Genesco Inc. Reports Fiscal 2022 Third Quarter Results
Genesco reported a strong third quarter for Fiscal 2022 with net sales up 25% year-over-year to $601 million. Both GAAP and non-GAAP operating income surged by 69% compared to two years ago. The company's GAAP EPS rose to $2.26 from $0.52 last year, while non-GAAP EPS reached $2.36 compared to $0.85 last year. E-commerce sales soared by 79% over the last two years. Genesco anticipates FY2022 adjusted EPS between $6.40 and $6.90, indicating a 45% growth compared to pre-pandemic levels.
- Net sales increased 25% to $601 million.
- GAAP EPS from continuing operations rose to $2.26.
- Non-GAAP EPS from continuing operations climbed to $2.36.
- E-commerce sales grew by 79% compared to two years ago.
- Return of $31 million in capital to shareholders through stock repurchase.
- None.
NASHVILLE, Tenn., Dec. 3, 2021 /PRNewswire/ --
Third Quarter Fiscal 2022 Financial Summary
- Net sales increased
25% from last year to$601 million - Net sales increased
12% over the third quarter two years ago - GAAP and Non-GAAP operating income both increased
69% over third quarter two years ago - Same store sales increased
25% over last year, store sales above pre-pandemic levels - E-commerce sales increased
79% from third quarter two years ago - Returned capital to shareholders with the repurchase of
$31 million in stock - GAAP EPS from continuing operations increased to
$2.26 vs.$0.52 last year and$1.31 two years ago - Non-GAAP EPS from continuing operations increased to
$2.36 1 vs.$0.85 last year and$1.33 two years ago
Genesco Inc. (NYSE: GCO) today reported GAAP earnings from continuing operations per diluted share of
Mimi E. Vaughn, Genesco board chair, president and chief executive officer, said, "Building off a very strong first half of Fiscal 2022, our excellent results this quarter were fueled by an outstanding back-to-school season in the United States and United Kingdom, reinforcing Journeys' and Schuh's positions as the leading destinations for teen and youth fashion footwear. We were especially pleased with the performance of our stores, as sales in our current fleet were up for the first time since prior to the pandemic. The improvement in traffic trends bolsters our view that teens like to shop in person, making our stores strategic assets that work in tandem with our digital capabilities, serving our customers whenever and wherever they choose to engage with our brands. Turning to the current quarter, we have been very pleased with our results to date, as sales tracked nicely ahead of pre-pandemic levels in November, and we are now into the all-important holiday selling season. Given the recovery and confidence we have in our business, we are returning to giving guidance. We expect adjusted earnings for Fiscal 2022 to be between
____________________ |
1Excludes retail store asset impairments, professional fees related to the actions of a shareholder activist and expenses related to the Company's new headquarters building, net of tax effect in the third quarter 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. |
"We entered the pandemic in a position of strength, are navigating the pandemic well, and believe we will enter the post pandemic phase even stronger. Our exceptional year-to-date results highlight the great execution by our teams, our strong vendor relationships, close consumer connections, and the strategic advantages enabled through our footwear focused strategy. Our opportunity to unlock value in Genesco is to further accelerate the digital and omnichannel growth in our retail business and to meaningfully grow our branded side."
Thomas A. George, Genesco chief financial officer, commented, "Our third quarter results exceeded our expectations and were well above pre-pandemic levels. Strong sales growth, solid gross margins, and well managed expenses fueled a
Store Re-Opening Update
As of October 30, 2021, the Company is operating substantially all locations.
Third Quarter Review
Net sales for the third quarter of Fiscal 2022 increased
Comparable Sales | ||
Comparable Same Store and Direct Sales: | 3QFY22 | 3QFY21 |
Journeys Group | (6)% | |
Schuh Group | ||
Johnston & Murphy Group | (43)% | |
Total Genesco Comparable Sales | (9)% | |
Same Store Sales | (18)% | |
Comparable Direct Sales |
Overall sales for the third quarter this year compared to the third quarter of Fiscal 2021 were up
Third quarter gross margin this year was
GAAP selling and administrative expense for the third quarter this year decreased 220 basis points as a percentage of sales compared with last year and decreased 240 basis points compared with the third quarter of Fiscal 2020. Adjusted selling and administrative expense for the third quarter this year decreased 250 basis points as a percentage of sales compared with last year and decreased 260 basis points compared with the third quarter of Fiscal 2020. The decrease from Fiscal 2020 is due primarily to reduced occupancy expense, along with selling salaries and depreciation, partially offset by increased marketing expenses. The reduction in occupancy expense is driven in part by rent abatement agreements with landlords and savings from government programs in Canada and the U.K.
