
This release contains forward-looking statements, including those regarding the performance outlook for the Company and all other statements not addressing solely historical facts or present conditions. Actual results could vary materially from the expectations reflected in these statements. A number of factors could cause differences.  These include adjustments to projections reflected in forward-looking statements, including as a result of the effects of COVID-19 on the Company's business including whether there are periods of increases in the number of COVID-19 cases in locations in which the Company operates, further closures of stores due to COVID-19, weakness in store and shopping mall traffic, restrictions on operations imposed by government entities and landlords, changes in public safety and health requirements, the Company's ability to adequately staff stores, limitations on the Company's ability to provide adequate personal protective equipment to employees, and the Company's ability to maintain social distancing requirements; stores closures and effects on the business as a result of civil disturbances; the level and timing of promotional activity necessary to maintain inventories at appropriate levels; the imposition of tariffs on products imported by the Company or its vendors as well as the ability and costs to move production of products in response to tariffs; the Company's ability to obtain from suppliers products that are in-demand on a timely basis and effectively manage disruptions in product supply or distribution, including disruptions as a result of COVID-19; unfavorable trends in fuel costs, foreign exchange rates, foreign labor and material costs, and other factors affecting the cost of products; the effects of the British decision to exit the European Union and other sources of weakness in the U.K. market; the effectiveness of the Company's omnichannel initiatives; costs associated with changes in minimum wage and overtime requirements; wage pressure in the U.S. and the U.K.; weakness in the consumer economy and retail industry; competition and fashion trends in the Company's markets; risks related to the potential for terrorist events; risks related to public health and safety events, including for example, the COVID-19 coronavirus; changes in buying patterns by significant wholesale customers;  retained liabilities associated with divestitures of businesses including potential liabilities under leases as the prior tenant or as a guarantor of certain leases; and changes in the timing of holidays or in the onset of seasonal weather affecting period-to-period sales comparisons. Additional factors that could cause differences from expectations include the ability to renew leases in existing stores and control or lower occupancy costs, and to conduct required remodeling or refurbishment on schedule and at expected expense levels; the Company's ability to eliminate stranded costs associated with dispositions, including the sale of the Lids Sport Group business; the Company's ability to realize anticipated cost savings, including rent savings; deterioration in the performance of individual businesses or of the Company's market value relative to its book value, resulting in impairments of fixed assets, operating lease right of use assets or intangible assets or other adverse financial consequences and the timing and amount of such impairments or other consequences; unexpected changes to the market for the Company's shares or for the retail sector in general; costs and reputational harm as a result of disruptions in the Company's business or information technology systems either by security breaches and incidents or by potential problems associated with the implementation of new or upgraded systems; and the cost and outcome of litigation, investigations and environmental matters involving the Company. Additional factors are cited in the "Risk Factors," "Legal Proceedings" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of, and elsewhere in, the Company's SEC filings, copies of which may be obtained from the SEC website, www.sec.gov, or by contacting the investor relations department of Genesco via the Company's website, www.genesco.com. Many of the factors that will determine the outcome of the subject matter of this release are beyond Genesco's ability to control or predict. Genesco undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements reflect the expectations of the Company at the time they are made. The Company disclaims any obligation to update such statements.

About Genesco Inc.
Genesco Inc., a Nashville-based specialty retailer, sells footwear and accessories in more than 1,475 retail stores throughout the U.S., Canada, the United Kingdom and the Republic of Ireland, principally under the names Journeys, Journeys Kidz, Schuh, Schuh Kids, Little Burgundy, Johnston & Murphy, and on internet websites www.journeys.com, www.journeyskidz.com, www.journeys.ca, www.littleburgundyshoes.com, www.schuh.co.uk, www.johnstonmurphy.com, www.johnstonmurphy.ca,  and www.dockersshoes.com.  In addition, Genesco sells wholesale footwear under its Johnston & Murphy brand, the licensed Dockers brand, the licensed Levi's brand, the licensed Bass brand, and other brands. For more information on Genesco and its operating divisions, please visit www.genesco.com.

