GENESCO INC. REPORTS FISCAL 2022 FOURTH QUARTER AND FULL YEAR RESULTS
Genesco reported a strong fourth quarter for Fiscal 2022, with net sales increasing 14% year-over-year to $728 million and a 36% rise in e-commerce sales. Gross margins improved by 310 basis points to 48.9%. However, GAAP EPS decreased to $4.41, down from $6.20 last year. For Fiscal 2022, total net sales reached $2.4 billion, a 36% increase from the previous year. The company plans for 2% to 4% growth in sales for Fiscal 2023, forecasting adjusted EPS of $7.00 to $7.75.
- Net sales up 14% YoY to $728 million.
- 36% increase in e-commerce sales.
- Gross margin improved by 310 basis points to 48.9%.
- GAAP operating income increased to $83.4 million.
- Operating cash flow of $240 million.
- Returned $83 million in stock to shareholders.
- GAAP EPS decreased to $4.41 from $6.20 last year.
- Comparable same-store sales down 3% YoY.
NASHVILLE, Tenn., March 10, 2022 /PRNewswire/ --
Fourth Quarter Fiscal 2022 Financial Summary
- Net sales increased
14% from last year to$728 million - Net sales increased
7% over the fourth quarter two years ago - Gross margin up 310 and 200 basis points, respectively, over fourth quarter last year and two years ago
- GAAP and Non-GAAP operating income increased
84% and12% , respectively, over fourth quarter two years ago - Same store sales increased
10% over last year - E-commerce sales increased
36% from fourth quarter two years ago - Returned capital to shareholders with the repurchase of
$52 million in stock - GAAP EPS from continuing operations was
$4.41 vs.$6.20 last year and$2.49 two years ago - Non-GAAP EPS from continuing operations increased to
$3.48 1 vs.$2.76 last year and$3.09 two years ago
Fiscal 2022 Financial Summary
- Net sales increased
36% from last year to$2.4 billion - Net sales increased
10% over Fiscal 2020 - GAAP and Non-GAAP operating income increased
87% and53% , respectively, over Fiscal 2020 - E-commerce sales increased
77% from Fiscal 2020 - Generated operating cash flow of
$240 million - Returned capital to shareholders with the repurchase of
$83 million in stock - GAAP EPS from continuing operations increased to
$7.92 vs.$(3.94) last year and$3.94 in Fiscal 2020 - Non-GAAP EPS from continuing operations increased to
$7.62 1 vs.$(1.18) last year and$4.58 in Fiscal 2020
Genesco Inc. (NYSE: GCO) today reported GAAP earnings from continuing operations per diluted share of
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1 Excludes a gain on the sale of a distribution warehouse and expenses related to the Company's new headquarters building, net of tax effect in the fourth quarter and year of Fiscal 2022, and, additionally, charges for professional fees related to the actions of a shareholder activist and retail store asset impairments, partially offset by an insurance gain, net of tax effect for the year of Fiscal 2022 ("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/loss and earnings/loss 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. |
GAAP earnings from continuing operations per diluted share were
Mimi E. Vaughn, Genesco board chair, president and chief executive officer, said, "We concluded an outstanding year with a very strong fourth quarter that far exceeded our expectations. Our holiday performance was fueled by unprecedented levels of full-price selling and strong in-store sales while our digital channel held on to most of last year's record gains. Throughout Fiscal 2022 we accelerated our recovery from the pandemic even as we navigated a number of challenges, driving double digit sales growth and record profitability for our footwear companies led by Journeys. We believe our exceptional results this year underscore the earnings power of our business model and the work we've done enhancing the strong competitive positions of our retail and branded concepts through our footwear focused strategy.
"Fiscal 2023 has gotten off to a strong start compared with last year, however, we expect this trend to moderate in the near-term as we anniversary last year's March stimulus payments and first half sales revert to more normalized, pre-pandemic patterns. That said, we believe we can deliver another year of solid top-line growth on top of a very strong Fiscal 2022 driven by a strong second half as inventory levels improve and recent price actions provide an additional tailwind."