Genesco's GAAP operating income for the third quarter was
The effective tax rate for the quarter was
GAAP earnings from continuing operations were
Adjusted for the Excluded Items in all periods, third quarter earnings from continuing operations were
Cash, Borrowings and Inventory
Cash and cash equivalents as of October 30, 2021, were
Capital Expenditures and Store Activity
For the third quarter, capital expenditures were
Share Repurchases
The Company repurchased 521,693 shares during the third quarter of Fiscal 2022 at a cost of
Fiscal 2022 Outlook
For Fiscal 2022, the Company expects:
- Sales to be up
9% to11% , compared to Fiscal 2020 - Adjusted diluted earnings per share from continuing operations in the range of
$6.40 to$6.90 , which represents growth of approximately45% at the mid-point compared to Fiscal 2020, with an expectation that earnings per share for the year will be near the mid-point of the range.
Please refer to the Q3FY22 conference call and Q3FY22 Summary Results presentation for details regarding guidance assumptions, including assumptions regarding COVID-19 and effects on the Company's supply chain.
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 3, 2021, 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, expectations with respect to sales, earnings, growth, returning capital to shareholders 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," "should," "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, store closures due to COVID-19, weakness in store and shopping mall traffic, timing of in person back-to-work and back-to-school and sales with respect thereto, expectations regarding the COVID-19 vaccine rollout and acceptance, 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. Differences from expectations could also result from store 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 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 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 timing and amount of share repurchases; the Company's ability to realize anticipated cost savings, including rent savings; 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; changes to U.S. tax laws impacting the Company's tax liabilities; 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 retail and branded company, sells footwear and accessories in more than 1,430 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.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 3 | Quarter 3 | ||||||||
Oct. 30, | % of | Oct. 31, | % of | ||||||
2021 | Net Sales | 2020 | Net Sales | ||||||
Net sales | $ 600,546 | ||||||||
Cost of sales | 305,345 | 253,776 | |||||||
Gross margin | 295,201 | 225,504 | |||||||
Selling and administrative expenses | 251,131 | 210,961 | |||||||
Asset impairments and other, net | 314 | 6,359 | |||||||
Operating income | 43,756 | 8,184 | |||||||
Other components of net periodic benefit cost (income) | 55 | (182) | |||||||
Interest expense, net | 585 | 1,404 | |||||||
Earnings from continuing operations before | |||||||||
income taxes | 43,116 | 6,962 | |||||||
Income tax expense (benefit) | 10,135 | (514) | - | ||||||
Earnings from continuing operations | 32,981 | 7,476 | |||||||
Loss from discontinued operations, net of tax | (86) | (10) | |||||||
Net Earnings | $ 32,895 | $ 7,466 | |||||||
Basic earnings per share: | |||||||||
Before discontinued operations | $ 2.30 | $ 0.52 | |||||||
Net earnings | $ 2.30 | $ 0.52 | |||||||