______________________

¹Excludes retail store asset impairment charges and a change in vacation policy, net of tax effect in the third quarter of Fiscal 2021 ("Excluded Items").  A reconciliation of earnings/loss and earnings/loss per share from continuing operations in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") with the adjusted earnings/loss and earnings/loss per share numbers is set forth on Schedule B to this press release. The Company believes that disclosure of earnings and earnings per share from continuing operations adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results.

 

 

GENESCO INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
				Quarter 3			Quarter 3
				Oct. 31,	% of		Nov. 2,	% of
				2020	Net Sales		2019	Net Sales
	Net sales			$  479,280	100.0%		$ 537,263	100.0%
	Cost of sales			253,776	52.9%		273,061	50.8%
	Gross margin			225,504	47.1%		264,202	49.2%
	Selling and administrative expenses			210,961	44.0%		237,460	44.2%
	Asset impairments and other, net			6,359	1.3%		799	0.1%
	Operating income			8,184	1.7%		25,943	4.8%
	Other components of net periodic benefit income			(182)	0.0%		(92)	0.0%
	Interest expense, net			1,404	0.3%		602	0.1%
	Earnings from continuing operations before
	income taxes			6,962	1.5%		25,433	4.7%
	Income tax expense (benefit)			(514)	-0.1%		6,454	1.2%
	Earnings from continuing operations			7,476	1.6%		18,979	3.5%
	Loss from discontinued operations, net of tax			(10)	0.0%		(80)	0.0%
	Net Earnings			$      7,466	1.6%		$   18,899	3.5%
	Basic earnings per share:
	Before discontinued operations			$        0.52			$       1.31
	Net earnings			$        0.52			$       1.31
	Diluted earnings per share:
	Before discontinued operations			$        0.52			$       1.31
	Net earnings			$        0.52			$       1.30
	Weighted-average shares outstanding:
	Basic			14,283			14,465
	Diluted			14,362			14,529

 

 

GENESCO INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
				Nine Months Ended			Nine Months Ended
				Oct. 31,	% of		Nov. 2,	% of
				2020	Net Sales		2019	Net Sales
	Net sales			$ 1,149,729	100.0%		$ 1,519,487	100.0%
	Cost of sales			637,081	55.4%		773,844	50.9%
	Gross margin			512,648	44.6%		745,643	49.1%
	Selling and administrative expenses			587,264	51.1%		705,811	46.5%
	Goodwill impairment			79,259	6.9%		-	0.0%
	Asset impairments and other, net			15,953	1.4%		1,843	0.1%
	Operating income (loss)			(169,828)	-14.8%		37,989	2.5%
	Other components of net periodic benefit income			(488)	0.0%		(271)	0.0%
	Interest expense, net			4,178	0.4%		783	0.1%
	Earnings (loss) from continuing operations before
	income taxes			(173,518)	-15.1%		37,477	2.5%
	Income tax expense (benefit)			(27,446)	-2.4%		11,235	0.7%
	Earnings (loss) from continuing operations			(146,072)	-12.7%		26,242	1.7%
	Loss from discontinued operations, net of tax			(275)	0.0%		(420)	0.0%
	Net Earnings (Loss)			$  (146,347)	-12.7%		$      25,822	1.7%
	Basic earnings (loss) per share:
	Before discontinued operations			$       (10.29)			$          1.64
	Net earnings (loss)			$       (10.31)			$          1.61
	Diluted earnings (loss) per share:
	Before discontinued operations			$       (10.29)			$          1.63
	Net earnings (loss)			$       (10.31)			$          1.60
	Weighted-average shares outstanding:
	Basic			14,191			16,023
	Diluted			14,191			16,136

 

 