Thomas A. George, Genesco chief financial officer, commented, "Throughout the year we witnessed continued strength in all of our businesses, culminating in exceptional fourth quarter results. Our strong finish helped drive record annual operating income for our footwear businesses, a
Fourth Quarter Review
Net sales for the fourth quarter of Fiscal 2022 increased
Comparable Sales | ||
Comparable Same Store and Direct Sales: | 4QFY22 | 4QFY21 |
Journeys Group | ||
Schuh Group | (2)% | |
Johnston & Murphy Group | (35)% | |
Total Genesco Comparable Sales | ||
Same Store Sales | (10)% | |
Comparable Direct Sales | (12)% | |
Overall sales for the fourth quarter this year compared to the fourth quarter of Fiscal 2021 were up
Fourth quarter gross margin this year was
GAAP selling and administrative expense for the fourth quarter this year increased 430 basis points as a percentage of sales compared with last year and increased 140 basis points compared with the fourth quarter of Fiscal 2020. Adjusted selling and administrative expense for the fourth quarter this year increased 410 basis points as a percentage of sales compared with last year and increased 170 basis points compared with the fourth quarter of Fiscal 2020. The increase from Fiscal 2020 is due primarily to increased marketing expenses and performance-based compensation expense, partially offset by reduced occupancy expense. Fiscal 2021's selling and administrative expenses benefitted from significant one-time COVID-19 rent relief.
Genesco's GAAP operating income for the fourth quarter was
The effective tax rate for the quarter was
GAAP earnings from continuing operations were
Full Year Review
Net sales for Fiscal 2022 increased
Overall sales for Fiscal 2022 compared to Fiscal 2021 were up
Gross margin for Fiscal 2022 was
GAAP selling and administrative expense for Fiscal 2022 decreased 290 basis points as a percentage of sales compared with last year and decreased 130 basis points compared with Fiscal 2020. Adjusted selling and administrative expense as a percentage of sales for Fiscal 2022 was
Genesco's GAAP operating income for Fiscal 2022 was
The effective tax rate was
GAAP earnings from continuing operations were
Cash, Borrowings and Inventory
Cash and cash equivalents as of January 29, 2022, were
Capital Expenditures and Store Activity
For the fourth quarter, capital expenditures were
Share Repurchases
The Company repurchased 839,216 shares during the fourth quarter of Fiscal 2022 at a cost of
Fiscal 2023 Outlook
For Fiscal 2023, the Company expects:
- Sales to be up
2% to4% , compared to FY22 - Adjusted diluted earnings per share from continuing operations in the range of
$7.00 to$7.75 , with an expectation that earnings per share for the year will be near the mid-point of the range.2 - Assumes no further share repurchases and a tax rate of
27% to28%
Please refer to the Q4FY22 conference call and Q4FY22 Summary Results presentation for details regarding guidance assumptions.
Conference Call, Management Commentary and Investor Presentation
The Company has posted detailed financial commentary and a supplemental financial presentation of fourth quarter results on its website, www.genesco.com, in the investor relations section. The Company's live conference call on March 10, 2022, 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 future sales, earnings, gross margins, expenses, capital expenditures, depreciation and amortization, tax rates, store openings and closures and all other statements not addressing solely historical facts or present conditions. Forward- looking statements are usually identified by or are associated with such words as "intend," "expect," "believe," "anticipate," "optimistic" and similar terminology. 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 those resulting from the effects of COVID-19 on the Company's business, including COVID-19 case spikes in locations in which the Company operates, additional stores closures due to COVID-19, weakness in store and shopping mall traffic, restrictions on operations imposed by government entities and/or landlords, changes in public safety and health requirements, and limitations on the Company's ability to adequately staff and operate stores.
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2 A reconciliation of the adjusted financial measures cited in the guidance to their corresponding measures as reported pursuant to GAAP is included in Schedule B to this press release. |
Differences from expectations could also result from 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 product 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 r distribution, including disruptions as a result of COVID-19 or geopolitical events; our ability to pass on price increases to our customers; 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 market weakness in the U.K. and Republic of Ireland; 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; 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; 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 realize anticipated cost savings, including rent savings; the amount and timing of share repurchases; the Company's ability to achieve expected digital gains and gain market share; 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; the Company's ability to realize any anticipated tax benefits; 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 and branded company, sells footwear and accessories in more than 1,420 retail stores throughout the U.S., Canada, the United Kingdom and the Republic of Ireland, principally under the names Journeys, Journeys Kidz, Little Burgundy, Schuh, Schuh Kids, Johnston & Murphy, and on internet websites www.journeys.com, www.journeyskidz.com, www.journeys.ca, www.littleburgundyshoes.com, www.schuh.co.uk, www.schuh.ie, www.schuh.eu, www.johnstonmurphy.com, www.johnstonmurphy.ca, www.nashvilleshoewarehouse.com, and www.dockersshoes.com. In addition, Genesco sells footwear at wholesale under its Johnston & Murphy brand, the licensed Levi's brand, the licensed Dockers brand, the licensed Bass brand, and other brands. Genesco is committed to progress in its diversity, equity and inclusion efforts, and the Company's environmental, social and governance stewardship. For more information on Genesco and its operating divisions, please visit www.genesco.com.