Diluted earnings per share: | |||||||||
Before discontinued operations | $ 2.26 | $ 0.52 | |||||||
Net earnings | $ 2.25 | $ 0.52 | |||||||
Weighted-average shares outstanding: | |||||||||
Basic | 14,314 | 14,283 | |||||||
Diluted | 14,616 | 14,362 | |||||||
GENESCO INC. | |||||||||
Condensed Consolidated Statements of Operations | |||||||||
(in thousands, except per share data) | |||||||||
(Unaudited) | |||||||||
Nine Months Ended | Nine Months Ended | ||||||||
Oct. 30, | % of | Oct. 31, | % of | ||||||
2021 | Net Sales | 2020 | Net Sales | ||||||
Net sales | |||||||||
Cost of sales | 869,039 | 637,081 | |||||||
Gross margin | 825,385 | 512,648 | |||||||
Selling and administrative expenses | 743,147 | 587,264 | |||||||
Goodwill impairment | - | 79,259 | |||||||
Asset impairments and other, net | 10,054 | 15,953 | |||||||
Operating income (loss) | 72,184 | (169,828) | - | ||||||
Other components of net periodic benefit cost (income) | 72 | (488) | |||||||
Interest expense, net | 1,931 | 4,178 | |||||||
Earnings (loss) from continuing operations before | |||||||||
income taxes | 70,181 | (173,518) | - | ||||||
Income tax expense (benefit) | 17,432 | (27,446) | - | ||||||
Earnings (loss) from continuing operations | 52,749 | (146,072) | - | ||||||
Loss from discontinued operations, net of tax | (39) | (275) | |||||||
Net Earnings (Loss) | $ 52,710 | $ (146,347) | - | ||||||
Basic earnings (loss) per share: | |||||||||
Before discontinued operations | $ 3.69 | $ (10.29) | |||||||
Net earnings (loss) | $ 3.68 | $ (10.31) | |||||||
Diluted earnings (loss) per share: | |||||||||
Before discontinued operations | $ 3.60 | $ (10.29) | |||||||
Net earnings (loss) | $ 3.60 | $ (10.31) | |||||||
Weighted-average shares outstanding: | |||||||||
Basic | 14,313 | 14,191 | |||||||
Diluted | 14,643 | 14,191 | |||||||
GENESCO INC. | |||||||||
Sales/Earnings Summary by Segment | |||||||||
(in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter 3 | Quarter 3 | ||||||||
Oct. 30, | % of | Oct. 31, | % of | ||||||
2021 | Net Sales | 2020 | Net Sales | ||||||
Sales: | |||||||||
Journeys Group | $ 379,927 | ||||||||
Schuh Group | 119,791 | 90,021 | |||||||
Johnston & Murphy Group | 66,835 | 39,655 | |||||||
Licensed Brands | 33,993 | 31,922 | |||||||
Net Sales | $ 600,546 | ||||||||
Operating Income (Loss): | |||||||||
Journeys Group | $ 43,403 | $ 24,035 | |||||||
Schuh Group | 9,701 | 6,766 | |||||||
Johnston & Murphy Group | 1,641 | (11,137) | - | ||||||
Licensed Brands | (132) | - | 792 | ||||||
Corporate and Other(1) | (10,857) | - | (12,272) | - | |||||
Operating income | 43,756 | 8,184 | |||||||
Other components of net periodic benefit cost (income) | 55 | (182) | |||||||
Interest, net | 585 | 1,404 | |||||||
Earnings from continuing operations before | |||||||||
income taxes | 43,116 | 6,962 | |||||||
Income tax expense (benefit) | 10,135 | (514) | - | ||||||
Earnings from continuing operations | 32,981 | 7,476 | |||||||
Loss from discontinued operations, net of tax | (86) | (10) | |||||||
Net Earnings | $ 32,895 | $ 7,466 | |||||||
(1)Includes a | |||||||||
| |||||||||
Fiscal 2021 for retail store asset impairments. | |||||||||
GENESCO INC. | |||||||||
Sales/Earnings Summary by Segment | |||||||||
(in thousands) | |||||||||
(Unaudited) | |||||||||
Nine Months Ended | Nine Months Ended | ||||||||
Oct. 30, | % of | Oct. 31, | % of | ||||||
2021 | Net Sales | 2020 | Net Sales | ||||||