GENESCO INC.
Sales/Earnings Summary by Segment
(in thousands)
(Unaudited)
				Quarter 3			Quarter 3
				Oct. 31,	% of		Nov. 2,	% of
				2020	Net Sales		2019	Net Sales
	Sales:
	Journeys Group			$  317,682	66.3%		$ 354,920	66.1%
	Schuh Group			90,021	18.8%		92,899	17.3%
	Johnston & Murphy Group			39,655	8.3%		72,703	13.5%
	Licensed Brands			31,922	6.7%		16,726	3.1%
	Corporate and Other			-	0.0%		15	0.0%
	Net Sales			$  479,280	100.0%		$ 537,263	100.0%
	Operating income (loss):
	Journeys Group			$    24,035	7.6%		$   28,955	8.2%
	Schuh Group			6,766	7.5%		4,369	4.7%
	Johnston & Murphy Group			(11,137)	-28.1%		3,715	5.1%
	Licensed Brands			792	2.5%		(27)	-0.2%
	Corporate and Other(1)			(12,272)	-2.6%		(11,069)	-2.1%
	Operating income			8,184	1.7%		25,943	4.8%
	Other components of net periodic benefit income			(182)	0.0%		(92)	0.0%
	Interest, net			1,404	0.3%		602	0.1%
	Earnings from continuing operations before
	income taxes			6,962	1.5%		25,433	4.7%
	Income tax expense (benefit)			(514)	-0.1%		6,454	1.2%
	Earnings from continuing operations			7,476	1.6%		18,979	3.5%
	Loss from discontinued operations, net of tax			(10)	0.0%		(80)	0.0%
	Net Earnings			$      7,466	1.6%		$   18,899	3.5%
	(1)Includes a $6.4 million charge in the third quarter of Fiscal 2021 for retail store asset impairments.  Includes a $0.8 million charge in
	the third quarter of Fiscal 2020 for retail store and intangible asset impairments.

 

 

GENESCO INC.
Sales/Earnings (Loss) Summary by Segment
(in thousands)
(Unaudited)
				Nine Months Ended			Nine Months Ended
				Oct. 31,	% of		Nov. 2,	% of
				2020	Net Sales		2019	Net Sales
	Sales:
	Journeys Group			$    763,238	66.4%		$    994,067	65.4%
	Schuh Group			208,918	18.2%		262,219	17.3%
	Johnston & Murphy Group			102,601	8.9%		214,704	14.1%
	Licensed Brands			74,972	6.5%		48,392	3.2%
	Corporate and Other			-	0.0%		105	0.0%
	Net Sales			$ 1,149,729	100.0%		$ 1,519,487	100.0%
	Operating income (loss):
	Journeys Group			$       (2,888)	-0.4%		$      59,260	6.0%
	Schuh Group			(15,158)	-7.3%		(1,020)	-0.4%
	Johnston & Murphy Group			(38,964)	-38.0%		10,339	4.8%
	Licensed Brands			(2,931)	-3.9%		151	0.3%
	Corporate and Other(1)			(30,628)	-2.7%		(30,741)	-2.0%
	Goodwill Impairment			(79,259)	-6.9%		-	0.0%
	Operating income (loss)			(169,828)	-14.8%		37,989	2.5%
	Other components of net periodic benefit income			(488)	0.0%		(271)	0.0%
	Interest, net			4,178	0.4%		783	0.1%
	Earnings (loss) from continuing operations before
	income taxes			(173,518)	-15.1%		37,477	2.5%
	Income tax expense (benefit)			(27,446)	-2.4%		11,235	0.7%
	Earnings (loss) from continuing operations			(146,072)	-12.7%		26,242	1.7%
	Loss from discontinued operations, net of tax			(275)	0.0%		(420)	0.0%
	Net Earnings (Loss)			$  (146,347)	-12.7%		$      25,822	1.7%
	(1)Includes a $16.0 million charge in the first nine months of Fiscal 2021 which includes a $5.3 million charge for trademark impairment and an $11.1
	million charge for retail store asset impairments, partially offset by a $(0.4) million gain for the release of an earnout related to the Togast
	acquisition. Includes a $1.8 million charge in the first nine months of Fiscal 2020 for retail store and intangible asset impairments.