GENESCO INC. | |||||||||
Condensed Consolidated Statements of Operations | |||||||||
(in thousands, except per share data) | |||||||||
(Unaudited) | |||||||||
Quarter 4 | Quarter 4 | ||||||||
Jan. 29, | % of | Jan. 30, | % of | ||||||
2022 | Net Sales | 2021 | Net Sales | ||||||
Net sales | $ 727,660 | ||||||||
Cost of sales | 371,909 | 344,982 | |||||||
Gross margin | 355,751 | 291,819 | |||||||
Selling and administrative expenses | 290,478 | 226,511 | |||||||
Asset impairments and other, net | (18,110) | - | 2,729 | ||||||
Operating income | 83,383 | 62,579 | |||||||
Other components of net periodic benefit cost (income) | 56 | (182) | |||||||
Interest expense, net | 517 | 912 | |||||||
Earnings from continuing operations before | |||||||||
income taxes | 82,810 | 61,849 | |||||||
Income tax expense (benefit) | 20,612 | (28,195) | - | ||||||
Earnings from continuing operations | 62,198 | 90,044 | |||||||
Loss from discontinued operations, net of tax | (58) | (126) | |||||||
Net Earnings | $ 62,140 | $ 89,918 | |||||||
Basic earnings per share: | |||||||||
Before discontinued operations | $ 4.53 | $ 6.30 | |||||||
Net earnings | $ 4.52 | $ 6.29 | |||||||
Diluted earnings per share: | |||||||||
Before discontinued operations | $ 4.41 | $ 6.20 | |||||||
Net earnings | $ 4.41 | $ 6.20 | |||||||
Weighted-average shares outstanding: | |||||||||
Basic | 13,738 | 14,293 | |||||||
Diluted | 14,106 | 14,513 | |||||||
GENESCO INC. | |||||||||
Condensed Consolidated Statements of Operations | |||||||||
(in thousands, except per share data) | |||||||||
(Unaudited) | |||||||||
Fiscal Year Ended | Fiscal Year Ended | ||||||||
Jan. 29, | % of | Jan. 30, | % of | ||||||
2022 | Net Sales | 2021 | Net Sales | ||||||
Net sales | |||||||||
Cost of sales | 1,240,948 | 982,063 | |||||||
Gross margin | 1,181,136 | 804,467 | |||||||
Selling and administrative expenses | 1,033,625 | 813,775 | |||||||
Goodwill impairment | - | 79,259 | |||||||
Asset impairments and other, net | (8,056) | - | 18,682 | ||||||
Operating income (loss) | 155,567 | (107,249) | - | ||||||
Other components of net periodic benefit cost (income) | 128 | (670) | |||||||
Interest expense, net | 2,448 | 5,090 | |||||||
Earnings (loss) from continuing operations before | |||||||||
income taxes | 152,991 | (111,669) | - | ||||||
Income tax expense (benefit) | 38,044 | (55,641) | - | ||||||
Earnings (loss) from continuing operations | 114,947 | (56,028) | - | ||||||
Loss from discontinued operations, net of tax | (97) | (401) | |||||||
Net Earnings (Loss) | $ 114,850 | $ (56,429) | - | ||||||
Basic earnings (loss) per share: | |||||||||
Before discontinued operations | $ 8.11 | $ (3.94) | |||||||
Net earnings (loss) | $ 8.11 | $ (3.97) | |||||||
Diluted earnings (loss) per share: | |||||||||
Before discontinued operations | $ 7.92 | $ (3.94) | |||||||
Net earnings (loss) | $ 7.92 | $ (3.97) | |||||||
Weighted-average shares outstanding: | |||||||||
Basic | 14,170 | 14,216 | |||||||
Diluted | 14,509 | 14,216 | |||||||
GENESCO INC. | |||||||||
Sales/Earnings Summary by Segment | |||||||||
(in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter 4 | Quarter 4 | ||||||||
Jan. 29, | % of | Jan. 30, | % of | ||||||
2022 | Net Sales | 2021 | Net Sales | ||||||
Sales: | |||||||||
Journeys Group | $ 473,725 | ||||||||
Schuh Group | 128,979 | 97,023 | |||||||
Johnston & Murphy Group | 76,099 | 50,340 | |||||||
Licensed Brands | 48,857 | 24,722 | |||||||
Net Sales | $ 727,660 | ||||||||
Operating Income (Loss): | |||||||||
Journeys Group | $ 58,441 | $ 79,784 | |||||||
Schuh Group | 9,780 | 3,556 | |||||||
Johnston & Murphy Group | 4,617 | (8,660) | - | ||||||
Licensed Brands | 3,163 | (2,499) | - | ||||||