Sales: | |||||||||
Journeys Group | $ 763,238 | ||||||||
Schuh Group | 294,581 | 208,918 | |||||||
Johnston & Murphy Group | 176,756 | 102,601 | |||||||
Licensed Brands | 120,337 | 74,972 | |||||||
Net Sales | |||||||||
Operating Income (Loss): | |||||||||
Journeys Group | $ 106,895 | $ (2,888) | - | ||||||
Schuh Group | 9,477 | (15,158) | - | ||||||
Johnston & Murphy Group | 2,412 | (38,964) | - | ||||||
Licensed Brands | 3,420 | (2,931) | - | ||||||
Corporate and Other(1) | (50,020) | - | (30,628) | - | |||||
Goodwill Impairment | - | (79,259) | - | ||||||
Operating income (loss) | 72,184 | (169,828) | - | ||||||
Other components of net periodic benefit cost (income) | 72 | (488) | |||||||
Interest, net | 1,931 | 4,178 | |||||||
Earnings (loss) from continuing operations before | |||||||||
income taxes | 70,181 | (173,518) | - | ||||||
Income tax expense (benefit) | 17,432 | (27,446) | - | ||||||
Earnings (loss) from continuing operations | 52,749 | (146,072) | - | ||||||
Loss from discontinued operations, net of tax | (39) | (275) | |||||||
Net Earnings (Loss) | $ 52,710 | $ (146,347) | - | ||||||
(1)Includes a | |||||||||
of a shareholder activist and | |||||||||
million charge in the first nine months of Fiscal 2021 which includes a | |||||||||
for retail store asset impairments, partially offset by a | |||||||||
GENESCO INC. | ||||||
Condensed Consolidated Balance Sheets | ||||||
(in thousands) | ||||||
(Unaudited) | ||||||
Oct. 30, 2021 | Oct. 31, 2020 | |||||
Assets | ||||||
Cash and cash equivalents | $ 282,764 | $ 115,061 | ||||
Accounts receivable | 36,991 | 35,592 | ||||
Inventories | 339,198 | 370,699 | ||||
Other current assets(1) | 85,476 | 62,606 | ||||
Total current assets | 744,429 | 583,958 | ||||
Property and equipment | 207,489 | 210,834 | ||||
Operating lease right of use assets | 573,842 | 640,078 | ||||
Goodwill and other intangibles | 69,456 | 67,793 | ||||
Other non-current assets | 21,593 | 33,837 | ||||
Total Assets | $ 1,616,809 | $ 1,536,500 | ||||
Liabilities and Equity | ||||||
Accounts payable | $ 196,024 | $ 151,978 | ||||
Current portion operating lease liabilities | 144,453 | 196,603 | ||||
Other current liabilities | 133,569 | 84,061 | ||||
Total current liabilities | 474,046 | 432,642 | ||||
Long-term debt | 15,610 | 32,850 | ||||
Long-term operating lease liabilities | 490,330 | 560,082 | ||||
Other long-term liabilities | 44,399 | 40,954 | ||||
Equity | 592,424 | 469,972 | ||||
Total Liabilities and Equity | $ 1,616,809 | $ 1,536,500 | ||||
(1)Includes prepaid income taxes of | ||||||
GENESCO INC. | |||||||||||
Store Count Activity | |||||||||||
Balance | Balance | Balance | |||||||||
02/01/20 | Open | Close | 01/30/21 | Open | Close | 10/30/21 | |||||
Journeys Group | 1,171 | 8 | 20 | 1,159 | 3 | 25 | 1,137 | ||||
Schuh Group | 129 | 1 | 7 | 123 | 0 | 0 | 123 | ||||
Johnston & Murphy Group | 180 | 4 | 6 | 178 | 1 | 5 | 174 | ||||
Total Retail Units | 1,480 | 13 | 33 | 1,460 | 4 | 30 | 1,434 | ||||
GENESCO INC. | |||||||||||
Store Count Activity | |||||||||||
Balance | Balance | ||||||||||
07/31/21 | Open | Close | 10/30/21 | ||||||||
Journeys Group | 1,142 | 0 | 5 | 1,137 | |||||||
Schuh Group | 123 | 0 | 0 | 123 | |||||||
Johnston & Murphy Group | 174 | 0 | 0 | 174 | |||||||
Total Retail Units | 1,439 | 0 | 5 | 1,434 | |||||||
GENESCO INC. | |||||||||||
Comparable Sales(1) | |||||||||||
Quarter 3 | Nine Months | ||||||||||