 

 

	GENESCO INC.
	Condensed Consolidated Balance Sheets
	(in thousands)
	(Unaudited)
				Oct. 31, 2020		Nov. 2, 2019
	Assets
	Cash and cash equivalents			$           115,061		$           55,826
	Accounts receivable			35,592		34,849
	Inventories			370,699		473,940
	Other current assets			62,606		36,179
	Total current assets			583,958		600,794
	Property and equipment			210,834		261,281
	Operating lease right of use assets			640,078		750,855
	Goodwill and other intangibles			67,793		122,803
	Other non-current assets			33,837		49,759
	Total Assets			$        1,536,500		$      1,785,492
	Liabilities and Equity
	Accounts payable			$           151,978		$         195,906
	Current portion long-term debt			-		17,146
	Current portion operating lease liabilities			196,603		145,788
	Other current liabilities			84,061		89,684
	Total current liabilities			432,642		448,524
	Long-term debt			32,850		62,368
	Long-term operating lease liabilities			560,082		663,168
	Other long-term liabilities			40,954		37,984
	Equity			469,972		573,448
	Total Liabilities and Equity			$        1,536,500		$      1,785,492

 

 

GENESCO INC.
Store Count Activity
	Balance				Balance					Balance
	02/02/19	Open	Close		02/01/20		Open	Close		10/31/20
Journeys Group	1,193	8	30		1,171		8	11		1,168
Schuh Group	136	1	8		129		1	3		127
Johnston & Murphy Group	183	3	6		180		4	3		181
Total Retail Units	1,512	12	44		1,480		13	17		1,476
GENESCO INC.
Store Count Activity
	Balance				Balance
	08/01/20	Open	Close		10/31/20
Journeys Group	1,169	5	6		1,168
Schuh Group	127	0	0		127
Johnston & Murphy Group	180	2	1		181
Total Retail Units	1,476	7	7		1,476
GENESCO INC.
Comparable Sales
			Quarter 3					Nine Months
			Oct. 31,		Nov. 2,			Oct. 31,		Nov. 2,
			2020(1)		2019			2020(1)		2019
Journeys Group			(6)%		4%			NA		5%
Schuh Group			1%		3%			NA		2%
Johnston & Murphy Group			(43)%		(6)%			NA		(2)%
Total Comparable Sales			(9)%		3%			NA		4%
Same Store Sales			(18)%		1%			NA		2%
Comparable Direct Sales			62%		19%			88%		18%
(1)As a result of store closures in the first half of the year in response to the COVID-19 pandemic, the Company has not
included year to date Fiscal 2021 comparable sales, except for comparable direct sales, as it believes that overall net
sales is a more meaningful metric during this period.

 

 

	GENESCO INC.
	COVID-19 Related Pretax Adjustments
	Decrease (Increase) to Pretax Earnings
	(in thousands)
	(Unaudited)
				Quarter 3		Nine Months
				Oct. 31, 2020		Oct. 31, 2020
	Schuh goodwill impairment			$                 -		$        79,259
	Incremental retail store asset impairment(1)			5,828		9,564
	Trademark impairment(1)			-		5,260
	Release of Togast earnout(1)			-		(441)
	Adjustments for excess inventory(2)			1,051		5,328
	Non-productive compensation(3) and (4)			2,574		7,262
	UK property tax relief(3)			(3,922)		(9,412)
	Rent abatements and temporary rent concessions(3) and (5)			(8,224)		(11,153)
	Incremental bad debt reserve(3)			(67)		2,998
	Other(3) and (6)			275		1,169
	Total COVID-19 related pretax adjustments			$         (2,485)		$        89,834
	(1)Included in asset impairments and other, net on the Condensed Consolidated Statements of
	Operations.
	(2)Estimated impact of COVID-19 upon permanent markdowns and inventory markdown reserves.  Included in
	cost of sales on the Condensed Consolidated Statements of Operations.
	(3)Included in selling and administrative expenses on the Condensed Consolidated Statements of
	Operations.
	(4)Certain compensation paid to furloughed workers and commission based associates, net of the
	CARES Act, UK and Canadian government relief.
	(5)Estimated impact of abatements from prior periods as well as temporary rent savings agreements that are
	being recognized when executed.
	(6)Includes primarily severance and increased cleaning and personal protective equipment expenses in
	the third quarter and first nine months of Fiscal 2021 and is partially offset by the reversal of
	percentage rent for the first nine months of Fiscal 2021.