Corporate and Other(1) | 7,382 | (9,602) | - | ||||||
Operating income | 83,383 | 62,579 | |||||||
Other components of net periodic benefit cost (income) | 56 | (182) | |||||||
Interest, net | 517 | 912 | |||||||
Earnings from continuing operations before | |||||||||
income taxes | 82,810 | 61,849 | |||||||
Income tax expense (benefit) | 20,612 | (28,195) | - | ||||||
Earnings from continuing operations | 62,198 | 90,044 | |||||||
Loss from discontinued operations, net of tax | (58) | (126) | |||||||
Net Earnings | $ 62,140 | $ 89,918 | |||||||
(1)Includes an | |||||||||
Includes a | |||||||||
GENESCO INC. | |||||||||
Sales/Earnings Summary by Segment | |||||||||
(in thousands) | |||||||||
(Unaudited) | |||||||||
Fiscal Year Ended | Fiscal Year Ended | ||||||||
Jan. 29, | % of | Jan. 30, | % of | ||||||
2022 | Net Sales | 2021 | Net Sales | ||||||
Sales: | |||||||||
Journeys Group | |||||||||
Schuh Group | 423,560 | 305,941 | |||||||
Johnston & Murphy Group | 252,855 | 152,941 | |||||||
Licensed Brands | 169,194 | 99,694 | |||||||
Net Sales | |||||||||
Operating Income (Loss): | |||||||||
Journeys Group | $ 165,336 | $ 76,896 | |||||||
Schuh Group | 19,257 | (11,602) | - | ||||||
Johnston & Murphy Group | 7,029 | (47,624) | - | ||||||
Licensed Brands | 6,583 | (5,430) | - | ||||||
Corporate and Other(1) | (42,638) | - | (40,230) | - | |||||
Goodwill Impairment | - | (79,259) | - | ||||||
Operating income (loss) | 155,567 | (107,249) | - | ||||||
Other components of net periodic benefit cost (income) | 128 | (670) | |||||||
Interest, net | 2,448 | 5,090 | |||||||
Earnings (loss) from continuing operations before | |||||||||
income taxes | 152,991 | (111,669) | - | ||||||
Income tax expense (benefit) | 38,044 | (55,641) | - | ||||||
Earnings (loss) from continuing operations | 114,947 | (56,028) | - | ||||||
Loss from discontinued operations, net of tax | (97) | (401) | |||||||
Net Earnings (Loss) | $ 114,850 | $ (56,429) | - | ||||||
(1)Includes an | |||||||||
insurance gain, partially offset by | |||||||||
asset impairments. Includes an | |||||||||
a | |||||||||
GENESCO INC. | |||||||
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(Unaudited) | |||||||
Jan. 29, 2022 | Jan. 30, 2021 | ||||||
Assets | |||||||
Cash and cash equivalents | $ 320,525 | $ 215,091 | |||||
Accounts receivable | 39,509 | 31,410 | |||||
Inventories | 278,200 | 290,966 | |||||
Other current assets(1) | 71,564 | 130,128 | |||||
Total current assets | 709,798 | 667,595 | |||||
Property and equipment | 216,308 | 207,842 | |||||
Operating lease right of use assets | 543,789 | 621,727 | |||||
Goodwill and other intangibles | 68,411 | 69,479 | |||||
Other non-current assets | 23,793 | 20,725 | |||||
Total Assets | $ 1,562,099 | $ 1,587,368 | |||||
Liabilities and Equity | |||||||
Accounts payable | $ 152,484 | $ 150,437 | |||||
Current portion operating lease liabilities | 145,088 | 173,505 | |||||
Other current liabilities | 134,156 | 78,991 | |||||
Total current liabilities | 431,728 | 402,933 | |||||
Long-term debt | 15,679 | 32,986 | |||||
Long-term operating lease liabilities | 471,878 | 527,549 | |||||
Other long-term liabilities | 40,346 | 57,141 | |||||
Equity | 602,468 | 566,759 | |||||
Total Liabilities and Equity | $ 1,562,099 | $ 1,587,368 | |||||
(1)Includes prepaid income taxes of | |||||||
and January 30, 2021, respectively. | |||||||
GENESCO INC. | ||||||||||
Store Count Activity | ||||||||||
Balance | Balance | Balance | ||||||||
02/01/20 | Open | Close | 01/30/21 | Open | Close | 01/29/22 | ||||
Journeys Group | 1,171 | 8 | 20 | 1,159 | 5 | 29 | 1,135 | |||
Schuh Group | 129 | 1 | 7 | 123 | 0 | 0 | 123 | |||
Johnston & Murphy Group | 180 | 4 | 6 | 178 | 1 | 12 | 167 | |||