Oct. 30, | Oct. 31, | Oct. 30, | Oct. 31, | ||||||||
2021 | 2020 | 2021 | 2020 | ||||||||
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 the | |||||||||||
nine months this year and last year, 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 3 | Nine Months Ended | ||||||||
Oct. 30, | Oct. 31, | Oct. 30, | Oct. 31, | ||||||
2021 | 2020 | 2021 | 2020 | ||||||
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) | |||||
Excess inventory(2) and (3) | (1,610) | 1,051 | (3,436) | 5,328 | |||||
Excess freight & logistics costs(3) | 4,050 | - | 4,050 | - | |||||
Non-productive compensation(4) and (5) | (134) | 2,574 | (334) | 7,262 | |||||
UK property tax relief(4) | (1,348) | (3,922) | (8,476) | (9,412) | |||||
Other governmental relief(4) and (6) | (804) | - | (5,191) | - | |||||
Rent abatements and temporary rent concessions(4) and (7) | (4,847) | (8,224) | (13,421) | (11,153) | |||||
Incremental bad debt reserve(4) | - | (67) | - | 2,998 | |||||
Other(4) and (8) | - | 275 | - | 1,169 | |||||
Total COVID-19 Related Items | $ (4,693) | $ (2,485) | $ (26,808) | $ 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 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 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 (Loss) from Continuing Operations | |||||||||||||
Three Months Ended October 30, 2021, 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 | |||||||||||||
Quarter 3 | Quarter 3 | Quarter 3 | |||||||||||
October 30, 2021 | October 31, 2020 | November 2, 2019 | |||||||||||
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 | $ 32,981 | $ 7,476 | $ 18,979 | ||||||||||
Asset impairments and other adjustments: | |||||||||||||
Retail store and intangible asset impairment charges | $ 225 | 162 | 0.01 | $ 6,359 | 4,337 | 0.30 | $ 799 | 633 | 0.04 | ||||
Fees related to shareholder activist | 89 | 85 | 0.00 | - | - | 0.00 | - | - | 0.00 | ||||
Expenses related to new HQ building | 1,157 | 824 | 0.06 | - | - | 0.00 | - | - | 0.00 | ||||
Insurance gain | - | (1) | 0.00 | - | - | 0.00 | - | - | 0.00 | ||||
Change in vacation policy | - | - | 0.00 | (616) | (394) | (0.02) | - | - | 0.00 | ||||
Loss on lease terminations | - | - | 0.00 | - | - | 0.00 | - | 3 | 0.00 | ||||
Gain on Hurricane Maria | - | - | 0.00 | - | - | 0.00 | - | (3) | 0.00 | ||||
Total asset impairments and other adjustments | $ 1,471 | 1,070 | 0.07 | $ 5,743 | 3,943 | 0.28 | $ 799 | 633 | 0.04 | ||||
Income tax expense adjustments: | |||||||||||||
Other tax items | 419 | 0.03 | 728 | 0.05 | (245) | (0.02) | |||||||
Total income tax expense adjustments | 419 | 0.03 | 728 | 0.05 | (245) | (0.02) | |||||||
Adjusted earnings from continuing operations(1)and(2) | $ 34,470 | $ 12,147 | $ 19,367 | ||||||||||
(1)The adjusted tax rate for the third quarter of Fiscal 2022, 2021 and 2020 is | |||||||||||||
(2)EPS reflects 14.6 million, 14.4 million and 14.5 million share count for the third 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 October 30, 2021, October 31, 2020 and November 2, 2019 | |||||||||||||
Quarter 3 - October 30, 2021 | |||||||||||||
Operating | Asset Impair | Adj Operating | |||||||||||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | ||||||||||
Journeys Group | $ 43,403 | $ - | $ 43,403 | ||||||||||
Schuh Group | 9,701 | - | 9,701 | ||||||||||
Johnston & Murphy Group | 1,641 | - | 1,641 | ||||||||||
Licensed Brands | (132) | - | (132) | ||||||||||
Corporate and Other | (10,857) | 1,471 | (9,386) | ||||||||||