 

 

Schedule B
Genesco Inc.
Adjustments to Reported Earnings from Continuing Operations
Three Months Ended October 31, 2020 and November 2, 2019
The Company believes that disclosure of earnings (loss) and earnings (loss) per share from continuing operations and operating income (loss) adjusted for the items
not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results.
		Quarter 3
		October 31, 2020				November 2, 2021
			Net of	Per Share			Net of	Per Share
In Thousands (except per share amounts)		Pretax	Tax	Amounts		Pretax	Tax	Amounts
Earnings from continuing operations, as reported			$        7,476	$0.52			$      18,979	$1.31
Asset impairments and other adjustments:
Retail store and intangible asset impairment charges		$          6,359	4,337	0.30		$         799	633	0.04
Loss on lease terminations		-	-	0.00		-	3	0.00
Change in vacation policy		(616)	(394)	(0.02)		-	-	0.00
Gain on Hurricane Maria		-	-	0.00		-	(3)	0.00
Total asset impairments and other adjustments		$          5,743	3,943	0.28		$         799	633	0.04
Income tax expense adjustments:
Other tax items			728	0.05			(245)	(0.02)
Total income tax expense adjustments			728	0.05			(245)	(0.02)
Adjusted earnings from continuing operations(1)and(2)			$       12,147	$0.85			$      19,367	$1.33
(1)The adjusted tax rate for the third quarter of Fiscal 2021 and 2020 is 4.4% and 26.2%, respectively.
(2)EPS reflects 14.4 million and 14.5 million share count for the third quarter of Fiscal 2021 and 2020, respectively, which includes common stock equivalents
in each period.
Genesco Inc.
Adjustments to Reported Operating Income (Loss)
Three Months Ended October 31, 2020 and November 2, 2019
		Quarter 3 - October 31, 2020
		Operating	Asset Impair	Adj Operating
In Thousands		Income (Loss)	& Other Adj	Income (Loss)
Journeys Group		$        24,035	$          (263)	$          23,772
Schuh Group		6,766	-	6,766
Johnston & Murphy Group		(11,137)	(96)	(11,233)
Licensed Brands		792	(39)	753
Corporate and Other		(12,272)	6,141	(6,131)
Total Operating Income		$          8,184	$        5,743	$          13,927
% of sales		1.7%		2.9%
		Quarter 3 - November 2, 2019
		Operating	Asset Impair	Adj Operating
In Thousands		Income (Loss)	& Other Adj	Income (Loss)
Journeys Group		$        28,955	$             -	$          28,955
Schuh Group		4,369	-	4,369
Johnston & Murphy Group		3,715	-	3,715
Licensed Brands		(27)	-	(27)
Corporate and Other		(11,069)	799	(10,270)
Total Operating Income		$        25,943	$           799	$          26,742
% of sales		4.8%		5.0%

 

 