Total Retail Units | 1,480 | 13 | 33 | 1,460 | 6 | 41 | 1,425 | |||
GENESCO INC. | ||||||
Store Count Activity | ||||||
Balance | Balance | |||||
10/30/21 | Open | Close | 01/29/22 | |||
Journeys Group | 1,137 | 2 | 4 | 1,135 | ||
Schuh Group | 123 | 0 | 0 | 123 | ||
Johnston & Murphy Group | 174 | 0 | 7 | 167 | ||
Total Retail Units | 1,434 | 2 | 11 | 1,425 | ||
GENESCO INC. | ||||||||||
Comparable Sales(1) | ||||||||||
Quarter 4 | Fiscal Year Ended | |||||||||
Jan. 29, | Jan. 30, | Jan. 29, | Jan. 30, | |||||||
2022 | 2021 | 2022 | 2021 | |||||||
Journeys Group | NA | NA | ||||||||
Schuh Group | - | NA | NA | |||||||
Johnston & Murphy Group | - | NA | NA | |||||||
Total Comparable Sales | NA | NA | ||||||||
Same Store Sales | - | NA | NA | |||||||
Comparable Direct Sales | - | - | ||||||||
(1)As a result of store closures in response to the COVID-19 pandemic and the Company's policy of removing any store closed for seven consecutive days from comparable sales, the Company has not included comparable sales for Fiscal 2022 or Fiscal 2021, except for comparable direct sales, as it felt that overall sales was a more meaningful metric during these periods. | ||||||||||
GENESCO INC. | |||||||||
COVID-19 Related Items | |||||||||
Decrease (Increase) to Pretax Earnings | |||||||||
(in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter 4 | Fiscal Year Ended | ||||||||
Jan. 29, | Jan. 30, | Jan. 29, | Jan. 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||||
Goodwill impairment | $ - | $ - | $ - | $ 79,259 | |||||
Incremental retail store asset impairment(1) | - | 1,471 | - | 11,036 | |||||
Trademark impairment(1) | - | - | - | 5,260 | |||||
Release of Togast earnout(1) | - | - | - | (441) | |||||
Excess inventory(2) and (3) | (2,009) | 3,240 | (5,445) | 8,568 | |||||
Excess freight & logistics costs(3) | 8,670 | - | 12,720 | - | |||||
Non-productive compensation(4) and (5) | - | 3,637 | (334) | 10,899 | |||||
UK property tax relief(4) | (1,254) | (3,879) | (9,730) | (13,291) | |||||
Other governmental relief(4) and (6) | (40) | - | (5,231) | - | |||||
Rent abatements and temporary rent concessions(4) and (7) | (3,857) | (23,146) | (17,278) | (34,299) | |||||
Incremental bad debt reserve(4) | - | (364) | - | 2,633 | |||||
Other(4) and (8) | - | 415 | - | 1,584 | |||||
Total COVID-19 Related Items | $ 1,510 | $ (18,626) | $ (25,298) | $ 71,208 | |||||
(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 as well as sell through of inventory previously reserved. | |||||||||
(3)Included in cost of sales on the Condensed Consolidated Statements of Operations. | |||||||||
(4)Included in selling and administrative expenses on the Condensed Consolidated Statements of Operations. | |||||||||
(5)Certain compensation paid to furloughed workers and commission based associates, net of the CARES Act, and U.K., ROI and Canadian government relief. | |||||||||
(6)Includes U.K. and ROI Relief Grants and Canadian rent subsidy. | |||||||||
(7)Estimated impact of abatements and temporary rent savings agreements that are being recognized when executed if they pertain to a prior period. | |||||||||
(8)Includes primarily severance and increased cleaning and personal protective equipment expenses in the fourth quarter and year of Fiscal 2021 and is partially offset by the reversal of percentage rent for Fiscal 2021. | |||||||||
Schedule B | |||||||||||||
Genesco Inc. | |||||||||||||
Adjustments to Reported Earnings (Loss) from Continuing Operations | |||||||||||||
Three Months Ended January 29, 2022, January 30, 2021 and February 1, 2020 | |||||||||||||
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 4 | Quarter 4 | Quarter 4 | |||||||||||