Total Operating Income | $ 43,756 | $ 1,471 | $ 45,227 | ||||||||||
% of sales | |||||||||||||
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 | |||||||||||||
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 | |||||||||||||
Quarter 3 | |||||||||||||
In Thousands | Oct. 30, 2021 | Oct. 31, 2020 | Nov. 2, 2019 | ||||||||||
Selling and administrative expenses, as reported | $ 251,131 | $ 210,961 | $ 237,460 | ||||||||||
Expenses related to new HQ building | (1,157) | - | - | ||||||||||
Change in vacation policy | - | 616 | - | ||||||||||
Total adjustments | (1,157) | 616 | - | ||||||||||
Adjusted selling and administrative expenses | $ 249,974 | $ 211,577 | $ 237,460 | ||||||||||
% of sales | |||||||||||||
Schedule B | |||||||||||||
Genesco Inc. | |||||||||||||
Adjustments to Reported Earnings (Loss) from Continuing Operations | |||||||||||||
Nine Months Ended October 30, 2021, 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 | |||||||||||||
Nine Months | Nine Months | Nine Months | |||||||||||
October 30, 2021 | October 31, 2020 | November 2, 2019 | |||||||||||
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 | $ 52,749 | $ (146,072) | ( | $ 26,242 | |||||||||
Asset impairments and other adjustments: | |||||||||||||
Retail store and intangible asset impairment charges | $ 2,049 | 1,688 | 0.12 | $ 11,134 | 7,878 | 0.55 | $ 1,837 | 1,296 | 0.08 | ||||
Fees related to shareholder activist | 8,583 | 6,078 | 0.42 | - | - | 0.00 | - | - | 0.00 | ||||
Expenses related to new HQ building | 2,911 | 2,061 | 0.14 | - | - | 0.00 | - | - | 0.00 | ||||
Insurance gain | (578) | (409) | (0.03) | - | - | 0.00 | - | - | 0.00 | ||||
Trademark impairment | - | - | 0.00 | 5,260 | 5,153 | 0.36 | - | - | 0.00 | ||||
Goodwill impairment | - | - | 0.00 | 79,259 | 79,259 | 5.58 | - | - | 0.00 | ||||
Release Togast earnout | - | - | 0.00 | (441) | (323) | (0.02) | - | - | 0.00 | ||||
Change in vacation policy | - | - | 0.00 | (1,848) | (1,308) | (0.09) | - | - | 0.00 | ||||
Loss on lease terminations | - | - | 0.00 | - | - | 0.00 | 44 | 31 | 0.00 | ||||
Gain on Hurricane Maria | - | - | 0.00 | - | - | 0.00 | (38) | (27) | 0.00 | ||||
Total asset impairments and other adjustments | $ 12,965 | 9,418 | 0.65 | $ 93,364 | 90,659 | 6.38 | $ 1,843 | 1,300 | 0.08 | ||||
Income tax expense adjustments: | |||||||||||||
Tax impact share based awards | (1,747) | (0.12) | 1,129 | 0.08 | (54) | 0.00 | |||||||
Other tax items | 1,015 | 0.07 | (2,433) | (0.17) | 244 | 0.01 | |||||||
Total income tax expense adjustments | (732) | (0.05) | (1,304) | (0.09) | 190 | 0.01 | |||||||
Adjusted earnings (loss) from continuing operations(1)and(2) | $ 61,435 | $ (56,717) | ( | $ 27,732 | |||||||||
(1)The adjusted tax rate for the first nine months of Fiscal 2022, 2021 and 2020 is | |||||||||||||
(2)EPS reflects 14.6 million, 14.2 million and 16.1 million share count for the first nine months of Fiscal 2022, 2021 and 2020, respectively, which includes common stock equivalents in the first nine months of Fiscal 2022 and | |||||||||||||
Genesco Inc. | |||||||||||||
Adjustments to Reported Operating Income (Loss) and Selling and Administrative Expenses | |||||||||||||
Nine Months Ended October 30, 2021, October 31, 2020 and November 2, 2019 | |||||||||||||
Nine Months October 30, 2021 | |||||||||||||
Operating | Asset Impair | Adj Operating | |||||||||||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | ||||||||||