Genesco Inc.
Adjustments to Reported Earnings (Loss) from Continuing Operations
Nine Months Ended October 31, 2020 and November 2, 2019
The Company believes that disclosure of earnings (loss) and earnings (loss) per share from continuing operations and operating income (loss) adjusted for the items
not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results.
		Nine Months
		October 31, 2020				November 2, 2019
			Net of	Per Share			Net of	Per Share
In Thousands (except per share amounts)		Pretax	Tax	Amounts		Pretax	Tax	Amounts
Earnings (loss) from continuing operations, as reported			$    (146,072)	($10.29)			$      26,242	$1.63
Asset impairments and other adjustments:
Retail store and intangible asset impairment charges		$        11,134	7,878	0.55		$       1,837	1,296	0.08
Trademark impairment		5,260	5,153	0.36		-	-	0.00
Goodwill impairment		79,259	79,259	5.58		-	-	0.00
Loss on lease terminations		-	-	0.00		44	31	0.00
Release Togast earnout		(441)	(323)	(0.02)		-	-	0.00
Change in vacation policy		(1,848)	(1,308)	(0.09)		-	-	0.00
Gain on Hurricane Maria		-	-	0.00		(38)	(27)	0.00
Total asset impairments and other adjustments		$        93,364	90,659	6.38		$       1,843	1,300	0.08
Income tax expense adjustments:
Tax impact share based awards			1,129	0.08			(54)	0.00
Other tax items			(2,433)	(0.17)			244	0.01
Total income tax expense adjustments			(1,304)	(0.09)			190	0.01
Adjusted earnings (loss) from continuing operations(1) and (2)			$      (56,717)	($4.00)			$      27,732	$1.72
(1)The adjusted tax rate for the first nine months of Fiscal 2021 and 2020 is 29.2% and 29.5%, respectively.
(2)EPS reflects 14.2 million and 16.1 million share count for the first nine months of Fiscal 2021 and 2020, respectively, which excludes common stock equivalents
in the first nine months of Fiscal 2021 due to the loss from continuing operations and includes common stock equivalents in the first nine months of Fiscal 2020.
Genesco Inc.
Adjustments to Reported Operating Income (Loss)
Nine Months Ended October 31, 2020 and November 2, 2019
		Nine Months - October 31, 2020
		Operating	Asset Impair	Adj Operating
In Thousands		Income (Loss)	& Other Adj	Income (Loss)
Journeys Group		$         (2,888)	$          (789)	$           (3,677)
Schuh Group		(15,158)	-	(15,158)
Johnston & Murphy Group		(38,964)	(288)	(39,252)
Licensed Brands		(2,931)	(117)	(3,048)
Corporate and Other		(109,887)	94,558	(15,329)
Total Operating Loss		$     (169,828)	$       93,364	$         (76,464)
% of sales		-14.8%		-6.7%
		Nine Months - November 2, 2019
		Operating	Asset Impair	Adj Operating
In Thousands		Income (Loss)	& Other Adj	Income (Loss)
Journeys Group		$        59,260	$             -	$          59,260
Schuh Group		(1,020)	-	(1,020)
Johnston & Murphy Group		10,339	-	10,339
Licensed Brands		151	-	151
Corporate and Other		(30,741)	1,843	(28,898)
Total Operating Income		$        37,989	$        1,843	$          39,832
% of sales		2.5%		2.6%

 

View original content:http://www.prnewswire.com/news-releases/genesco-inc-reports-fiscal-2021-third-quarter-results-301186291.html

SOURCE Genesco Inc.

FAQ

What were Genesco's earnings for Q3 fiscal 2021?

Genesco reported GAAP earnings of $0.52 per share and non-GAAP earnings of $0.85 per share for Q3 fiscal 2021.

How much did Genesco pay down in debt during Q3 fiscal 2021?

Genesco paid down $178 million in debt during the third quarter of fiscal 2021.

What was the percentage decrease in net sales for Genesco in Q3 fiscal 2021?

Genesco experienced an 11% decrease in net sales compared to the same quarter last year.

What is Genesco's stock symbol?

Genesco's stock symbol is GCO.