January 29, 2022 | January 30, 2021 | February 1, 2020 | |||||||||||
Net of | Per Share | Net of | Per Share | Net of | Per Share | ||||||||
In Thousands (except per share amounts) | Pretax | Tax | Amounts | Pretax | Tax | Amounts | Pretax | Tax | Amounts | ||||
Earnings from continuing operations, as reported | $ 62,198 | $ 90,044 | $ 35,515 | ||||||||||
Asset impairments and other adjustments: | |||||||||||||
Retail store and intangible asset impairment charges | $ - | 6 | 0.00 | $ 2,729 | 4,014 | 0.28 | $ 1,258 | 965 | 0.07 | ||||
Fees related to shareholder activist | (25) | 23 | 0.00 | - | - | 0.00 | - | - | 0.00 | ||||
Expenses related to new HQ building | 1,093 | 794 | 0.05 | - | - | 0.00 | - | - | 0.00 | ||||
Gain on sale of warehouse | (18,085) | (12,893) | (0.91) | - | - | 0.00 | - | - | 0.00 | ||||
Insurance gain | - | (3) | 0.00 | - | - | 0.00 | - | - | 0.00 | ||||
Trademark impairment | - | - | 0.00 | - | 24 | 0.00 | - | - | 0.00 | ||||
Pension settlement | - | - | 0.00 | - | - | 0.00 | 11,510 | 8,409 | 0.59 | ||||
Gain on lease terminations | - | - | 0.00 | - | - | 0.00 | (502) | (366) | (0.03) | ||||
Acquisition expenses | - | - | 0.00 | - | - | 0.00 | 2,474 | 1,808 | 0.13 | ||||
Gain on sale of Lids building | - | - | 0.00 | - | - | 0.00 | (586) | (428) | (0.03) | ||||
Release Togast earnout | - | - | 0.00 | - | (25) | 0.00 | - | - | 0.00 | ||||
Change in vacation policy | - | - | 0.00 | (616) | (639) | (0.04) | - | - | 0.00 | ||||
Gain on Hurricane Maria | - | - | 0.00 | - | - | 0.00 | (149) | (110) | (0.01) | ||||
Total asset impairments and other adjustments | $ (17,017) | (12,073) | (0.86) | $ 2,113 | 3,374 | 0.24 | $ 14,005 | 10,278 | 0.72 | ||||
Income tax expense adjustments: | |||||||||||||
Discrete tax items provided by the CARES Act | - | 0.00 | (41,678) | (2.87) | - | 0.00 | |||||||
IRC Section 165 (g) 3 deduction for an outside basis difference for GCO Canada | - | 0.00 | (12,811) | (0.88) | - | 0.00 | |||||||
Other tax items | (998) | (0.07) | 1,058 | 0.07 | (1,719) | (0.12) | |||||||
Total income tax expense adjustments | (998) | (0.07) | (53,431) | (3.68) | (1,719) | (0.12) | |||||||
Adjusted earnings from continuing operations(1)and(2) | $ 49,127 | $ 39,987 | $ 44,074 | ||||||||||
(1)The adjusted tax rate for the fourth quarter of Fiscal 2022, 2021 and 2020 is | |||||||||||||
(2)EPS reflects 14.1 million, 14.5 million and 14.3 million share count for the fourth quarter of Fiscal 2022, 2021 and 2020, respectively, which includes common stock equivalents in each period. | |||||||||||||
Genesco Inc. | ||||
Adjustments to Reported Operating Income (Loss) and Selling and Administrative Expenses | ||||
Three Months Ended January 29, 2022, January 30, 2021 and February 1, 2020 | ||||
Quarter 4 - January 29, 2022 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
Journeys Group | $ 58,441 | $ - | $ 58,441 | |
Schuh Group | 9,780 | - | 9,780 | |
Johnston & Murphy Group | 4,617 | - | 4,617 | |
Licensed Brands | 3,163 | - | 3,163 | |
Corporate and Other | 7,382 | (17,017) | (9,635) | |
Total Operating Income | $ 83,383 | $ (17,017) | $ 66,366 | |
% of sales | ||||
Quarter 4 - January 30, 2021 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
Journeys Group | $ 79,784 | $ (263) | $ 79,521 | |
Schuh Group | 3,556 | - | 3,556 | |
Johnston & Murphy Group | (8,660) | (96) | (8,756) | |
Licensed Brands | (2,499) | (39) | (2,538) | |
Corporate and Other | (9,602) | 2,511 | (7,091) | |
Total Operating Income | $ 62,579 | $ 2,113 | $ 64,692 | |
% of sales | ||||
Quarter 4 - February 1, 2020 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
Journeys Group | $ 55,685 | $ - | $ 55,685 | |
Schuh Group | 5,679 | - | 5,679 | |