Journeys Group | $ 106,895 | $ - | $ 106,895 | ||||||||||
Schuh Group | 9,477 | - | 9,477 | ||||||||||
Johnston & Murphy Group | 2,412 | - | 2,412 | ||||||||||
Licensed Brands | 3,420 | - | 3,420 | ||||||||||
Corporate and Other | (50,020) | 12,965 | (37,055) | ||||||||||
Total Operating Income | $ 72,184 | $ 12,965 | $ 85,149 | ||||||||||
% of sales | |||||||||||||
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) | ||||||||||
Goodwill Impairment | (79,259) | 79,259 | - | ||||||||||
Corporate and Other | (30,628) | 15,299 | (15,329) | ||||||||||
Total Operating Loss | $ (169,828) | $ 93,364 | $ (76,464) | ||||||||||
% of sales | - | - | |||||||||||
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 | |||||||||||||
Nine Months | |||||||||||||
In Thousands | Oct. 30, 2021 | Oct. 31, 2020 | Nov. 2, 2019 | ||||||||||
Selling and administrative expenses, as reported | $ 743,147 | $ 587,264 | $ 705,811 | ||||||||||
Expenses related to new HQ building | (2,911) | - | - | ||||||||||
Change in vacation policy | - | 1,848 | - | ||||||||||
Total adjustments | (2,911) | 1,848 | - | ||||||||||
Adjusted selling and administrative expenses | $ 740,236 | $ 589,112 | $ 705,811 | ||||||||||
% of sales | |||||||||||||
Schedule B | ||||||
Genesco Inc. | ||||||
Adjustments to Forecasted Earnings from Continuing Operations | ||||||
Three Months Ending January 29, 2022 | ||||||
In millions (except per share amounts) | High Guidance | Low Guidance | ||||
Fiscal 2022 | Fiscal 2022 | |||||
Net of Tax | Per Share | Net of Tax | Per Share | |||
Forecasted earnings from continuing operations | $ 37.5 | $ 2.61 | $ 30.0 | $ 2.09 | ||
Asset impairments and other adjustments: | ||||||
Retail store asset impairments and other matters | 0.4 | 0.03 | 0.7 | 0.05 | ||
New building costs | 1.1 | 0.08 | 1.1 | 0.08 | ||
Total asset impairments and other adjustments (1) | 1.5 | 0.11 | 1.8 | 0.13 | ||
Adjusted forecasted earnings from continuing operations (2) | $ 39.0 | $ 2.72 | $ 31.8 | $ 2.22 | ||
(1)All adjustments are net of tax where applicable. The forecasted tax rate for the 4th quarter of Fiscal 2022 is approximately | ||||||
(2)EPS reflects 14.3 million share count for the 4th quarter of Fiscal 2022 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. |
Schedule B | |||||
Genesco Inc. | |||||
Adjustments to Forecasted Earnings from Continuing Operations | |||||
Fiscal Year Ending January 29, 2022 | |||||
In millions (except per share amounts) | High Guidance | Low Guidance | |||
Fiscal 2022 | Fiscal 2022 | ||||
Net of Tax | Per Share | Net of Tax | Per Share | ||
Forecasted earnings from continuing operations | $ 90.2 | $ 6.20 | $ 82.7 | $ 5.68 | |
Asset impairments and other adjustments: | |||||
Retail store asset impairments and other matters | 1.7 | 0.11 | 2.0 | 0.13 | |
New building costs | 3.1 | 0.22 | 3.1 | 0.22 | |
Fees related to shareholder activist | 6.1 | 0.42 | 6.1 | 0.42 | |
Total asset impairments and other adjustments(1) | 10.9 | 0.75 | 11.2 | 0.77 | |
Income tax expense adjustments | (0.7) | (0.05) | (0.7) | (0.05) | |
Adjusted forecasted earnings from continuing operations (2) | $ 100.4 | $ 6.90 | $ 93.2 | $ 6.40 | |
(1)All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2022 is approximately | |||||
(2)EPS reflects 14.6 million share count for Fiscal 2022 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-third-quarter-results-301436835.html
SOURCE Genesco Inc.