Johnston & Murphy Group | 7,363 | - | 7,363 | |
Licensed Brands | (849) | - | (849) | |
Corporate and Other | (22,549) | 14,005 | (8,544) | |
Total Operating Income | $ 45,329 | $ 14,005 | $ 59,334 | |
% of sales | ||||
Quarter 4 | ||||
In Thousands | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 1, 2020 | |
Selling and administrative expenses, as reported | $ 290,478 | $ 226,511 | $ 260,612 | |
Expenses related to new HQ building | (1,093) | - | - | |
Change in vacation policy | - | 616 | - | |
Acquisition expenses | - | - | (2,474) | |
Total adjustments | (1,093) | 616 | (2,474) | |
Adjusted selling and administrative expenses | $ 289,385 | $ 227,127 | $ 258,138 | |
% of sales | ||||
Schedule B | |||||||||||||
Genesco Inc. | |||||||||||||
Adjustments to Reported Earnings (Loss) from Continuing Operations | |||||||||||||
Fiscal Year Ended January 29, 2022, January 30, 2021 and February 1, 2020 | |||||||||||||
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. | |||||||||||||
Fiscal Year Ended | Fiscal Year Ended | Fiscal Year Ended | |||||||||||
January 29, 2022 | January 30, 2021 | February 1, 2020 | |||||||||||
Net of | Per Share | Net of | Per Share | Net of | Per Share | ||||||||
In Thousands (except per share amounts) | Pretax | Tax | Amounts | Pretax | Tax | Amounts | Pretax | Tax | Amounts | ||||
Earnings (loss) from continuing operations, as reported | $ 114,947 | $ (56,028) | ( | $ 61,757 | |||||||||
Asset impairments and other adjustments: | |||||||||||||
Retail store and intangible asset impairment charges | $ 2,049 | 1,694 | 0.12 | $ 13,863 | 11,892 | 0.84 | $ 3,095 | 2,261 | 0.14 | ||||
Fees related to shareholder activist | 8,558 | 6,101 | 0.42 | - | - | 0.00 | - | - | 0.00 | ||||
Expenses related to new HQ building | 4,004 | 2,855 | 0.20 | - | - | 0.00 | - | - | 0.00 | ||||
Gain on sale of warehouse | (18,085) | (12,893) | (0.89) | - | - | 0.00 | - | - | 0.00 | ||||
Insurance gain | (578) | (412) | (0.03) | - | - | 0.00 | - | - | 0.00 | ||||
Trademark impairment | - | - | 0.00 | 5,260 | 5,177 | 0.36 | - | - | 0.00 | ||||
Goodwill impairment | - | - | 0.00 | 79,259 | 79,259 | 5.58 | - | - | 0.00 | ||||
Release Togast earnout | - | - | 0.00 | (441) | (348) | (0.03) | - | - | 0.00 | ||||
Change in vacation policy | - | - | 0.00 | (2,464) | (1,947) | (0.14) | - | - | 0.00 | ||||
Pension settlement | - | - | 0.00 | - | - | 0.00 | 11,510 | 8,409 | 0.54 | ||||
Acquisition expenses | - | - | 0.00 | - | - | 0.00 | 2,474 | 1,808 | 0.12 | ||||
Gain on sale of Lids building | - | - | 0.00 | - | - | 0.00 | (586) | (428) | (0.03) | ||||
Gain on lease terminations | - | - | 0.00 | - | - | 0.00 | (458) | (335) | (0.02) | ||||
Gain on Hurricane Maria | - | - | 0.00 | - | - | 0.00 | (187) | (137) | (0.01) | ||||
Total asset impairments and other adjustments | $ (4,052) | (2,655) | (0.18) | $ 95,477 | 94,033 | 6.61 | $ 15,848 | 11,578 | 0.74 | ||||
Income tax expense adjustments: | |||||||||||||
Tax impact share based awards | (1,747) | (0.12) | 1,129 | 0.08 | (54) | 0.00 | |||||||
Discrete tax items provided by the CARES Act | - | 0.00 | (46,379) | (3.26) | - | 0.00 | |||||||
IRC Section 165 (g) 3 deduction for an outside basis difference for GCO Canada | - | 0.00 | (12,811) | (0.90) | - | 0.00 | |||||||
Other tax items | 17 | 0.00 | 3,326 | 0.23 | (1,475) | (0.10) | |||||||
Total income tax expense adjustments | (1,730) | (0.12) | (54,735) | (3.85) | (1,529) | (0.10) | |||||||
Adjusted earnings (loss) from continuing operations(1)and(2) | $ 110,562 | $ (16,730) | ( | $ 71,806 | |||||||||
(1)The adjusted tax rate for Fiscal 2022, 2021 and 2020 is | |||||||||||||
(2)EPS reflects 14.5 million, 14.2 million and 15.7 million share count for Fiscal 2022, 2021 and 2020, respectively, which includes common stock equivalents in Fiscal 2022 and Fiscal 2020 and excludes common stock equivalents in Fiscal 2021 due to the loss from continuing operations. | |||||||||||||
Genesco Inc. | ||||
Adjustments to Reported Operating Income (Loss) and Selling and Administrative Expenses | ||||
Fiscal Year Ended January 29, 2022, January 30, 2021 and February 1, 2020 | ||||
Fiscal Year Ended January 29, 2022 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
Journeys Group | $ 165,336 | $ - | $ 165,336 | |
Schuh Group | 19,257 | - | 19,257 | |
Johnston & Murphy Group | 7,029 | - | 7,029 | |
Licensed Brands | 6,583 | - | 6,583 | |
Corporate and Other | (42,638) | (4,052) | (46,690) | |
Total Operating Income | $ 155,567 | $ (4,052) | $ 151,515 | |
% of sales | ||||
Fiscal Year Ended January 30, 2021 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
Journeys Group | $ 76,896 | $ (1,052) | $ 75,844 | |
Schuh Group | (11,602) | - | (11,602) | |
Johnston & Murphy Group | (47,624) | (384) | (48,008) | |
Licensed Brands | (5,430) | (156) | (5,586) | |
Goodwill Impairment | (79,259) | 79,259 | - | |
Corporate and Other | (40,230) | 17,810 | (22,420) | |
Total Operating Loss | $ (107,249) | $ 95,477 | $ (11,772) | |
% of sales | - | - | ||
Fiscal Year Ended February 1, 2020 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
Journeys Group | $ 114,945 | $ - | $ 114,945 | |
Schuh Group | 4,659 | - | 4,659 | |
Johnston & Murphy Group | 17,702 | - | 17,702 | |
Licensed Brands | (698) | - | (698) | |
Corporate and Other | (53,290) | 15,848 | (37,442) | |
Total Operating Income | $ 83,318 | $ 15,848 | $ 99,166 | |
% of sales | ||||
Fiscal Year Ended | ||||
In Thousands | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 1, 2020 | |
Selling and administrative expenses, as reported | $ 1,033,625 | $ 813,775 | $ 966,423 | |
Expenses related to new HQ building | (4,004) | - | - | |
Change in vacation policy | - | 2,464 | - | |
Acquisition expenses | - | - | (2,474) | |
Total adjustments | (4,004) | 2,464 | (2,474) | |
Adjusted selling and administrative expenses | $ 1,029,621 | $ 816,239 | $ 963,949 | |
% of sales | ||||
Schedule B | |||||
Genesco Inc. | |||||
Adjustments to Forecasted Earnings from Continuing Operations | |||||
Fiscal Year Ending January 28, 2023 | |||||
In millions (except per share amounts) | High Guidance | Low Guidance | |||
Fiscal 2023 | Fiscal 2023 | ||||
Net of Tax | Per Share | Net of Tax | Per Share | ||
Forecasted earnings from continuing operations | $ 101.3 | $ 7.55 | $ 90.9 | $ 6.78 | |
Asset impairments and other adjustments: | |||||
Retail store asset impairments and other matters | 1.2 | 0.09 | 1.5 | 0.11 | |
New building costs | 1.4 | 0.11 | 1.4 | 0.11 | |
Total asset impairments and other adjustments(1) | 2.6 | 0.20 | 2.9 | 0.22 | |
Adjusted forecasted earnings from continuing operations (2) | $ 103.9 | $ 7.75 | $ 93.8 | $ 7.00 | |
(1)All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2023 is approximately | |||||
(2)EPS reflects 13.4 million share count for Fiscal 2023 which includes common stock equivalents. | |||||
This reconciliation reflects estimates and current expectations of future results. Actual results may vary materially from these expectations and estimates, for reasons including those included in the discussion of forward-looking statements elsewhere in this release. The Company disclaims any obligation to update such expectations and estimates. | |||||
View original content:https://www.prnewswire.com/news-releases/genesco-inc-reports-fiscal-2022-fourth-quarter-and-full-year-results-301499700.html
SOURCE Genesco Inc.
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